Guyana-Brazil trade hits US$1B as regional links expand

Trade between Guyana and Brazil has expanded significantly, with both governments positioning the growing partnership as a key driver for South American integration and long term economic development.

Brazil’s Ambassador to Guyana, Maria Cristina de Castro Martins, recently revealed that trade between the two countries has increased from approximately US$58 million in 2020 to US$1 billion in 2026.

Speaking on 104.1 Guyana Lite FM, Ambassador Castro Martins described the expansion over the past four years as a result of growing demand in energy, mining, infrastructure and construction.

“The trade relations between both countries have been expanded significantly in recent years. The trade flow, which was around US$58 million in 2020, now reached US$1 billion,” the ambassador stated.

Guyana’s Foreign Secretary, Robert Persaud, said the growth reflects a strong political and economic relationship between the two neighbours.

“The increase in trade between Guyana and Brazil reflects the political will by both sides to maintain good neighbourly relations through enhanced cooperation in all areas, including trade,” Persaud told the Department of Public Information.

Persaud noted that by 2024, Brazil had become Guyana’s fifth-largest source of imports and its seventh-largest export market. He attributed the success to closer cooperation between the governments and private sectors of both nations through reciprocal trade missions.

He added that disruptions in global supply chains has also prompted Guyanese businesses to look for alternative markets to support the country’s massive housing, agriculture and infrastructure projects.

Balancing The Trade Deficit

The foreign secretary, however, acknowledged that the current trade balance remained heavily in Brazil’s favour.

“While there is an increase in trade, largely due to oil exports, it remains largely in favour of Brazil. Bilateral trade is conducted under the Partial Scope Agreement signed by both countries in 2001. The trade imbalance is understandably due to differences in competitiveness, size and productive capacity,” he explained.

FS Persaud continued, “Some of Guyana’s products face technical barriers including phytosanitary requirements, which is an area that the countries continue to collaborate on.”

Infrastructure and Regional Integration

Looking at the broader region, Persaud said Guyana views Brazil as a vital strategic partner and a gateway between South America and the Caribbean.

“The Guyana-Brazil relationship is fundamental to South American integration and the prosperity of the region,” he reiterated.

The two countries are currently working to strengthen digital, energy and transport links to drive economic growth.

The foreign secretary several major infrastructure projects acting as catalysts for this integration, including the Linden-Lethem Road, a planned deep-water port and the upgrade of the Lethem regional airport.

He also reaffirmed Guyana’s commitment to fostering a favourable investment climate, noting that regional investments are contributing to job creation, technology transfer and increased economic activity. [DPI]