EU Statement at the Trade Policy Review of Guyana, 02 March 2022
The EU condemns in the strongest possible terms the invasion of Ukraine by the armed forces of the Russian Federation. We call on Russia immediately to end its acts of aggression and we stand stand firmly by Ukraine and its people.
I would like to welcome the Delegation of Guyana led by the Honourable Mr. Deodat Indar (Minister, Ministry of Public Works). I would also like to thank the government of Guyana and the WTO Secretariat for their reports, which form the basis of our discussion today. Let me extend our appreciation to the Discussant, Ambassador of Mauritius, Mrs Usha Dwarka-Canabady for the introduction of the main developments in Guyana’s economy and trade policies since the country’s last Trade Policy Review.
The EU welcomes this opportunity to discuss such developments. We also welcome that since its last Trade Policy Review, Guyana has established a mission to the WTO.
A healthy rules-based multilateral trade system is especially important for countries like Guyana, where imports and exports of goods and services represented respectively 74 % and 51% of Guyana's GDP according to recent data for 2020. The important oil discoveries and the beginning of exploitation have led to an impressive average annual GDP growth by 43% in 2020, forecasted also to reach double-digit figures in 2021 and 2022. Guyana’s exceptional economic growth can certainly contribute to new trade and investments opportunities.
We appreciate the excellent bilateral relationship between the EU and the Guyana that is based on fundamental commitment to democratic values. The EU is Guyana’s 5th export destination. The EU-CARIFORUM Economic Partnership Agreement (EPA) remains the cornerstone of the EU-Guyana trade relationship. Provisionally in force since 2008, it ensures duty and quota free access to the European markets, crucial for the export of agricultural products and opening a potential for further product diversification as well as for a greater regional integration process. We welcome that Guyana has been one of the most advanced EPA parties in terms of tariff dismantling. We encourage Guyana to pursue its efforts full implementation of the EPA provisions fully, notably in the area of services.
The EU supports Guyana’s efforts towards good governance and inclusive and sustainable development. The EU was a main provider of development assistance (with 66 million euro disbursed between 2014 and 2020) and remains committed to supporting Guyana under the new EU multiannual financial framework with a particular focus on the Forest Partnership.
We appreciate Guyana’s commitment and on-going efforts to facilitate trade and investment, as well as the support initiatives focused on innovative and sustainable businesses, such as through the newly created National Entrepreneurship and Innovation Council. Guyana has a potential for specialising in sustainably produced goods.
Nevertheless, Guyana faces a number of challenges to achieve sustainable and inclusive growth. To complement opportunities arising from the exploitation of its natural resources, Guyana should pursue more business-friendly regulatory and investment environment. Increased transparency would be critical, including in the area of public procurement.
The services sector’s share in the economy is relatively low and regulatory reforms could spur further growth in this sector as well. For example, there are untapped opportunities in the tourism sector. Despite the importance of foreign direct investment to Guyana, the Investment Act has not been modernised. The CARICOM Single Market and Economy also offers further opportunities for developing regional value chains across CARICOM and linking with South American economies through building-up the necessary infrastructure. With such commitments, Guyana would be better equipped to diversify its economy and further integrate regional and global value chains.
The current COVID-19 pandemic makes it essential that we work together bilaterally, regionally with CARIFORUM and multilaterally to strengthen our economic ties, as trade can contribute to a resilient recovery from this unprecedented crisis.
The Secretariat report, however, shows that Guyana is not up to date with its notifications such as in case of subsidies and in some areas has not submitted any notifications such as regarding State Trading Enterprises. We would encourage Guyana to fulfil the important transparency and notification requirements that would contribute to the rules-based multilateral trading system.
We welcome that Guyana actively participates in some important WTO work, such as on fisheries subsides negotiations, and participates in the initiatives on trade and gender and MSMEs. In addition, we would encourage Guyana to join the services domestic regulation initiative as well as other ongoing work on e-commerce, investment facilitation as well as the initiatives related to trade and sustainability.
The EU appreciates Guyana’s efforts to reply to the advance questions and we look forward to reviewing the replies. On behalf of the EU, I wish Guyana a successful 4th review.