Guyana is a party to several trade agreements which could either be a bilateral trade agreement between Guyana and another country or a regional trade agreement as a member of the Caribbean Community (CARICOM). Some of these trade agreements are discussed in this article.
Guyana and Brazil
On June 22, 2001, Brazil and Guyana signed a limited-scope agreement. The agreement’s principal goal is to increase trade between the two countries. Both parties provide tariff preferences on products traded between them as long as the rules of origin are met. However, because the agreement has a limited scope, only the products specified are eligible for tariff reductions in the signatory countries’ markets. Furthermore, if necessary, the nations can impose a safeguard mechanism by suspending or cutting duties for a year. Apart from tariff preferences, Guyana and Brazil have committed not to impose any additional non-tariff measures or other limitations on the products covered by the agreement unless it is necessary for national security or other pressing concerns.
Guyana and Argentina
The agreement was signed by the governments of Argentina and Guyana to follow up on a memorandum of understanding signed between MERCOSUR and Guyana in 1999. It covers collaboration in banking and financial activities, transportation, communication, and the formation of joint ventures for product manufacturing and sale, among other things. In terms of goods trade, the parties merely agreed to use the most favored nation status in terms of customs duties and fees.
Guyana and China
Guyana-China Free Trade Agreement was signed in 2001 and entered into force on September 17, 2001. The agreement went into effect for five years, but with a built-in mechanism for one-year renewals unless parties signal their desire to cancel it within six months of the agreement’s expiration date. In terms of goods commerce, the parties merely agreed to use the most favored nation treatment in terms of customs tariffs and fees.
CARICOM and the European Union
CARIFORUM and the European Union signed an Economic Partnership Agreement (EPA) in Barbados on October 15, 2008. The agreement essentially allows for free trade in both products and services between the two parties. It also provides for development cooperation, as well as financial and technical aid. Guyana is a member of the EPA which was ratified on July 27, 2015. The pact is a comprehensive free-trade and economic pact that covers market access for both industrial and agricultural products.
Colombia and CARICOM
On the 24th of, 1994, this agreement was signed and went into effect on the 1st of January, 1995. Guyana, on the other hand, accepted the agreement on the 25th of May, 2002. Colombia provided duty-free access to CARICOM nations for around 90 products as of 1st June 1998, while CARICOM MDCs provided duty-free access to approximately 182 Colombian products and tariff reductions on an additional 54 products.
CARICOM and Costa Rica
The Parties’ first Joint Council Meeting took held on 17th June 2015 and ended on 18th June 2015. Non-tariff barriers, treatment for selected agricultural products, contact points, services, and transportation were among the major topics covered at the meeting. The CARICOM-Costa Rica Free Trade Agreement was signed on March 9, 2004, and ratified in June 2006.
Venezuela and CARICOM
On October 13, 1992, a trade and economic agreement was also signed between CARICOM and Venezuela which went into effect on January 1, 1993. Tariffs on approximately 200 products shipped from CARICOM to Venezuela were immediately eliminated. This was gradually lowered until, in 1996, full duty-free treatment was implemented. The agreement allows a list of products that would be exempt from tariff reduction if exported from CARICOM. These products are subject to the most favored nation’s rate of duty.
Guyana and The United States
The Caribbean Basin Trade Partnership Act (CBTPA), an outgrowth of the 1983 Caribbean Basin Initiative, grants Guyana preferential market access to the United States. For products made in selected beneficiary countries, the CBTPA agreement gives duty-free and quota-free access. The legislation was enacted in the House of Guyana on September 23, 2020, with benefits to be extended until 2030.
CARIBCAN Agreement
CARIBCAN is a trade agreement between the Commonwealth Caribbean countries and Canada that is not reciprocal. The agreement was due to expire in 2011 because it violates the WTO’s reciprocity principle, but it was given an initial extension to 2013 and a second extension to 2023. Unilateral duty-free access is allowed to qualified commodities from CARICOM countries under the agreement. Guyana also benefits from CaribCan’s privileged market access to Canada. The agreement was enacted in 1986.
