International Trade in Guyana

News Related to International Trade in Guyana

Business outline for Guyana

Economic Overview

With its per capita income of around 1300 dollars, the Republic of Guyana is one of the poorest countries in the Western Hemisphere. Guyana's economy depends mainly on agriculture and mining resources. The agricultural sector accounts for more than one quarter of the GDP. Exports of sugar, bauxite, gold and rice are the main sources of the country's income. The export of shrimp has recently experienced growth.

Industry accounts for approximately one fourth of the Guyanese wealth. The tertiary sector is the most important sector since it contributes to half of the country's GDP.

Poor infrastructure and lack of skilled workforce are the main barriers the country has to surmount. Moreover, the country has a huge external debt and depends heavily on foreign aid. It should be noted that the inflation rate decreased from 8.1% in 2008 to 2.9% in 2009.

The economic crisis of 2008-2009 had an impact on the country because its trade partners were affected by the crisis themselves and bought less Guyanese products.

The transfers from the Guyanese diaspora have also been reduced due to the economic crisis. These transfers represent substantial amounts and play an important role in the country's economy and the purchasing power of the local population.

FDI in Figures

Foreign investment into the country has been gradually increasing in the recent years. FDI stock, as percentage of GDP, increased in 2010. The country has been rather spared by the global financial crisis. Guyana offers a favorable business environment to foreign investors. The base of foreign investments in the country has been broadened since Guyana joined CARICOM (Caribbean Single Market and Economy) in January 2006.

Transport and communication are the sectors that attract most of FDI. The United States is the main investing country.

Foreign Trade Overview

In an attempt to participate in the world's economy, Guyana has liberalized its trade regime. Since the country depends on international trade, the government is becoming proactive in multilateral trade negotiations and is also trying to increase the competitiveness of its products and diversify the base of its export products.

Custom duties are not so high. The MFN tariffs (Most Favored Nation) have been reduced and non-tariff barriers are applied with moderation. Goods coming from CARICOM countries and, to some extent, Colombian products have duty free access. However, high duties (as high as 100%) are imposed on certain products like agricultural products, alcohol, and tobacco.

In order to promote trade, Guyana offers tariff and fiscal incentives in many sectors. Privatization and modernization of the state-owned industries are also helping. Nevertheless, a better transparency of its tariff regime is needed.

This country imports more than what it exports and for this reason it registered a trade deficit in 2009/2010, a trend that should continue in the next following years. 

The main trading partners of Guyana are the NAFTA (North American Free Trade Agreement), the CARICOM (Caribbean Community) and the European Union.