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This first Trade Policy Review of Guyana has shed considerable light
on its trade and investment policies and practices. It has also led us
to a far better understanding of the challenges Guyana faces and of
the economic and institutional framework within which its policies are
formulated and implemented, both at the national level and through
participation in CARICOM. We owe this particularly to the active
participation of the delegation of Guyana led by Minister Rohee.
Guyana was commended for the efforts undertaken to reform its economy
since the late 1980s. Members expressed their appreciation for the
efforts undertaken at the domestic level to liberalize trade, the
exchange rate regime, privatize state-owned enterprises, and reform
institutions. Members noted the openness of Guyana's economy, as
witnessed by the fact that total trade is almost double GDP.
Members also expressed support for the steps that Guyana has taken at
the international level, including the development of a National Trade
Strategy and the negotiation of market-opening agreements at the
multilateral, regional and bilateral levels. Guyana was encouraged to
continue and accelerate the pace and scope of these domestic and
international reform efforts.
Members also noted that, despite these wide-ranging reforms, Guyana
continues to face difficult economic problems. The rate of economic
growth in Guyana has been relatively low in recent years, the debt
burden is high, and the current account deficit is large. Guyana
continues to rely heavily upon exports of a narrow range of
traditional products, and remains vulnerable to shifts in the level of
global demand, fluctuation in prices, and the erosion of its margins
of preference in access to major foreign markets. A number of Members
noted that Guyana's difficulties are also felt by other small,
export-dependent developing countries, and expressed the view that the
current round of multilateral trade negotiations must address their
shared concerns regarding dependency on tariff revenue, preferential
market access, and the special problems of small economies.
Members took note of the importance that Guyana attaches to its
commitment to the multilateral trading system, and commended the steps
it has taken to implement its WTO obligations. Members recognized the
importance of Guyana's leadership role as CARICOM spokesman for WTO
matters. Some Members nevertheless observed that Guyana's non-resident
status in the WTO may impede its ability to participate fully in the
deliberations and activities of the organization. Guyana was
encouraged to participate actively in the current services
negotiations.
Members noted that Guyana is dependent upon trade taxes as a source of
government revenue, noting that the current efforts underway to reform
the tax structure and the planned value-added tax might permit
reductions in trade-related taxes. Some Members took note of the
disparities between Guyana's bound and MFN applied rates, and the use
of conditional duty exemptions and other forms of trade and investment
incentives. Members noted that these aspects of Guyana's tariff regime
tend to undermine transparency and predictability, and encouraged
Guyana to undertake further reforms.
Members appreciated the notifications made by Guyana to the WTO; some
encouraged Guyana to improve and complete its notifications on such
subjects as state-trading enterprises, technical barriers to trade,
and sanitary and phytosanitary measures. Some Members observed that
Guyana's laws have not been amended yet to fully conform with the
requirements of the TRIPS Agreement, and requested information on the
status of the efforts to enact new legislation.
Members noted the importance of targeted technical assistance to
support Guyana in its efforts to improve its participation in the
multilateral trading system and to continue to work towards the
achievement of its development objectives. In this respect, some
Members expressed their wish to continue providing assistance to
Guyana, as had been the case in the past.
In addition to the aforementioned topics, Members also sought
clarification on several specific issues, including:
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investment;
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customs valuation and rules of origin;
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import prohibitions, restrictions, and licensing;
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technical regulations;
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government procurement;
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competition policy;
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intellectual property right legislation;
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electricity;
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agriculture and mining;
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financial and telecommunications services.
The delegation of Guyana provided written and oral answers to the
questions posed during the Review and undertook to supply replies in
writing to any outstanding issues. The replies provided made a
considerable contribution to the review and Members clearly
appreciated them.
This brings us to the conclusion of the first Review of Guyana. It has
given Members a better understanding of the effort displayed and the
numerous reforms undertaken by Guyana in recent years, and of the
challenges that lie ahead. I welcome Guyana's conviction that trade
liberalization and participation in the multilateral trading system is
central to its development strategy, and hope it will find among WTO
Members the technical support it needs to enhance its participation in
the system and the benefits derived from this participation.
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