Guatemala's President Bernardo Arévalo confirmed a deal with U.S. Defense Secretary Pete Hegseth that will allow joint strikes on drug‑trafficking gangs inside Guatemalan territory. Operations could begin next month and include air raids and other military actions. The agreement makes Guatemala the second Latin American nation, after Ecuador, to host U.S. forces in direct combat missions.

Washington is pushing the pact as part of a broader push to embed U.S. military capability across the region. The move follows the administration’s America's Counter Cartel Coalition, which now counts nearly 20 countries. Officials say the strategy aims to pressure Honduras and Mexico to accept similar arrangements, while critics warn of legal exposure for U.S. personnel involved in extraterritorial strikes.

The agreement raises immediate questions for investors in security contractors and aerospace firms that could see new contracts for training, logistics and munitions. Guatemala’s request for U.S. assistance underscores lingering instability that threatens tourism and mining revenues. With the Pentagon already reporting dozens of boat strikes that killed at least 194 people, the next phase may trigger heightened scrutiny from Congress and human‑rights groups.