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April- June 2019 / Issue 2

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April- June 2019 / Issue 2 D APRIL- JUNE 2019 / ISSUE 2 Guyana- Capturing Leveraging Guyana’s Guyana’s Free Functions of European Guyana in Global General Trade with Movement the Guyana Union Trade Photography: Value Trade the Kingdom under the Office for Relations Sajid Husani Chains Patterns of the CSME Investment Netherlands A Magazine of the Ministry of Foreign Affairs, Cooperative Republic of Guyana A NOTE FROM THE PUBLISHER In this issue of the Trade Watch magazine, we provide an update on Guyana’s general trade patterns over the first quarter of 2019. We also take a closer look at Guyana’s pattern of trade with the Kingdom of The Netherlands, one of the country’s main markets within the Europe Union. The Market Insight delves further into the market of The Netherlands, ultimately with the objective of understanding the opportunities available to the Guyanese private sector for investment and increased trade with The Netherlands. As such, we examine the economic structure and performance of the economy, the business climate and key market entry factors for consideration, among other areas. The feature on The Netherlands emanates from the fact that the magazine chose to focus on the CARIFORUM- EU Economic Partnership Agreement and Guyana’s relations with the European Union. Our export success story, Amazon Caribbean, has been a consistent exporter to one of the leading markets in the European Union. As part of ‘Tip for Business Development’ in Guyana, we look at how to leverage global value chains in order to improve and diversify Guyana’s participation in global markets and consequently, its overall economic performance. Within the CSME, we take a close look at the categories that have been approved for free movement by Member States, along with the mechanisms that have been adopted to facilitate travel. Under services a snapshot is given of the work being undertaken to resuscitate the Guyana Coalition of Services Providers, as a key consultative mechanism to engage the services industry on trade-related matters. Specifically, as it relates to the creative industry, we feature Sajid Husani, who has been taking Guyana’s culture further afield through photography. Dianna DaSilva-Glasgow (PhD) Director Department of Foreign Trade Ministry of Foreign Affairs April-June, 2019 2 MESSAGES MESSAGE FROM THE MINISTER OF FOREIGN AFFAIRS Guyana’s trade policy remains an important element of achieving its wider development goals, particularly in the context of the Green State Development Strategy. Guyana is party to at least twenty agreements that address trade and investment matters. For trade to deliver its promised development impacts, we must be able to take full advantage of what is offered in the agreements. Our domestic policies are a critical consideration in this regard. The policy environment is essential to boosting our productive capacity and allowing us to be able to move up global value chains. Another factor that would allow us to be able to fully capitalize on the preferential market access offered by our trade agreements, as well as the development cooperation provisions for capacity building, is information. Dr. the Hon. Karen Cummings Information is an important bridge to realizing tangible Minister of Foreign Affairs gains from our agreements. T.S. Eliot asked two thought- provoking questions, “Where is the wisdom we have lost in knowledge? Where is the knowledge we have lost in information?” This magazine is a step towards bridging the information gaps that may exist with the private sector regarding the benefits to be gained under each trade agreement. It will also assist in providing lucidity for any information asymmetry that may exist among potential foreign investors and the trade and investments policy framework of the country. April-June, 2019 3 CONTENTS GUYANA’S TRADE PATTERNS ............................................................................................................ 6 Trade with the Kingdom of The Netherlands .......................................................................................... 9 IN THE NEWS!......................................................................................................................................... 14 FEATURED TRADE AGREEMENT .................................................................................................... 19 The CARIFORUM-EU Economic Partnership Agreement ................................................................. 19 EXPORT MARKET INSIGHT ............................................................................................................... 27 The Kingdom of The Netherlands ......................................................................................................... 27 CSME CORNER ....................................................................................................................................... 34 Free movement under the CSME .......................................................................................................... 34 INVESTING IN GUYANA ...................................................................................................................... 39 EXPORT SUCCESS STORY .................................................................................................................. 42 Amazon Caribbean Guyana Limited ..................................................................................................... 42 GUYANA IN THE MULTILATERAL TRADING SYSTEM ............................................................. 45 Guyana-European Union Trade Relations in Brief ............................................................................. 45 HAPPENING IN SERVICES TRADE… ............................................................................................... 49 Resuscitating the Guyana Coalition of Services Providers .................................................................. 49 Capturing Guyana in Photography ....................................................................................................... 50 BUSINESS DEVELOPMENT TIP ......................................................................................................... 59 Leveraging Global Value Chains to Advance Economic Development in Guyana ............................. 59 April-June, 2019 4 The New Guyana Marketing Corporation Address: 87 Robb & Alexander Streets, Lacytown, Georgetown. Telephone number: (592) 226-8255 Fax: (592) 227-4114 Email: [email protected] Website: www.newgmc.com April-June, 2019 5 GUYANA’S TRADE PATTERNS General Trade Patterns The trade data presented covers the period January to March, 2019. Guyana imported US$396,097.60 (000) worth of goods between January to March 2019; and exported US$339,166.00 (000) worth of goods, resulting in a trade deficit of US$56,931.60 (000). (See figure below). Guyana's Trade, January to March 2019 396,097.60 400,000.00 339,166.00 350,000.00 300,000.00 250,000.00 200,000.00 150,000.00 US$000 100,000.00 50,000.00 0.00 Imports Exports Balance of Trade -50,000.00 -56,931.60 -100,000.00 Source: Bureau of Statistics, Guyana The top five markets, accounted for just over 75% of Guyana’s total imports. These markets included; Trinidad and Tobago (US$117,265.20 (000), United States of America (US$92,584.00 (000), China (US$44,291.60 (000), Suriname (US$28,478.60 (000) and St. Lucia (US$15,847.20 (000). (See table below for more information). April-June, 2019 6 Guyana Imports by Market January to March, 2019 Country Value Contribution (US$'000) (%) Trinidad & Tobago 117,265.20 29.6 United States of America 92,584.00 23.4 China 44,291.60 11.2 Suriname 28,478.60 7.2 St. Lucia 15,847.20 4 Japan 13,647.40 3.4 United Kingdom 10,710.40 2.7 Kingdom of The Netherlands 10,689.30 2.7 Jamaica 8,864.20 2.2 Canada 8,518.80 2.2 Other Countries 45,200.70 11.4 Total 396,097.60 100 Source: Bureau of Statistics, Guyana Fuel and lubricants accounted for approximately 29.6% of Guyana’s total imports during January to March 2019. US$117,230.70 worth of fuel and lubricants were imported. The top ten imported items accounted for approximately 49% of total imports for the period. Other major import items included articles of iron and steel, motor cars, articles of plastic and machinery. (See table below for more information). Guyana Major Import items, January to March, 2019 SITC3 ITEM VALUE CONTRIBUTION GROUP (US$’000) (%) 334 Fuel and Lubricants 117,230.70 29.6 672-679 Articles of Iron and Steel 15,570.70 3.9 781 Motor Cars 10,896.90 2.8 893 Articles of Plastic 9,538.60 2.4 723 Contractors Plant Equipment (Machinery) 8,808.50 2.2 661 Lime, Cement etc. 7,747.30 2 642 Articles of Paper 6,987.60 1.8 48 Cereal, Flour, Starch, Preparations 6,648.00 1.7 782 Goods and Special Purpose Motor Vehicles 6,006.50 1.5 554 Soap, Cleaning Preparation 5,854.50 1.5 Other Imports 200,808.30 50.7 Total 396,097.60 100 Source: Bureau of Statistics, Guyana April-June, 2019 7 Guyana’s top ten export markets accounted for some 78% of its total exports during January to March, 2019. The leading export market was Canada. 40.6% of total exports went to Canada, amounting to US$137,847.70. This is followed by the United Arab Emirates (US$33,937.30 (000), Untied States of America (US$27,156.70 (000), Belgium (US$13,797.80 (000), Ukraine (US$12,450.90 (000), United Kingdom (US$10,360.10 (000), China (US$9,785.60 (000), Germany (US$8,126.80 (000), Jamaica (US$7,069.20 (000), and Kingdom of The Netherlands (US$5,428.20 (000). (See table below for more information). Guyana
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