VZCZCXYZ0000
RR RUEHWEB

DE RUEHGT #0820/01 1201708
ZNR UUUUU ZZH
R 301708Z APR 07
FM AMEMBASSY GUATEMALA
TO RUEHC/SECSTATE WASHDC 2540
INFO RUEHC/DEPT OF LABOR WASHDC
RUEHME/AMEMBASSY MEXICO 4180
RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE

UNCLAS GUATEMALA 000820 
 
SIPDIS 
 
SIPDIS 
 
DOL FOR JRICHARDS 
DEPT FOR USTR LABOR FOR AROSENBERG AND 
USTR ENVIRONMENT AND NATURAL RESOURCES MBURR 
DEPT ALSO FOR USAID/LAC/RSD FOR DJESSEE AND JGARRISON, 
WHA/PPC MPUCCETTI, WHA/EPSC JBANDO, DRL/IL GRIGG, AND 
OES/ENV FOR RKASTENBERG AND BWING 
 
E.O. 12958:N/A 
TAGS: EAID ELAB ETRD SENV GT
SUBJECT: GUATEMALAQS INPUT ON FY07 LABOR AND ENVIRONMENT TRADE CAPACITY 
 
REF: STATE 37718 
 
¶1. Summary:  Per reftel request, post submits the following proposals f 
 
¶2. As requested reftel, this cable outlines post priorities for CAFTA-D 
 
¶3. Our recommendations build upon work initiated with FY05-FY06 CAFTA-D 
 
¶4. In the area of labor, post recommends continued focus on projects an 
-- strengthen the labor ministries by professionalizing labor inspector 
-- strengthen the effectiveness of the judicial system to enforce exist 
-- eliminate gender and other types of discrimination in the workplace; 
-- enhance benchmarking and verification procedures; and 
-- support the development of a culture of compliance with labor laws t 
 
¶5. In the area of the environment, post recommends prioritizing activit 
-- strengthen institutional capacity to improve implementation and enfo 
-- enhance biodiversity and conservation; 
-- promote market-based conservation, including sustainable tourism and 
-- improve private sector environmental performance; and 
-- address specific CAFTA-DR obligations that promote public participat 
 
These suggested activities represent a consensus view between the USG a 
 
¶6.  The information below is keyed to reftel format: 
a. Specific objective(s), element, and sub-element, and anticipated fun 
b. Brief description and expected outcomes of the project 
c. Pipeline and mortgage data if continuation of on-going project, and 
d. Linkage between the proposed project and the White Paper or the Work 
e. Local Qbuy-inQ 
f. Host governmentQs view of how projects underway are meeting the init 
g. Public diplomacy/public outreach strategies 
 
LABOR ACTIVITIES 
---------------- 
 
Proposal 1:  Strengthening Labor Inspectorates to Improve Implementatio 
 
a. Specific Objective:  governing justly and democratically 
 
Program Area 2:  Good Governance 
Program Element 2.2:  Public Sector Executive Function 
Program Sub-element 2.2.3:  Civil Service and Public Administration 
Funding Level:  $1,000,000 
 
b. Labor Inspectorates throughout the region suffer from institutional 
 
In an effort to expand its reach outside the capital, the Ministry of L 
 
Given the Labor InspectorateQs key role in the enforcement of labor law 
 
Post also recommends a program to continue modernization and expansion 
 
While all Guatemalan government institutions are under-funded, the Mini 
 
We also suggest raising the profile of the Labor Inspectorate by increa 
 
c. Various USG projects have conducted training for labor inspectors, b 
 
d. The White Paper specifically cites the failure of GuatemalaQs Labor 
 
e. Representatives of the Ministry of Labor, business associations, org 
 
f. Projects already underway are meeting the initial recommendations of 
 
g. As one of the few donors in the area of labor rights, the USG is hig 
 
Proposal 2:  Strengthening the Labor Court System to Enforce Existing L 
 
a. Specific Objective:  governing justly and democratically 
 
Program Area 1:  Rule of Law and Human Rights 
Program Element 1.3:  Justice System 
Program Sub-element 1.3.2:  Operations of Institutions and Actors; 1.3. 
Funding Level:  $700,000 
 
b. GuatemalaQs labor court system suffers from a heavy case backlog due 
 
Post recommends a project to increase the number of labor courts, as we 
 
This project would strengthen the rule of law by improving the judiciar 
 
c. The USG has existing programs to promote oralization of court procee 
d. The White Paper stresses the need to strengthen the judicial system 
 
e. Representatives from the Ministry of Labor, organized labor, human r 
 
f. Implementation of a project to strengthen institutional capacity of 
 
g. Lack of respect for the law is a persistent, critical problem affect 
 
Proposal 3:  Eliminating Gender and Other Types of Discrimination 
 
a. Specific Objective:  governing justly and democratically 
 
Program Area 1:  Rule of Law and Human Rights 
Program Element 1.4:  Human Rights 
Program Sub-element 1.4.2:  Human Rights Systems and Policies 
Funding Level:  $120,000 
 
b. The Guatemalan Constitution guarantees equality of opportunity for m 
 
In practice, many women face job discrimination, receiving lower pay th 
 
Post suggests the following activities to address the problem of gender 
 
-- effecting legislative reform, through consultations in the Tripartit 
-- enhancing the capacity of labor inspectors to detect, investigate, a 
-- creating a monitoring system to detect, investigate, and prevent lab 
-- strengthening the National Wage Commission by increasing the capacit 
 
c. FY05-FY06 funds supported regional work in the textile and apparel i 
 
d. The White Paper cited gender and other forms of discrimination as an 
 
e. Representative of the Ministry of Labor, organized labor, and human 
 
f. While projects already underway are addressing this problem, more su 
 
g. The overwhelming majority of maquila workers in Guatemala are women. 
 
 
Project 4:  Promoting a Culture of Compliance with Labor Laws 
 
a. Specific Objectives:  governing justly and democratically 
 
Program Area 4:  Civil Society 
Program Element 4.1:  Civic Participation 
Program Sub-element 4.1.4:  Civic Participation and Democratic Culture; 
Funding Level:  $500,000 
 
b. Communication and coordination among key stakeholders are crucial fo 
 
Essential elements of the approach include in-depth stakeholder assessm 
 
In addition to the tripartite approach, engagement with the private sec 
 
This project would expand the national dialogue on labor rights and lab 
 
A large-scale, multi-stakeholder effort should build on the experiences 
 
This public/private partnership would not replace or replicate the role 
 
Another component of promoting a culture of compliance would be buildin 
 
Programs in three core areas are critical to meeting these objectives: 
 
-- Programs to develop a new generation and cadre of labor rights advoc 
 
-- Programs that educate workers and shop stewards on workersQ rights, 
 
-- Programs that strengthen labor organizations and build their institu 
 
Post envisions that for such programs and efforts to be effectively imp 
 
Progress in promoting a culture of compliance would be measured against 
 
c. The extent of the public/private partnership is new, but it is relat 
 
d. The White Paper cites lack of a culture of compliance with labor law 
 
e. Representatives from the Ministry of Labor, Congress, organized labo 
 
f. DOL-funded Cumply y Gana project has been effective in addressing th 
 
g. Multi-stakeholder activities, especially including U.S. name brands, 
 
ENVIRONMENTAL ACTIVITIES 
------------------------ 
 
Project 1:  Institutional Strengthening for Effective Implementation an 
 
a. Specific Objective 4:  Economic Growth 
 
Program Area 4.8:  Environment 
Program Element 4.8.1:  Natural Resources and Biodiversity 
Program Sub-element 4.8.1.1:  Natural Resources Policy and Governance 
Funding Level:  $2.545 million 
 
b. Purpose:  This activity will strengthen the ability of Guatemala to 
 
While the challenge of meeting obligations under CAFTA-DR falls primari 
 
Existing institutions responsible for effective enforcement are weak fo 
 
Description: 
 
-- Improve and harmonize laws, regulations, norms and environmental pro 
 
-- Draft a regulation for fixed point sources emission standards. 
-- Elaborate a solid waste management and disposal law. 
-- Elaborate policy, regulations and strategies for mining and environm 
-- Review and revise the regulations for the electricity sector (Law on 
-- Prepare regulations on procedures for voluntary environmental compli 
-- Review, update and disseminate the Bio-safety Law. 
      -- Develop regulations for non-ionic radiation. 
-- Implement system of performance bonds and environmental insurance. 
-- Develop rules and procedures for payments for environmental services 
-- Standardize forestry management procedures among the pertinent insti 
 
Expected Results:  These activities will help the GOG develop the neede 
 
-- Improve Environmental Law Enforcement ($580,000) 
 
-- Train personnel in charge of the effective application of environmen 
-- Promote the adoption and use of environmental monitoring, inspection 
-- Develop a national strategy for compliance with environmental legisl 
-- Procure monitoring equipment for national agencies charged with over 
-- Strengthen the governmentQs capacity to undertake integrated watersh 
 
Expected Results:  This activity will institutionalize a training progr 
 
-- Compliance promotion, auditing, and environmental management systems 
 
-- Develop and implement a registration and certification system for en 
-- Develop guides and operating manuals to improve EMS. 
-- Promote the adoption of EMS and voluntary agreements by the private 
-- Produce radio spots to increase awareness and understanding of integ 
 
Expected Results:  EMS was identified as a priority for all CAFTA-DR co 
 
-- Strengthen Environmental Impact Assessment (EIA) Review and the eval 
 
-- Training for municipal personnel in environmental management. 
-- Develop capacity in application of best management practices, enviro 
-- Develop and disseminate technical environmental guidelines for EIAs 
 
Expected Result:  Increased capacity for local and national personnel t 
 
-- Strengthen the capacity to manage hazardous materials ($75,000) 
 
-- Develop a manual of procedures and technical guidelines for the hand 
-- Train customs agents in the handling and management of hazardous mat 
-- Explore options for the creation of a national information system of 
-- Begin to develop a database to register importers and exporters of c 
 
Expected Results:  In FY2007, officials responsible for the monitoring 
 
-- Pollution Release and Transfer Registry (PRTR) ($50,000) 
 
Expected Result:  Increase utilization of release information to evalua 
 
-- Establish an inventory and atmospheric emissions model ($20,000) 
 
Expected Result:  Increased utilization of monitoring stations in Guate 
 
-- Support for CAFTA-DR environmental unit to receive inputs from civil 
 
-- Strengthen the CAFTA-DR environment unit and help establish administ 
-- Public outreach and education on the environment provisions of CAFTA 
-- Finalize and implement an operational manual for the receipt and inv 
-- Design and implement a tracking system for citizen complaints and de 
 
Expected Result:  Build national capacity to respond to citizen complai 
 
-- Develop and enhance NGO participation in environmental matters and t 
 
-- Develop and implement procedures for public participation in environ 
 
Expected result:  Increased participation by civil society in environme 
 
-- University Environmental Partnerships ($350,000) 
 
-- Establish an official link between academic and environmental sector 
 
Expected result:  Environmental science, engineering, and law curricula 
 
-- Strengthen the capacity for analysis and equipment in environmental 
 
-- Strengthen the equipment in and capacity for mobile environmental la 
-- Support analytical laboratories in obtaining ISO 17025 certification 
 
Expected Result:  Enhanced ability for environmental auditors to provid 
 
c. Pipeline/Mortgage data:  FY06 $250,000 pipeline for policy-related w 
 
d. Linkage to ECA/enhanced trade:  The projects address the core obliga 
 
e. Local buy-in:  All of these project proposals were vetted through th 
 
The CAFTA-DR countries have indicated their interest in strengthening t 
 
f. Policy-related work through ABT Associates with FY06 funds is ongoin 
 
g. Public diplomacy/outreach strategies for project: Public consultatio 
 
Project 2:  Enhancing Biodiversity and Conservation 
 
a. Specific Objective 4:  Economic Growth 
 
Program Area 4.8:  Environment 
Program Element 4.8.1:  Natural Resources and Biodiversity 
Program Sub-element 4.8.1.3:  Biodiversity Policy and Governance 
Funding Level:  $590,000 
 
b. Purpose:  This activity will help countries comply with multilateral 
 
This activity also addresses the threat to biological diversity from in 
 
Description: 
 
-- Improve protection and conservation of fauna and flora listed under 
 
-- Design and create a wildlife rescue center. 
-- Officially designate ports of entry and exit for CITES. 
-- Build capacity among customs agents in taxonomic identification of C 
-- Strengthen the capacity of scientific authorities to conduct studies 
-- Create a biodiversity conservation incentive fund to help promote in 
-- Build capacity and public knowledge regarding the application of CIT 
-- Develop and implement a strategy to control illegal logging and traf 
 
Expected Result:  Intra-governmental mechanisms in place for effective 
 
-- Improve fishing regulations and implementation to reduce incidental 
 
-- Purchase equipment and train officials in its proper use to reduce i 
 
Expected Result:  Reduced incidental catch of sea turtles due to fishin 
 
-- Identify trends in invasive aquatic species related to trade and dev 
 
-- Develop and implement contingency plans to control exotic species in 
-- Develop and implement a contingency plan for eutrophication impacts 
 
Expected result:  Reduced threat from aquatic invasive species in key w 
 
c. Pipeline/Mortgage data:  FY2006 $200,000 support for CCAD Cooperativ 
 
d. Linkage to ECA/enhanced trade:  The activities support key Central A 
 
e. Local buy-in:  The project is a top priority for the region per ECA 
 
f. Under a FY06-funded CCAD Cooperative Agreement, regionally focused a 
 
g.  Public diplomacy/outreach strategies:  Focus on public participatio 
Proposal 3:  Promoing Market-based Conservation 
 
a. Specific Objecive 4:  Economic Growth 
 
Program Element 4.8.1: Natural Resources and Biodiversity 
Program Sub-element 4.8.1.2:  Sustainable Natural Resources Managment 
Funding level:  $325,000 
 
b. Purpose:  Th activity supports the strong connection between aequa 
 
Description: 
 
-- Develop sustainable touism and alternative income sources. ($75,000 
 
-- Develop and disseminate materials to promote best pactices in infra 
-- Increase the application of lean production mechanisms in the touri 
 
Expecte result:  Improved environmental management in thetourism sect 
 
-- Facilitate marketing of sustainably managed agricultural and forestr 
 
-- Increasethe number of hectares of sustainably managed foret by 220 
-- Promote the export of environmentall friendly goods and services th 
 
Expected result  Increased income in the agriculture and forestry sect 
 
c. Pipeline/Mortgage data:  $200,000 FY06 fnds in pipeline for forestr 
 
d. Linkage to ECA/ehanced trade:  This activity specifically addresse 
 
e. Local buy-in:  These activities and the mecanism for implementation 
 
f.  FY06-funded projects through Rainforest Alliance and Counterpart In 
g. Public diplomacy/outreach strategies:  The actiities described here 
 
Project 4:  Improving Privte Sector Environmental Performance 
 
a. SpecificObjective 4:  Economic Growth 
 
Program Element 4.8.1:  Natural Resources and Biodiversity 
Program ub-element 4.8.1.2:  Sustainable Natural ResourcesManagement 
Funding Level:  $650,000 
 
b. Purpos:  This activity will improve the private sectorQsenvironmen 
 
Description: 
 
-- Promote the competitiveness and compliance of industries employing c 
 
-- Publicize the Policy for Cleaner Production. 
-- Institutional strengthening (administrative, tchnical, operational) 
-- Develop technical guideines for voluntary agreements in clean produ 
-- Promote public-private partnerships and voluntary ageements to impr 
 
-- Mobilize financing for cleanproduction and clean energy initiatives 
 
-- Estalish networks and associations between CAFTA-DR copanies and U 
 
Expected results:  Net reduction in energy consumption and expenditures 
 
c. PipelineMortgage data:  These activities will likely be imlemented 
 
d. Linkage to ECA/enhanced trade:  Thi activity directly supports one 
 
e. Local buy-in  Ministries of Environment and Economy have consulted 
 
f.  This is a new project that will build onongoing projects. 
 
g. Public diplomacy/outreach trategies:  In addition to addressing cor 
 
DERHA