The Guyana Manufacturing and Services Association endorses the unity of the government and opposition in condemning Venezuela’s violations of international law
Georgetown, Guyana – 25 October 2023 – The Guyana Manufacturing and Services Association (GMSA) is pleased to learn that Guyana’s government and opposition have joined forces to oppose Venezuela’s ongoing efforts to undermine Guyana’s sovereignty and territorial integrity. On Tuesday, October 24, 2023, His Excellency Dr. Mohamed Irfaan Ali, President of the Cooperative Republic of Guyana, and Mr. Aubrey C. Norton, MP, Leader of the Opposition, jointly denounced Venezuela’s planned December 3 referendum to make Guyana’s Essequibo County a state.
The GMSA recognizes that the unity of these two political parties is beneficial for the country and its citizens. Their joint statement reaffirms their commitment to safeguarding Guyana’s interests and ensuring a peaceful and prosperous future for all Guyanese citizens. President Ali and Opposition Leader Norton have demonstrated their commitment to fighting Venezuela’s relentless attempts to undermine Guyana’s development.
The association also appreciates the international community’s support in condemning Venezuela’s actions and standing in solidarity with Guyana. This support further strengthens the country’s position and sends a clear message that any aggression towards Guyana will not be tolerated.
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GMSA response to Peeping Tom article “The GMSA is seeking impermissible protection”
Dear Editor,
In response to Columnist Peeping Tom’s article in the Kaieteur News dated August 21, 2023, captioned ‘The GMSA is seeking impermissible protection’, the GMSA wishes to advise as follows:
The Guyana Manufacturing and Services Association (GMSA) is fully aware of the references made in the published article.
““Article 3 (2) of the General Agreement on Tariffs and Trade (GATT) states: “The products of the territory of any contracting party imported into the territory of any other contracting party shall not be subject, directly or indirectly, to internal taxes or other internal charges of any kind in excess of those applied, directly or indirectly, to like domestic products.”””
“”Article 3 (4) then states: “The products of the territory of any contracting party imported into the territory of any other contracting party shall be accorded treatment no less favourable than that accorded to like products of national origin in respect of all laws, regulations and requirements affecting their internal sale, offering for sale, purchase, transportation, distribution or use.”””
To clarify, GMSA is simply asking the government to expand the VAT-free basket of goods to include more categories of locally manufactured goods. We are in no way implying that the government should impose VAT on identical imported goods. This would not violate international or regional trade laws, as it would not give domestic goods an unfair advantage over foreign goods once the product has already entered the domestic market. It therefore means that foreign producers would be able to import their goods (i.e., identical items) into Guyana without paying VAT. Thus, we are accorded the same treatment pursuant to Articles 3(2) and 3(4), provided that our proposal is approved by the government.
It was from this perspective that the President of GMSA, Mr. Ramsay Ali, made this statement at GMSA’s Mid-Year Dinner and pointed out two locally manufactured agro-processed goods, namely: chowmein and guava cheese. Local manufacturing of these products, along with others such as chinese sauce, fruit mixes, green seasoning, pepper sauce, tamarind, and mango achars, constitutes a large portion of the local market with negligible imports.
In fact, removing the VAT on locally manufactured goods will benefit consumers since it is a consumption tax. This would reduce the cost of the products, which would make them more affordable for the consumer. GMSA also supports the removal of VAT on data, especially at the small and medium business level, as this would reduce transaction costs and encourage technology usage.
In addition to the foregoing, Guyana has a small population of less than a million people and therefore a small domestic market. Consequently, removal of the VAT on locally manufactured goods could lead to increased revenues and expansion for businesses and allow Guyanese agro-processors in said categories of goods to become more competitive in the export market.
Consider as well that the manufacturing sector accounts for 5% of non-oil GDP (2022) and is a major employer in Guyana. Removing the VAT on the proposed list of locally manufactured goods would help to create jobs and boost economic growth by virtue of the sector being more competitive. This is pivotal to diversifying the economy.
VAT is a regressive tax that disproportionately affects low-income families/households. Removing the VAT on locally manufactured goods would help to make these goods more affordable, especially for low-income consumers.
Moreover, the removal of VAT is not an uncommon policy for catalyzing manufacturing. In 2021, for example, Trinidad and Tobago removed VAT on an expanded list of basic food items. According to the Ministry of Trade and Industry, these items include vegetable/soya bean oil; olive oil; coconut oil; canola oil; ghee; peanut butter; black pepper and other spices; cereals; condensed milk and milk substitutes; instant and ground coffee; black and green tea; orange and apple juice; bottled water; seasoned meat and pigtail; canned sausages, tuna, mackerel, peas, beans, corn and mixed vegetables; mayonnaise; ketchup; roti skin; packaged soups; soya chunks and minced; ground dhal; cheese slices; table butter; ham and turkey slices; chicken lunch meats; bologna and biscuits and crackers. ‘These items now form part of the list of items under Schedule 2 (Zero-rating of the Value Added Tax Act). Additionally, these items will also be zero-rated when imported into the country.’
It is against this background that the GMSA’s request is neither impermissible nor protectionist. We believe that it is a reasonable request that would benefit both domestic producers and consumers. The government should carefully consider GMSA’s request and weigh the potential benefits against the potential costs.
In closing, the GMSA finds the claim that it is ‘shooting from its hip’ unpalatable as the organisation incessantly does due diligence, engaging internal and external stakeholders before making public claims.
Sincerely,
Nikeshia Castello
Communications Officer – GMSA
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Ali makes ‘pitch’ for GMSA role in Small Business Bureau
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Against the backdrop of concerns being expressed by existing and aspiring small business owners that the Small Business Bureau needs to raise its game if it is to effectively serve the interests of the small business sector, President of the Guyana Manufacturing and Services Association (GMSA) Ramsay Ali, on Thursday August 3, used the occasion of the GMSA’s Gala Dinner to call on government to afford the business support body a “seat” at the SBB table. This, he said, is in order to allow for the GMSA to use its experience to “add value” to the state-run agency. “We have heard that the Small Business Bureau is being reengineered and being reexamined and we are asking that we should be part of those discussions. We can add value to the Small Business Bureau on the way it is being managed. I am not saying that it is being mismanaged, I am just saying that because, we, – our clientele being a part of this organization, – should be part of the discussion,” Ali told the gathering of mostly business owners and administrators.
Business sector watchers are likely to take notice of the coincidence between Ali’s call for the GMSA to add its expertise to supporting the work of the SBB and criticisms which the state entity has been attracting in the small business community for what existing and aspiring small business owners say is a posture of dilatoriness in expediting applications for state support in securing access to small business funding. A small business owner, whose business has benefitted from financial support from the SBB, told the Stabroek Business earlier this week that the idea of an experienced private sector body “stepping in to help sort out the problems of the Small Business Bureau” was “an excellent idea.” She said that while she had eventually secured support from the SBB for financing the enhancement of her business, “the push around was really provoking.”
The Small Business Bureau, is a semi-autonomous agency established under the Ministry of Business, based on the Small Business Act of 2004. The agency’s office was established in 2010, and became operational in 2013 with funding from the Guyana REDD+ Investment Fund for the Micro and Small Enterprise Development (MSED Programme). In his address on Thursday evening, the GMSA President also ‘pitched’ an appeal for government’s support for agro processors and other small businesses owners seeking financial help support to attend exhibitions held overseas. “It is expensive to fund these trips, therefore the GMSA is talking to government for a special budget.” Ali said. Contextually, the GMSA President disclosed that his Association is targeting local representation at a forthcoming product Expo in St. Vincent and the Grenadines. “This is an opportunity for them to grow their businesses. It is expensive for the agro processor to fund these trips. Therefore, GSMA is talking to government for a special budget,” Ali said.
With regard to the GMSA’s hoped for role in directly supporting the work of the Small Business Bureau, Ali said that the GMSA was seeking, in the first instance, the opportunity to participate in the discourses relating to the “re-engineering” of the state-run entity. “We are asking for a seat at that discussion where we can point out a few important aspects as it relates to small businesses. The Small Business Bureau is a very important government agency as it relates to the development of small businesses in this country. I think if it is tweaked and reengineered a bit, it can do much better for small business in this country,” the GMSA President said. Seeming mindful that he does not appear to be ‘putting down’ the state-run entity, Ali told his audience that while his recommendation was not seeking to imply that the SBB is being “mismanaged”, he was making the recommendation since the GMSA’s clientele are a part of the Small Business Bureau.
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GMSA seeking multi-level state support for businesses to grow
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To make access to capital and resources for the expansion of local businesses easier, the Guyana Manufacturing and Services Association (GMSA) has pitched several proposals to the government for support.
President of the Association, Ramsay Ali, during a mid-year business dinner on Thursday night at the Ramada Hotel, Providence said multiple in-house projects are achievable but only with support from the government.
Noting that developing and later expanding a business is extremely expensive, Ali said the association will soon approach several agencies to discuss how they can make access to resources for agro-processors and other members significantly easier.
“We’ve heard that the Small Business Bureau is being reengineered and we are asking that we can be part of that discussion.
“We believe we can add value to the SBB in terms of the way it’s being managed and I’m not stating it’s being mismanaged, because of our membership being a big part, we should be we are asking for a seat so we can discuss a couple things,” Ali said.
The GMSA will also use its influence and position on several boards to promote its membership and pitch its proposals for support, Ali said.
With some 350 agro-processors on board, the GMSA is now considering the possibility of industrial parks. Ali said these facilities that will be designated for agro-processors and will be different from those being developed under the Ministry of Agriculture and more equipped to handle higher levels of manufacturing.
Notably, Ali has over the last year admitted that much focus is being placed on getting members to attend foreign exhibitions but access to capital has been challenging. On Thursday, he reiterated the need for support.
“This is an opportunity for them to really get a chance to grow their businesses and it’s expensive so we are talking to the government about a special budget every year.
“There is an exhibition in St Vincent in October… many of our small agro-processors need support to get to these exhibitions and that’s something we are working with the government for,” Ali said.
Aside from physical resources, Ali added that data must be zero-rated and lobbied for zero-rating on goods that are locally produced. The GMSA has been a massive supporter of the ‘support local’ mantra and Ali used the opportunity to call for local producers to be the first choice when the government is procuring.
Following Ali’s comments, the Minister within the Ministry of Public Works, Deodat Indar assured that the PPP/C government is working to create channels to bring relief to business owners.
“Food security is something that the government has been pushing food security climate services and energy is three things that Guyana is leading globally with and we have the programmes in Guyana to support that leadership,” the minister said.
He elaborated that through the construction of road networks, facilities, and the widely anticipated Gas-to-Shore project at Wales, West Bank Demerara, the government is trying to reduce costs.
Further, Indar said legislations such as the Data Protection Bill, Local Content Act, and Single Window Systems legislation are all geared at ensuring that Guyanese’s lives are made easier.
Finally on the agenda for the GMSA as it approaches its 60th anniversary is the construction of a home at Cummings Lodge, Greater Georgetown valued at approximately $260 million. At this time,the GMSA is asking for donations, some of which were made on Thursday, for the construction of the building.
It also intends to work with Demerara Distillers Limited (DDL) to procure a one-off rum set to be launched in time for Christmas.
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