Economics

Guyana’s unique geographic position and its socio-political heritage put it at the gateway of South America and the Caribbean. It’s an English-speaking legacy which enables Guyana to be part of the Caribbean Community (CARICOM), while at the same time being a South American country bordered by Brazil, one of the largest economies on the Continent.

As a result of a combination of regional, bilateral and preferential agreements, about 75 percent of Guyana’s exports enter destination markets duty-free, with many others receiving duty-reduced access.

Guyana is a beneficiary country of the Commonwealth Caribbean countries program (CARIBCAN) by which Canada unilaterally provides duty-free access to its market for most imports from 18 Caribbean countries.

Memberships include: Commonwealth, CARICOM, Caribbean Development Bank (CDB), Inter-American Development Bank (IDB), World Bank (WB), Organization of American States (OAS), World Trade Organization (WTO).

Agreements with Canada include, Air Transport Agreement (ATA) (open-skies since 2014), Double Taxation Agreement (DTA) (1987)

Agreements with CARICOM members: DTA; ATA; CARICOM Single Market and Economy (CSME)

Agreements With other countries: DTA (UK, Kuwait; ATA: Brazil, France, Kuwait, US); Trade and Investment Agreement (Argentina, Brazil, China, Ecuador, Iraq, Jordan, Korea, Kuwait, Suriname, Ukraine and Venezuela).

A comprehensive Economic Partnership Agreement (EPA) between the European Union (EU) and 15 Caribbean states in the Caribbean Forum (CARIFORUM) group, including Guyana, was signed in 2008.

Here are some highlights on what is happening in Guyana

  • In October 2018, the Governments of Newfoundland & Labrador and Guyana signed a three-year Memorandum of understanding (MOU) for cooperation in the oil and gas sector. There have been approximately 12 joint ventures and partnerships between Canadian and Guyanese companies to access opportunities in this sector, several of which were facilitated by GRGTN Trade Commissioner Service (TCS).
  • The Canadian Company and CGCC Member, Guyana Goldfield Inc. owns the country’s largest mine, Aurora Gold Mine. In 2018, the company announced an increase in its estimated mineral reserves (up 12% to 4 million ounces), as well as expansion to underground mining. The Company was subsequently acquired by Zijin Mining Group Co., Ltd.
  • NSBOmega Inc. a joint-venture between the Canadian company NSB-Energy and a Guyanese company, Action Coach Inc. secured a Master Service Agreement with a major oil and gas operator in Guyana in June 2019.
  • In December 2019, commercial oil production began, with output projected to average 120,000 barrels/day in 2020.
  • In January 2020, ExxonMobil noted that Guyana is capable of producing 8 billion oil-equivalent barrels, presenting significant opportunities for Canadian businesses.
  • Canadian Company, First Bauxite Corporation commenced mining and processing at its facilities January in 2019 and is expected to invest over US$387M into the local economy over 15 years.
  • Founder Member, Panthera Solutions Inc., is a joint-venture between Canadian Company Crosbie Group Limited and Guyanese Company, Farfan and Mendes. Panthera was awarded multiple scopes of work on the FPSO from its arrival in August 2019. They are recognised as the first Guyanese company to be awarded work on the FPSO.