Guyana - Market OpportunitiesGuyana - Market Opportunities
Emerging oil and gas exploration: In 2000, the U.S. Geological Survey estimated that the Guyanese coastal area held recoverable oil reserves of roughly 13.6 billion barrels and gas reserves of 32 trillion cubic feet. ExxonMobil recently announced their thirteenth oil discovery out of fifteen attempts in the Stabroek Block. This unprecedented success rate has increased the estimated oil reserves from 1.4 billion barrels in 2015 to over 5.5 billion barrels in March of 2019. Production is expected to begin by early 2020, potentially reaching 750,000 barrels per day by 2025 and placing Guyana in the forefront of per capita oil-producing countries. Seven (7) current concessions for oil and gas exploration have been awarded by the Government of Guyana. Prospects exist both for sales of services and equipment to existing concession holders and for the awarding of additional onshore and offshore concessions.
Green State Development Strategy (GSDS): The Government of Guyana seeks large-scale green investments including in commercial farming and agro-based renewable energy projects. The Project Management Office in the Presidential Secretariat serves as the first point of contact for large-scale investment in these areas. A number of small hydroelectric and renewable energy projects are under consideration in order to lower Guyana’s electricity costs and reduce its dependency on fossil fuel imports. If successful, this project will go a long way in promoting greater investment because electrical costs are one of the largest impediments to significant value-added investment.
Caribbean Single Market & Economy (CSME): Guyana became one of the original members of the CSME on January 1, 2006. The CSME removed restrictions on the movement of goods and services, most skilled labor, and capital within the region. It also harmonized regional trade laws. There are opportunities for companies interested in using Guyana as a base for the duty-free export of agricultural products, manufactured goods, and consultancy services to other members of the CSME. Businesses/persons exporting goods within the CSME benefit from duty-free and tariff-free treatment.
Caribbean Basin Trade Partnership Act (CBTPA): As a CBTPA member, a number of Guyanese products enjoy duty-free access to the U.S. market, including apparel knit with American-made material, agricultural products (sugar, seafood, fresh fruits), and certain non-agricultural products, such as wood. CBTPA benefits remain in effect during a “transition period” that continues through the earlier of either September 30, 2020, or the date on which the Free Trade Area of the Americas or another free trade agreement as described in legislation enters into force between the United States and a CBTPA beneficiary country.
Trade Incentives: Agricultural equipment is exempted from import duties, including machinery. With the approval of the Commissioner General of the Guyana Revenue Authority (GRA), Guyana also exempts factory machinery and equipment imports from customs duties. Guyana offers tax exemptions to firms that produce non-traditional exports or invest in certain regions of the country.
Exports to Guyana: The United States exported USD 408 million worth of products to Guyana in 2017, representing 25.1 percent of Guyana’s total imports. In 2017, the United States was the second largest exporter of goods to Guyana, preceded by Trinidad and Tobago largely due to fuel and lubricants. Demand for agricultural and capital machinery, telecommunications equipment, computers and computer components, agricultural chemicals (pesticides and fertilizers), lubricating oils, animal feed, and consumer food products remains strong.
Guyana Trade Development and Promotion