RESTRICTED  WORLD  TRADE  
ORGANIZATION  WT/TPR/S/218 
3 June 2009  
 
(09-2576) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
GUYANA 
 
  
 
This report, prepared for the second Trade Policy Review of Guyana, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Guyana on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Ms. Katie Waters (tel:  022 739 5067), Mr. Alberto Bueno (tel:  022 739 6392), 
and Mr. Raymundo Valdés (tel:  022 739 5346). 
 
Document WT/TPR/G/218 contains the policy statement submitted by Guyana. 
 
 
 
Note: This report is subject to restricted circ ulation and press embargo until the end of the first 
 session of the meeting of the Trade Policy Review Body on Guyana. Guyana WT/TPR/S/218 
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CONTENTS 
 Page 
SUMMARY OBSERVATIONS vii 
 (1) E CONOMIC ENVIRONMENT  vii 
 (2) T RADE AND INVESTMENT POLICY FRAMEWORK  vii 
 (3) M ARKET ACCESS FOR GOODS  viii 
 (4) E XPORTS MEASURES  viii 
 (5) O THER MEASURES AFFECTING TRADE  ix 
 (6) S ECTORAL POLICIES  ix 
I. ECONOMIC ENVIRONMENT 1 
 (1) O VERVIEW  1 
 (2) S TRUCTURE OF THE ECONOMY , OUTPUT , AND EMPLOYMENT  1 
 (3) M ONETARY AND EXCHANGE RATE POLICIES  4 
 (4) F ISCAL POLICY  6 
 (5) B ALANCE OF PAYMENTS  8 
 (6) D EVELOPMENTS IN MERCHANDISE TRADE  10 
 (7) O UTLOOK  11 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 12 
 (1) O VERVIEW  12 
 (2) T RADE POLICY FORMULATION AND IMPLEMENTATION  12 
 (i) Institutional framework 12  (ii) Trade policy formulation, implementation, and objectives 14 
 (3) F
OREIGN INVESTMENT REGIME  16 
 (4) I NTERNATIONAL RELATIONS  18 
 (i) World Trade Organization 18 
 (ii) Regional and bilateral agreements 18 
 (iii) Aid for Trade 20 
III. TRADE POLICIES AND PRACTICES BY MEASURE 22 
 (1) M EASURES DIRECTLY AFFECTING IMPORTS  22 
 (i) Procedures 22  (ii) Customs valuation 23 
 (iii) Rules of origin 24 
 (iv) Tariffs 25  (v) Other charges affecting imports 28 
 (vi) Import prohibitions, restrictions, and licensing 30 
 (vii) Contingency measures 33  (viii) Technical regulations and standards 34 
 (ix) Sanitary and phytosanitary measures 36 WT/TPR/S/218 Trade Policy Review 
Page iv 
 
 
 Page 
 (2) M EASURES DIRECTLY AFFECTING EXPORTS  38 
 (i) Procedures 38 
 (ii) Export duties 38  (iii) Export prohibitions, re strictions, and licensing 39 
 (iv) Duty and tax concessions, including subsidies 40 
 (v) Export finance, insurance, and promotion 41 
 (3) M
EASURES AFFECTING PRODUCTION AND TRADE  42 
 (i) Legal framework for business 42 
 (ii) Competition policy and price controls 43  (iii) State trading, state-owned enterprises, and privatization 44 
 (iv) Incentives and other government assistance 45 
 (v) Government procurement 48  (vi) Intellectual property rights 52 
IV. TRADE POLICIES BY SECTOR 56 
 (1) A
GRICULTURE , FISHERIES AND FORESTRY  56 
 (i) Agriculture 56 
 (ii) Fisheries 60 
 (iii) Forestry 61 
 (2) M INING   63 
 (3) E NERGY   65 
 (4) M ANUFACTURING  68 
(5) S ERVICES  69 
 (i) Main features 69  (ii) Financial services 71 
 (iii) Telecommunications 75 
 (iv) Air transport 77  (v) Maritime transport 80 
 (vi) Professional services 82 
REFERENCES   85 
APPENDIX TABLES  87 
 
TABLES 
 
I. ECONOMIC ENVIRONMENT 
 I.1 Basic economic indicators, 2003-08       2 
I.2 Composition of GDP growth by expenditure, 2003-08     3 
I.3 Main monetary indicators (end of period), 2003-08      5 I.4 Fiscal accounts of the Centra l Government, FY2003-08     6 
I.5 Balance of payments, 2003-08        9 Guyana WT/TPR/S/218 
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 Page 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Rules of origin maintained under CARICOM rules      24  
III.2 Structure of the tariff schedule, 2002 and 2008      26 
III.3 Summary analysis of the MFN tariff, 2008       26 
III.4 Tariff lines where MFN rate s exceed WTO bound rates     28 
I I I . 5  V A T  r a t e s ,  2 0 0 8          3 0  
III.6 Prohibited and restricted imports, 2009       31 
III.7 Products subject to import licensing requirements, 2009     32  
III.8 Export duties, 2009         39 III.9 Export allowances, 2009
         41 
III.10 Laws providing for fiscal incentives, 2009       46 
III.11 Tender award thresholds, 2009        49 
III.12 Permissible forms of tendering, 2009       50 III.13 Summary of the protection of intellectual property rights, 2009    54 
 
IV. TRADE POLICIES BY SECTOR  
IV.1 Agricultural production, 2004-07        56 
I V . 2  T a x  e x e m p t i o n s  f o r  a g r i c u l t u r e          5 9  
IV.3 Fisheries production, 2004-07        60 
IV.4 Mining production, 2003-07        63 IV.5 Fiscal incentives to manufact uring industries, 2009      69 
IV.6 Summary of Guyana's specific commitments in individual service sectors, 2009  70 
IV.7 Key features of air services agreements, 2009      79  
APPENDIX TABLES 
 
I. ECONOMIC ENVIRONMENT 
 
AI.1 Merchandise exports (including re-exports) by group of products, 2003-07    89 AI.2 Merchandise imports by group of products, 2003-07      90 
AI.3 Merchandise exports (including re-exports) by trading partner, 2003-07  91 
AI.4 Merchandise imports by trading partner, 2003-07     92 
 
II. TRADE AND INVESTMENT POLICY REGIME 
 
AII.1 Guyana's preferential trade agreements, December 2008 93 AII.2 Selected notifications to th e WTO, January 2 003-December 2008 97 
 
 
IV. TRADE POLICIES BY SECTOR 
 AIV.1 Main bodies active in the agricultural sector in Guyana 99 
 
  
 Guyana WT/TPR/S/218 
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SUMMARY OBSERVATIONS 
1. Guyana's improved economic 
performance since its last Review in 2003 came hand-in-hand with high prices for its 
main export products and significant reform 
efforts in various areas including the tax and investment regimes, competition policy and government procurement.  Nevertheless, Guyana's per capita income remains low by 
regional standards and additional reforms are 
needed to promote investment and thus development.  Such reforms should include the expansion of the country's economic infrastructure, particularly in the transport and energy sectors, as well as the further 
strengthening of governance and the 
regulatory environment.  The latter requires improvements to, among others, customs procedures, SPS regime, fiscal incentives, and the protection of intellectual property rights.  
Technical assistance will continue to be 
instrumental to implement effectively these changes and to allow Guyana to participate more fully in the multilateral trading system. 
(1) E
CONOMIC ENVIRONMENT  
2. Guyana's economy expanded at an 
annual average real rate of 2.8% during 2003-
08.  However, its per capita GDP remains at just under US$1,600, and living standards are the second lowest in CARICOM.  The production of sugar and rice, as well as mining 
continue to be Guyana's main economic 
activities, generating almost a quarter of its GDP.  Public finances have improved but the overall budget still posts s ubstantial deficits.  
Hence, envisaged fiscal consolidation along 
with the continuation of debt relief are crucial 
for Guyana's long-term debt sustainability.  A cautious monetary policy has kept inflation under control.   
3. Guyana's integration in the world 
economy has deepened in recent years, with 
the trade to GDP ratio growing to reach 170% 
in 2007.  Exports are still concentrated on a few primary products, notably gold, sugar, bauxite, and rice.  Imports are of great importance to supply the domestic market, and are equivalent to approxi mately 100% of GDP.  
Persistent deficits in the merchandise trade balance and the current account of the balance of payments implies the economy is highly 
dependent on transfers from abroad, which 
makes Guyana more vulnerable to the current financial crisis.  Although the United States' share in Guyana's total merchandise trade fell significantly, it continues to be Guyana's main 
trading partner, followed by Trinidad and 
Tobago.  Imports from Asia have increased significantly. 
(2) T
RADE AND INVESTMENT POLICY 
 F RAMEWORK  
4. Since Guyana's last Review there have 
been no major changes to the various agencies 
involved in trade policy formulation and implementation.  Guyana still faces significant challenges in participating in the WTO, as a result of its non-resident status, and a number 
of notifications to the WTO are outstanding.  
Guyana has never invoked the dispute settlement provisions of the GATT or WTO, nor have any complaints been brought against it in these fora.  Preferences and special and differential treatment are among Guyana's key 
priorities in the DDA negotiations.  Assistance 
to develop Guyana's economic infrastructure, in particular its transport infrastructure has been identified as the ma in target for aid for 
trade support. 
5. Guyana's trade policy vis-à-vis  third 
countries is largely defined within the context of its membership in CARICOM, and its free-trade agreements with third countries.  Over the period under review, the most significant 
developments have been the creation of the 
CARICOM Single Market and Economy and the signature of the Economic Partnership Agreement (EPA) between the EC and CARIFORUM.  The EPA is a wide-ranging asymmetrically reciprocal agreement replacing 
the non-reciprocal preference scheme 
previously granted by the EC. 
6. Guyana considers foreign investment 
to be crucial to the development and diversification of its economy.  Accordingly, WT/TPR/S/218 Trade Policy Review 
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Guyana enacted an Investment Act in 2004 to 
provide for more transparency and legal predictability in its investment regime.  This Act gives MFN and national treatment to 
investors in all sectors with the caveat that the 
Minister of Finance may exclude sectors from private investment subject to affirmative resolution of the National Assembly;  however, this has not yet happened in practice.  
There is also a national treatment exception in 
the area of mining. 
(3) M
ARKET ACCESS FOR GOODS  
7. Customs clearance still involves 
numerous steps and typically takes between five and seven days, which suggests that there 
is large scope for improving customs 
procedures.  The transaction value is used as the basis for customs valuation for around 70% of import transactions.   
8. Guyana applies the CARICOM 
Common External Tariff, with exceptions.  
Guyana only uses ad valorem  tariffs and does 
not apply tariff quotas.  The overall simple average applied MFN tariff in 2008 was 12.0%, marginally down from 2003.  Agricultural products attract a significantly 
higher average tariff (22.5%), than non-
agricultural products (10%).  Guyana would increase the predictability of its tariff regime by reducing its bound tariffs, which average 58.2%. 
9. One of the most significant 
developments over the period under review, has been a major reform of Guyana's taxation system.  A value added tax (VAT) was introduced in 2007 at a general rate of 16%, 
replacing six taxes previously levied.  Some 
locally produced goods, but not the equivalent imported products, are zero-rated under the VAT, as are certain imports of raw materials that are incorporated into products subsequently exported.  At the same time, 
excise taxes were introduced on a few 
products.  Guyana continues to levy an environmental tax on non- returnable beverage 
containers, which it applies only on imports. 10. Import licensing requirements apply to 
a large number of extra-CARICOM imported products;  non-automatic licensing applies to rice and sugar.  Guyana does not have 
domestic legislation with respect to anti-
dumping and countervailing measures or safeguards.  Neither has Guyana ever adopted any contingency measures.   
11. There appear to be only a handful of 
technical regulations in force in Guyana.  At 
the time of its last Review, Guyana had not made any notifications to the WTO, however since then it has notified 20 technical regulations. 
12. Greater transparency in Guyana's SPS 
regime would be of benefit both to Guyana 
and its trading partners.  Guyana has not notified any SPS measures to the WTO.  Most SPS measures are contained in regulations that are largely inaccessible;  moreover, many 
predate the creation of the WTO and have not 
been revised.  Legislative reform efforts are under way, but this is an area in which the authorities indicated that greater technical assistance is needed, given human resource constraints. 
(4) E
XPORT MEASURES  
13. Concerns have been expressed by the 
authorities themselves that export procedures are too cumbersome.  Licences must be obtained to export a wide range of products 
and all exports must be examined prior to 
shipping, with the aim of preventing narcotics trafficking.  While Guyana may apply an export tax at a general rate of 1.5%, the rationale for collecting this tax is questionable 
in view of the limited revenue collected due to 
a wide range of exemptions. 
14. A variety of fiscal measures are in 
place to assist exporters, including an allowance involving deductions from income tax conditional on the export of non-traditional 
products.  There is no government institution 
in Guyana providing export finance, insurance services or export guarantees. Guyana WT/TPR/S/218 
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(5) OTHER MEASURES AFFECTING 
TRADE  
15. Since 2005, measures have been taken 
to improve Guyana's business environment 
and reduce unnecessary red tape to start a 
business, but challenges remain.   
16. In 2006, Guyana adopted a 
competition law that represents a potentially important step towards enhancing competition, 
particularly given the oligopolistic nature of 
some sectors in the economy.  However, the full implementation of the law remains a challenge, including making the Competition Commission operational.  
17. Two state-owned companies have 
exclusive rights to import and export sugar and 
gold, respectively. Guyana has not submitted any notification regarding state trading enterprises within the meaning of Article XVII of the GATT 1994. 
18. The Government of Guyana provides 
very little assistance to businesses through concessional loans and grants.  Support mainly takes the form of fiscal incentives granted under various laws to a relatively large number of activities.  The Minister has discretion, 
subject to the specific provisions of the law, to 
grant corporate income tax holidays to a wide range of sectors.  Because of this, and given Guyana's fragile fiscal situation, it would be important to estimate the revenue forgone and 
publish these estimates. 
19. A new Procurement Act and 
implementing regulations have been adopted.  The Act covers procurement at the national, ministerial, government agency, and regional 
levels, but not that of public corporations and 
other state bodies.  It contains mandatory open tendering and various provisions for transparency and accountability in procurement processes, which represents an improvement over the previous legislation.  
Preferences are granted to domestic goods and 
supplies and to small businesses. 20. At Guyana's previous Review in 2003 
WTO Members urged Guyana to amend its intellectual property legislation, most of which dates back to the colonial period, in order to 
implement the provisions of the TRIPS 
Agreement.  The only development to date has been the adoption of a new law on geographical indications.  The authorities indicated that Guyana is committed to uphold 
its international commitments pertaining to 
intellectual property rights.  Reform efforts may be given additional impetus by EPA commitments. 
(6) S
ECTORAL POLICIES  
21. The agriculture sector plays important 
economic and social roles, contributing almost 
half of Guyana's merchandise exports.  Agricultural production and exports are dominated by sugar, almost all of which is exported to the EC, and to a lesser extent, rice.  
In view of the major changes affecting the 
EC's import regime for sugar, the Guyanese sugar industry is making significant efforts to reduce production costs and diversify.  Government support to the agriculture sector mainly takes the form of extension services to 
farmers and various tax exemptions. Guyana is 
also seeking to expand its exports of non-traditional agricultural products, including fruits, vegetables, and beef.  
22. Guyana's other main export industries 
are: mining, mainly of gold and bauxite (which 
accounts for one third of Guyana's merchandise exports), fresh and processed fish (7.3%), and timber (4.9%).  Efforts are also being made to diversify the fishing and 
forestry sectors, through the development of 
aquaculture and wood processing industries, respectively. 
23. A state-owned company has a 
monopoly on electricity transmission and distribution in Guyana, and is the largest 
power generator.  Electricity production in 
Guyana is costly and unreliable, and highly reliant on imported fuel.  There is no commercial production of petroleum in Guyana.  However, there is potential for WT/TPR/S/218 Trade Policy Review 
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Guyana to develop hydroelectric generation, 
and start producing crude petroleum in the foreseeable future. 
24. Although sectoral assistance to 
manufacturing appears limited in absolute 
terms, effective protection may be significant due to the availability of import duty exemptions for inputs.  Despite this, the manufacturing sector remains small and 
largely focussed on the processing of primary 
products. 
25. The services sector's contribution to 
GDP has increased significantly during the period under review, reaching 57% in 2008.  There have been no significant changes to the 
legal and regulatory frameworks for the 
telecommunications, financial, maritime, and air transport services sectors.  While Guyana's specific commitments under the GATS cover only 18 of the 160 services subsectors, in most 
cases the commitments it has taken are subject 
to only a few limitations.   
26. Foreign financial institutions wishing 
to establish themselves in Guyana receive national treatment.  All insurance companies must register with the insurance authority, 
while banking and other financial institutions 
must obtain a licence from the Bank of Guyana.  The banking system appears sound and the authorities are taking steps to further strengthen supervision and improve financial 
intermediation.  In the context of the global 
financial crisis, the issuance of new banking licences was temporarily suspended.  Guyana's GATS commitments are extensive both in relation to banking and insurance. 
27. Guyana's telecommunication sector is 
characterized by a de jure  monopoly in fixedtelephony and a de facto  duopoly in mobile 
telephony.  Within this market structure, foreign investors receive national treatment.  The regulatory framework governing the 
sector remains incomplete, which has 
hindered the development of the sector and of other telecom-dependant businesses.  Acknowledging this problem, the Government is taking steps to issue new legislation before 
the end of 2009. 
28. In air transport, national carriers 
currently serve only domestic routes, hence only foreign airlines provide air transport services to and from the country.  Guyana's air services agreements, however, are few in 
number and relatively restrictive in nature, 
with the exception of the more recent agreement with Canada.  Guyana's only international airport is owned by the Government and managed by a statutory 
corporation.  All ground-handling is 
undertaken by private operators. 
29. With respect to maritime transport, 
cabotage is restricted to Guyanese registered ships.  While port capacity appears to be adequate, insufficient investment in a number 
of areas may have a knock-on effect on 
Guyana's trade. 
30. There is no overarching legislation 
regulating professional services, and only some professions are regulated by law, 
including lawyers and chartered accountants, 
but not architects and engineers.  In order for foreign lawyers to practice in Guyana, reciprocal treatment of Guyanese lawyers is required.