`(This is) a wonderful, new beginning for us to explore our trading partners in the south' - Chairman of the Private Sector Commission, Mr. Brian James

GUYANA and Brazil yesterday formally launched a new trade agreement with the private sector here hailing it as a wonderful new beginning.

It opens the way for more Guyana exports to the giant neighbour in the south and for cheaper Brazilian imports to this country.

Chairman of the Private Sector Commission (PSC), Mr. Brian James lauded the move at the launching ceremony at Le Meridien Pegasus Hotel in Georgetown,

He said he has looked at both tariff agreements between the countries and declared that this was "a wonderful, new beginning for us to explore our trading partners in the south".

James noted that Guyana has always look northwards to countries like in Europe, the United States and to Japan and China for trading partners but had never really looked to the south, especially Brazil.

He said the agreement also provides a big opportunity for Guyana to look for new investments.

Brazilian Ambassador to Guyana, Mr. Ney Do Prado Dieguez pointed to the market of 170 million people across the extensive southern border of Guyana and invited the private sector here "to aggressively cross the border, win this market and fulfill the South American and Amazonian destiny of Guyana".

"The Brazilian Embassy commits itself to assist you in this endeavour," he pledged.

He said the signing was a very special moment for those who have worked under the stress of meeting a deadline for the conclusion of the accord called a Partial Scope Agreement between Guyana and Brazil.

According to the Brazilian Ambassador, the parties concerned were aware that they were not only improving market accessibility between the two countries but that the scope of the agreement clearly transcends bilateral limits.

He noted that the agreement stems from a memorandum of understanding between the Mercosur bloc of South America and Guyana in the fields of trade and investment which was signed in Rio de Janeiro, Brazil on June 28, 1999.

The agreement will be in force for two years and may be extended by mutual consent. Alternatively, it may be replaced by an agreement of economic complementation between Guyana and Mercosur.

Foreign Trade and International Cooperation Minister, Mr. Clement Rohee, said the Guyana-Brazil trade agreement was a critical component of a dynamic bilateral cooperation initiative under way between two countries.

Notable groups of products which can be exported free of duty by Guyana to Brazil include fruits and vegetables, calcined bauxite, bottled rum, copra, plywood, canned heart-of-palm, wooden furniture, sawn lumber, PVC pipes, corrugated cardboard, paper towels, chemical paper and aluzinc sheets as well as a wide range of primary agricultural products.

Certificates of Origin must accompany these products.

Additionally, Guyana will be able to export annual quotas of sugar (10,000 tonnes), rice (10,000 tonnes) and red peppers (10,000 tonnes).

On the import side for Guyana, the Brazilian product list will attract either 50 or 100 per cent reduction in duties and include a wide range of products needed for the national development drive.

For example, capital goods such as machinery and parts and building materials like steel products will be given 100 per cent preference to facilitate the construction, housing and agricultural sectors.

Other products that can be imported at reduced duties include a range of industrial equipment, medicines, new tyres and electronic equipment.

Other components of the bilateral programme include the Guyana-Brazil road project, bridging the border Takatu River and the border land cargo agreement that will enable the passage of vehicles and freight between designated areas of both countries.

Rohee said once the road link is completed, an international agreement will be concluded that will allow full passage.

This is a "measured start but an extremely important one", he said, adding that he has "many reasons to be confident that it will take off rapidly".

Products which Guyana can export under the agreement and which were compiled on the basis of submissions by private sector organisations and export companies as well as key government agencies, cover items, many of which are produced by Brazil but to which Brazil has agreed to extend 100 per cent preference, the minister explained.

He said this means a zero tariff on entry into Brazil or an elimination of import duties for all products on the `Guyana List' including those subject to quotas.

Rohee said most of the products on the Brazilian list are not produced by Guyana or the Caribbean Community (CARICOM).

The agriculture-based products for which the current CET (Common External Tariff) ranges from zero to 20 per cent mostly, will attract 100 per cent preference or a zero duty rate. The manufactured or industrial products, including parts, will attract a preference or duty reduction of either 50 per cent or 100 per cent as the case may be, he said.

The agreement also caters for the waivering of the Merchant Marine Renewable Tax, a 25 per cent levy on ocean freight, on imports from Guyana into north-eastern Brazil.

Rohee said the agreement provides for the establishment of an administrative commission which will be responsible for overseeing its implementation.

The commission, which will be comprised of representatives of Guyana and Brazil, will be established within 90 days of the entry into force of the agreement, to monitor its implementation and resolve disputes that may arise. The role of the private sector will be pivotal in this respect, Rohee said.

The minister explained that the agreement envisages a central role for private sector firms and organisations in the development of trading relations between Guyana and Brazil.

He also recalled that at a seminar held at the Foreign Service Institute (FSI) of the Foreign Ministry here last year, a key recommendation was made for the establishment of a Joint Business Development Council (BDC) between the Guyanese and Brazilian private sectors.

"The fact of the Partial Scope Agreement will be a major fillip to such an initiative and would permit a more structured level of cooperation between the business communities of Guyana and the Brazilian states of Roraima and Amazonas," Rohee said.

He also acknowledged "the energy and enthusiasm" of the Brazilian Ambassador here, saying he has demonstrated a willingness and good faith to move the agreement process forward.

"I therefore, urge you, especially our partners in the private sector to utilise the services of the Brazilian Embassy with regards to information on the Brazilian market," Rohee told the gathering.

He also took the opportunity to thank all those agencies and persons, both in Brazil and in Guyana, that worked to make this important agreement a reality.

In this regard, he made special mention of the contributions of the private sector, the ministries of Agriculture; Fisheries, Crops and Livestock; the Customs and Trade Administration; the Guyana Sugar Corporation and the rice board.

Among those at yesterday's function were British High Commissioner Mr. Edward Glover; United Nations Development Programme Resident Representative, Mr. Richard Olver; former Army Chief and former Chairman of the Guyana Elections Commission Major General Joe Singh; Guyana Defence Force Chief of Staff Brigadier Michael Atherly; Commissioner of the Guyana Revenue Authority Mr. Edgar Heyligar; former Chairman of the Private Sector Commission, Mr. David Yankana; Chairman of Demerara Bank, Mr. Yesu Persaud; Head of the Public Service, Permanent Secretary, Dr. Nanda Kishore Gopaul; Member of Parliament Ms Philomena Sahoye-Shury and several leading private sector members and a Brazilian delegation. (MARK RAMOTAR)