Is Guyana’s Manufacturing Sector dying? Pt 2 … Water from Trinidad, cane juice from Canada also on our shelves
By Kiana Wilburg, Aug 17, 2016 , http://www.kaieteurnewsonline....g-granted-gmsa-head/
In the land of many waters, Guyana sees a large scale importation of bottled water from itsCaribbean brothers and sisters. In the land where sugar production has been one of the cornerstones of the economy, the nation sees the importation of sugarcane juice from Canada.
Therefore, why is there a domination of such products in the local markets? And should local manufacturers be worried?
Attempting to answer these questions was head of the Guyana Manufacturing and Services Association (GMSA) Eon Caesar.
The official said that obviously, such a state of affairs would pose some amount of discomfort for local manufacturers. He noted however that there is a whole host of things which manufacturers can do in this regard.
The GMSA Head said, too, that one must be cognizant of the challenges facing the manufacturing sector. He emphasized that high energy cost is not the only stumbling block. Caesar said that there are other issues such as access to financing, non-availability of skills and widespread smuggling.
“All these things play a role in the local manufacturing sector. There is lack of will by the business community to invest based on the environment. There are concessions for manufacturers that could be granted, that are not being granted,” the GMSA Head asserted.
He added, “There are concessions that are given… for example, we have manufacturers who have investment agreements (and) when you look at what is written in the investment agreements and then you look at what is in the tax laws, you no longer really enjoy these concessions.”
Caesar said that while certain products are being imported and it is not necessarily a good thing for those in the manufacturing sector, “the harsh reality is that we have to live with.”
He then pointed to the importation of ‘Blue Band’ margarine that is manufactured outside of Guyana but is being sold here at a more affordable price that the locally produced ‘Golden Cream’ margarine.
The GMSA Executive Member said that countries which fall under the CARICOM umbrella enjoy some amount of concessions in a number of areas. He said that is the reason why someone can bring a product that is manufactured in another sister CARICOM country and sell it for less in Guyana, alongside a similar product that is being manufactured here.
Caesar said, “There are beers brought into Guyana and sold for less than a local Banks Beer. So we need to ask ourselves why? The manufacturing sector tries its best with what we have and if it was that easy then a lot of people would have gone into it. So it is not easy. It calls for a lot of resources and I don’t only mean money.”
Asked if the state of affairs would underscore the need for some level of protectionism for Guyana’s manufacturing sector he said, “Of course. I am not saying that there isn’t protectionism, but that is why the Common External Tariff (CET) has been developed, to help and protect manufacturers. So there are some mechanisms to protect your own industry, and the CET is just one example.”
Kaieteur News then asked Caesar to expound on the type of concessions he made reference to earlier. The GMSA Head said, “For example, there are investment agreements that manufactures and investors would have. Some manufacturers would like tax waivers. Some would like tax and duty free waivers for equipment for manufacturing. Those are the types of concessions that I am talking about.”
He was then asked if he was implying that those concessions he mentioned are not easily granted to manufacturers.
Caesar at this point, insisted that the reporter was deliberately trying to “misinterpret” what he was saying. Even after it was explained that it was only clarity that was being sought on his comments regarding the concessions for manufacturers, he insisted, “you are not being fair. I am going to bring this conversation to an end.”
To be continued