Over the last five years or so, Guyana has committed to review and improve its international trade policies and framework aimed at liberalizing and facilitating trade activities. These included: starting the operation of risk management in customs procedures; eliminating some export duties on non-manufactured goods; and concluding negotiations of new or revised (and more liberal) air services agreements with several trading partners (World Trade Organization, 2015).
The Ministry of Foreign Affairs is responsible for the development and the administration of Guyana’s foreign trade policies. In this respect, the Ministry implements the national trade agenda in coordination with other trade-related public and non-state agencies. In the last three decades, Guyana’s trade policies have become increasingly linked to the country’s overall foreign policy. At the regional level and as a member of CARICOM, Guyana attaches great importance to its participation in the Community’s regional trade arrangements as the main vehicle to enhance the country’s integration in the world economy and is fully committed to the realization of the CARICOM Single Market and Economy (CSME). Therefore, the country’s trade policy, including its external trade negotiations with third countries, is closely aligned with the overall trade policy of the community.
At the multilateral level, Guyana remains fully committed to achieving a successful conclusion of the negotiations under the WTO Doha Development Agenda (DDA). Guyana also supports the commitments achieved under the Bali package as a realistic approach to securing the development-oriented and balanced outcomes being advocated for small vulnerable economies (SVEs). The multilateral negotiation is considered important to the sustainable development of a small developing economy such as Guyana with a high degree of trade openness.
TRADE AGREEMENTS
Trade Protectionism Measures in the 21st Century: The trade protectionism approach in the 21st century world is widely viewed as outdated and unconventional these days by many countries around the globe. Yet, still the standing peak of many others. Empirical evidences suggest that, international trade leads toeconomic growth provided that the policy measures and economic infrastructure are accommodative enough to adapt to changes in the financial and social outcomes that result from it. In addressing the cross border challenges, a well-functioning, national competition regime is insufficient and there are also problems with developing countries that they lack the resources and/or experience to tackle international competition challenges. This is so despite the provision of extra territorial jurisdiction in competition law which also has limitations. As a result, some countries have entered into bilateral or regional treaties to solve these problems – yet, these treaties have limited impact. As such, the competition authorities of many different countries have come together to promote International competition network. To this end, there is need of pushing international agreement on cooperation on competition (Vijayasri, 2013).
REGIONAL TRADE RELATIONS
• The Department of Foreign Trade is the CSME focal point in Guyana and is therefore tasked with implementation of regional commitments related to the single market and economy.
• The Department works closely with the CARICOM unit which has separate responsibility for issuing the skilled nationals certificate. For more information please contact: CARICOM Unit
(592-226-1606)
As the CSME focal point, the Department of Foreign Trade also:
• Responds to and facilitates investigations into complaints related to free movement, free trade and the rights of establishment.
• Facilitates requests by local enterprises for waivers of the CET and application of safeguard mechanisms on imports; as well as responds to requests by other member states in accordance with Article 83 of the Revised Treaty of Chaguaramas. Any local enterprise interested in obtaining a waiver for importation of an item must fill out the requisite CET suspension form.
• For more information and to submit forms and other inquiries, please email the CSME focal point at; csmefocal@minfor.gov.gy.
US-CARIBBEAN RELATIONS
• The US is an important trading partner of Guyana. Guyana along with other countries in the Caribbean benefit from unilateral duty free access to the US market for selected goods through the Caribbean Basin Initiative (CBI) initiated in 1983 through the Caribbean Basin Economic Recovery Act (CBERA). The programme was initially set to be temporary but was subsequently expanded in 2000 by the US-Caribbean Basin Trade Partnership Act (CBTPA), which should expire on September 30, 2020.
CARIBBEAN-CANADA TRADE AGREEMENT 1985
• The objectives of CARIBCAN are to enhance Commonwealth Caribbean trade and export earnings, improve the trade and economic development prospects of the region, promote new investment opportunities, and encourage enhanced economic integration and co-operation. The main feature of CARIBCAN is the unilateral extension by Canada, beginning on 15 June 1986, of duty-free access to the Canadian market for most commodities originating in Commonwealth Caribbean countries.
GUYANA’S BILATERAL TRADE RELATIONS WITH BRAZIL
• Brazil and Guyana signed a partial scope agreement on 22, June 2001 which was entered into force on 31, May 2004. The primary aim of the agreement is to increase trade flows between Guyana and Brazil. This is to be achieved by both parties offering tariff preferences on products traded between them, once they satisfy the rules of origin provisions. However, as the agreement has a partial scope it means that only those products listed are given duty concessions in the markets of the signatory countries. In addition, if need be, the countries can also apply a safeguard measure by suspending or reducing tariffs for a period of one year.
BILATERAL TRADE RELATIONS WITH COSTA RICA
• The Free Trade Agreement between CARICOM and the Government of the Republic of Costa Rica that was signed in 2004, establishes a WTO-consistent free trade area that covers tariff liberalization and addresses non-tariff barriers. Under the agreement, tariffs are to be eliminated immediately, except for various categories of goods where different treatment is prescribed, namely:
• Special and differentiated treatment for Oils, Fats and Soaps;
• Products entitled to duty free treatment;
• Products that are excluded altogether from tariff elimination and continue to be subject to MFN tariffs;
• Products that are subject to different treatment across CARICOM MDCs, that is, MFN tariffs, phased elimination or immediate tariff elimination and;
• Select agricultural products that are subject to seasonal tariffs.
CARICOM-CUBA FREE TRADE AGREEMENT
An Agreement on Trade and Economic Cooperation between the Caribbean Community (CARICOM) and the Republic of Cuba was signed on July 5, 2000. A Protocol implementing the Agreement was signed on June 15, 2001. A 2nd Protocol was signed on December 8, 2002 to provisional apply the Agreement between Cuba and those Member States that have completed the internal procedures to give effect to it. Guyana ratified the Agreement by way of the Customs Duties (Amendment) Order No. 3 of 2003. This Order was published In the Official Gazette (16/2003) dated February 22, 2003.
INTERNATIONAL TRADE AGREEMENT BETWEEN GUYANA AND CHINA
In September 2001 an International Trade Agreement between the Cooperative Republic of Guyana and the People’s Republic of China was signed with the view of developing and strengthening economic and trade relations between the two countries on the basis of equality and mutual benefit. The contracting parties agreed to take appropriate measures to promote growth of trade and economic relations between their two countries.
CARICOM–DOMINICAN REPUBLIC FREE TRADE AGREEMENT
An Agreement establishing the Free Trade Area between the Caribbean Community (CARICOM) and the Dominican Republic was signed on August 22, 1998. Guyana ratified this Agreement on March 19, 2004. The main themes of this Agreement are Liberalisation, Reciprocity, Special Treatment for CARICOM LDCs, Most Favoured Nation (MFN), and National Interest. It specifically recognises and protects those products which may be considered as sensitive to Parties.
CARICOM-REPUBLIC OF COLOMBIA FREE TRADE AGREEMENT
The CARICOM-Colombia Agreement on Trade, Economic and Technical Cooperation, was signed on 24 July 1994 and entered into force on 1 January 1995. Guyana ratified this agreement on 25th May 2002. The agreement sets out the products of CARICOM origin which will receive duty free treatment in Colombia and similarly, Colombian products which will receive duty free treatment when imported into Guyana. Also the agreement lists products which are currently excluded from duty free treatment but are eligible for future negotiations.
CARICOM-VENEZUELA AGREEMENT ON TRADE AND INVESTMENT
The CARICOM-Venezuela Agreement on Trade and Investment was signed in October 1992 and entered into force on January 1, 1993. It is a preferential agreement which provides duty free treatment for CARICOM products exported to Venezuela. Tariffs have been eliminated on a list of over 200 of products, (mostly fresh produce, confectionery, cosmetics, jams and jellies, medicines, wooden furniture, horticultural products, spices, processed foods, and toilet preparations). The list other products enjoy tariff reductions and the remaining products are subject to standard custom duty upon entry into Venezuela. Generally, the tariffs applied by Venezuela to CARICOM imports is 1/3 lower than Venezuela’s standard custom duties.
CARIFORUM-EC Economic Partnership Agreement (EPA)
In October 2008 Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Lucia, Saint Vincent and the Grenadines, Saint Kitts and Nevis, Suriname, Trinidad and Tobago, and the Dominican Republic signed the CARIFORUM-EU Economic Partnership Agreement with the EU. Guyana ratified this agreement on 14 June 2012 and was incorporated into the Customs Duties (Amendment) Order under the Customs Act Cap 82:01. The EPA as a trade agreement with development components, is designed to open up and enhance trade between the 27 European Union States and 15 CARIFORUM States by removing the barriers to trade between them and by improving CARIFORUM’s capacity to trade competitively. It covers a range of subjects including customs and trade facilitation, agriculture, fisheries, Technical Barriers to Trade, Sanitary and Phytosanitary Measures, Investment, Trade in Services and E-commerce intellectual property rights, etc.
The coverage of goods liberalized by CARIFORUM countries under this Agreement amounts to 61.1% of CARIFORUM imports from the EU in value over 10 years, 82.7% over 15 years (84.7 % of tariff lines) and 86.9 % over 25 years (90.2 % of tariff lines). The main exclusions and long phase in periods (i.e. up to 25 years) for sensitive products include (this is a non-exhaustive list): agricultural products (poultry and other meat, dairy products, certain fruits and vegetables), fishery products, food preparations (sauces, ice cream, syrup), beverages, ethanol, rum, vegetable oils, chemicals (paints/varnishes, perfumes, make up/cosmetics, soaps, shoe polish, glass/metal polishes, candles, disinfectants), furniture and parts, apparel (cotton pullovers/jerseys/cardigans). For agricultural products, most sectors have been either excluded from liberalization or subject to long transition periods (20 or even 25 years). For all products originating in CARIFORUM countries and exported to the EU, this Agreement brought about a Duty and Quota Free Access (DFQF) regime since 1 January 2008.