Guyanese exporters and manufacturers will now be able to benefit from the elimination of import duties by Brazil on a wide range of products from Guyana.
Stabroek News
August 14, 2001
Foreign Trade and International Cooperation Minister, Clement Rohee, disclosed this at yesterday's launching of the Guyana-Brazil Partial Scope Agreement held at Le Meridien Pegasus.
Under the Agreement the Brazilians have agreed to waive duty on a list of Guyanese products which include fresh fruits and vegetables, bottled rum, calcined bauxite, plywood, wooden furniture, sawn lumber, PVC pipes, heart of palm, corrugated cardboard, paper towels, chemical paper and aluzinc sheets.
Additionally, it is understood that Guyana will benefit from annual duty free quotas of 10,000 tonnes each of sugar and rice and 100 tonnes of red peppers.
The agreement also provides for the abolition of the Merchant Marine Renewal Tax, a 25 per cent levy on ocean freight, on imports from Guyana into north-eastern Brazil.
Brazil, on the other hand, has been granted duty-free access by Guyana for a number of specified imports such as capital goods (e.g. machinery and parts) and building materials (e.g. steel products) along with a 50 per cent reduction of duties on other products, including a range of industrial equipment, medicines and new tyres.
Rohee said that the agreement offered "the possibility of hitherto untapped opportunities" and that it was "an overdue response by government to the corporate call of the non-governmental sector to explore, in a structured manner, business and cultural relations with the countries of South America."
"For too long we have talked about Guyana as a bridge between the Caribbean and South America. For too long the dream of Guyana as a portal to the markets of the south has remained an unrealized vision," the minister said.
However, he emphasised that things were about to change. "If I may borrow the famous phrase of the Caribbean "wise men" it is now, at last "a time for action,- he said.
According to Rohee, Guyanese will need to reorient their thinking if they are to fully exploit the potential of the region in which they are geographically located.
He observed that "the pattern of development in Guyana has traditionally focused the attention of the vast majority of our population on the countries and peoples beyond our Atlantic coast... . It is not surprising, therefore, that Guyanese are largely unfamiliar with the Brazilian market, with the exception, of course, of those who live in the border regions, in the Rupununi for example."
The minister, nevertheless, acknowledged that over the last few years Guyana had been "actively promoting and pursuing a strategy of recognition as the country within CARICOM that can best act as a link between the Caribbean Community and Brazil."
He cited a number of reasons that supported this approach. Among them were:
- the sharing of borders with two Brazilian states, Roraima and Para, as well as close traditional links with the state of Amazonias. In particular, the border with Roraima state was generating much cross border activity;
- Guyana as the only CARICOM member state in the near future which would possess a direct link with Brazil and through it the whole of the South American continent;
- the pivotal position of Guyana as a founding member and the seat of CARICOM.
The road link from the state of Roraima through Guyana was perceived by the minister to be a multifaceted and critical aspect of Brazil's Northern Arc Project (Arca Norte) aimed at developing the northern states.
"Not only will it join the northern states of Brazil in a great loop through the Guianas, but also it will facilitate access for Brazil to the north Atlantic, the Caribbean, North and Central America and Europe," he pointed out.
Rohee also referred to a report in the Brazilian newspaper, Gaceta Mercantil, which suggested that by way of the Panama Canal the road link through Guyana could easily connect Brazil with the Pacific.
He ended his address by urging the Guyanese private sector to utilize the services of the Brazilian Embassy to secure information on the Brazilian market.
Brazilian Ambassador Ney do Prado Dieguez said that it was a very special moment for those who had worked hard to meet the deadline for concluding the Partial Scope Agreement between the two countries.
He observed that the agreement exceeded its mere commercial range, as it was an important step towards the materialisation of the Brazilian President's vision of "a vibrant continent in the pursuit of common ideals such as democracy, social justice and prosperity, physically connected and ready to cope successfully and fearlessly with modern challenges."
The private sector in Guyana was invited by the Ambassador to win the market of 170 million people across the Brazilian border and, thus, fulfil the South American and Amazonian destiny of Guyana.
Chairman of the Private Sector Commission, Brian James, described the agreement as an opportunity for a wonderful new beginning to explore trading opportunities with Brazil.
He said that he had looked at the agreement and that although he held reservations about some of the items on the tariff list he fully endorsed the agreement.
In urging the private sector to capitalise on the opportunity, he reminded them of the story of David and Goliath.
The Partial Scope Agreement between the two countries was concluded towards the end of June and will run for a period of two years, which may be extended by mutual consent. Alternatively, it may be replaced by an Agreement of Economic complementation between Guyana and MERCOSUR.
The agreement allows for an administrative commission comprising representatives of Guyana and Brazil to be established within 90 days of its entry into force to monitor its implementation and resolve disputes that might arise.
It is open to accession, upon negotiation, by the other member countries of CARICOM and the Latin American Integration Association (ALADI).