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Congressional Research Service
Informing the legislative debate since 1914


Updated December  18, 2018


Laos


The Lao People's Democratic Republic (LPDR or Laos)
has a population of 7.2 million in a land-locked area around
the size of Utah. Laos is one of Asia's poorest nations, and
has been ruled by a single party, the Lao People's
Revolutionary Party (LPRP), for more than four decades.

Laos is a member of the Association of Southeast Asian
Nations (ASEAN),  the primary multilateral grouping in the
region. It depends heavily on foreign investment-much of
it from China-for its infrastructure development. Since a
1986 economic opening, Laos has gradually implemented
market-based economic reforms, and in 2013 became a
member  of the World Trade Organization (WTO).

                   Laos at a Glance
 Capitol: Vientiene
 President and General Secretary of the Lao People's
 Revolutionary Party: Bounnhang Vorachith (2016)
 Prime  Minister: Thongloun Sisoulith (2016)
 Per Capita GDP  (purchasing power  parity): $7,400
 GDP   composition: Agriculture (21oo); Industry (3300);
 Services (46%).
 Life Expectancy: 65 years
 Literacy: 80%
 Religious Affiliations: Buddhist, 6500; Christian, 2%; Laotian
 folk religions, 31oo; other or unspecified, 2%.

 Source: Central Intelligence Agency, The World Factbook, 2018.

 U.S.-Laos Re at ons
 The United States did not sever diplomatic relations with
 Laos, as it did with Cambodia and Vietnam, when
 communist parties in these countries took power in 1975,
 although it did downgrade U.S. representation in Vientiane.
 Full diplomatic ties were not restored until 1992. The
 United States and the LPDR have experienced a slow
 warming of relations over the past decade. In 2016, when
Laos served as ASEAN's  chair and host of key regional
meetings, President Barack Obama became the first U.S.
president to visit Laos. The U.S. government and Hmong-
American groups, however, remain concerned about human
rights issues and the Lao government's treatment of its
Hmong  minority. The LPDR  government places substantial
restrictions on civil and labor rights and political freedoms.
There are a handful of known political prisoners, and in
2012 prominent community  organizer Sombath Somphone
disappeared in Vientiane, the capital, and is widely believed
to have been abducted by government security forces.

The Lao government is heavily influenced by China and
Vietnam. Some  observers say the LPDR hopes to offset its
reliance on its neighbors, particularly China, by broadening
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its relations with others, but it is wary about U.S. advocacy
for democracy and human rights. U.S. engagement in Laos
has focused on addressing Vietnam War legacy issues and
helping the LPDR develop the legal and regulatory
frameworks it needs to participate in global and regional
trade agreements and integrate economically into ASEAN.
U.S. and Lao officials meet regularly through ASEAN
diplomatic channels as well as the Lower Mekong Initiative
(LMI), a sub-regional foreign assistance effort launched by
the State Department in 2009 to promote cooperation and
capacity building in the areas of education, health, women's
issues, regional infrastructure, and the environment. LMI
participants are Burma (Myanmar), Cambodia, Laos,
Thailand, and Vietnam.

Congress did not extend non-discriminatory treatment to
the products of Laos until 2004. Trade has grown since
then, though Laos remains only the 163rd largest U.S. trade
partner. In 2017, total trade between Laos and the United
States was valued at $122 million. Lao exports to the
United States totaled $96.4 million in 2017, more than
double the levels of two years earlier, dominated by apparel
items and precious metals. U.S. exports to Laos were $25.7
million in 2017.

The U.S. government has noted progress and cooperation in
some other areas of the bilateral relationship. In 2009, the
United States and Laos exchanged defense attach6s, the
first time in over 30 years, and the Obama Administration
removed the prohibition on U.S. Export-Import Bank
financing for U.S. companies in Laos, citing the country's
commitment  to opening its markets. In 2010, the two
countries signed a comprehensive Open Skies agreement to
expand and liberalize aviation ties.

The Defense POW/MIA (Prisoner  of War/Missing in
Action) Accounting Agency (DPAA)  has conducted
approximately 150 Joint Field Activities (JFAs) with the
LPDR  government  since 1985. Joint efforts have recovered
the remains of 282 American service personnel while 291
remain missing. Bilateral cooperation on counternarcotics
activities contributed to a significant decline in opium
production between 1998 and 2007. Since then, opium
production in Laos, which remains a major source country,
has stabilized or declined marginally.

Deve opment ssues
The LPDR  launched a market-oriented economic policy in
1986. The country's economic growth has been steady,
largely fueled by construction, food processing,
hydropower, and tourism. Between 1988 and 2008, the
economy  grew by over 6% per year on average, with the
exception of 1997-1998, when the economy contracted due

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