Trade agreements between Guyana, other states face serious implementation challenges – Greenidge
Oct 15, 2017 , https://www.kaieteurnewsonline...hallenges-greenidge/
When Trade Agreements are signed between countries, these are expected to be adhered to and respected. It appears, however, that this is not the case between Guyana and some of its trade partners.
This issue was highlighted by Foreign Affairs Minister, Carl Greenidge, during the recently concluded Business Summit that was organized by the Private Sector Commission (PSC).
During the business forum, Greenidge focused on trade agreements and how these have had an effect on Guyana’s market.
He spoke extensively about the Economic Partnership Agreement (EPA) which is meant to be an arrangement between a set of developing countries and a set of developed nations.
It is configured in a way that is not intended to put the developing nations at a disadvantage. There are also certain asymmetrical features to that arrangement.
Greenidge said that the European Union (EU), for example, opens its market. Guyana does the same.
“But we open ours in part and we only open to them in a phased manner. Also, for some agricultural products, we don’t open our markets at all. But for some we may open it to them for five years or 25 years.
But the EU on the other hand has to open as soon as the process begins and that is what you call asymmetrical.”
Greenidge acknowledged that Guyana is however facing an implementation problem with regards to these types of trade agreements.
He said, “We have issues with all of our trade agreements. In addition to the EPA you have bilateral and regional agreements one of which is the partial scope agreement with Brazil.”
The Vice President continued, “In the case of the partial scope agreement, we are unable to export a wide array of goods to Brazil but Brazil is able to export a large number of its produce to our market.”
The economist added, “So in all of these trade agreements, agricultural products face tariff and nontariff barriers. That is important because our main products are agriculture based. So we are disadvantaged in the trading area. So to get out of that you have to either move out of those products or find products that don’t attract that treatment. You have to diversify in other words.”
The former Finance Minister also noted that a significant number of Guyana’s exports essentially go to five places; CARICOM countries, the United States, Canada, the European Union and Venezuela.
He asserted that the USA accounts for 24 percent while Canada takes 12 percent. Twenty-five percent of the nation’s exports are absorbed in the CARICOM markets
That said, Greenidge was quick to note that this presents an unfavourable situation for Guyana. He said that when exports are concentrated on a narrow range of countries then it presents a more risky trade strategy.
