UK Trade Adviser meets GMSA..
The Guyana Manufacturing and Services Association (GMSA), on March 6th, engaged in a discussion with the Caribbean’s Regional Trade Adviser of the UK’s Department of International Trade (DIT) and Department for International Development (DFID), Ms. Rachel Wilson. She met with members of the Forestry Sub-sector (of the GMS), specifically those exporting to the UK.
Those in attendance included GMSA’s President, Mr. Shyam Nokta, Executive Member, Mr. Ramesh Dookhoo, Chairman of the Forestry & Wood Products Sub-sector, Mr. Rafeek Khan, and representatives from Barama Company and Variety Woods.
Ms. Wilson explained that the UK is currently in the process of transforming economic partnership between the European Union (EU) and the CARIFORUM to the UK and the CARIFORUM. She claimed that they are hoping to have that in place for the end of March 2019. She also stated that currently, no agreement has been made. Additionally, she iterated that in the case of there being no deal for Brexit, there will be a fall back on the UK-CARIFORUM agreement. However, this has not been signed yet. Furthermore, she lamented that there is a risk that there would not be an agreement in place.
Ms. Wilson informed the GMSA representatives that there can be a possible situation where there may be a trading gap in terms of market access and duties. She further stated that Guyana would only be subjected to tariffs in the case of no withdrawal agreement and no EPA agreement signed.
Mr. Nokta alluded to the fact that Guyana has been exporting to the UK for a period, but in the last few years, Guyana now faces the situation where a decision was taken by the UK to require certification and other measures for Greenheart lumber. Furthermore, he claimed that attaining FSC Certification for manufacturers in the forestry sector is a challenge because of the system of multiple resource use. However, Ms. Wilson was in no position to give an update about the UK’s recent ban on the Greenheart lumber.
Mr. Khan hoped that Brexit would give the UK a chance to work independently with Guyana regarding the recent restriction on greenheart lumber. He shared the same concerns as Mr. Nokta in that many operators in Guyana have not been able to acquire FSC certification and this proves to be a challenge for the Forestry sector as a whole.
Ms Wilson stated that the UK-EPA is currently designing a fund for firms that are affected by Brexit. She claimed that this would be in the form of a Grant. However, the UK-EPA are still in the process of designing the criteria for access of these funds.
The following below are resource links for members who are currently trading or wish to trade with the UK following the scheduled Brexit. The resources are as follows:
- Technical Notices: A set of papers developed by HM Government to provide detail on how to prepare for Brexit if there is no deal. Section on importing and exporting likely to be of particular relevance: https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal
- Business Readiness Tool: A tool, including a set of questions, to direct businesses to the most relevant information and to outline the steps they should take ahead of the EU exit: www.euexit.campaign.gov.uk
- Partnership Pack: HMRC produced pack to support businesses preparing for day one if the UK leaves the EU without a deal, particular focus on issues at the border: https://www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit
- Online Enquiry Tool: Use this if you still have questions after having visited all of the above websites: www.great.gov.uk/eu-exit-news/contact/.
VICE PRESIDENT & MINISTER OF FOREIGN AFFAIRS CARL GREENIDGE UPDATED BUSINESS COMMUNITY ON GOVT’S RESPONSE TO VENEZUELAN AGGRESSION
Minister of Foreign Affairs, Vice President Carl B. Greenidge was the featured speaker at the GMSA’s mid-year Business Luncheon held on Monday 20th July, 2015 at the Guyana Pegasus. The Minister had recently accompanied President David Granger to the CARICOM Heads of Government Summit. There the President, in his inaugural address to this august body, strongly advocated for the region’s support against Venezuela’s aggressive moves to subsume the entire Essequibo county (5/8 of Guyana’s land mass) and all of our maritime Exclusive Economic Zone (EEZ).
The Nicolas Maduro government had by then made a series of aggressive pronouncements against Guyana and the US-based Exxon Mobil oil exploration company which had last May announced a significant find of hydrocarbons in the Stabroek Block. He followed up by recalling his Ambassador in Guyana, Reina Margarita Arratia Diaz, while threatening to issue Venezuelan identification cards to Essequibians.
After the CARICOM conference of Heads, President Granger made a stirring appeal to the community of world leaders at the September General Assembly of the United Nations in New York. This was his maiden address to the UNGA. In addition, he has taken Guyana’s appeal to the Commonwealth of Nations and to UNASUR, some of whose members including Colombia have also engaged Venezuela about the inclusion of their EEZ’s in Maduro’s 2015 decrees.
Minister Greenidge, in a Power-Point assisted discourse, brought the local and expatriate business community and the Diplomatic Corps up to date on the measures the Government was taking to address Maduro’s threat to the nation’s progress.
PRESIDENT McLEAN’S WELCOME TO OUR BUSINESS LUNCHEON
(Extract) “Apart from a limited labour force, the high cost of doing business in Guyana keeps the investors away. We’re referring here to astronomical energy charges, high Customs fees and long, undue delays to process import and export documents. We were pleased to learn that the new government is going to confront these issues in the short term.
The Private Sector is now more committed than ever to changing the business landscape from reliance on the sale of raw products to promoting new businesses that process rice, fruits and vegetables, meat and milk, wood, bauxite by-products, and the amazing variety of medicinal plants into secondary and tertiary products. Our in-country market is small by comparison, so the emphasis has to be placed on sourcing external markets alongside improving procedures at the GRA.
We renew our pledge to the Government and the Guyanese people to unreservedly support all programmes towards national development. We look forward to playing any role that will enhance the ability of our entrepreneurs to earn more than subsistence level revenue, and to eliminate the barriers to external trade which our exporters have been dealing with for many years.”
GMSA calls for better infrastructure, lower transportation costs for farmers, business owners
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The Guyana Manufacturing & Services Association (GMSA) on Friday sounded the need for better roads and other infrastructure to reduce transportation costs; the government has said projects are ongoing across the country.
President of the Association Rafeek Khan said the cost of transportation is sometimes more than 50 per cent of the value of goods and services being transported to markets or factories.
While noting the infrastructural works ongoing across the country, Khan said farmers and local producers are still faced with challenges.
Khan was speaking at a business luncheon on Friday at the Pegasus Hotel in Kingston, Georgetown. The focal point of the discussion was plans to improve public infrastructure in Guyana’s Oil and Gas Economy.
“The cost for infrastructure, getting in to where we need to go regardless if it is primary production or tourism, it is high,” Khan stated.
The Association is calling on the government to provide an environment for easier trade, both locally and regionally.
Khan also stated the authorities must not neglect to prioritise what they do not experience such as farmers transporting produce to the market using deplorable roads.
“Sometimes we don’t realise what it takes to get the products from the farms whether it is North West, the Rupununi, Essequibo and bring it to the regions; sometimes a product comes here and before it reaches here a significant percentage of it is spoilt, so infrastructure cost is significant,” Khan said.
He further called on the government to build infrastructure that will last and withstand the climate here.
Minister within the Ministry of Public Works Deodat Indar in response said the government has infrastructural projects ongoing all across the country. These projects he said is in keeping with the People’s Progressive Party manifesto.
Additionally, Minister Indar stated that the government has removed VAT from hinterland travel.
However, there are still complaints from citizens about the high transportation costs. He said the government is working with the local operators to rectify this issue.
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