GUATEMALA · TRADE
Key Facts
- The country Guatemala is a Central American country governed by President Bernardo Arévalo, in office since January 2024, and a close US trade partner.
- What happened On Tuesday, 13 October, Congress removed a food label bill from its agenda, where it had been scheduled for a third debate.
- The US position The US Embassy said Guatemala-only warning labels would impose unnecessary costs on US and Guatemalan firms and raise basic food prices.
- The bill Initiative 5504, the Healthy Eating Promotion Law, was filed on 3 October 2018 and targets foods high in sugar, sodium and saturated fat.
- The trade stake US goods exports to Guatemala reached US$10.0 billion in 2025, leaving the United States with a US$4.8 billion goods surplus.
- Still open Lawmakers may summon food-security officials or send the bill back to a committee for a new report.
Guatemala’s food label bill, which would put warnings on packaged foods high in sugar, salt or fat, stalled in Congress on Tuesday, 13 October. Lawmakers pulled it from the agenda on the same day the US Embassy warned it would raise costs for American and Guatemalan companies.
The embassy argued that a labelling system written only for Guatemala would push up the price of the basic food basket. It urged a single regional label for Central America instead, a choice that matters to US food exporters selling across the region.
What Congress Did on Tuesday
The food label bill, formally Initiative 5504 or the Healthy Eating Promotion Law, was set for a third debate at Tuesday’s plenary session. The meeting of party bloc leaders that sets the agenda had put it on the list, the Guatemala City daily Prensa Libre reported.
Elmer Palencia, who heads the bloc of the conservative Valor party, proposed taking it off the agenda so that some points could be reviewed. Valor’s 2023 presidential candidate was Zury Ríos, daughter of former military ruler Efraín Ríos Montt.
Jairo Flores, head of the bloc of the VOS party (Will, Opportunity and Solidarity) and one of the bill’s sponsors, backed the move. According to the news site Soy502, he insisted the law is not meant to push up prices but to curb obesity, hypertension and kidney disease.
Most lawmakers present then voted for the amended agenda, so the bill never reached a debate on its content. The withdrawal does not kill the food label bill, which was filed on 3 October 2018 and has now waited eight years.
Options under discussion include summoning SESAN, the government’s food and nutrition security secretariat, or sending the text back to a committee. Flores also proposed hearing representatives of INCAP, the Institute of Nutrition of Central America and Panama.
What the US Embassy Said
The embassy posted its warning on X on Tuesday, pointing to a new CID Gallup survey on the economic pressure facing Guatemalan families. “Congress should not make life even more expensive for Guatemalans,” the embassy wrote in Spanish.
In that poll, published with the Guatemalan foundation Fundación Libertad y Desarrollo, 76% said living costs had risen a lot over the past four months. The firm interviewed 1,213 people between 12 September and 1 October, with a margin of error of 2.8 points.
It said a food-labelling system exclusive to Guatemala “will impose unnecessary costs on American and Guatemalan companies.” In the end, the embassy added, “that cost will raise the price of the basic food basket for Guatemalan families.”
As an alternative, it backed “a regional labelling system for Central America” that informs consumers without harming the prosperity both countries share. The Guatemala City newspaper La Hora reported that Congress dropped the bill from the agenda after the statement appeared.
What the Food Label Bill Would Require
The food label bill would require front-of-pack nutrition warnings on pre-packaged foods sold in Guatemala. The aim is to let shoppers spot products with high levels of sugar, sodium and saturated fat at a glance.
La Hora reported that the text also covers trans fats and food advertising aimed at children. The Guatemalan Chamber of Food and Beverages has told lawmakers it wants a regional rule rather than a national one, the paper added.
In April 2024, according to La Hora, the economy ministry said business groups and a congressional committee had agreed on amendments. These were meant to bring the bill closer to a draft Central American technical regulation on front-of-pack labelling and avoid barriers to regional trade.
Why Washington Cares
US goods exports to Guatemala rose 4.2% to US$10.0 billion in 2025, according to the Office of the US Trade Representative. That left the United States with a US$4.8 billion surplus in goods trade with the country.
Both countries belong to CAFTA-DR, the free trade agreement between the United States, five Central American nations and the Dominican Republic. The pact took effect for Guatemala on 1 July 2006.
On 30 January 2026 the two governments also signed a separate reciprocal trade agreement in Washington. In it, Guatemala agreed its technical regulations must not “operate as disguised restrictions on bilateral trade,” though the embassy’s post did not cite the deal.
What It Means for You
For US food and drink companies, the industry argues, a Guatemala-only label would mean adapting packaging and processes for a single market. A shared Central American rule would let one package serve several neighbouring countries.
For shoppers, expats and visitors in Guatemala, nothing changes on supermarket shelves for now. Packaged food keeps its current labels until Congress passes a law and it takes effect.
For investors in packaged-food makers, the risk of a Guatemala-only label has eased for the moment. The food label bill remains alive, however, and could return to the plenary agenda at a later session.
What Is Not Known
It is not known when, or whether, the food label bill will return to the plenary for its third debate. Lawmakers floated summoning SESAN or a new committee review but announced no decision.
SESAN, which answers to President Bernardo Arévalo, told La Hora it is still preparing an institutional position on the bill. The embassy’s post gave no estimate of the costs it expects for companies or consumers.
It is also unclear when a common Central American front-of-pack rule, the alternative the embassy favours, could take effect. In September 2025, a deputy health minister told La Hora that a regional rule needs the consent of every country and that talks move slowly.
More: Guatemala news in English, every day from The Rio Times.
Frequently Asked Questions
What is Guatemala’s food label bill?
It is Initiative 5504, the Healthy Eating Promotion Law, filed in Congress on 3 October 2018. It would require front-of-pack warnings on pre-packaged foods high in sugar, sodium or saturated fat.
Why does the US Embassy oppose the food label bill?
The embassy says a labelling system used only in Guatemala would impose unnecessary costs on US and Guatemalan companies. It argues those costs would raise food prices and favours a single regional label for Central America.
Has Guatemala’s Congress rejected the bill?
No, lawmakers removed it from the agenda of the 13 October session before its third debate, without a vote on its content. They may call in food-security officials or send it back to a committee for a new report.
Does this affect US food exports to Guatemala?
Not yet, because current labelling rules stay in place until a new law takes effect. US goods exports to Guatemala reached US$10.0 billion in 2025, so a Guatemala-only packaging rule would matter to American suppliers.
Sources: US Embassy Guatemala (post on X), 13 October 2026; Office of the US Trade Representative: Guatemala, accessed 14 October 2026; Agreement between the United States and Guatemala on Reciprocal Trade (USTR), 30 January 2026; SESAN, Secretariat of Food and Nutrition Security of the Presidency, accessed 14 October 2026; Fundación Libertad y Desarrollo / CID Gallup: Encuesta de opinión pública, octubre 2026, 13 October 2026; La Hora, 13 October 2026; Prensa Libre, 13 October 2026; Soy502, 13 October 2026; La Hora (regional labelling rule), 2 September 2025; Prensa Libre (Zury Ríos profile), 11 May 2023.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error