Trade Watch Magazine

Year Edition 2020

How will Guyana’s BREXIT Affect Trade with Guyana’s the United trade with the kingdom United kingdom

Investing in Guyana

Leveraging Export Success Story: Market Access Pritipaul Singh under the Investments CARIFORUMInc. UK EPA

A Magazine of the Ministry of Foreign Affairs, Cooperative Republic of Guyana

Services Project to Build Capacity for Trade in Services

A NOTE FROM THE PUBLISHER In this issue of the Trade Watch magazine, we are happy to bring you a feature on Brexit.

Here we present recent updates on the United Kingdom’s (UK) official departure from the European Union and how it will affect Guyana’s trade with the UK. We also provide you with tools to obtain further information on trading with the UK, post-Brexit.

The UK and Guyana have had very long and strong diplomatic ties that encompasses, economic, social and cultural cooperation. The two countries established Diplomatic relationship on May 26, 1966. Guyana has a High Commission in London and the United Kingdom has a High Commission in Georgetown.

Guyana’s history of trading with the UK is tied to the sugar trade under colonialism, which subsequently evolved to the Sugar Protocol under the Lomé 1 Conventions (I, II and III) and the Cotonou Partnership Agreement with the European Economic Community. The Sugar Protocol was part of the UK’s Accession Treaty to the European Community, which it joined in 1974. The Sugar Protocol was the UK’s way of maintaining its preferential trade with its former colonies in Africa.

While the Brexit heralds in a new era for UK trade policy, we are happy for the continuation of preferential access due to the roll-over of the CARIFORUM-EU EPA into the CARIFORUM-UK EPA. The magazine therefore presents an overview of both Agreements so that readers can appreciate its implications for Guyana’s continued access to the UK market.

We also provide an overview of Guyana’s trade with the UK and general trade patterns for 2020, based on available data.

Our services segment takes a different turn in this Issue. We opted to publicize an ongoing capacity building initiative that will help to diversify our export base into a greater focus on trade in services.

Season Greetings and a happy and Productive 2021!

Dianna DaSilva-Glasgow (PhD) Director Department of Foreign Trade Ministry of Foreign Affairs and International Cooperation

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The Frist Lomé Convention, Lomé I was signed in February 1975 in Lomé, Togo.

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MESSAGES MESSAGE FROM GUYANA’S MINISTER OF FOREIGN AFFAIRS AND INTERNATIONAL COOPERATION Notwithstanding the impact of COVID-19 on national economies, global trade has continued, albeit with a ‘New Normal’ that embraces a greater role for E-commerce and electronic transactions. Guyana too has had its bout of challenges brought on by the COVID-19 pandemic including the decline in export earnings from oil and gas, as a result of lower than anticipated prices.

We have also had to contend with political challenges that have slowed down our economic performance.

Notwithstanding the challenges of 2020, our economy and our peoples have proven to be resilient. Our trade performance attests to this. The volume and pattern of our exports and imports reinforces the role trade plays in facilitating our national development, as we continue to be a highly open economy.

The economic and social challenges we have faced as a Hon. Hugh Hilton Todd, M.P. country, has strengthened the resolve of the government of Guyana to restore and build stronger export industries, Minister of Foreign Affairs and increase efforts towards removing barriers to trade, International Cooperation finding new markets for our exports and new export commodities, so that we could increase our participation in global markets.

Apart from COVID-19, there have been other matters affecting our foreign trade relations, the exit of the United Kingdom from the European Union for instance, while it has not affected our preferential trade with the United Kingdom, has created a new paradigm in our trade relations.

This magazine continues to be a useful outlet for disseminating information on trade policy matters. I therefore wish to encourage the private sector to take full advantage of the information that is shared so that we can collectively improve Guyana’s trade.

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MESSAGE FROM GUYANA’S FOREIGN SECRETARY Foreign Trade continues to be necessary to the economic wellbeing of the Guyanese people. It provides an expanded range of options for consumers and a larger market for Guyanese enterprises.

The government of Guyana is committed to maintaining an open trade regime that enhances the range and quality of commodities available to Guyanese consumers.

The emerging oil and gas sector will create new opportunities for Guyana’s productive sectors. Providing a platform from which to Mr. Robert Persaud, improve our international competitiveness, diversify our productive and export base and Foreign Secretary, Ministry of Foreign Affairs create a modern Guyana. An open trading and International Cooperation system will ensure that enterprises continue to have a range of market options available for the sale of their commodities, it will also provide a basis for increased injection of foreign investment into Guyana, which is critical to help realize further growth and development in Guyana.

His Excellency, Dr. Irfaan Alli, President of the Cooperative Republic of Guyana, has expressly committed to identifying and removing barriers to trade. The removal of barriers to trade will help to achieve increased penetration into foreign markets. This drive, in addition to the push to complete the National Trade Strategy will help to create a trade policy regime that provides for diversification of our export base into higher value products and services.

Readers will continue to find the Trade Watch magazine to be a very useful source of information on Guyana’s Foreign Trade policy, including our trade performance and policy priorities going forward.

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A good Guyanese Christmas is incomplete without the traditional Pepperpot and bread for breakfast on Christmas morning. Pepperpot is made from Cassareep, a unique Guyanese condiment produced from the cassava (manioc) plant. It is a native dish of the Amerindians, Guyana’s indigenous peoples.

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Contents REVIEWING GUYANA’S TRADE PERFORMANCE ......................................................................... 7 KEY DEVELOPMENTS IN GUYANA’S TRADE POLICY FRAMEWORK .................................. 11 HOW WILL BREXIT AFFECT GUYANA’S TRADE WITH THE UK?.......................................... 27 EXPORT MARKET INSIGHT ............................................................................................................... 34 INVESTING IN GUYANA ...................................................................................................................... 39 EXPORT SUCCESS STORY .................................................................................................................. 42 BUSINESS DEVELOPMENT TIP ......................................................................................................... 44 HAPPENING IN SERVICES TRADE… ............................................................................................... 48

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REVIEWING GUYANA’S TRADE PERFORMANCE Below we present a synopsis of Guyana’s trade performance during the second and third quarters of 2020.

During quarter 2 of 2020, Guyana exported a total of US$539,330 (000) worth of goods to the world market and imported US$497,821 (000), giving the country a marginal balance of trade surplus of US$41,509 (000).

The key export markets were Canada, United States of America, China, Jamaica and United Arab Emirates; while the key import markets were the United States of America, Trinidad and Tobago, China, United Kingdom and Japan. A deficit on trade existed for the United States of America (US$182,041 (000)); Trinidad and Tobago (US$29,884 (000); United Kingdom (US$8,350 (000); and Japan (US$14,005 (000). (See tables 1 and 2 below).

Table 1: Top five export markets, Q2 2020 Importers

Exported value (US$’000) World 539,330 Canada 120,811 United States of America 91,667 China 74,435 Jamaica 54,370 United Arab Emirates 45,592 Source: ITC calculations based on Bureau of Statistics - Guyana statistics

Table 2: Top five import markets, Q2 2020 Exporters Imported value (US$’000) World 497,821 United States of America 273,708 Trinidad and Tobago

46,740

China

37,364

United Kingdom

16,846

Japan

15,632

Source: ITC calculations based on Bureau of Statistics - Guyana statistics

As was also evident in quarter 1 of 2020, mineral fuels… (HS 27) assumed the leading role in Guyana’s export basket in quarter 2, accounting for approximately 31% of total exports during the period and generating US$167,616 (000) worth of export revenues. Followed closely by gold (HS 71) and other precious metals that accounted for 30% of export revenues with export earnings of US$164,495 (000). Rice (HS 10) generated revenues of US$86,269 (000) accounting for 15% of export earnings. (See table 3 below).

With respect to imports, ten (10) products accounted for 76% of total import expenditures during Q2 2020. Topping the list is cement (HS 25), followed by mineral fuels (HS 27), machinery (HS 84), iron and steel (HS 72 and 73), vehicles (HS 87), electrical machinery and equipment (HS 85), plastics (HS 39); dairy produce (HS 04) and fertilizers (HS 31).

(See table 4 below).

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Table 3: Top Ten products exported by Guyana, Q2 2020 Code 'TOTAL '27 '71 '10 '86 '26 '03 '84

Product label All products Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral ...

Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad ...

Cereals Railway or tramway locomotives, rolling stock and parts thereof; railway or tramway track fixtures ...

Ores, slag and ash Fish and crustaceans, molluscs and other aquatic invertebrates Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof Beverages, spirits and vinegar Wood and articles of wood; wood charcoal Preparations of cereals, flour, starch or milk; pastrycooks' products Source: ITC calculations based on Bureau of Statistics - Guyana statistics.

'22 '44 '19

Exported value (US$’000) 539,330 167,616 164,485 86,269 55,968 15,888 11,814 7,108 6,654 5,813 5,681

Table 4: Top Ten products imported by Guyana, Q2 2020 Code 'TOTAL '25 '27 '84 '73 '87 '85 '39 '72 '04 '31

Product label

Imported value (US’000) 497,821 92,516

All products Salt; sulphur; earths and stone; plastering materials, lime and cement Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral ...

Machinery, mechanical appliances, nuclear reactors, boilers; parts thereof Articles of iron or steel Vehicles other than railway or tramway rolling stock, and parts and accessories thereof Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television ...

Plastics and articles thereof Iron and steel Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere ...

Fertilisers Source: ITC calculations based on Bureau of Statistics - Guyana statistics.

83,616 64,667 60,430 21,231 21,064 12,508 8,834 7,420 6,955

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Overview of Guyana -United Kingdom Trade The United Kingdom is an important trading partner for Guyana. Over the period 2010 to 2019 the UK accounted for an average of 4% of Guyana’s exports to the world market and 8.5% of its imports. From 2014 onward Guyana’s imports from the UK moved away from its normal trend, increasing significantly up to 2016 before plummeting in 2017 and making a sharp rise in 2018 and 2019.

In 2019 the country exported US$25,078 (000) worth of goods to the UK an imported US$5,980,312 (000). This represented 13% of its total imports from the world.

GUYANA- UK TRADE, 2010- 2019 US$'000 7,000,000 6,000,000

US$'000

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

2010

2011

2012

2013

Export

48,150

77,606

114,610 116,387

Import

58,809

62,106

48,805

45,766

2014

2015

2016

2017

97,077

71,996

56,037

127,300

48,716

360,058 1,484,34

40,167

2018

2019

35,108

25,078

1,624,98 5,980,31

Source: Author based on UNCOMTRADE

During July to November 2020, Guyana imported a total of US$21,779,879 from the United Kingdom. Guyana’s main imports from the UK for this period were; Motor vehicles (including parts and accessories), equipment and parts, machine tools, glassware, medicaments, cheese and curd, clothing, insecticides, food processing machines.

During July to November 2020, Guyana exported a total of US$13,353,646 to the United Kingdom. Guyana’s main exports to the UK for this period were; rice; Sugars, molasses and honey; alcoholic beverages; wood and gold. The five (5) products accounted for 98.7% of Guyana’s total exports to the UK. Sugar accounted for 32%; alcoholic beverages 25.5%; Rice 24.2%; Gold 9.38% and wood 7.4%.

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Guyanese Products with high Import Demand in The United Kingdom

Sugar molasses and honey

Rice

Wood

Alcoholic beverages Gold

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KEY DEVELOPMENTS IN GUYANA’S TRADE POLICY FRAMEWORK New UK Policy on Sugar Quotas On 19 May 2020 the UK announced its intention to apply an autonomous tariff rate quote (ATQ) as part of the new UK Global Tariff (UKGT). The UKGT will replace the EU’s Common External Tariff (CET), which the UK currently applies, when the transition period ends, from 1 January 2021.

This policy would allow a set volume of raw cane sugar (260,000 MT) to enter the UK tariff free at 0% rate of duty with an out of quota rate of £28.00/100kg for 12 months, effective 1 January 2021.

The UK has indicated that the purpose of the ATQ is to address a deficit in sugar for human consumption; to ensure that the raw cane sugar refining sector can source competitively priced raw cane sugar; and for food security reasons. The UK sugar market produces around 1.9MT of refined white sugar per annum and is made up primarily of sugar cane refining, UK sugar beet refining and EU white sugar imports. Following reforms to the EU sugar regime which led to removal of sugar beet production quotas from 1 October 2017, the market share for sugar beet in the UK grew to about 55% and sugar cane’s share of the UK market reduced from 50% to about 15-20%.

Most of the UKs sugar cane refining is based on raw cane sugar imported from the ACP and LDC countries and Brazil. ACP sugar enters the UK tariff-free. The figure below identifies the main suppliers of sugar cane to the UK.

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UK imports of raw cane sugar (HS code 170114, 17-19 average)

The UK government opened public consultation on this new policy for three weeks, from 14 September 2020 to 5 October 2020.

The ACP group of sugar producers made a joint submission at the three-week Public Consultation. Among the concerns raised by the ACP grouping is that there is no evidence of a verified shortage of sugar in the UK to justify the proposed quota amount of 260,000 MT. The group explicitly indicated that it was not opposed to the ATQ as a policy tool but that the ATQ is ordinarily used as a stabilization tool and should take into consideration both domestic production and supply from preferential sources. However, it would appear as though no consideration was given to preferential suppliers under the Economic Partnership Agreement in setting the quota rate. The UK deficit is projected at 419,836 tons. However, the ACP supply to the UK in 2018/2019 was 344,572 tons of raw cane sugar for refining (tariff heading 1701.13.10 and 1701.14.10) and 77,653 tonnes raw cane sugar for other than refining (tariff headings 17011390, 17011490), with the ACP countries having the capacity to produce an exportable surplus of 2.422 million tons of sugar. The UK only took its domestic supply into consideration in setting the quota amount.

Ministerial Order signed to give effect to the CARIFORUM-UK Economic Partnership Agreement On December 30, 2020, the Honorable Minister of Finance Dr. Ashni Singh signed and issued a Ministerial Order that gives effect to the CARIFORUM-UK EPA. The UK formally exited the EU on January 31st, 2020 but was on a transition that ended on December 31st 2020.

During the transition period, trade between CARIFORUM states and the UK was governed by the CARIFORUM-EU EPA. However, as of

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December 31st 2020 the CARIFORUM-EU EPA ceased to apply to trade between CARIFORUM states and the UK and the CARIFORUM-UK EPA took effect. The Ministerial Order was instrumental in ensuring that Guyana was ready to apply the CARIFORUM-UK EPA effective from January 1st 2021. The CARIFORUM-UK EPA now governs Guyana’s trade with the United Kingdom.

Guyana signed the CARIFORUM-UK Economic Partnership Agreement and a Memorandum of Understanding to provisionally apply the Agreement on March 22, 2019.

Steps were also taken to facilitate the ratification of the Agreement and full amendment of the Customs Act, as well as amendment of all internal administrative arrangements required to facilitate trade with the independent UK. Guyana and the other CARIFORUM States have also exchanged Notes with the UK that would give due recognition to the situation of Northern Ireland.

Geographical Indications for Heart of Palm, Greenheart wood and Rice Technical specifications and market access guides have been completed for Heart of Palm, Greenheart wood and Rice through technical support from the Organisation of African, Caribbean and Pacific States (OACPS) TradeCom II support Programme. The completion of the technical specifications will allow each product to be registered as a Geographical Indication (GI) under the Geographical Indications Act, improving their capacity to compete in niche markets and attract premium prices.

Renewal of the Caribbean Basin Trade Partnership Act (CBTPA) On September 30, 2020 the United States (US) Senate voted unanimously to renew the Caribbean Basin Trade Partnership Act (CBTPA) until September 30, 2030. The renewal of the CBTPA, like the CBERA, is extremely important to Guyana’s economy and Foreign Trade Policy, as it guarantees Guyanese Companies/exporters sustained access to the US market for products eligible for duty-free treatment such as textiles and apparel and; petroleum and petroleum derivatives.

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A New Post-Cotonou Partnership Agreement between the European Union and African, Caribbean and Pacific (ACP) states

Negotiations for a New OACPS-EU Partnership Agreement have now been completed.

Negotiations had been formally launched during September 2018 but culminated on December 3rd, 2020 with a new Agreement accepted by both parties. The negotiations were along the following strategic pillars: Trade, investment, industrialisation and services; Development cooperation, Technology science and innovation/research; and Political dialogue and advocacy and covered a wide range of development issues including migration, sexual orientation and gender identity, Sexual Reproductive Health and Rights (SRHR) and Culture – the issue of recovery and return of cultural property.

The new Agreement is set to be initialed and signed off in 2021. It will replace the existing Cotonou Partnership Agreement which was signed in 2000 and initially set to expire on February 28, 2020 but was extended to June 30, 2021 to facilitate completion of the negotiations for the Post-Cotonou Agreement.

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Trade Talk Series A ‘Trade Talk’ series with the Private Sector Commission has been developed and commenced on November 12, 2020. The series will entail quarterly webinars aimed at deepening the private sector’s understanding of Guyana’s trade agreements. The first series focused on the CARICOM regime for Trade in Goods. Look out for the next series on January 28th that will focus on the CARIFORUM-UK Economic Partnership Agreement.

Series 2: ‘The CARIFORUM-UK Economic Partnership Agreement’ ___________________________________ Date: Thursday, January 28, 2021

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THE CARIFORUM- UNITED KINGDOM ECONOMIC PARTNERSHIP AGREEMENT It should be noted that consequent to the United Kingdom’s decision to leave the EU, it was necessary to conclude an arrangement that would continue to facilitate trade. The agreement concluded is a roll-over agreement, with the provisions of the CARIFORUMUK EPA being very similar to those of the CARIFORUM-EU EPA. A. THE CARIFORUM-EU ECONOMIC PARTNERSHIP AGREEMENT On October 20, 2008, H.E. Dr. Patrick Gomes, Guyana’s Ambassador in Brussels, signed the CARIFORUM-EU Economic Partnership Agreement (EPA) on behalf of the Government of Guyana. The actual conclusion of the Agreement was consistent with both the provisions of the Cotonou Partnership Agreement and the terms of the waiver granted on the Cotonou trade regime at the WTO Ministerial Conference in Doha (November 2001).

The EPA contains provisions on Customs Duties; Rules of Origin; Nontariff Measures; Trade Defense Measures (Anti-Dumping, countervailing measures, multilateral and bilateral safeguards); Customs and Trade Facilitation, Technical Barriers to Trade, Sanitary and Phyto-sanitary Measures, Agriculture and Fisheries, Services and Investment; Current Payment and Capital Movements, Competition Policy, Innovation and Intellectual Property, Personal Data Protection; Public Procurement, and Environmental and Social Aspects of Sustainable Development.

The CARIFORUM-EU EPA is pro-development in two major respects; (a) calibrating commitments that are reflective of the parties’ respective levels of development as well as taking into account differences within CARIFORUM; and (b) enshrining commitments on EU development assistance in priority areas identified by CARIFORUM States. In pursuit of this objective, the EPA contains a Joint Declaration on Development Cooperation that identifies the European Development Fund (EDF) and EU Member States’ Aid for Trade commitments as sources of EU development support. In seeking to address the historically poor rates of EDF disbursement, the EPA also identifies funding of the CARICOM Development Fund as an institutional vehicle to support EPA implementation in the Caribbean.

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Key Elements of the CARIFORUM-EU EPA The key elements of the CARIFORUM-EU EPA are: 

Goods Liberalization

The EC immediately liberalized all imports on a duty-free quota free basis apart from short transitions for rice and sugar, while CARIFORUM liberalized 86.9% of the value of its imports within the first 15 years and 86.9% over 25 years. The Agreement will result in the liberalization of 92% of bilateral CARIFORUM-EC trade. It excludes from CARIFORUM liberalization, 493 products or 9.8% of tariff lines equivalent to 13.1% of CARIFORUM imports. CARIFORUM applied a general moratorium on its tariff liberalization commitments on all products for the first three years of the Agreement. For revenue sensitive items such as gasoline, motor vehicles and parts, the moratorium is extended to 10 years (December 2018). 

Other Duties and Charges (ODCs)

Other duties and charges were to be maintained during the first seven years and then phased out over the subsequent three years. 

Quota for Rice Exports

The quota for rice exports increased annually, 187,000 tonnes (29%) for 2008 and 250,000 tonnes (72%) for 2009 and became duty-free quota free (DFQF) compared to the approximately €65 per tonne normally paid. From 2010 DFQF took effect and the distinction between whole grain and broken rice removed. 

The Sugar Protocol (SP)

The Sugar Protocol quotas were maintained on a transitional basis until September 2009 when DFQF was introduced. 

A Chapter on Agriculture

A specific chapter on Agriculture established rules consistent with the objectives of pursuing sustainable development, poverty eradication, enhanced competitiveness and food security. Most notable in the provisions on agriculture is the zero for zero treatment of EU export subsidies, that is, the EU eliminates export subsidies on all agricultural products that CARIFORUM liberalizes.

During the first ten years of the Agreement, the EU excluded CARIFORUM exports from any contemplated use of a multilateral safeguard measure and considered the use of constructive remedies before imposing Anti-Dumping or countervailing duties in respect of products imported from CARIFORUM States.

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

MFN Treatment

Both CARIFORUM and the EU automatically conferred on each other any better treatment granted by one Party to a major trading partner. Such entities are defined as countries or regional blocs garnering 1%, or 1.5% and above, of world merchandise exports. This MFN provision covers both goods and services. 

Services

The EU liberalized 94% of W120 (services sector list under the GATS) list of sectors while the respective figures for CARIFORUM LDCs and MDCs are 65% and 75%, respectively.

The 4th Meeting of the Joint CARIFORUM-EU Council in 2014 agreed to the establishment of a Special Committee on Services to address matters pertaining to this important sector. Owing to the EU internal procedures, the formal decision for the establishment of this Working Group has not yet been adopted.

In the case of the temporary movement of natural persons (Mode 4) the EU has granted market access for Caribbean professionals in 29 sectors for Caribbean Contractual Service Suppliers (CSS) to enter the EU to supply services once a contract has been secured. This includes entertainment services for all EU Member States - except Belgium and Italy. The EU has liberalized 11 sectors for temporary entry by CARIFORUM Independent Professionals (IPs) or self-employed persons.

CARIFORUM access to the EU entertainment market is complemented by a Protocol on Cultural Cooperation that provides for greater collaboration on all cultural fronts and with special provisions on audiovisual activities. In particular, coproduced audiovisual products involving European and Caribbean creative teams will qualify as European works and thereby satisfy cultural content rules in all EU member states. However, service providers from most CARIFORUM States including Guyana, continue to have challenges in accessing the EU having regard to the EU visa regime. This issue has consistently been raised with the EU and the response has largely been that the competence for visas remain with the EU Member States. 

Rules on Investment

The EPA treats with rules on investment seeking to confer predictability and transparency on market access in agriculture and forestry, manufacturing, mining and service sectors in both EU and CARIFORUM. The EPA also contains obligations that will ensure that investors safeguard the environment and maintain high labour, occupational health and safety standards.

Furthermore, the Agreement prohibits the Parties from lowering environmental and social standards in order to attract investment;

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

Trade and Innovation

On the issue of trade and innovation, there are provisions of that seek to improve CARIFORUM competitiveness through the development of CARIFORUM innovation systems in partnership with the EU and through access to relevant EU support programs.

The Development Chapter The principles of the Agreement have been captured in the Development Chapter which seeks to ensure that trade capacity is developed in a manner consistent with the discharge of the Region’s commitments under the Agreement. To this end, there are five elements captured in the Chapter, namely sustainable development, regional integration, development cooperation (funding), international cooperation and monitoring. It should also be mentioned that the EPA provides for the establishment of development benchmarks to orient the regular evaluation of performance under the Agreement.

The Joint Declaration on Development Cooperation includes a commitment to channel some EPA support through the CARICOM Development Fund. Furthermore, the Trade Partnership for Sustainable Development (Development Chapter) includes support for infrastructure while the preamble of the Agreement states that full account should be taken of the CARICOM Development Vision.

I.

FUNDING

The sole source of funding of EPA implementation remains the resources already committed by the EU to CARIFORUM under the EDF. Under the 11 th EDF Regional Indicative Programme (RIP) there has been no specific allocations for EPA support, but implementation is generally covered under the thematic area of Regional Integration and Trade. CARIFORUM and its Member States continue to call for dedicated funds for EPA implementation as is the case for other Regional EPAs. II.

STATUS OF IMPLEMENTATION OF THE AGREEMENT

The CARIFORUM-EU EPA has not yet entered into force but continues to be provisionally applied. One requirement for the entry into force of the EPA is its ratification by all the Parties. October 2018 marked the tenth anniversary of the CARIFORUM-EU EPA between CARIFORUM States and the European Union (EU) and its twenty-eight Member States. Guyana ratified the EPA on June 14, 2012.

Tariff Reductions - Status Report by CARIFORUM States Article 16 requires CARIFORUM States to implement phased reductions of customs duties on goods originating in the EU Party over a period of twenty-five (25) years after

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signature of the EPA in accordance with Appendix I to Annex III (the Schedule of Tariff Liberalization of the CARIFORUM States). CARIFORUM States were required to effect tariff reductions on 1 January 2011; 1 January 2013; 1 January 2015; 1 January 2017 and 1 January 2019. Guyana, through an Act of the National Assembly, has implemented the EPA Tariff Liberalization Schedule for goods on January 15th 2011. All required tariff cuts are therefore automatic.

Ten year Moratorium - motor vehicles, parts and components The issue of errors in Appendix I of Annex III to the EPA, raised at the First Meeting of the Trade and Development Committee in 2011, has not yet been resolved. CARIFORUM States are presently reviewing technical work to confirm the nature and number of tariff lines to be covered by the moratorium and a proposed schedule for tariff reduction.

Guyana has submitted its schedule but due to some errors, there is need for it to be revised. This issue is being handled in collaboration with the Guyana Revenue Authority.

Tariff Classification The EPA is currently expressed in HS 2002 and most CARIFORUM States including Guyana are applying the HS 2012. In keeping with the obligation to apply the most current version of the HS, the two Sides have agreed to the establishment of a joint technical working group, which Guyana (GRA) is a member, to update Appendix I to Annex III and Annex II to Protocol I to HS 2017. Member states are to indicate whether any errors exist in the National Tariff Schedules prepared by the EU. Guyana has implemented HS 2017 in January 2019.

Geographical Indications Article 145 contemplates the elaboration of a CARIFORUM-EU Agreement on the protection of geographical indications. Under the Agreement the Parties will submit a list of GIs they wish to have protected. The EU has submitted its list of products, and an initial submission from CARIFORUM to the EU was made. This submission includes submissions from Guyana.

At the national level, Guyana is seeking to build on the success of an ACP EU TBT Project to promote the certification of quality products in Guyana. This project saw the identification and registration of the first three GIs in Guyana for Demerara Rum, Demerara Sugar and Demerara Molasses. A second project, approved by the ACP-EU TradeCom II Programme, is currently being implemented to continue work on registering three more GIs. Those products identified are Guyana Rice, Greenheart and Heart of Palm.

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Services In the area of Services there are challenges that have impeded the access envisaged by CARIFORUM and by extension, the ability to maintain meaningful presence in the EU market. CARIFORUM has recognized the importance of the temporary entry framework in the Agreement in facilitating the access envisaged, especially in sectors where the region may possess a comparative advantage such as in the area professional services.

CARIFORUM identified a number of challenges which continue to impede its services suppliers from accessing the EU market, including:   

the impact of the EU’s visa regime and the need to have EU Member States address the impact of the regime directly; the application of nationality and residency requirements (especially in the area of professional services); and the domestic regulatory environment in the EU (namely visas requirements, licensing procedures and requirements and qualification procedures and requirements) that would not be not subject to scheduling.

The focus for CARIFORUM is on (i) the regulatory environment in the EU and (ii) the identification of sectors that can benefit from technical assistance and support to enhance cross border trade under the Agreement. It is anticipated that the Special Committee on Services that will be established will address these matters.

At the national level, with the resuscitated Guyana Coalition of Service Providers, this could be used to implement the EPA obligations and more importantly, to take advantage of the benefits under the EPA through the identification of priorities for the Services Sector.

Guyana is also actively involved in discussions on a Draft CARIFORUM Mutual Recognition Agreement. Simultaneously, the Ministry has drafted Regulation Bills for the Architecture and Engineering Services sectors and is currently engaging stakeholders on these with the aim of establishing legislation that will regularize those sectors. These are with the Ministry of Legal Affairs for review.

III.

MECHANISM FOR NATIONAL EPA IMPLEMENTATION

The CARIFORUM-EU EPA is a comprehensive agreement that requires the involvement of several government and private sector agencies. Most of the national positions have come through one on one discussion with agencies or through discussions at the NACEN. This should be supplemented with a dedicated Technical Working Group on EPAs and to co-opt all the relevant agencies involved EPA implementation.

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An initiative was started in June 2018 to establish an EPA Committee with focal points in each of the agencies to bring awareness of the EPA, a managed and coordinated approach to EPA implementation and developing better country positions. While focal points were named, for several reasons, the initial meeting never took place. It is proposed that that process be revisited with letters going out again requesting the nomination of focal points. This will strengthen EPA implementation for Guyana.

IV.

EPA INSTITUTIONS

The implementation of the EPA entailed the establishment of the following institutions: o Joint CARIFORUM-EU Council The Joint CARIFORUM-EU Council (Joint Council) is the highest EPA Institution, it meets at the Ministerial level every two years. On the CARIFORUM side, one of its members, usually the Chair –in-Office, is designated the CARIFORUM High Representative and speaks on behalf of CARIFORUM States at meetings of the Joint Council. The Joint Council is tasked with:     

supervising the implementation of the EPA; responsibility for the operation and implementation of the Agreement; monitoring the fulfilment of the objectives of the Agreement; the examination of any major issues arising within the framework of the Agreement; and the examination of any other bilateral, multilateral or international question of common interest to the Parties or affecting trade between the Parties.

The Joint Council is one of the two main EPA institutions that has decision-making power. It may make decisions in respect of all matters covered by the Agreement. o CARIFORUM Trade and Development Committee The CARIFORUM-EU Trade and Development Committee (TDC) is the main subsidiary body to the Joint Council and is composed of senior officials. The TDC assists the Joint Council in the performance of its functions and its main responsibilities include:     

Monitoring and assessing the implementation of EPA commitments; Undertaking action to avoid disputes or to resolve them; Taking action to facilitate trade, investment and business opportunities among the members; Monitoring and evaluating the results and impact of implementing the Agreement; Monitoring and reviewing the implementation of the development cooperation provisions of the Agreement;

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 

Making recommendations to the Parties and coordinating actions with donors; and Preparing and coordinating meetings of the Joint Council.

The Trade and Development Committee is the other main EPA institution which has decision-making power. It is also empowered to make recommendations to the Joint Council and may set up sub-committees/special committees to carry out specific tasks. o CARIFORUM-EU Parliamentary Committee CARIFORUM-EU Parliamentary Committee allows for the exchange views on the implementation of the Agreement by parliamentarians and comprises of Members of the European Parliament on the one side, and members of the CARIFORUM States’ legislatures on the other side. The Parliamentary Committee is not a decision-making body. However, it may make recommendations to the Joint CARIFORUM-EU Council and the CARIFORUM-EU Trade and Development Committee. It also has the power to request the Joint CARIFORUM-EU Council to supply it with information. The EPA also provides that the Parliamentary Committee is to monitor and review the implementation of the provisions and to cooperate with the Joint Parliamentary Assembly under Article 17 of the COTONOU Agreement. o CARIFORUM-EU Consultative Committee Participation in the CARIFORUM-EU Consultative Committee (Consultative Committee) is decided by the Joint Council, with a view to ensuring a broad representation of all interested parties. The Consultative Committee consists of representatives of organizations of civil society. It is made up of forty (40) representatives from standing civil society organizations, twenty-five selected by the CARIFORUM States and fifteen (15) in representation of organizations located in the European Union.

The CARIFORUM-EU Consultative Committee was established with the task of assisting it to promote dialogue and cooperation between representatives of organizations of civil society, including the academic community, and social and economic partners. The dialogue is to encompass all economic, social and environmental aspects of the relations between the Parties to the EPA, as they arise in the context of the implementation of the EPA. Mr. Clement Duncan, representing the Guyana Manufacturers and Service Association is currently serving on the Consultative Committee.

The other subject-specific Committees established by the Joint Council are:   

Special Committee on Customs Cooperation and Trade Facilitation (SCCCTF) Special Sub-Committee on Development Cooperation Special Committee on Agriculture and Fisheries

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V.

FIVE YEAR REVIEW

The Joint Declaration concluded at the signature of the EPA provided for the mandatory review in five-year intervals. The first such review was done in 2015 and the second is expected to be done this year. The process has commenced with studies done by the EU and the CARIFORUM Directorate. The review will culminate in the meeting of the Joint CARIFORUM-EU Council and the Trade that should be held in the latter part of this year.

To guide the preparation of the CARIFORUM States in connection with this review, the 23rd Meeting of the CARIFORUM Council established a group of technical experts. The mandate of this group includes the examination of the subject specific review commitments. In keeping with the Terms of Reference, the objective of this Project is to present a detailed legal and policy analysis of issues which the CARIFORUM States should examine closely in connection with the upcoming 2020 review.

B. CARIFORUM-UNITED KINGDOM ECONOMIC PARTNERSHIP AGREEMENT I.

BACKGROUND

On June 23, 2016, through a referendum, the people of the United Kingdom (UK) voted to leave the EU and thereby triggering the start of negotiations under Article 50 of the Treaty of Lisbon.

Concerned that the UK leaving the EU means the UK’s membership in the CARIFORUMEU Economic Partnership Agreement (EPA) comes to an end and the current trade arrangement governing Caribbean exports to the UK market will lapse. At a CARIFORUM Ministerial Consultation on ACP/European Union (EU) Post-Cotonou Relationship and BREXIT in March 2017, Ministers agreed that CARIFORUM should take action to protect its trade interests with the UK in light of BREXIT. Further, CARIFORUM Ministers and UK Secretaries of State for Trade Policy and Development Cooperation met, at the House of Lords in the UK, in March 2017 to exchange views on BREXIT. At that meeting, the UK advised that its approach to its postBREXIT bi-lateral trade relationships would be to roll-over the EU’s existing third country agreements, including the CARIFORUM-EU EPA and to allow such an arrangement to take effect from BREXIT. CARIFORUM Ministers also met with the UK Secretary of State for Trade Policy in Brussels in November 2017 where the UK advised of its desire to avoid disruption in the trade of its partners when it would have left the EU. It wished to have a seamless process which would ensure uninterrupted market access and other EPA benefits for itself and for CARIFORUM in the roll-over trading agreement. They further agreed that those

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discussions will be a technical exercise to ensure continuity in their preferential trading relationship, rather than an opportunity to renegotiate existing terms.

Trade officials from CARIFORUM and the UK held four rounds of informal technical discussions in keeping with the approach agreed at the Ministerial level. The technical dialogue between the CARIFORUM States and the UK focused on the technical amendments only to those elements necessary to ensure continued operability after the UK leaves the EU, without materially altering the scope or substance of existing commitments, rights and obligations.

Based on the outcome of the dialogue, on March 22, 2019, in the margins of the 25th Meeting of the CARIFORUM Council of Ministers, Ambassador David Hales signed the CARIFORUM-United Kingdom Economic Partnership Agreement and a Memorandum of Understanding (MoU), on behalf of the Government of Guyana in Saint Lucia. The Honourable George Hollingberry, Minister of State for Trade Policy of the Department of International Trade signed on behalf of the United Kingdom.

II. KEY FEATURES OF THE CARIFORUM-UK EPA o Treatment of References to the Cotonou Agreement (CPA) The two sides recognized the interdependence between the CF-EU EPA and the CPA and aim to replicate this in one agreement. They also agreed to and have incorporated into the CARIFORUM-UK EPA the Fundamental Principles including the Essential and Fundamental Elements of Cotonou and its political dialogue procedure. o Treatment of Time-bound Commitments that run from Entry Into Force of the Agreement The Agreement includes a MoU which is a political statement that asserts the ambition of all parties to ratify the agreement promptly; outlines the political ambition and areas for discussion. o Governance Structure of the Agreement The Agreement incorporates all the joint institutions of the CF-EU EPA including the technical committees on Agriculture and Fisheries and the Special Committee on Services. The two sides have agreed to revisit the governance structure of the EPA at the earliest possible to streamline.

III.

DEVELOPMENT COOPERATION

On the issue of Development Cooperation, the UK intends to:

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  

Honour commitments made to the EU budget during the period of its membership including the 11th EDF (2014-2020); Provide £360m of approved programmes that support trade and economic development in the Caribbean; and Implement a new programme of direct support to build on previous support to the EPA that will provide around £5m of new resources with three components: Technical Assistance for EPA Implementation through TAFT II, funding for CARICOM Institutional Support and Private Sector Support (Market Awareness and Intelligence and Export Readiness)

For the full text of the agreement, please click here to go to the Foreign Trade Information System of the Organisation of American States http://www.sice.oas.org/TPD /CAR_GBR/Texts/CAR_GBR _EPA_index_e.asp

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HOW WILL BREXIT AFFECT GUYANA’S TRADE WITH THE UK? The United Kingdom’s transition period for its official departure from the EU ended on December 31st 2020. January 1, 2021 therefore heralded in a UK that is independent from the EU in the management of its trade policy.

However, Guyanese exporters needed not be worried. When Guyana signed the CARIFORUMUK EPA on March 22, 2019, along with a Memorandum of Understanding to facilitate provisional application, it was with the intention of safeguarding the interests of exporters against interruptions in preferential access to the UK market. Therefore, by signing the agreement Guyana was able to maintain, with the independent UK, all preferences that were applied to Guyana’s trade with the UK when it was part of the EU. There will however be Administrative changes that are required, both by Guyana and by the UK. On Guyana’s end, the signing of the Ministerial Order on December 30th by the Minister of Finance, Dr. Ashni Singh, paved the way for the Guyana Revenue Authority to make amendments to its tariff schedule to treat the UK separately from the EU. Therefore, importers of products from the EU can expect the same treatment as products originating from EU countries. The Ministerial Order will have to be laid before the National Assembly at the shortest time possible, so that the full amendment to the Customs Act could be facilitated. GRA may also take some time to fully sift out the UK and reflect the applicable rates in its tariff schedule. Nevertheless, the issuance of the Ministerial order paves the way for GRA to begin to apply the Agreement effective January 1, 2021.

On the UK side, a number of internet-based tools have been created to ensure transparency and predictability in access to information on trading with the UK. The rates to be applied to CARIFORUM countries will be published on www.gov.uk. In addition, from 1 January 2021, Trade With the UK tool will set out all tariff rates. In the intervening period, the UK has published a temporary tariff tool (https://www.gov.uk/look-up-

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import-tariffs-1-january-2021) where all rates which will apply from 1 January 2021 can be seen.

As an illustration of how exporters can use this tool, the screenshots below show how exporters of sugar can find out what tariffs are applied on imports of sugar from Guyana.

By inputting the relevant tariff code at the 10 digit level and the name of the exporting country, the tool indicates that an Agreement has been negotiated with Guyana, this is the CARIFORUM-UK Agreement. It also indicates that the rates that will be applied from 1 January, 2021 are the rates negotiated under this agreement once the agreement is in effect.

In this illustration the trade policies are reflected for sugar of tariff heading 1701131000.

Exporters would notice that the tool indicates a tariff preference rate of 0.00%. This is because sugar from Guyana will continue to enter the UK on duty-free quota-free because this was afforded under the CARIFORUM-EU EPA which maintained the Sugar Protocol quotas on a transitional basis until September 2019 when duty-free quota-free access was introduced.

However, further down, exporters would also notice under standard tariffs, reference to non-preferential duty under end-use, a rate of 28 GBP/ 100kg. This is part of the UK’s new Global Tariff (UKGT) on sugar that took effect from January 1, 2021 to replace EU’s Common External Tariff (CET).

Step 1: Click here https://www.gov.uk/look-up-import-tariffs-1-january-2021

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Step 2: Select the name of the exporting country

Step 2: Notice of trade agreement being in place will come up.

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Step 3: Enter the 10 Digit Product code for the product you export

Step 3: You will receive information on the rates you are required to pay, and other applicable trade policies.

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Apart from information on tariff duties, policymakers and traders can also obtain other general information through the Contact points established by the UK. General information on the CARIFORUM-UK EPA can be obtained from the Coordinators at the technical and senior official levels as indicated below: 

Coordinator (Article 234) – The UK’s Coordinators are as follows:

1. Technical level: Dan Hart, Regional Trade Adviser (Caribbean), dan.hart@fcdo.gov.uk, British High Commission Kingston, PO Box 575, 28 Trafalgar Road, Kingston 10, Kingston, Jamaica.

2. Senior official level: Paul Walters, Head of Trade for Development, paul.walters@fcdo.gov.uk, 3 Whitehall Place, London SW1A 2AW Traders and policymakers needing to make inquiries on matters related to Technical Barriers to Trade and Santiary and Phyotsantiary Measures can also do so through the following focal points: 

Technical Barriers to Trade (Article 49) – The UK’s contact point on TBT is: TBTEnquiriesUK@trade.gov.uk

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

Sanitary and Phytosanitary measures (Article 55) – The UK’s Competent Authority on SPS is: ukassurance@defra.gov.uk.

The UK also has new platforms for publishing / exchange information on procurement and other general matters. 

www.gov.uk will be used to publish general information to ensure transparency.



Procurement (Annex VII) - the new service for the United Kingdom is Find a Tender (FTS). The detail of the United Kingdom’s means of publication for Procurement related information, and tender documentation can be found in the following guidance: https://www.gov.uk/guidance/public-sectorprocurement-after-a-no-deal-brexit



List of official holidays (Annex VIII Article 1(5)) – UK public holidays are published online: https://www.gov.uk/bank-holidays

Below is also a summary of sources of information for customs authorities issuing origin declarations and other documents required to facilitate trade.  Addresses of the customs authorities responsible for issuing and verifying movement certificates EUR.1 and origin declarations or suppliers’ declarations (Protocol I, Article 32) – EUR.1 forms are authenticated and issued by the UK’s National Clearance Hub (NCH). These can only be applied for and issued electronically due to the impact of the coronavirus. Applications for the issue of an EUR.1 certificate must be emailed with ‘EUR1 endorsement’ in the email subject line to NCH.Movements.Digital@hmrc.gov.uk.

For reference, the postal address is: HMRC Central Issuing Office, The National Clearance Hub, Ralli Quays, 3 Stanley Street, Salford, M60 9HL, United Kingdom [please note that the NCH is only accepting communications via email rather than by post at the moment].

EUR.1 forms can also be authenticated by local Chambers of Commerce and by the Institute of Chartered Shipbrokers, however they charge for this service.

Verification of EUR.1 forms, origin declarations and supplier’s declarations are carried out by the Tariff Preference Team based in Leeds. Requests for verification should be sent to: HM Revenue & Customs, Tariff Preference Team, Peter Bennett House, Redvers Close, Leeds, LS16 6RQ, United Kingdom. Email: tariff_prefs_cope@hmrc.gov.uk 

General enquiries related to customs customsinternational@hmrc.gov.uk

should

be

directed

to:

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The Ministry has already circulated the information to the relevant public and private sector agencies including the Customs Authority, the Guyana Revenue Authority (GRA) and has requested Specimen of Guyana’s Customs stamps and signatures for transmission to the UK officials.

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EXPORT MARKET INSIGHT Below we present a commercial guide to doing business and trading with the United Kingdom of Great Britain and Northern Ireland, based on research conducted by the International Trade Administration of the United States Department of Commerce. 2

Market Overview The United Kingdom, with a 2019 GDP of $2.9 trillion, is a major international trading power, with the fifth-largest economy in the world according to the World Bank Group. While the United Kingdom is geographically relatively small, it has a population of more than 66 million people. It is a major international, financial, media and transportation hub and a gateway into Europe, Middle East and Africa.

Market Challenges and Opportunities The UK market can be challenging market with which to do business because London is viewed as one of the world’s most expensive cities. Exporters would also face strong competition from UK and third-country suppliers and so would need to be very price competitive and offer differentiated products.

Market Entry Strategy When seeking to conduct business with the UK it is useful to take the following into consideration:

-

-

22

Demonstrate a clear value proposition and competitive advantage (i.e. price, quality, branding).

Pay close attention to both the obvious and subtle cultural differences and adjust marketing strategies accordingly.

Evaluate prospective partners carefully and choose an experienced, wellestablished local distributor.

Under normal circumstances, visiting the UK to meet prospective partners and customers is highly recommended as British businesspeople tend to want to get to know the people with whom they are doing business. With current travel restrictions, virtual meetings have become understandably acceptable.

Express commitment to the market with a long-term perspective.

https://www.trade.gov/knowledge-product/united-kingdom-market-overview?section-nav=2980

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Trade Barriers The UK has no significant trade or investment barriers and no restrictions on the transfer of capital or repatriation of profits.

To report existing or new trade barriers and to get assistance in removing them, contact either the: Guyana Embassy in London or the Department of Foreign Trade of the Ministry of Foreign Affairs.

Import Tariffs Customs duty is assessed on the fair market value of imported goods at the time they are landed in the UK. Import prices for products entering the UK from non-EU states generally consist of: Cost, Insurance, Freight and Duty, with standard VAT of 20% levied on the aggregate value. VAT is reduced to 0% for certain goods such as food and children’s clothing. More information on VAT can be found by visiting https://www.gov.uk/vatrates The commercial invoice value is usually accepted as the normal price, but if a preferential arrangement has been established between the overseas supplier and the importer, or an unrealistic value has been declared, HM Revenue and Customs (HMRC) reserves the right to assess a fair market value for duty purposes. The duty is payable at the time the goods are imported, but established importers can defer payment for, on average, 30 days. In addition to customs duties on imported goods, an excise tax is levied on in-country sales of alcohol, tobacco, and road vehicles, and on sales of oil and petroleum products.

Import Requirements and Documentation An import license is not needed to import the majority of industrial goods into the UK. However, some industrial goods require import licenses issued by the Import Licensing Branch (ILB) as a result of controls imposed at national or UN level. ILB publicizes these restrictions by issuing Notices to Importers. The Department for International Trade’s (DIT) Import Licensing Branch is the UK licensing authority. A list of EU licensing authorities is available by contacting the DIT Import Licensing Branch import controls: enquiries.ilb@trade.gov.uk. The Department of International Trade provide further guidance on import controls.

There are numerous goods which are currently subject to import controls, whether because they are banned, subject to quotas or where the import is monitored with licenses. Examples of goods currently banned include offensive weapons (i.e. switch blades), self-defense sprays (i.e. pepper spray) and rough diamonds. The import of firearms is subject to monitoring.

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Labeling/Marking Requirements In the UK, origin, weight and dimension, chemical composition and appropriate hazard warnings are required for consumer protection purposes on any product offered for retail sale. If the product cannot be labeled or marked, the data may be included on any packaging, accompanying printed material, or product literature. Dual labeling is strongly supported by the UK. All labels require metric units although dual labeling using Imperial measurements is also acceptable. Voluntary labeling schemes may also prove quite useful to the improved marketing of products.

Temporary Entry The Carnet is a system allowing the free movement of goods across frontiers and their temporary admission into a Customs territory with relief from duties and taxes. The goods are covered by a single document known as the ATA carnet that is secured by an international guarantee system. The term “ATA” is a combination of the initial letters of the French words “Admission Temporaire” and the English words “Temporary Admission”.

With this system, the international business community enjoys considerable simplification of Customs formalities. The ATA carnet serves as a goods declaration at export, transit and import.

No import duties or taxes are collected for the temporary importation of goods covered by the system since internationally valid security has been established by the national associations issuing the ATA carnets. These national associations are approved by Customs and are affiliated to an international guaranteeing chain administered by the International Chamber of Commerce World Chambers Federation (ICC/WCF).

When showing commercial samples to customers or potential customers, demonstration of professional equipment for use at a trade fair or transporting equipment to provide a service, the ATA carnet is now the document most widely used by the business community for international operations involving temporary admission of goods.

Prohibited & Restricted Imports There are certain goods that cannot be brought into the UK under any circumstances, and some goods that are restricted. This is to protect the UK from crime, pests and diseases. The following goods are banned completely regardless of country of origin: illicit drugs, offensive weapons such as flick and gravity knives, self-defense sprays such as pepper and CS gas sprays, indecent and obscene material rough diamonds and personal imports of meat and dairy products. The UK government provides current and complete information on banned or restricted goods (https://www.gov.uk/duty-freegoods/banned-and-restricted-goods ).

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The UK is a signatory to the Convention on International Trade in Endangered Species of Wild Fauna and Flora, an international agreement between governments that came into force in 1975. The import, export and use for commercial gain of certain species requires a CITES permit.

Animal and Plant Health Agency’s Centre for International Trade - Bristol is the part of the UK CITES management authority responsible for dealing with CITES applications.

(See https://www.gov.uk/guidance/cites-imports-and-exports ) The UK Forestry Commission is responsible for forestry in the UK and it controls the import of certain wood, wood products and bask.

(See https://www.gov.uk/government/organisations/forestry-commission )

Customs Regulations The documents required for shipments include the commercial invoice, bill of lading or airway bill, packing list, insurance documents, and, when required, special certificates of origin, sanitation, ownership, etc.

A copy of the commercial invoice should accompany the shipment to avoid delays in customs clearance. It is worth noting that imprecise descriptions are a common reason for goods being held without customs clearance, meaning that a clear description of the goods is essential and should be worded in such a way as to describe the goods to an individual who may not necessarily have an understanding of a particular industry or article. A clear description of goods should satisfy three basic questions as to what the product is, for what is it used, and of what it is made.

No special form of invoice is required, but all of the details needed to establish the true value of the goods should be given. At least two additional copies of the invoice should be sent to the consignees to facilitate customs clearance. Consular documents are not required for shipments to the UK.

Standards for Trade As EU standards may no longer apply to trade with the UK, exporters should contact the British Standards Institution for more information on UK mandatory and voluntary standards. (See https://www.bsigroup.com/en-GB).

Licensing Requirements for Professional Services The UK has specific licensing requirements for certain professions as indicated below;

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

Information about acceptable overseas medical qualifications (See https://www.gmc-uk.org/registration-and-licensing/join-the-register/beforeyou-apply/acceptable-overseas-qualifications ).



Information about the dental overseas registration exam and temporary registration (See https://www.gdc-uk.org/registration/overseas-registrationexam ).



Information about the Qualified https://www.sra.org.uk/solicitors/qlts ).



Information about regulations applying to financial services professionals (See https://www.fca.org.uk/firms )

Lawyers

Transfer

Scheme

(See

Business Customs UK, England and Wales in particular, is more ethnically diverse. The business culture in the UK is therefore quite modern. Albeit there may be cultural differences. Variations in pace and style may be most noticeable and sustained personal contact with potential business partners is expected. Prompt acknowledgment of correspondence, longer lead time for appointments, adherence to appointment schedules and a greater formality in the conduct of business is the norm.

British executives communicate typically by phone and e-mail. The British are less likely to seek legal advice and guidance than their U.S. counterparts.

Visa Requirements UK Visa Information can be found on the UK Visas and Immigration website (see https://www.gov.uk/government/organisations/uk-visas-and-immigration ).

Language English is the official language of the United Kingdom. However, Welsh is spoken by a significant minority in Wales. Gaelic is spoken by a small minority in Scotland. In addition, there are many large communities in the UK whose first language is not English. Over 100 languages are spoken in London alone, which continues to be one of the most culturally diverse cities in the world.

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INVESTING IN GUYANA

The Guyana Office for Investment is the gateway to investing in Guyana.

The organisation has a new leadership team and is ready to welcome potential investors to Guyana.

Visit the website at

https://goinvest.gov.gy/ to learn more about opportunities for investing in the following sectors:

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For additional information on investing in Guyana contact the Guyana Office for Investment (Go-Invest) Address: 190 Camp & Church Streets, Georgetown, Guyana, South America.

Tel: +592-225-0658, 227-0653, +592 225 0655 Email: goinvest@goinvest.gov.gy Website: https://goinvest.gov.gy/ Opening hours: 08:00 am - 16:30 pm (Monday – Thursday) 08:00 am - 15:30 pm (Friday)

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EXPORT SUCCESS STORY Pritipaul Singh Investments Inc. was established in 1999. It absorbed the operations of what was previously, the Guyana Fisheries Limited and expanded its operations by further acquisition of the former Georgetown Seafoods and Trading Company, where it currently produces mainly Tuna. The company has grown tremendously and is now the largest processor/ exporter of fresh and frozen fish accounting for about 90% of total fish exported out of Guyana.

Pritipaul Singh Investment Inc. first started exporting in 2002 with exports going to the United States of America and Canada. By 2003, the Caribbean market was added and in 2012 the company started exporting to the European Union.

The company boasts a modernized operation with production of a diversified range of fish and shrimp products. The main products produced include Shrimp and Fish products; particularly, Seabob, Prawns, Tuna and a variety of delectable fish species.

The company has a vertically integrated operation to aid in the efficient harvesting, processing, packaging and storage of seafood products. It operations include a Fleet of harvesting trawlers and fishing boats, Shrimp and Fish Discharging, Shrimp Processing Plant, Fish Plant, Smoked Fish Plant, Plate Freezing, Fish Packaging, Holding Room, Quality Assurance, Warehousing, General

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Stores, Dry Docking, Machine Shop, General Maintenance, the Ice Plants and General Office.

Pritipaul Singh Investments Inc. has been able to successfully export its seafood products and expand its presence in foreign markets because of its emphasis on quality and food safety.

Pritipaul Singh Investments Inc. is a certified business entity that follows both domestic and international standards.

Seafood processing for instance, takes place in Hazard Analysis and Critical Control Points (HACCP)-certified production plants, which are also certification under the European Union British Retail Consortium (BRC) certification system.

In addition, the company places emphasis on sustainability of fisheries stock and the environment by ensuring that their methods used confirm to the conservation of wildlife.

They also employ a mandatory off-season approach to harvesting which allows for the replenishment of fishery resources.

Pritipaul Singh Investments Inc. has also received several awards for its commitment to providing quality products as well as to being an outstanding business entity.

The experience and managerial competence of Management Team of the company also accounts for its export success. Pritipaul Singh Investments Inc. has a Senior Management Team with more than 25 years of experience, which stands as assurance of the dedication and stability of the company. The Management Team is responsible for a workforce of approximately 1,500 workers, who work together to ensure that the company’s products are of the highest standard.

For additional information about Pritipaul Singh Investments Inc. Address: Providence and McDoom, Georgetown, Guyana Tel: +592-223-0544, 0516, 0518 Email: jrsingh@psiguyana.com Website: https://www.psigyinvest.com//

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BUSINESS DEVELOPMENT TIP Leveraging Market Access under the CARIFORUM-UK EPA to increase Market Participation and Competitiveness Guyana’s trade relations with the UK - Overview The widespread proliferation of regional, bilateral, and preferential agreements in the last decade has increasingly impacted trade patterns and market access conditions, particularly for producers from developing countries.

Unlike ‘traditional’ trade agreements, the coverage of these ‘economic partnership agreements’ goes beyond reducing and eliminating tariff and non-tariff barriers to trade. EPAs cover a broad range of areas ‘relevant to trade’, such as mutual recognition, competition policy, movement of persons, investment agreements, and joint limitation and Diana Arjune (BSc. MSc.) elimination on trade-distorting instruments (tariff and Foreign Service Officer II Department of Foreign Trade non-tariff barriers).

Ministry of Foreign Affairs and

Guyana through its involvement in the Organisation of International Cooperation African, Caribbean and Pacific (OACPS) signed in October 2008 the CARIFORUM-EU EPA. The EPA encompasses the fundamental elements of EPAs, containing provisions on tariff and non-tariff barriers, customs and trade facilitation, technical barriers to trade, sanitary and phytosanitary measures, agriculture and fisheries, services, and investment, competition policy, innovation and intellectual property and environmental and social aspects of sustainable development. For exporters, in particular, the EPA enables easier and uninterrupted market access to the EU market, reducing distortions and high trading costs associated tariffs. Moreover, cheaper access to the EU’s imports can potentially enhance the competitiveness of Guyanese producers in trading with other CARIFORUM nations.

Before its official exit from the EU, the United Kingdom has been Guyana’s largest trading partner in the EU, accounting for 2.1% of our imports and 8.8% of all our exports and is an important market for rice, rum and sugar. To continue bilateral relations with the UK, Guyana on December 30, 2020, signed and issued a Ministerial Order which gave effect to the CARIFORUM-UK EPA from January 1st, 2021. The EPA is a roll-over agreement from the CARIFORUM-EU EPA as it replicates all relevant sections of the CARIFORUMEU EPA with necessary technical and administrative changes made to operationalize the agreement in a CARIFORUM-UK context. The EPA serves as the fundamental mechanism that ensures continuity in the existing preferential trading and investment relations and facilitate uninterrupted market access and other EPA benefits for CARIFORUM states in trade with the UK.

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Other Challenges to Market Access At present, exporters have not fully exploited all the market access opportunities under the EPA. This has happened for a few reasons.

Firstly, many exporters are integrated into low value-added segments of the respective value chains they participate in, undertaking low value-added roles in production and marketing. Therefore, they are unable to capture higher value in comparison to those producers from other countries who participate in the higher value-added segments. A key challenge therefore for exporters is to ‘upgrade’ by enhancing value-added production. In the GVC literature, this can be achieved through process upgrading which involves achieving greater efficiency of production processes by employing better technology and incorporating new information and innovation processes, product upgrading which entails either updating and improving old products or shifting production towards higher-value products and chain upgrading which involves diversifying into newer value chains.

Secondly, in addition to economies of scale, competition in the UK is largely influenced and determined by the ability of producers to meet product and standard requirements to deliver quality and safe products. Standard requirements act as barriers to entry into those markets as they often influence the purchasing and sourcing decisions of importers from the UK. Upgrading linked to increasing traceability requirements and meeting higher standards provides substantial opportunities for exporters to create more valueadded and maintain sustained and secure market access. However, this often requires exporters to re-organise their production processes and they often lack the technical ability to do so.

Thirdly, a few ‘constraints’ exist that increase the cost of doing business in Guyana, undermining the competitiveness of exporters at both the regional and international level. Some of the central challenges to a competitive business environment include high energy and utility costs, institutional constraints, procedural complexities, and inadequate access to technical resources. Competitiveness is further exacerbated by the high cost of doing business in Guyana. In terms of starting a new business, as of 2020, Guyana ranks 134th out of 190 economies. These challenges threaten market access opportunities available to exporters and constrain value chain development.

Strategies to Increase Market Participation and Competitiveness Undoubtedly, sustained, and secure market access guaranteed under the CARIFORUMUK EPA is critical for the development of Guyana’s economy. Therefore, endeavours to address market access challenges – previously discussed, must from the outset focus on improving conditions for competitiveness and market participation. These barriers highlight the need to invest in value chain development strategies through engagement and interventions at the micro, meso and macro levels

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At the micro-level, exporters can invest in upgrading in value chains. This can be achieved by improving and updating production processes to enhance efficiency. Digitising production information, investing in digital technologies or various systems to improve value chain transparency and to capture traceability data. This enhances the ability of producers to meet product and standard requirements, facilitating upgrading by potentially enabling producers to become ‘certified’ exporters of their respective product.

More so, engaging with industry and sectoral bodies, particularly, the Private Sector Commission (PSC), the Georgetown Chamber of Commerce and Industry (GCCI), the Guyana Manufacturing and Services Association (GMSA) for export information associated with trading with the UK and other markets can also be beneficial to upgrading, reducing persistent informational asymmetries associated with exporting to the UK market.

Various industry bodies facilitating greater stakeholder engagement can strengthen the functioning of the value chain. This can be done through a number of initiatives aimed at fostering greater private sector engagement, and by disseminating pertinent export information relating to various stakeholders. Additionally, the role of various sectoral bodies in undertaking linking role, idea transformation and development, and knowledge transfer functions can be critical in enhancing the competitiveness of exporters and facilitating upgrading.

Finally, a comprehensive and coherent value chain development policy framework at the government level can be instrumental in influencing the upgrading pathways of exporters.

These policies can be targeted at investing in infrastructure, streamlining and digitising administrative services to ease the cost of doing business and reduce procedural complexity, harmonizing export and import processes and facilitating private sector to private sector engagement and dialogue for secured market access. Moreover, investing in a national quality policy that outlines and disseminates information about international, market-specific, and product-specific standard requirements, providing technical know-how on meeting standard requirements and ensuring sustainable compliance with these standards through monitoring and evaluation should be areas of importance.

Furthermore, at the policy level, prioritising the implementation of the World Trade Organisation’s (WTO) - Trade Facilitation Agreement (TFA) also present’s valuable opportunities for reducing impediments to market access. This can be done by utilizing existing institutional mechanisms such as the National Committee on Trade Facilitation to foster dialogue on overcoming new and existing technical barriers and to reduce the bureaucratic delays or “red tapes” that pose a burden for the movement of goods across borders for importers and exporters. Full implementation of the TFA could reduce trade costs by an average of 14.3% globally, with substantial gains for least developed and developing countries.

To conclude, the CARIFORUM-UK EPA provides several economic benefits for exporters, guaranteeing market access for many products through the reduction and elimination of

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several tariff and non-tariff barriers. Overcoming barriers that are undermining to the competitiveness of exporters are of immense importance if Guyana wants to be successful in its bid to leverage the market access opportunities under the CARIFORUM-UK EPA to increase market participation and competitiveness and diversify its export portfolio.

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HAPPENING IN SERVICES TRADE… Services Project to Build Capacity for Trade in Services Through technical support from the TradeCom II support Programme of the Organisation of African, Caribbean and Pacific States (OACPS), the Ministry commenced a national project to support trade in services.

The Project will see the development of a National Strategy to promote the development of the services sector and guide the trade in services policy agenda; and will seek to improve the capacity of the Bureau of Statistics and the Bank of Guyana to regularly compile and update trade in services statistics.

Project Implementation Team The consultancy/ research firm coordinating the work is Burundi-based Centre d’Etudes et de Conseil pour le Développement Durable en Afrique (CECODDA S.A). However, the work is being led by Jamaican International Trade and Development Consultant, Ms. Natalie Rochester, assisted by Guyanese Economic Consultant, Mr. Richard Rambarran.

Ms. Natalie Rochester

Mr. Richard Rambarran

Why the Project?

The project is being undertaken in an attempt to help to diversify the export base of the country. Guyana has in the past been plagued by a narrow export structure characterized by dependence on the extractive industries and little emphasis on manufacturing activities and trade in services. While oil will contribute to faster GDP growth, it could act to perpetuate or heighten this paradigm of export concentration. Diversifying the export base to include more value-added activities and opportunities for trade in services is therefore critical.

As an input into other productive sectors a stronger services sector will help to increase productivity and contribute towards more sustainable growth. Noteworthy, improved access to transportation, including improvements on the road to the border with Brazil, health, education, electricity and telecommunication services in support of sustainable development should spread the benefits of growth more widely and enhance employment opportunities.

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The project is also being pursued to ensure that the trade in services policy agenda of the Foreign Trade Programme can be guided by an overall assessment of the services sector so that local priorities and national needs can be duly reflected. For instance, because of physical structure where Guyana has vast hinterland regions, transportation services has some critical considerations that the other CARICOM states will not have. With an emerging oil and gas sector, there are other services elements to focus on such as consultancy services. With respect to distribution services, Guyana has a large informal sector.

The project is also useful to help build synergies between local priorities and areas of policy focus at the multilateral, regional and bilateral levels and to ensure that Guyana is able to more effectively respond to opportunities for trade in services under its existing agreements.

Services trade commitments have been made under Guyana’s WTO’s General Agreement on Trade in Services (GATS). The CARICOM Single Market and Economy (CSME) is also working towards a harmonized regional regime for the services sector. Under the 10th EDF, CARICOM has done regional services strategies for seven sub-sectors, with model legislations to be developed. As part of the regional services sector strategy CARICOM has set a target of 4% growth in investment for services, and further recommended that individual member states develop their own national strategies to outline how they will get to the regional target.

The CARICOM partial scope agreements with Venezuela (1992), Colombia (1994) and Cuba (2000) contain built-in agendas on services; while the Free Trade Agreements (FTAs) with the Dominican Republic (1998) and Costa Rica (2004), include framework rules on services and a built-in agenda for the negotiation of services liberalisation commitments.

CARICOM has also expressed an interest in exploring trade in services under the CBI Programme, which include the Caribbean BasinEconomic Recovery Act (CBERA), and the Caribbean Basin Trade Partnership Act (CBTPA).

The EU – CARIFORUM / UK-CARIFORUM EPA Agreements offer the most opportunities to further facilitate trade in services due to extensive commitments on trade in services.

Guyana’s trade policy regime inhibits its ability to really capitalize on trade in services due to two noteworthy weaknesses.

Firstly, the lack of a national strategy to guide the trade in services policy agenda.

The services sector in Guyana remains largely under-regulated and poorly organized.

There is a clear absence of a regulatory framework to guide the development of the sector.

Further, in the absence of a strategy to guide the trade policy agenda, the sector remains under-served in trade agreements. Further, due to the absence of regulations in some

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sectors, Guyana's capacity to gain from the services provisions of some agreements is restricted.

As Guyana will soon see a paradigm shift in its economy, with the production of petroleum, it is important that the policy framework is updated to prepare for emerging sectors through foreign investment, as well as an expansion of existing sectors and the increased movement of people. Developing an overarching strategy to guide the sector will contribute towards; identifying priority areas for focus; articulating suitable policy recommendations to enhance the sector's growth prospects; and ensuring that Guyana is poised to benefit from the provisions that relate to services under the agreements to which it is a party.

Secondly, the absence of capacity to compile trade in services data Presently, data on trade in services under the various modes is not captured or analysed for Guyana. In order to be able to better map Guyana's trade in services, it is critical that capacity is developed in requisite public sector bodies, with a mandate for data collection, to be able to compile and use services trade data.

Expected completion: The project is set to be completed by April 2021.

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Sorrel (Rumex acetosa) juice is a popular beverage consumed in Guyana during the Christmas festivities.

Contact The New Guyana Marketing Corporation for authentic and unique Guyanese products Address: 87 Robb & Alexander Streets, Lacytown, Georgetown.

Telephone number: (592) 226-8255 Fax: (592) 227-4114 Email: isealey-adams@newgmc.com Website: www.newgmc.com

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A Prosperous 2021 from all of us!

Contact us for information about Guyanese products; Guyanese manufacturers and exporters; and how to conduct trade with Guyana.

Department of Foreign Trade, Ministry of Foreign Affairs and International Cooperation ‘Takuba’ Lodge 254 South Road Georgetown Guyana Tel: +592 227-8940 (direct) +592 226 1606-8 ext. 232

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