MINISTRY OF FOREIGN TRADE &
INTERNATIONAL COOPERATION
Department of Foreign Trade
REVIEW
OF
GUYANA’S
FOREIGN
TRADE
2002 - 2003
2
PRODUCED BY:
Yojna C. Hernández
Foreign Trade Officer
Ministry of Foreign Trade & International Cooperation
COMPLIMENTS:
Bank of Guyana
Bureau of Statistics
Ministry of Agriculture
Guyana Rice Development Board
New Guyana Marketing Corporation
SPECIAL THANKS:
Ms. Rajdai Jagernauth
Senior Foreign Trade Officer
Ministry of Foreign Trade & International Cooperation
3
CONTENTS
Foreword from Hon. Clement J. Rohee,
Minister of Foreign Trade & International Cooperation
4
Chapter One
Overview of Global Trade - 2002, 2003
5
Chapter Two
Overview of Guyana’s External Trade
7
Chapter Three
Annual Imports and Exports - 2002, 2003
9
Chapter Four
A Closer Look at Exports
12
Chapter Five
A Closer Look at Imports
20
Chapter Six
Direction of Trade
26
Chapter Seven
Foreign Direct Investment
37
Chapter Eight
External Trading Relations
39
Chapter Nine
Outlook for 2004
47
4
FOREWORD
The Ministry of Foreign Trade & International Cooperation is
pleased to make available the second publication of its annual
review – the Review of Guyana’s Foreign Trade 2002-2003.
Though the national economy contracted in real terms in 2003 by
0.6%, Guyana experienced positive growth in the level of
merchandise exports, earning 3.5% more than in 2002. Total
exports were 80.8% of Gross Domestic Product, as against 80.7%
in the preceding year. The value of total imports increased by
1.5%.
Trade continues to be of great importance to Guyana, with this
country being exceptional for its high degree of dependence on the
external sector. A study by the International Monetary Fund
(IMF) revealed that in the average CARICOM member state,
export and import of goods and non-factor services accounted for
116.9% of GDP during 1994-1998. Guyana was the outlier at
211.3%. This clearly demonstrates that Guyana can ill afford to
overlook the opportunities or the risks presented by the external
sector.
Guyana continues to pursue sound macroeconomic policies and
sector policies that encourage the production of export products.
With projections for improved performance by sugar, rice,
fisheries, and forestry, Guyana can see growth in its GDP, exports,
and revenues, in 2004.
As the Ministry of Foreign Trade and International Cooperation
continues in its effort to provide information on Guyana’s external
trade activities, it is hoped that this issue of the Review of
Guyana’s Foreign Trade will be beneficial to the business
community, the private sector, students and the public as a whole.
We welcome your feedback on how this publication may be
improved, to better serve your needs.
Clement J. Rohee,
Minister of Foreign Trade and International Cooperation
5
Chapter One
OVERVIEW OF GLOBAL TRADE
The World Trade Organisation (WTO) reported that a 2.5% increase in global output in 2003,
spurred world trade to recover by 4.5%. While this growth was stronger than expected a year
ago after the outbreak of the Severe Acute Respiratory Syndrome (SARS) and the build-up of
tensions in the Middle East, trade and output expansion in real terms in 2003 remained below the
average rates recorded since 1995.1
World merchandise exports rose by 16.0% to a new record level of US$7.3 trillion and
commercial services exports by 12.0% to US$1.8 trillion. More than two thirds of this increase
was, however, due to dollar price changes.
Asia and the transition economies were the regions recording the most dynamic trade
performance in 2003. Their merchandise exports and imports expanded in real terms between
10.0% and 12.0%.
North America’s import growth was somewhat faster than world trade and much stronger than its
own export growth. United States merchandise imports increased by 5.7%, while exports
increased by less than 3.0%, as a result of continued contraction of export volumes. Linked to
its nearly stagnating economy, Western Europe had a trade growth of 1.0%.
One of the outstanding developments of 2003 was the sharp rise of China’s trade. As imports
expanded by 40.0%, China became the third largest merchandise importer in the world, ahead of
Japan and only behind the European Union and the United States.
Gains in the ranking of the leading commercial services traders in 2003 were principally
recorded by Western European countries at the expense of American and Asian countries. This
observation is true for both export and import rankings. It is estimated that in 2003, China
became the largest exporter of commercial services among the developing countries.2
Chemicals emerged as the product group with the strongest trade growth over the last two years.
Driven by pharmaceutical trade among the developed countries, its share in world merchandise
exports rose above 10.0%, exceeding in value not only world trade in automotive products, but
also that of agricultural products.3
In Latin America and the Caribbean, oil producing countries, especially Venezuela and Trinidad
and Tobago, earned increased revenues from high oil prices. However, the effects of negative
1
WTO Press Release: Stronger Than Expected Growth Rate Spurs Modest Trade Recovery, April 5, 2004
WTO Press Release: Stronger Than Expected Growth Rate Spurs Modest Trade Recovery, April 5, 2004
3 WTO Press Release: Supachai: Sluggish Trade Growth Calls for Urgent Pick Up of Stalled Trade Talks,
November 5, 2003
2
6
multiplier growth in the economy was experienced by the rest of the region, notably Brazil’s
economy, which having grown by 1.9% in 2002, contracted by 0.2% in 2003.
The tourism industry of the Caribbean benefitted from the growth in the global economy and the
appreciation of the euro against the dollar, which helped to make the Caribbean destination
cheaper for European visitors. On the other hand, although some countries experienced
increased production, output in critical agricultural and manufacturing sectors declined.4
According to WTO economists, world economic growth experienced in the second half of 2003
is expected to maintain its momentum in 2004. Global Gross Domestic Product (GDP) growth is
estimated to reach 3.7% in 2004, up from 2.5% in 2003.
It is projected that global trade, in keeping with the predicted economic recovery, could expand
by 7.5% in 2004. There are, however, a number of risks associated with these projections,
including the possibility of slower than expected import growth in the United States and a
faltering in demand recovery in Western Europe.
Projections for World economic growth assume a fall in average oil prices in 2004. However, oil
markets are known for defying forecasts.
According to WTO Director-General Supachai Panitchpakdi, “clearly, the improved economic
situation in the United States and Asia has given an important boost to world trade. But when
you look around the world, the pace of trade growth remains uneven and there remain many
barriers to trade, globally.
“Greater expansion of trade would provide support for sustained economic growth and job
creation. If this potential is to be realized, the many trade distortions that exist must be
addressed, and the best way to do that is to bring about a successful conclusion to the Doha
Development Agenda.”
4
Budget Speech: Sessional Paper No.1 of 2004 Eighth Parliament of Guyana, Page 4
7
Chapter Two
OVERVIEW OF GUYANA’S EXTERNAL TRADE
Table I
In 2003, Guyana experienced
positive growth in the level of
merchandise exports, earning
US$512.8 million.
This was
3.5% above the 2002 level. Total
exports amounted to 80.8% of
Gross Domestic Product (GDP),
in comparison to 80.7% in 2002.
Imports during the same period
increased by 1.5%, reaching
US$571.7 million.
The balance of trade continued to
fluctuate. The balance of trade
deficit increased by 13.0% in
2003.
Merchandise export earnings
came largely from export of gold,
sugar, fish and shrimp, rice,
bauxite, and timber. Together,
these products accounted for
83.9% of Guyana’s total export
earnings.
Of these commodities, sugar,
bauxite, and fish and shrimp
recorded increased earnings.
Receipts from sugar were 8.1%
above the 2002 level.
The
performance of the bauxite sector
improved appreciably, resulting
in increased earnings by 14.8%,
while growth in fish and shrimp
production led to a 2.4% growth
in earnings, compared to the
previous year.
The other exports all recorded
SELECTED SOCIO-ECONOMIC AND
TRADE INDICATORS
Indicators
2002
2003
Population (mid-year)
Gross Domestic Product (GDP) at
Factor Cost (US$M)
Growth Rate of Real
Gross Domestic Product (GDP)
Gross Domestic Product (GDP)
per capita (US$)
Rate of Inflation
(% Change in Urban CPI)
Average Exchange Rate:
GY$/US$
749,000
751,000
614.1
634.5
1.1%
(0.6%)
829.2
840.2
6.2%
4.9%
190.5
194.25
Total Exports (US$M)
495.5
512.8
Total Exports (% GDP)
80.7%
80.8%
Total Imports (US$M)
563.1
571.7
Total Imports (% GDP)
91.7%
90.1%
Trade Balance (US$M)
Number One Export Market
(non-CARICOM)
Number One Import Market
(non-CARICOM)
Number One Export Market
(CARICOM)
Number One Import Market
(CARICOM)
Top Exported Commodity
(by value)
(67.7)
(58.9)
USA
UK
USA
USA
Jamaica
Trinidad &
Tobago
Jamaica
Trinidad &
Tobago
Gold
Gold
Sources: Bank of Guyana and the 2004 National Budget
8
lower earnings, compared to what was earned in the preceding year. Despite the shortfall in
sugar production and gold declaration, these commodities were the top revenue earners in 2003,
together accounting for 50.7% of Guyana’s total export earnings.
Overall, Guyana’s non-traditional agricultural exports decreased marginally in 2003, both in
value (by 2.6%) and volume (by 0.9%) exported. However, the volume of exports of these
commodities to regional markets increased to 52.0%, from 45.0% in 2002. Earnings from nontraditional agricultural exports represented 0.7% of total export earnings in 2003.
With respect to merchandise imports, there was an overall 5.1% decline in Consumption Goods
imported in 2003, when compared to 2002 levels. However, increases in the import of
Intermediate Goods and Capital Goods were recorded at 5.0% and 2.0%, respectively. Food for
Final Consumption, and Fuel and Lubricants, remained Guyana’s major categories of imports.
The United Kingdom emerged as Guyana’s largest export market in the European Union (EU),
in 2003. Canada retained its position as Guyana’s second largest export market, while the
United States of America ranked third.
In 2003, North America (Canada and the United States of America) accounted for approximately
40.0% of Guyana’s export earnings, the EU markets accounted for 35.0%, and CARICOM
markets 19.0%. The principal export markets were Canada in North America, the United
Kingdom in the EU and Jamaica in the CARICOM region.
With regard to sources of imports, the USA retained its position as the leading source of imports
in 2003, followed by Trinidad and Tobago and the Netherlands Antilles. Imports from
CARICOM expanded to 30.0%, with Trinidad and Tobago accounting for 90.0% of total imports
from CARICOM. Imports from the EU declined to 12.0%, from 13.2% in 2002, while imports
from the United States of America slipped to 31.7%, from 34.6% in the preceding year. The UK
continued to be Guyana’s major source of imports in the EU, although the actual value was
slightly less than that of 2002.
The Guyanese economy contracted in real terms by 0.6%, during the review period. This
negative growth is attributed to the fall in sugar production and gold declaration. However, with
the projections for 2004, Real Gross Domestic Product (GDP) could expand by 2.5%, as a result
of improved performance by sugar (projected to grow by 8.6%), rice (projected to increase by
1.4%), fisheries (expected to grow by 0.5%), and forestry (with growth projected at 0.5%). It is
anticipated that the services sector will also make a significant contribution to GDP.
9
Chapter Three
ANNUAL IMPORTS AND EXPORTS
This section analyses annual exports and imports for 2003. According to Table II, Guyana’s
exports improved during 2003, earning 3.5% more than in the preceding year, while imports
increased by 1.5%. This performance resulted in a higher balance of trade, which continues to
be negative. Monthly exports, on average, amounted to approximately US$43 million in 2003,
compared to US$41 million in 2002, while average monthly imports amounted to US$48 million
in 2003, a slight increase from the previous year.
Total exports were 80.8% of Gross Domestic Product (GDP) in 2003, compared to 80.7% in
2002. Total imports amounted to 90.1% of GDP in 2003, compared to 91.7% in the previous
year.
Table II
MONTHLY IMPORTS, EXPORTS AND TRADE BALANCES
($US MILLION)
2002
2003
Exports
Imports
Balance of
Exports
Imports
Trade
January
31.0
47.6
(16.6)
28.7
57.8
February
37.8
39.9
(2.1)
47.6
42.9
March
53.1
44.7
8.4
37.6
39.5
April
34.4
48.7
(14.3)
39.7
53.2
May
37.9
48.5
(10.6)
36.2
45.6
June
45.1
48.5
(3.4)
41.2
46.5
July
31.9
47.4
(15.5)
40.5
48.6
August
31.4
44.3
(12.9)
31.7
42.1
September
56.8
45.7
11.1
55.3
47.0
October
51.7
56.0
(4.3)
45.5
52.5
November
45.2
43.5
1.7
51.9
47.9
December
39.3
48.5
(9.2)
56.8
48.1
TOTAL (US$M)
495.5
563.1
(67.7)
512.8
571.7
Monthly
Average (US$M)
41.3
46.9
(5.6)
42.7
47.6
Balance
of Trade
(29.1)
4.7
(1.9)
(13.5)
(9.4)
(5.3)
(8.1)
(10.4)
8.3
(7)
4
8.7
(58.9)
(4.9)
Source: Bank of Guyana
10
COMPARISON OF MONTHLY EXPORTS – 2002 AND 2003
60
US$ Million
50
40
30
20
10
2002
ec
.
D
.
ov
.
N
O
ct
pt
.
Se
ug
.
A
ly
Ju
ne
Ju
M
ay
pr
il
A
b.
M
ar
ch
Fe
Ja
n.
0
2003
Figure 1 Source: Bank of Guyana
2002
.
D
ec
.
N
ov
ct
.
O
A
ug
.
Se
pt
.
Ju
ly
Ju
ne
ay
M
A
pr
il
ar
ch
M
Ja
Fe
b.
70
60
50
40
30
20
10
0
n.
US$ Million
COMPARISON OF MONTHLY IMPORTS – 2002 AND 2003
2003
Figure 2 Source: Bank of Guyana
11
COMPARISON OF TOTAL EXPORTS AND TOTAL IMPORTS
580
US$ MILLIONS
560
563.1
571.7
540
520
512.8
500
480
495.5
460
440
Exports
Imports
2002
2003
Figure 3 Source: Bank of Guyana
COMPARISON OF CONTRIBUTION OF EXTERNAL TRADE TO GDP
120
% GDP
100
91.7
80
80.7
90.1
80.8
60
40
20
Exports % GDP
Imports % GDP
2002
Figure 4
2003
Source: Bank of Guyana
12
Chapter Four
A CLOSER LOOK AT EXPORTS
Guyana’s main foreign exchange earners in 2003 were gold, sugar, fish and shrimp, rice, bauxite
and timber. Earnings from these products, as a percentage of Gross Domestic Product (GDP),
did not vary significantly from the previous year, totalling 68.0% in 2003, as against 69.0% in
2002 (see Table III).
As reflected in Table III, of the top export commodities in 2003, earnings from sugar and bauxite
increased significantly, while there was a small increase in earnings from fish and shrimp, when
compared to 2002 levels. Lower earnings came from gold, rice and timber (see also Table VI).
Table III
GUYANA’S TOP EXPORT COMMODITIES’ CONTRIBUTION TO
TOTAL EXPORTS AND EXPORTS AS PERCENTAGE OF GDP
2002
2003
Export
Product
Value
(GY$M)
Value
(US$M)
%
Contribution
to Total
Exports
Exports as %
of
GDP
Value
(GY$M)
Value
(US$M)
%
Contribution
to Total
Exports
Exports as %
of
GDP
Gold
25,963.70
136.2
27.5
22.2
25,563.90
130.9
25.5
20.6
Sugar
Fish and
Shrimp
22,788.40
119.5
24.1
19.5
25,231.90
129.2
25.2
20.4
10,027.60
52.6
10.6
8.6
10,524.90
53.9
10.5
8.5
Rice
8,666.80
45.5
9.2
7.4
8,841.10
45.3
8.8
7.1
Bauxite
6,714.70
35.2
7.1
5.7
7,898.60
40.4
7.9
6.4
Timber
6,763.10
35.5
7.2
5.8
5,995.30
30.7
6.0
4.8
TOTAL
80,924.30
424.4
85.7
69.2
84,055.7
434.6
83.9
67.8
Source: Bank of Guyana
GOLD
Gold remained the top foreign exchange earner for Guyana during 2003, despite a 3.9% fall in
revenue generated, amounting to US$130.9 million. This downturn could be attributed to the
13.7% decrease in gold declaration. The average export price in 2003 was US$355.7 per ounce,
13
compared to US$302 in 2002. Revenue earned from gold exports in 2003 accounted for 25.5%
of total exports and 21.0% of GDP (see Tables III and VI).
SUGAR
Earnings from sugar in 2003 were 8.1% above 2002 earnings, totalling US$129.2 million. This
is despite a 9.0% shortfall in sugar production during 2003 (as a consequence of poor weather
conditions), but which was compensated for by a large carry over stock from 2002. Increased
exports to CARICOM markets, resulted in an overall improvement in export levels by 10.7%,
compared to 2002 levels (see Tables III and VI).
Earnings from sugar represented approximately 25.2% of total exports in 2003, as against 24.1%
in 2002, and accounted for 20.4% of GDP, compared to 19.5% in the previous year (see Tables
III and VI).
Sugar exports to the European Union (EU) under the Sugar Protocol of the Lome Convention
amounted to 54.1%, compared to 57.0% in 2002, and earned approximately US$509.2 per tonne.
The average world market price during 2003 was US$278.3 per tonne.
FISH AND SHRIMP
Revenue earned from fish and shrimp exports increased by 2.4% during 2003, amounting to
US$53.9 million. This improved performance was as a result of an 18.0% increase in overall
production, making this category of exports the third largest revenue earner in 2003. These
commodities represented 10.5% of total exports, slightly less than the 2002 level. Earnings from
fish and shrimp were 8.5% of GDP, compared to 8.6% in 2002 (see Tables III and VI).
RICE
Despite an increase in export volume by 3.6%, earnings from rice amounted to US$45.3 million
in 2003, slightly less than that earned in 2002. This could be attributed to an increase in exports
of cargo rice, which has a lower value than polished rice, as well as, the overall reduction in
price. The unit price received in 2003 was US$225.9 per tonne, compared to US$234.9 per
tonne in the previous year.
Earnings from rice exports constituted 8.8% of total exports in 2003, down from 9.2% in 2002.
In relation to GDP, rice exports contributed 7.1%, as against 7.4% in 2002 (see Tables III and
VI).
14
The European Union (EU) remained Guyana’s main export market for rice during 2003,
importing approximately 108,006 metric tonnes. This represented 54.0% of total rice exports, a
decline from 62.3% in the previous year. Portugal and Holland remained the top importers in the
EU, purchasing 43,848 metric tonnes (compared to 56,000 metric tonnes in 2002) and 31,962
metric tonnes (up from 25,000 metric tonnes in 2002), respectively.
Other importers of Guyana’s rice in 2003 included CARICOM countries – 26.0% of total rice
exports (51,165 metric tonnes); Overseas Countries and Territories (OCTs)5 – 13.0% of total rice
exports (25,962 metric tonnes); and Other Countries – 7.0% of total rice exports (15,299 metric
tonnes).
The main CARICOM markets for rice continued to be Jamaica (27,695 metric tonnes) and
Trinidad & Tobago (20,415 metric tonnes). Jamaica’s rice imports for 2003 declined by 10,205
metric tonnes, while Trinidad & Tobago’s rice imports increased by 3,915 metric tonnes.
BAUXITE
Bauxite earnings in 2003 increased by 14.8%, with growth in export volume by 9.6% and a
15.7% increase in the average price. Revenue earned from bauxite increased to US$40.4
million, from US$35.2 million in 2002. This commodity accounted for 7.9% of total exports and
amounted to 6.4% of GDP in 2003, an improvement from 7.1% of total exports and 5.7% of
GDP, in the previous year (see Tables III and VI).
TIMBER
Having grown by 7.6% in the previous year, receipts from timber exports declined by 13.5%,
earning US$30.7 million in 2003, compared to US$35.5 million generated in 2002. Timber
exports represented 6.0% of total export earnings in 2003, compared to 7.2% in the previous
year. In terms of contribution to GDP, timber accounted for 4.8% in 2003, compared to 5.8% in
2002 (see Tables III and VI).
Despite an increase in unit value by 7.0%, receipts from Other Timber Exports were US$19.7
million, 19% below 2002 receipts (see Table VI).
The turnaround in the performance of timber could be attributed to a number of difficulties
experienced by local exporters, during 2003.
5
The Overseas Countries and Territories (OCTs) are countries that have a special relationship with one of the Member States of
the European Community. They have been associated with the EC, since the beginning and the founding Treaty - the 1957 Treaty
of Rome - provides for the associate status of these countries or territories. The OCTs are constitutionally linked to four of the
Member States (Denmark, France, the Netherlands and the United Kingdom) and they are not independent states. Examples of
OCTs are Anguilla, Aruba, Bonaire, Curacao, Montserrat, etc.
15
EARNINGS OF TOP EXPORT COMMODITIES AS PERCENTAGE OF GDP
25
20
% GDP
15
10
5
0
Gold
Sugar
Shrimps
Exports as Percentage of GDP (2002)
Figure 5
Rice
Bauxite
Timber
Exports as Percentage of GDP (2003)
Source: Bank of Guyana
NON-TRADITIONAL AGRICULTURAL EXPORTS
Compared to the growth experienced in 2002, the volume of Guyana’s non-traditional
agricultural commodities exported in 2003, declined marginally by 0.9%. This performance
resulted in reduced earnings of US$3.7 million in 2003, from $US$3.8 million in 2002 (see
Table IV). These exports accounted for 0.7% of total export earnings in 2003.
Table IV shows that the major exports of non-traditional agricultural commodities in 2003 were
heart of palm, coconut crude oil, plantain, copra meal, and copra.
Exports to CARICOM markets rose to 52.0% of total volume of non-traditional agricultural
products exported in 2003, compared to 45.0% in 2002. Barbados and Trinidad and Tobago
were the main importers of these commodities, with imports amounting to 48.0% and 49.0% of
total volume exported to the CARICOM region, respectively (see Table V).
Exports to extra-regional markets, mainly to Canada and the United States of America combined,
accounted for 15.0% of total volume, 3.0% above the 2002 level. The European Union
accounted for 31.0% of total volume in 2003, a drop from 42.0% in the previous year. France
has been the largest importer of Guyana’s non-traditional agricultural produce, mainly heart of
palm.
16
Table IV
VOLUME OF MAJOR NON-TRADITIONAL AGRICULTURAL EXPORTS
MAJOR COMMODITY
2002
(tonnes)
% Total
(2002)
2003
(tonnes)
% Total
(2003)
%
Change
Heart of Palm
1381.5
33.6
1507.03
37.0
9.0
Coconut Crude Oil
742.00
18.0
587.27
14.4
(21.0)
Plantain
371.67
9.0
393.94
9.7
6.0
0.00
0.0
234.27
5.8
-
Copra
741.65
18.0
218.13
5.4
(71.0)
Mango
222.61
5.4
185.19
4.5
(17.0)
Pineapple
143.66
3.5
176.10
4.3
23.0
Watermelon
90.36
2.2
151.81
3.7
68.0
Pumpkin
41.91
1.0
114.18
2.8
172.0
Lime
63.47
1.5
91.23
2.2
44.0
Pepper (hot)
46.00
1.1
30.80
0.8
(33.0)
Pepper (wiri-wiri)
10.08
0.2
24.64
0.6
144.0
256.11
6.2
357.41
8.8
40.0
4111
100
4072
100
(0.9)
3,805
-
3,754
-
(2.6)
Copra Meal
Others
Total Non-Traditional
Agriculture Exports (Tonnes)
Total Non-Traditional
Agriculture Exports (US$ ‘000)
Source: The New Guyana Marketing Corporation
17
Table V
VOLUME OF NON-TRADITIONAL AGRICULTURAL EXPORTS, BY COUNTRY
(Tonnes)
2002
2003
Country
Regional Markets
5.10
13.79
Barbados
663.08
1,025.27
Dominica
0.28
14.55
St. Vincent & the Grenadines
9.00
0.07
10.00
0.00
St. Kitts & Nevis
0.11
0.03
Suriname
0.37
33.95
1,174.20
1,046.15
0.00
0.19
1,862.14
2,133.98
Anguilla
0.05
0.00
Canada
388.50
304.53
Finland
0.30
0.00
France
1,321.50
1,247.78
0.00
17.74
20.00
18.60
Netherlands
378.46
0.00
St. Marteen
0.30
1.45
Switzerland
20.00
18.60
2.22
5.32
117.52
323.67
2,248.85
1,937.68
4,111
4,072
Antigua and Barbuda
St. Lucia
Trinidad & Tobago
Others
Sub-Total
Extra-Regional Markets
Italy
Lebanon
United Kingdom
United States
Sub-Total
TOTAL (Tonnes)
Source: The New Guyana Marketing Corporation
18
Table VI
EXPORTS BY COMMODITY (VOLUME AND VALUE)
#
1.
2.
3.
4.
5.
6.
7.
EXPORT COMMODITY
Gold
Volume (ounces)
Value (US$M)
Sugar
Volume (metric tonnes)
Value (US$M)
Rice
Volume (metric tonnes)
Value (US$M)
Timber
Volume (cubic metres)
Value ((US$M)
Plywood
Volume (cubic metres)
Value (US$M)
Other Timber Exports
Volume (cubic metres)
Value (US$M)
Bauxite
Volume (metric tonnes)
Value (US$M)
Fish and Shrimp (US$M)
Non-Traditional Agricultural Exports
Volume (Tonnes)
Value (US$M)
2002
January –
December
2003
January –
December
%
CHANGE
451,250.8
136.2
367,934.8
130.9
(18.5)
(3.9)
281,659.0
119.5
311,847.0
129.2
10.7
8.1
193,415.3
45.5
200,431.4
45.3
3.6
(0.4)
184,919.9
35.5
150,572.2
30.7
(18.6)
(13.5)
47,767.5
11.1
46,689.0
11.0
(2.3)
(1.5)
137,152.6
24.3
103,883.2
19.7
(24.3)
(19.0)
1,514,743.0 1,659,787.0
35.2
40.4
52.6
53.9
9.6
14.8
2.4
4,111
3.8
4,072
3.7
(0.9)
(2.6)
Sources: Bank of Guyana and the New Guyana Marketing Corporation
19
DISTRIBUTION OF EXPORTS BY PRODUCTS
Guyana's Exports 2002
Other
14.3%
Timber
7.2%
Gold
27.5%
Bauxite
7.1%
Rice
9.2%
Shrimps
10.6%
Figure 6
Sugar
24.1%
Source: Bank of Guyana
DISTRIBUTION OF EXPORTS BY PRODUCTS
Guyana's Exports 2003
Other
16%
Gold
25.5%
Timber
6.0%
Bauxite
7.9%
Rice
8.8%
Sugar
25%
Shrimps
10.5%
Figure 7
Source: Bank of Guyana
20
Chapter Five
A CLOSER LOOK AT IMPORTS
Guyana’s overall merchandise imports during 2003 rose by 1.5%, reflecting an increase in
spending from US$563.1 million in the previous year to US$571.7 million in 2003 (see Table
XIII for Guyana’s major sources of imports).
Of the three categories of merchandise imports, Intermediate Goods continue to rank as the top
category of imports, amounting to US$305.5 million or 53.4% of total imports, as against
US$291.1 million or 52.0% of total imports in 2002. The value of Consumption Goods imported
contracted by 5.1% amounting to US$149.3 million, while Capital Goods imported increased by
2.5% in 2003, totalling US$116.1 million, as against US$113.9 in 2002 (see Tables VII, VIII,
and IX).
Fuel and Lubricants remained Guyana’s largest imports. These products amounted to 26.0% of
total imports in 2003, compared to 22.0% in 2002. Food for Final Consumption continued to
represent Guyana’s second largest imports, totalling 9.0% of total imports in 2003, slightly less
than in 2002 when this category of imports accounted for 10.0% of total imports (see Tables VII,
VIII, and IX).
Other notable imports in 2003 were Food for Intermediate Use; Chemicals; Parts & Accessories;
Agricultural Machines; and Building Machines (see Tables VII, VIII and IX).
COMPARISON OF IMPORT VALUE BY ECONOMIC END USE - 2002 AND 2003
350
US$ MILLION
300
250
200
150
100
50
0
Consumption Goods
Intermediate Goods
2002
Figure 8
Capital Goods
2003
Source: Bank of Guyana
21
Table VII
MERCHANDISE IMPORTS BY ECONOMIC END USE (US$M)
2002
ITEMS
Jan. Apr. –
Jul. –
Oct. –
Mar.
Jun.
Sept.
Dec.
Consumption Goods
Food for Final Consumption
Beverages & Tobacco
Other Non-Durables
Clothing & Footwear
TOTAL
13.5
2.4
6.2
3.8
12.9
2.6
8.4
3.3
13.5
3.0
7.7
4.7
14.8
3.4
8.1
4.2
54.7
11.4
30.4
16.0
1.5
3.1
4.9
2.2
3.3
5.1
1.9
3.2
4.9
3.1
2.3
9.5
8.8
11.8
24.3
Sub-Total
35.3
37.6
38.9
45.5
157.3
Intermediate Goods
Fuel & Lubricants
Food for Intermediate Use
Chemicals
Textiles & Fabrics
Parts & Accessories
28.4
2.8
6.9
1.7
7.0
30.3
3.9
8.0
2.4
16.4
29.7
4.1
7.8
3.4
7.4
37.4
6.5
6.9
2.0
6.2
125.8
17.3
29.5
9.5
37.0
Other Intermediate Goods
17.9
19.0
18.7
16.4
72.0
Sub-Total
64.7
80.0
71.0
75.3
291.1
8.0
3.2
6.0
0.4
6.7
7.9
5.2
2.2
5.8
0.6
7.6
6.3
6.7
1.4
3.4
0.5
9.2
5.9
7.2
2.4
3.3
0.3
7.9
5.6
27.1
9.3
18.5
1.9
31.5
25.6
31.1
27.8
27.2
26.8
113.9
0.1
0.2
0.2
0.3
0.8
132.2
145.6
137.3
148.0
563.1
Other Semi-Durables
Motor Cars
Other Durables
Capital Goods
Agricultural Machinery
Industrial Machinery
Transport Machinery
Mining Machinery
Building Machinery
Other Capital Goods
Sub-Total
Miscellaneous
TOTAL IMPORTS
Source: Bank of Guyana
22
Table VIII
MERCHANDISE IMPORTS BY ECONOMIC END USE (US$M)
2003
ITEMS
Jan. Apr. –
Jul. –
Oct. –
Mar.
Jun.
Sept.
Dec.
Consumption Goods
Food for Final Consumption
Beverages & Tobacco
Other Non-Durables
Clothing & Footwear
Other Semi-Durables
TOTAL
10.4
2.2
7.9
2.2
1.4
12.9
3.1
8.4
3.3
1.9
13.3
3.2
14.1
2.9
2.0
13.5
3.4
8.4
3.0
2.7
50.1
12.0
38.9
11.5
8.0
Motor Cars
2.3
3.2
2.7
3.2
11.3
Other Durables
3.0
4.1
4.6
5.8
17.6
Sub-Total
29.4
37.0
42.9
40.0
149.3
Intermediate Goods
Fuel & Lubricants
Food for Intermediate Use
Chemicals
Textiles & Fabrics
Parts & Accessories
39.8
6.7
6.5
1.6
7.0
32.2
3.3
7.1
1.9
7.2
32.3
5.8
5.8
1.8
8.4
42.9
5.4
5.9
1.4
10.5
147.2
21.2
25.3
6.7
33.0
Other Intermediate Goods
16.4
21.8
16.5
17.4
72.1
Sub-Total
78.0
73.5
70.5
83.6
305.5
8.3
1.6
8.0
1.3
6.6
6.7
6.9
1.8
8.5
0.7
8.5
8.3
4.9
2.2
3.0
0.6
8.2
5.1
5.2
1.8
3.9
0.3
8.1
5.5
25.4
7.4
23.3
2.9
31.5
25.6
32.5
34.8
24.1
24.8
116.1
0.3
0.2
0.2
0.1
0.7
140.2
145.3
137.7
148.5
571.7
Capital Goods
Agricultural Machinery
Industrial Machinery
Transport Machinery
Mining Machinery
Building Machinery
Other Capital Goods
Sub-Total
Miscellaneous
TOTAL IMPORTS
Source: Bank of Guyana
23
Table IX
SUMMARY OF CHANGE IN IMPORTS BY PRODUCT
(US$M)
ITEMS
2002
%
CHANGE
2003
Consumption Goods
Food for Final Consumption
Beverages & Tobacco
Other Non-Durables
Clothing & Footwear
Other Semi-Durables
54.7
11.4
30.4
16.0
8.8
50.1
12.0
38.9
11.5
8.0
(8.4)
5.6
28.0
(28.2)
(9.2)
Motor Cars
11.8
11.3
(3.9)
Other Durables
24.3
17.6
(27.7)
Sub-Total
157.8
149.3
(5.1)
Intermediate Goods
Fuel & Lubricants
Food for Intermediate Use
Chemicals
Textiles & Fabrics
Parts & Accessories
125.8
17.3
29.5
9.5
37.0
147.2
21.2
25.3
6.7
33.0
17.0
22.3
(14.3)
(30.2)
(10.6)
Other Intermediate Goods
72.0
72.1
0.2
291.1
305.5
4.9
27.1
9.3
18.5
1.9
31.5
25.6
25.4
7.4
23.3
2.9
31.5
25.6
(6.3)
(20.3)
26.0
56.3
(0.0)
(0.2)
113.9
116.1
2.0
0.8
0.7
(13.3)
563.1
571.7
1.5
Sub-Total
Capital Goods
Agricultural Machinery
Industrial Machinery
Transport Machinery
Mining Machinery
Building Machinery
Other Capital Goods
Sub-Total
MISCELLANEOUS
TOTAL IMPORTS
Source: Bank of Guyana
24
RELATIVE DISTRIBUTION OF IMPORTS BY ECONOMIC END USE - 2002
20%
28%
52%
Consumption Goods
Figure 9
Intermediate Goods
Capital Goods
Source: Bank of Guyana
RELATIVE DISTRIBUTION OF IMPORTS BY ECONOMIC END USE - 2003
20%
26%
54%
Consumption Goods
Intermediate Goods
Capital Goods
Figure 10 Source: Bank of Guyana
25
Figure 11
0
27.1
25.4
Industrial Machinery
9.3
7.4
18.5
Transport Machinery
23.3
1.9
Mining Machinery 2.9
31.5
Building Machinery
31.5
25.6
Other Capital Goods
25.6
0.8
Miscellaneous 0.7
Agricultural Machinery
72
72.1
80
Other Intermediate Goods
Parts & Accessories
Textiles & Fabrics
Chemicals
Food for Intermediate Use
125.8
140
17.3
21.2
29.5
25.3
9.5
6.7
37
33
16
11.5
8.8
8
11.8
11.3
24.3
17.6
147.2
160
Fuel & Lubricants
Other Durables
Motor Cars
Other Semi-Durables
Clothing & Footwear
30.4
38.9
40
Other Non-Durables
11.4
12
20
Beverages & Tobacco
54.7
50.1
60
Food for Final Consumption
US$M
SUMMARY OF IMPORTS (US$M)
120
2002
2003
100
Source: Bank of Guyana
26
Chapter Six
DIRECTION OF TRADE6
Guyana’s Major Trading Partners
THE EUROPEAN UNION
Exports to the European Union (EU) in 2003, accounted for 34.9% of total exports, compared to
28.4% in 2002. The United Kingdom (UK) emerged as Guyana’s number one export market in
the EU, with exports to that country amounting to 66.9% of total exports to the EU, as against
60.4% 2002, when the UK was Guyana’s third largest export market. France, Belgium, the
Netherlands, and Portugal were the other significant export markets in the EU during 2003 (see
Tables X and XVII).
The major products traded with the EU were rice, sugar and heart of palm.
As in the previous year, the UK was Guyana’s fourth largest source of imports in 2003.
However, the value of imports dropped to 6.0% of total imports, compared to 7.4% in 2002.
Another significant source of imports in the EU in 2003 was the Netherlands, although there was
a decline by 18.0% in the value of imports (see Tables XIII and XVII).
CANADA
Canada retained its position as Guyana’s second largest export market in 2003, despite a drop to
21.8% of total exports, from 24.5% in 2002. Regarding imports, Canada became the ninth
largest source of Guyana’s imports, with the value of imports declining by 16.0%, compared to
the 2002 level (see Tables X and XIII).
The major products sold to Canada were gold, sugar, rice, and fish and shrimp.
UNITED STATES OF AMERICA
The United States of America became Guyana’s third largest export market in 2003, having been
the number one export market in 2002. During 2003, exports to the USA declined to 18.1% of
total exports, compared to 28.0% in 2002. On the other hand, the USA continued to rank as
Guyana’s number one source of imports, although there was a 7.8% drop in the value of imports
(see Tables X and XIII).
6
All computations in this section for 2003 were done using Preliminary Data from the Bureau of Statistics, which may be subject
to revision. The analysis is, therefore, undertaken to provide a broad view of the trends in Guyana’s external trade.
Note: Figures for 2002 were revised by the Bureau of Statistics.
27
The main products purchased by the USA were rice, sugar, timber, calcined bauxite and other
aluminium ores.
CARICOM
The value of Guyana’s exports to the CARICOM region increased in 2003. Of Guyana’s total
exports, CARICOM accounted for 18.9%, compared to 15.9% in 2002 (see Tables XI and XII).
Guyana’s main export markets within CARICOM were, in descending order, Jamaica (ranked as
Guyana’s fourth largest export market), Trinidad & Tobago (ranked as Guyana’s fifth largest
export market), Barbados (ranked as Guyana’s eighth largest export market), and Antigua and
Barbuda (ranked as Guyana’s tenth largest export market). The accumulated value of exports to
these countries in 2003 was 83.9% of total exports to CARICOM (see Tables X and XVI).
On the import side, 29.9% of Guyana’s total imports in 2003 were sourced from CARICOM, an
increase from 18.6% in 2002. This sharp increase was, in part, a result of a 71.0% increase in
imports from Trinidad and Tobago, over the 2002 level (see Tables XIV, XV AND XVI).
Of the top ten countries from which Guyana sourced its imports in 2003, Trinidad and Tobago
emerged as the major source of imports in CARICOM. Overall, this country remained Guyana’s
second largest source of imports, after the USA (see Table XIII).
Table X
GUYANA’S TOP 10 EXPORT MARKETS - BY COUNTRY
#
DESTINATION
2002
(G$ ‘000)
27,513,030
DESTINATION
1
United States
2
Canada
19,960,238
Canada
18,339,611
3
United Kingdom
17,381,116
United States
15,246,627
4
Jamaica
5,158,932
Jamaica
5,025,900
5
Trinidad & Tobago
4,260,642
Trinidad & Tobago
4,741,630
6
Portugal
3,846,910
Belgium
3,812,111
7
Belgium
2,532,164
Netherlands
2,418,485
8
Barbados
2,472,684
Barbados
2,298,826
9
Netherlands
2,067,595
Portugal
1,858,373
1,118,317
Antigua & Barbuda
1,326,698
10 France
Source: Bureau of Statistics
United Kingdom
2003
(G$ ‘000)
19,717,579
Source: Bureau of Statistics
28
Table XI
MAJOR EXPORT DESTINATIONS – BY REGION
2002
REGION
Exports
(GY $‘000)
% of
Total Exports
North America (USA and Canada)
47,473,268
49
European Union
28,763,325
29.6
CARICOM
15,445,756
15.9
Sub-Total
91,682,349
94.5
5,333,638
5.5
97,015,987
100
Other Countries
Total Exports
Source: Bureau of Statistics
Table XII
MAJOR EXPORT DESTINATIONS - BY REGION
2003
REGION
Exports
(GY $‘000)
% of
Total Exports
North America (USA and Canada)
33,586,238
39.9
European Union
29,472,986
34.9
CARICOM
15,969,982
18.9
Sub-Total
79,029,206
93.7
5,277,493
6.3
84,306,699
100
Other Countries
Total Exports
Source: Bureau of Statistics
29
% TOTAL EXPORTS
SHARE OF EXPORTS TO CARICOM AND Non-CARICOM MARKETS
120
100
80
60
84.1
81.1
15.9
18.9
2002
2003
40
20
0
CARICOM
Non-CARICOM
Figure 12 Source: Bureau of Statistics
MAJOR EXPORT MARKETS
100%
5.5
6.3
15.9
18.9
% TOTAL EXPORTS
80%
60%
29.6
34.9
40%
49
20%
39.9
0%
2002
NORTH AMERICA
2003
EUROPEAN UNION
CARICOM
OTHER
Figure 13 Source: Bureau of Statistics
30
Table XIII
GUYANA’S TOP TEN IMPORT MARKETS
COUNTRY
1
2
3
4
5
6
7
8
9
10
USA
2002
(G$‘000)
37,067,811
USA
2003
(G$‘000)
34,163,130
28,885,403
COUNTRY
Trinidad and Tobago
16,890,752
Trinidad & Tobago
Netherlands Antilles
12,802,792
Netherlands Antilles
7,562,954
UK
7,893,131
UK
6,461,283
Venezuela
4,372,266
Japan
4,012,638
China
3,665,129
China
3,707,114
Netherlands
3,340,864
Netherlands
2,741,241
Canada
1,880,937
British Virgin Islands
1,806,153
Barbados
1,198,071
Canada
1,573,479
Brazil
1,195,955
Brazil
1,358,788
Source: Bureau of Statistics
Source: Bureau of Statistics
31
Table XIV
MAJOR IMPORT MARKETS
2002
MARKET
Imports
(GY$ ‘000)
% of
Total Imports
USA
37,067,811
34.6
CARICOM
19,989,970
18.6
European Union
14,114,762
13.2
Netherlands Antilles
12,802,792
9.5
Sub-Total
83,975,335
78.3
Other Countries
23,292,902
21.7
107,268,237
100
Total Imports
Source: Bureau of Statistics
Table XV
MAJOR IMPORT MARKETS
2003
MARKET
Imports
(GY$ ‘000)
% of
Total Imports
USA
34,163,130
31.7
CARICOM
32,246,571
29.9
European Union
12,353,351
11.5
7,562,954
7.0
Sub-Total
86,326,006
80.1
Other Countries
21,477,472
19.9
107,803,478
100
Netherlands Antilles
Total Imports
Source: Bureau of Statistics
32
% TOTAL IMPORTS
SHARE OF IMPORTS FROM CARICOM AND Non-CARICOM MARKETS
120
100
80
60
70.1
81.4
40
20
29.9
18.6
0
2002
2003
CARICOM
Non-CARICOM
Figure 14 Source: Bureau of Statistics
MAJOR SOURCES OF IMPORTS
100%
% TOTAL IMPORTS
80%
26.9
31.2
60%
18.6
40%
13.2
20%
34.6
31.7
2002
2003
29.9
11.5
0%
USA
EU
CARICOM
OTHER
Figure 15 Source: Bureau of Statistics
33
Table XVI
INTRA-REGIONAL TRADE
(G$ ‘000)
CARICOM MEMBER
ANTIGUA & BARBUDA
EXPORTS
2002
IMPORTS
2002
TRADE
BALANCE
EXPORTS
2003
IMPORTS
2003
TRADE
BALANCE
410,062
226,650
1,294,552
1,326,697
63,611
1,263,086
2,472,684
1,198,071
1,265,356
2,298,826
1,231,212
1,067,614
178,493
254,011
(75,518)
88,638
188,029
(99,391)
1,570
28,518
(25,730)
2,342
1,799
552
COMMONWEALTH OF DOMINICA
236,678
514,613
(332,467)
124,200
661,493
(537,292)
GRENADA
465,363
48,154
474,604
359,039
70,603
288,436
5,158,932
628,242
4,779,977
5,025,900
846,584
4,179,316
1,019
0
1,019
6,750
0
6,750
REPUBLIC OF SURINAME
1,203,203
67,728
1,069,507
1,026,830
157,737
869,093
REPUBLIC OF TRINIDAD & TOBAGO
4,260,642
16,890,752
(12,742,657)
4,741,630
28,885,403
(24,143,772)
ST. LUCIA
580,458
109,664
526,839
406,430
118,293
288,137
ST. VINCENT & THE GRENADINES
405,673
23,502
380,203
510,840
18,854
491,985
70,978
63
7,474
51,853
2,953
48,900
15,445,756
19,989,970
(3,376,841)
15,969,982
32,246,571
(16,276,589)
BARBADOS
BELIZE
COMMONWEALTH OF THE BAHAMAS
JAMAICA
MONTSERRAT
ST. KITTS & NEVIS
TOTAL
Source: Bureau of Statistics
34
MAIN CARICOM EXPORT MARKETS - 2002
11.4%
7.8%
33.4%
3.8%
16%
27.6%
Jamaica
Trinidad & Tobago
Barbados
St. Lucia
Suriname
Other CARICOM Countries
Figure 16 Source: Bureau of Statistics
MAIN CARICOM EXPORT MARKETS - 2003
10.5%
6%
31.5%
8%
14%
30%
Jamaica
Trinidad & Tobago
Barbados
Antigua & Barbuda
Suriname
Other CARICOM Countries
Figure 17 Source: Bureau of Statistics
35
MAIN SOURCE OF IMPORTS IN CARICOM - 2002
6.5%
3%
6%
84.5%
Trinidad & Tobago
Barbados
Jamaica
Other CARICOM Countries
Figure 18 Source: Bureau of Statistics
MAIN SOURCE OF IMPORTS IN CARICOM - 2003
3%
4%
4%
89%
Trinidad & Tobago
Barbdos
Jamaica
Other CARICOM Countries
Figure 19 Source: Bureau of Statistics
36
Table XVII
GUYANA’S TRADE WITH THE EUROPEAN UNION
EXPORTS (G$M)
COUNTRY
Austria
2002
IMPORTS (G$M)
2003
2002
2003
0
0
14,488
39,413
2,532,164
3,812,111
840,312
1,081,423
2,377
85,333
117,041
144,694
Finland
867,434
0
11,494
920
France
1,118,317
478,441
265,185
330,086
158,421
623,984
735,470
982,186
Greece
4,670
142,137
122
5,024
Ireland
200
3,842
50,303
38,864
273,992
212,904
647,378
284,064
Luxembourg
24,571
0
0
0
Netherlands
2,067,595
2,418,485
3,340,864
2,741,241
Portugal
3,846,910
1,858,373
6,170
11,277
485,560
111,532
150,781
175,528
0
6,262
42,012
55,345
UK
17,381,116
19,717,579
7,893,131
6,461,283
TOTAL
28,763,325
29,472,986
14,114,762
12,353,351
Belgium
Denmark
Germany
Italy
Spain
Sweden
Source: Bureau of Statistics
37
Chapter Seven
FOREIGN DIRECT INVESTMENT
Since 2000, domestic investment in Guyana continued to expand at a much faster rate than
Foreign Direct Investment (FDI). Nonetheless, efforts are continuing to create an environment
conducive to investment. To Guyana’s credit, the country ranked 17th out of 140 countries on the
Foreign Direct Investment Index. According to the World Investment Report, this compares
with 58th during 1988-1990. Guyana is among five countries in Latin America and the
Caribbean Region to be in the top 44 countries.7
Table XVIII
INVESTMENT FLOWS (G$ MILLIONS)
2000
2001
2002
2003
Total Investment
50,065
51,375
52,666
50,473
Foreign Direct Investment
12,397
10,612
8,360
n/a
Domestic Investment
37,668
40,763
44,306
n/a
Source: Bank of Guyana
FDI FLOWS INTO LATIN AMERICA AND THE CARIBBEAN
Latin America appears to be losing some appeal for foreign investors. Foreign direct investment
(FDI) in the region has declined steadily since 1999. The United Nations Economic Commission
for Latin America and the Caribbean (ECLAC) reported that the regions turned in the worst
performance when compared to the other regions in the world. The poor performance is
associated with the near completion of a number of privatization programmes. Also, regulatory
uncertainty appears to be putting off many investors, with the effect being felt most acutely in
the Mercosur region, particularly Brazil.
7
Budget Speech: Sessional Paper No.1 of 2004 Eighth Parliament of Guyana, Page 29
38
In 2003, FDI in all of Latin America and the Caribbean was US$36.5 billion, down 19% from
the previous year’s total, according to ECLAC’s Foreign Investment in Latin America 2003
Report.
For a second consecutive year, Mexico maintained its lead over Brazil as the recipient of the
greatest amount of FDI, taking in US$10.7 billion. Still, this was 25.6% below the level of the
previous year. Brazil registered just US$10.1 billion in FDI in 2003, a 63.3% fall from its 2002
total.
The services sector brought in almost 58% of total FDI from 1996 to 2002, followed by
manufacturing with 28% and the primary sector with 15%. Most of the rise in FDI in services
resulted from privatizations, although that sector started to fall in 2001, and saw a dramatic
decline in 2002 and once again in 2003.
Six of the region’s ten major transnational companies, by consolidated sales, belong to the car
industry – General Motors, Delphi, Volkswagen, Daimler-Chrysler, Ford and Nissan. In this
sense, the car industry is the main attraction for FDI in Latin America, with Brazil and Mexico
being the main centers for the regional production of this industry, which grew at a rate of over
5% from 1990 to 2003.
According to ECLAC’s report 2003, despite the large amount of about US$50 billion in
investment over the past decade, there are indications that this once successful strategy for
attracting FDI is beginning to wear out. The report warns that unless more is done to attract new
investment in the automobile sector, FDI will continue its downward trend.
The World Bank report, Global Development Finance 2004, reports that regardless of the
decrease of FDI in Latin America and the Caribbean, five Latin American countries are still
among the top 10 recipients of FDI – China, Brazil, Mexico, Argentina, Poland, the Czech
Republic, Chile, Venezuela, Thailand and India.
39
Chapter Eight
EXTERNAL TRADING RELATIONS
This section details the major developments in 2003 in the four major negotiations that Guyana
is currently engaged in.
THE CARICOM SINGLE MARKET AND ECONOMY (CSME)
During 2003, the Ministry of Foreign Trade & International Cooperation dealt with several
institutional matters and undertook activities critical to ensuring that Guyana becomes ready for
the successful implementation of the CARICOM Single Market and Economy (CSME), in 2005.
National One-Day Summit on the CSME
On December 1, the Ministry convened a national one-day summit on the CSME, under the
theme ‘Realizing the CSME: Prospects for National Development’. Participants were drawn
from the Public and Private Sectors, Labour and the NGOs community.
The primary objective of the Summit was to provide public awareness on the basic tenets of the
CSME. This was done by way of presentations on the following topics:







Basic Instruments, Institutional and Regional Arrangements under the CSME
The Judiciary and Legal System under the CSME
Positioning the Agricultural, Mining and Manufacturing Sectors to face the Challenges and
Opportunities in the CSME
Exploring the potential of the Services Sector under the CSME
The Banking and Financial Institutions under the CSME
Challenges and Opportunities to Health, Labour and Education Sectors and the Movement of
CARICOM Nationals under the CSME
Security considerations with the advent of the CSME
A number of recommendations were presented by the Summit, which it was expected would be
incorporated into the work programme of the various ministries, in order that the right
environment is created to ensure that Guyanese nationals derive maximum benefit from the
CSME.
Manual on Administrative Procedures for the Implementation of the CSME
In April, a Manual of Administrative Procedures for the Implementation of the CSME was
adopted. The Manual was developed in an effort to strengthen national public service capacity to
serve the requirements of the CSME, as well as, to introduce and operate essential systems and
40
procedures at the national and regional levels, for the efficient and effective operation of the
CSME. It is expected that the Manual will be a working guide for public service officials who
are engaged in discharging duties that will give effect to the CSME.
Establishment of the Inter-Ministerial Advisory Committee on the CSME
An Inter-Ministerial Consultative Committee (IMCC) on the CSME was established and
launched in May. It is expected that this Committee will provide the forum for networking,
collaboration and information dissemination among public officers, since its membership
comprises of representatives from all Government Ministries/Departments/Agencies.
Meeting of National CSME Focal Points
In October, the first meeting between National Focal Points on the CSME and the CSME Unit
was convened in Barbados. The Meeting focused on issues pertaining to the organisation within
each Member State for the implementation of the CSME, an overview of their obligations,
commitments and undertakings, as well as, the overall CSME implementation work programme.
It was decided that future meetings of the National CSME Focal Points will be convened by the
CARICOM Secretariat at the end of each quarter. This is to ensure that implementation of the
CSME is on target and moving apace.
AFRICA, CARIBBEAN AND PACIFIC –THE EUROPEAN UNION
Sugar
Guyana has been proactive in the ACP Consultative Group on Sugar at the ACP level, and has
been influential in organizing and coordinating meetings at the CARICOM level on a number of
issues of interest to Guyana and CARICOM, including CARICOM’s policy on preserving the
regional sugar quota at the EU in face of the EPA Negotiations with the EU, and the production
difficulties that key producers like Barbados and St. Kitts are facing in the region.
Another difficulty that Guyana and the other traditional sugar exporting states faced during the
year was the reallocation of quotas under the Sugar Protocol to non-quota holders that are also
beneficiaries under the EU-EBA Initiative.
WTO Challenge to the EU Sugar Regime
Brazil, Australia and Thailand are challenging the EU sugar regime, from which Guyana and
other sugar producing and exporting countries of the ACP are benefitting, tremendously.
Guyana coordinated a lobby mission to Brazil in February 2003, in keeping with the ACP
decision to lobby countries involved in the challenge.
41
The WTO Dispute Settlement Body, based on a request by the countries, agreed to establish a
panel to consider the claims made by the countries. Guyana and twelve other ACP countries
have requested third party status in the challenge and are considering requesting enhanced third
party status in the process. This would allow Guyana the right to attend the proceedings, make
statements and receive documentation.
Rice
Guyana raised the issue of the implications of the EU’s Reform of the Common Agriculture
Policy on Rice – 50% cut in the EU intervention price and the simultaneous increase in the
domestic support to EU farmers – at the regional and ACP levels. This matter was also brought
to the attention of the EU Commission and deliberated on by the ACP Council of Ministers, as
well as, by the Joint ACP-EU Council.
EU/CARIFORUM Project
In September, the EDF Committee approved euros 24 million as support for the CARIFORUM
rice industry. Guyana will benefit from euros 11.7 million under this project, which is aimed at
enhancing the competitiveness of the CARIFORUM rice industry.
The Ministry of Foreign Trade and International Cooperation (MOFTIC) is working closely with
the Ministry of Agriculture and the rice industry to ensure timely preparations for the
implementation of the project in Guyana.
ACP/EC Joint Working Party
The Joint Working Party on rice was convened in October. Guyana served as co-chair for the
meeting, which called on the EU to ensure speedy implementation of the rice sector support
programme and for the consideration of compensatory measures to cushion the adverse effects
rice exporters will face as a consequence of reforms to be undertaken in the EU rice industry.
FREE TRADE AREA OF THE AMERICAS (FTAA)
8th Ministerial Meeting of the FTAA
Guyana was represented by the Minister of Foreign Trade and International Cooperation at the
Eighth Ministerial Meeting of the Free Trade Area of the Americas (FTAA), which was held in
Miami, USA, in November, 2003. That meeting marked the commencement of the final year of
the FTAA negotiations, scheduled to be completed in January 2005.
At the meeting, Trade Ministers assessed the current state of play in the FTAA Negotiations and
agreed on modalities for the final phase of the negotiations. In this regard, the Ministers
discussed the overall scope or vision of the negotiations in the context of the hemispheric
Summit of the Americas process (Vision of the FTAA); the integration of the smaller economies
42
in the hemispheric arrangements (including technical assistance and financing mechanisms), and
the location of the permanent site for the FTAA Secretariat.
Leading up to the Miami Ministerial, and especially following the failure of the WTO Cancun
Ministerial Conference in September, the general sense among FTAA countries was that the
FTAA process would not be able to achieve the January 2005 completion date.
Guyana has always considered it to be in CARICOM’s best interest to maintain the stated
deadline but with a trimmed agenda common to all countries, since delaying conclusion of the
FTAA key market access issues well beyond 2005 could likely complicate matters for the region
in the other external negotiations. Any delay could also affect likely benefits from adjustment
assistance, which could accrue to the region under the hemispheric and sub-regional processes.
It was against this background that CARICOM reaffirmed its support for the January 2005
deadline, but argued that “the agreement must have a balance of ambition, accommodating
capabilities and need” and include a comprehensive package of special and differential measures
in each negotiating area.
The Ministers agreed on an FTAA Vision, which would be realized through a two-tiered
approach. At the first level, all countries will accede to a common set of rights and obligations.
At the second level, countries on their own determination, may agree to additional rights and
obligations on a plurilateral basis.
FTAA National Trade Capacity Building Strategy (TCBS)
Guyana’s Trade Capacity Building Strategy (TCBS) was completed in October, in response to
the mandate of FTAA Trade Ministers for the development of the Hemispheric Cooperation
Programme (HCP) under the Free Trade Area of the Americas (FTAA). The TCBS emphasizes
the critical importance of trade to Guyana and the country’s high level of dependence on the
external sector. As such, the general and specific capacity-building needs that are documented in
the strategy, groups Guyana’s key and critical needs into three areas: negotiating capacity,
implementation capacity, and adjustment (to integration) capacity.
The Ministry of Foreign Trade and International Cooperation, with the technical and financial
support of the USAID, coordinated the preparation of the TCBS which involved indepth
consultations with a wide cross-section of trade-related agencies in the public and private sectors.
In identifying Guyana’s priorities for action, a careful attempt has been made to ensure policy
coherence with respect to the country’s participation in the regional integration arrangements in
the Caribbean Community (CARICOM), as well as, with other trade-related projects already
being implemented at the national level.
Also in fulfillment of the Trade Ministers mandate, the first financing meeting (roundtable) of
the Hemispheric Cooperation Programme (HCP) was held in Washington DC on October 14-15,
to introduce the HCP to the international donor community, and to facilitate an initial exchange
between countries/sub-regional groupings seeking assistance and potential donors, about the
43
capacity building needs articulated in the National and Sub-regional Strategies. Like most
CARICOM Member States, Guyana was able to present its draft TCBS at this initial meeting.
In December, the Tripartite Committee (ECLAC), in collaboration with the FTAA Secretariat,
commenced translation of the Guyana TCBS document in the four official languages of the
FTAA (English, Spanish, French and Portuguese).
Regional Integration Fund
Immediately following the 7th Ministerial Meeting in Quito, Ecuador in November 2002, Guyana
advanced the case for CARICOM to seek specific language in the Miami Declaration on the
proposal for a Regional Integration Fund in the FTAA, and elicit a specific ministerial mandate
for technical work to be conducted in the last phase of the negotiations on the establishment of
such a financing facility.
The idea of a Regional Integration Fund or a similar mechanism to finance adjustment in the
FTAA had, since the Quito Ministerial meeting, garnered the support of a large number of FTAA
countries.
CARICOM’s strategy, as recommended by Guyana, was to elicit a specific ministerial mandate
in the Miami Declaration for the technical work to be undertaken by both the Consultative Group
on Smaller Economies (CGSE) and the Tripartite Committee. In this regard, CARICOM found
useful alliances with Mercosur and the Andean Community.
Although some countries remained non-committal a priori on the establishment of a fund or
financing facility, a compromise was reached in Miami to first acknowledge that smaller
economies will need financial resources, in addition to the technical assistance support of the
Hemispheric Cooperation Programme (HCP), to effectively undertake the adjustment
requirements that would result from hemispheric trade integration; and secondly, to mandate the
CGSE to commence the technical work on the proposal to establish a financing facility for this
purpose.
Market Access Negotiations – Tariff Offers
The Trade Negotiations Committee (TNC) had set a timeline of February 15, 2003 for the
exchange of initial market access offers (tariff offers) in the area of goods and February 16 –
June 15, 2003 for improvements to be made to the initial offers.
In the context of CARICOM’s regional approach to the negotiations, Guyana presented its Initial
Offer (CARICOM’s Offer) to the FTAA in February 2003. The CARICOM Offer contemplates
tariff liberalization in only two phases - ‘A’ (immediate – upon entry into force of the
agreement), and ‘D’ - (longer than 10 years). The offer also includes a list of sensitive products
(“Exclusions”) for which Member States do not contemplate tariff liberalization at this time, or
negotiation of which will be subject to special conditions.
44
Trade Statistics – Hemispheric Database (HDB)
During the Miami Ministerial Meeting in November, Guyana’s trade data for 2000 and 2001
were submitted to the Tripartite Committee (IDB) for inclusion in the Hemispheric Database
(HDB). Following verification of the data by the IDB in early December, the HDB was updated
to reflect Guyana’s data up to the end of 2001. The HDB is accessible on the FTAA public
website at http://www.ftaa-alca.org.
The Ministry will continue to work closely with the Bureau of Statistics to ensure the annual
update of Guyana’s trade data in the Hemispheric Database (HDB).
Impact Assessment Studies
All the key external trade negotiations in which Guyana is currently engaged will involve some
level of tariff reductions in the trade liberalization process. These tariff reductions could result in
significant fiscal loss of revenues on which the country’s national budget depends. It is,
therefore, necessary to study potential alternative sources of revenue generated by customs tariff.
In 2003, Guyana benefited from funding from the European Union to undertake impact
assessment studies. These studies are aimed at providing recommendations on Guyana’s trade
policy, in light of the entry into force of alternative trade agreements that will replace the LOME
preferential arrangements in 2008, as well as, further trade liberalization under the FTAA and
WTO.
The assessment, so far, is directed at the trade in goods and services and capacity-building. Two
consultants have commenced work in the goods and services sectors and have presented
inception reports.
WORLD TRADE ORGANIZATION (WTO)
WTO DG Caribbean Mission
In November, the Government of Guyana hosted the WTO Director-General, Dr. Supachai
Panitchpakdi, and the Mexican Foreign Minister, Dr. Luis Ernesto Derbez, in his capacity as
Chairman of the 5th Ministerial Conference, during their visit to the Caribbean to meet with
Trade Ministers from CARICOM, Cuba and the Dominican Republic.
The Director-General’s visit to the Caribbean Community (CARICOM) was part of his postCancun consensus-building mission to revive trade talks at the WTO.
During their visit, the WTO Director-General and the Mexican Minister paid a courtesy call on
the President and met with the Cabinet. The Director-General was accompanied by Mr. Willy
Alfaro, Deputy Director-General and Mr. Stuart Harbinson, Director of the Office of the
Director-General and Chairman of the Committee on Agriculture.
45
The Ministry coordinated the arrangements for the visiting dignitaries during their stay in
Guyana.
5th Ministerial Conference
Following the 4th WTO Ministerial Conference in Doha, Qatar in November, 2002, WTO Trade
Ministers convened for their 5th Conference in Mexico in September, 2003, for a stock-taking of
the negotiations and to issue fresh mandates with a view to concluding these negotiations in
2005. Guyana was represented by a delegation led by the Minister of Foreign Trade and
International Cooperation.
The Chairman of the Conference, in keeping with traditional practice under the GATT/WTO,
organized the negotiations in the following Working Groups, under the coordination of
Ministerial Facilitators:
i.
ii.
iii.
iv.
v.
Agriculture
Development
Non-Agriculture Market Access (NAMA)
Singapore Issues
Other Issues
Facilitator:
Facilitator:
Facilitator:
Facilitator:
Facilitator:
Singapore
Kenya
Hong Kong China
Canada
Guyana
At the invitation of the Chair, the Minister of Foreign Trade and International Cooperation
served as Facilitator (“Friend of the Chair”) of the Working Group on “Other Issues”.
The Caribbean delegations were coordinated by Guyana’s Ministerial representative, in his
capacity as the Region’s Ministerial Spokesperson on WTO matters. Prior to and throughout the
Conference, the Caribbean Group consulted and maintained useful alliances with other countries
and groups, such as the ACP, the African Union, the LDCs and the G-21.
WTO Trade Policy Review of Guyana (TPR)
On October 29-31, 2003 the World Trade Organization (WTO), in keeping with its mandate to
conduct trade policy reviews of its members, concluded a Trade Policy Review (TPR) of
Guyana. The review process commenced in September 2002, and culminated with a meeting of
the WTO Trade Policy Review Body (TPRB) at the WTO Secretariat in Geneva. The Minister
of Foreign Trade and International Cooperation led Guyana’s delegation to the review session.
To facilitate the review, the Ministry, having responsibility for WTO matters and focal point for
the exercise, consulted widely with public and private sector agencies. A small technical
committee, chaired by the NACEN Coordinator, was established in the Ministry to coordinate
the process. In addition to the work of the Committee, the Ministry held a number of interagency consultations, including two technical missions to Guyana by the WTO TPR team in
January and June, respectively.
46
In its submission to the TPRB the Government of Guyana articulated several key concerns, in
particular the fact that Guyana is a small developing economy that is committed to economic and
trade liberalization but which requires the continued support of the international community to
pursue successful integration into the global economy. The Government representative also
articulated a case for Guyana, a HIPC designated country, to be accorded benefits and trade
concessions that are no less favourable than those extended to countries which are designated as
Least Developed Countries (LDCs).
The TPRB was also told that while there is no initiative in the WTO that would extend special
treatment to HIPC members, the Government of Guyana remains strongly convinced that, in
extending its support for greater liberalisation in small developing economies and in its drive
towards policy coherence, the international trading community should extend without delay LDC
parity status to HIPC-designated countries.
The report prepared by the WTO Secretariat and other related documents on Guyana’s Trade
Policy Review can be accessed on the WTO website at http://www.wto.org).
WTO Notifications
Guyana made considerable progress in fulfilling its notification requirements at the WTO, some
of which have been outstanding since the country joined the organization in 1995. These
notifications enable information on Guyana’s laws on trade to be readily accessible to other
WTO members, through WTO databases.
Notifications are now up to date in the areas of Agriculture, Market Access, Trade and the
Environment, and Import Licensing. The notifications submitted cover WTO Agreements, such
as the Decision on Notification Procedures for Quantitative Restrictions, Agreement on PreShipment Inspections, Agreement on the Implementation of the Customs Valuation Agreement,
Agreement on Rules of Origin, the Integrated Data Base for Personal Computers and the
Agreement on Technical Barriers to Trade. Partial notifications have also been made for the
General Agreement on Trade in Services, and for Anti-Dumping in the area of Rules.
Services
During 2003, the Ministry of Foreign Trade and International Cooperation coordinated and
facilitated the work of various agencies involved in the services sector, particularly the work of
the interim Task Force on the Coalition of Service Providers. The Ministry developed a draft
proposal on the formation of the National Coalition of Service Providers, and provided technical
support to the Task Force. A sensitization programme was initiated during the later part of 2003
to promote the role of the services sector in Guyana’s trade and economic development.
47
Chapter Nine
GUYANA: OUTLOOK FOR 2004
The macroeconomic prospects for 2004 are encouraging, with real GDP expected to grow by
2.5%, as a result of improved performance by the various sectors.
With the continued implementation of GUYSUCO’s strategic plan, which is geared to increase
the company’s competitiveness, sugar production is expected to increase by 8.6% to 328,383
tonnes.
The performance of the rice industry is expected to improve with the disbursement of the 11.7
million euros to be utilized for the enhancement of the competitiveness of the industry.
Consequently, it is projected that rice production would increase by 1.4% to 360,000 tonnes.
Fisheries and Forestry are both projected to grow by 0.5%.
The anticipated mixed performance of the mining and quarrying sector can see a decline by 3.0%
in overall output. Gold declaration is projected to fall by 5.5% to 369,737 ounces; diamonds is
projected to increase by 1.8%, to 420,000 carats, while bauxite is expected to fall by 10.5% to
1,535,000 tonnes.
The services sector is also expected to make a sizeable contribution to GDP, with projected
growth in this sector being 3.0%.
Merchandise exports are projected to increase by 6.9% to US$552.7 million, while merchandise
imports are expected to increase by 12.9% to US$645.4 million. The increase in merchandise
imports for 2004 is premised partly on the rapid implementation of key public sector projects and
increased imports of consumer and capital goods.8
8
Budget Speech: Sessional Paper No.1 of 2004 Eighth Parliament of Guyana, Pages 22 and 50
48
A PUBLICATION OF THE
MINISTRY OF FOREIGN TRADE & INTERNATIONAL COOPERATION,
TAKUBA LODGE, 254 SOUTH ROAD, GEORGETOWN, GUYANA
Tel: (592) 226-5064, 226-1607-9
Fax: (592) 226-8426
Email: minister@moftic.gov.gy
Website: www.moftic.gov.gy
49