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Guyana: An Overview
Located on the northern coast of South America between After his inauguration, President Ali appointed retired
Suriname and Venezuela, English-speaking Guyana has military leader Mark Phillips as prime minister and former
characteristics similar to other Caribbean nations because of President Bharrat Jagdeo (1999-2011) as vice president.
a common British colonial heritage (Guyana became Some observers contend that Jagdeo, who was
independent in 1966). The country participates in Caribbean constitutionally prohibited from seeking a third term, plays
regional organizations, and its capital, Georgetown, serves a key role in policy decisions. Guyana’s next national
as headquarters for the Caribbean Community elections are not due until 2025; local elections were
(CARICOM), a regional integration organization. Once one expected to be held in late 2022 but were postponed until
of the poorest countries in the hemisphere, Guyana’s June 12, 2023. Local elections could serve as a referendum
development prospects have shifted significantly since the on the ruling PPP/C’s performance.
discovery of large offshore oil deposits in 2015.
https://crsreports.congress.gov
Guyana: An Overview
target of 340,000 b/d in 2022, and could reach 1.2 million security. Guyana co-chairs a U.S.-Caribbean action
b/d by 2027, according to ExxonMobil. ExxonMobil is also committee on food security, an outcome of the June 2022
the operator in two other offshore oil blocks in Guyana. In Summit of the Americas. At the September 2022 meeting,
February 2023, Vice President Jagdeo announced Guyana’s the United States committed $28 million to provide food
plans to reclaim 20% of Exxon’s oil block. Critics maintain security assistance to the Caribbean and to undertake a
that ExxonMobil’s current contract with Guyana is series of actions recommended by the food security
unfavorable, with the country receiving less than 15% of oil committee.
proceeds.
Trade
In December 2022, the Guyanese government announced As Guyana has become an oil-producing nation, trade with
plans to auction 14 new blocks for offshore oil exploration the United States has increased significantly. The United
on terms that would provide more economic benefits to the
States ran a trade deficit of roughly $1.64 billon with
country. In January 2023, the Ali administration engaged in Guyana in 2022, with U.S. exports valued at $1.18 billion
talks on allocating offshore blocks for oil and gas and U.S. imports valued at $2.82 billion. Guyana is a
exploration with Qatar, the United Kingdom, the United
member of two Caribbean Basin Initiative (CBI) trade
Arab Emirates, and India. The 14-oil block auction was set preference programs. Since 1988, Guyana has been a
for April 2023 but has been postponed until July 2023 to beneficiary of the Caribbean Basin Economic Recovery Act
reassess Guyana’s oil and gas regulatory framework.
(P.L. 98-67, as amended, with no expiration), a preferential
Guyana’s oil production has enabled the country to trade program for Caribbean imports. Since 2000, it has
withstand much of the economic fallout from Coronavirus been a beneficiary of the Caribbean Basin Trade
Disease 2019 (COVID-19). In 2020, despite a global Partnership Act (Title II of P.L. 106-200, extended through
recession, Guyana’s economy grew almost 44%, according September 2030), which provides enhanced tariff
to the International Monetary Fund. The economy grew preferences for certain imports, including goods made with
20.1% in 2021 and 62.3% in 2022; the forecast for 2023 is U.S. yarns, fabrics, and threads.
37.2% growth. In 2019, Guyana’s National Assembly
approved legislation establishing the Natural Resource U.S. Foreign Aid
Fund (NRF), a sovereign wealth fund for managing the The United States provided $1.8 million in assistance to
country’s oil wealth. In December 2021, the government Guyana in FY2021 from all U.S. agencies
approved legislation amending the NRF’s regulatory (https://foreignassistance.gov/cd/guyana/, latest full-year
framework, maintaining the action would ensure greater information available). The top categories included support
transparency and accountability. Guyana’s 2022 budget is for health, education, and environmental programs, and
the first benefitting from NRF financing, which the programs to strengthen government institutions and civil
government maintains will support infrastructure society. In FY2022, the United States obligated $190,000
investments, including in energy and transportation, and for International Military Education and Training (IMET).
social expenditures in health and education. The Biden Administration requested $200,000 for IMET for
FY2023 and $250,000 for FY2024.
U.S.-Guyana Relations
U.S. relations with Guyana improved in the early 1990s Among U.S. aid programs, Guyana has received assistance
when the government moved away from one-party since 2004 to combat HIV/AIDS through the President’s
domination of the political system and embraced a market Emergency Plan for AIDS Relief program. Since 2009, it
economy and free and fair elections. According to the State has benefited from aid provided through the Caribbean
Department, U.S. policy toward Guyana seeks to support Basin Security Initiative (CBSI), a U.S. regional aid
robust and sustainable democratic institutions, an program to combat the drug trade and improve citizen
empowered civil society, economic growth and security. CBSI support has provided patrol boats, training,
development, and stability and security. and equipment for police and customs units and assistance
for youth programs and juvenile justice reform. Before the
In June 2022, President Biden and Vice President Harris suspension of a Peace Corps program due to the COVID-
met with President Ali and other Caribbean leaders at the 19, Guyana hosted some 60 volunteers working on
Ninth Summit of the Americas in Los Angeles, California. education, health, and environmental projects. In December
Discussions centered on the impact of climate change; food 2022, Peace Corps Guyana swore in the 33rd group of
and energy insecurity; lack of access to financing; and volunteers, which consists of 18 volunteers to work on
security cooperation and engagement, including addressing addressing early childhood literacy, adolescent health, and
small arms trafficking. At the summit, Vice President environmental stewardship.
Harris announced the U.S.-Caribbean Partnership to
Address the Climate Crisis (PACC 2030), a new initiative For additional information, see CRS In Focus IF10789,
aimed at facilitating renewable energy infrastructure Caribbean Basin Security Initiative and CRS Report
development and bolstering resilience to climate-based R47432, Caribbean Trade Preference Programs.
natural disasters.
This In Focus updates an earlier version written by former
In September 2022, Vice President Harris held a follow-up CRS Specialist, Mark Sullivan.
meeting with several Caribbean leaders, including President
Ali, with talks centered on U.S.-Caribbean collaboration on Karla I. Rios, Analyst in Latin American Affairs
promoting energy security, access to finance, and food IF11381
https://crsreports.congress.gov
Guyana: An Overview
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