Note: Advance written questions by WTO Members and replies provided by Guyana are reproduced 
in document WT/TPR/M/122/Add.1. and will be available online at:  http://www.wto.org/ 
english/tratop_e/tpr_e/tp_rep_e.htm. 
  WORLD TRADE  
ORGANIZATION  WT/TPR/M/122 
10 December 2003 
 (03-6508) 
Trade Policy Review Body 
29 and 31 October 2003  
 
 
 
TRADE POLICY REVIEW 
 
GUYANA 
 
Minutes of Meeting  
 
Chairperson:  H.E. Ms. Mary Whelan (Ireland) 
 
 
    Page  
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 3 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GUYANA 4 III. STATEMENT BY THE DISCUSSANT 7 
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY 11 
V. REPLIES FROM THE REPRESENTATIVE OF GUYANA AND 
 ADDITIONAL COMMENTS 14 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 16 WT/TPR/M/122 
Page 3 
 
 
I. INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1. The first Trade Policy Review of Guyana w as held on 29 and 31 October 2003.  The 
Chairperson (H.E. Ms. Mary Whelan) welcomed the Honourable Mr. Clement Rohee, Minister of Foreign Trade and International Cooperation, as head of the delegation of Guyana, and the rest of the 
delegation.  The Chairperson welcomed H.E. Jan -Meinte Postma (Netherlands) who had kindly 
agreed to act as the discussant for this Review.  As usual, the discussant would speak in his personal 
capacity and not as a representative of his governme nt and, in accordance with the established 
procedures, he had made available in advance outlines of the main issues he intended to raise 
(WT/TPR/D/100). 
2. The Chairperson recalled the purpose of the Trad e Policy Reviews and the main elements of 
the procedures of the meeting.  The Report by the Government of Guyana w as contained in document 
WT/TPR/G/122 and that of the WTO Secretariat in document WT/TPR/S/122.   
3. Copies of advance written questions submitted by Hong Kong, China;  Japan;  the United 
States;  the European Union;  Argentina;  Brazil;  Canada;  and Venezuela had been transmitted to the 
delegation of Guyana.  These questions and the re plies provided by the delegation of Guyana are 
reproduced in WT/TPR/M/122. 
4. The Chairperson noted the effort undertaken by the Government of Guyana towards 
economic reform and trade and investment liberaliza tion in the past 15 years.  During this period, 
Guyana had evolved from a state-controlled to a market economy increasingly integrated into the 
global economy.  MFN tariffs had been lowered si gnificantly, legislation had been amended and new 
laws had been passed in a number of areas, and re latively limited use had been made of non-tariff 
trade measures.  Growth rates had nevertheless re mained modest in recent years, and Guyana's 
per capita income remained low.  She observed th at exports were concentrated mainly in a few 
natural-resource-intensive products, such as gold, ba uxite, sugar, and rice, and that Guyana depended 
considerably on preferential market access for exports  of its traditional products.  Noting that Guyana 
had been affected, in recent years, by a deteriora tion of its terms of trade, compounded by an erosion 
of preferential margins, a major challenge woul d be to increase competitiveness in its traditional 
industries, and promote diversifica tion of its production and export base.  The chairperson also noted 
Guyana's commitment to the multilateral trading system, and that in the Government report Guyana stated that it sought flexibility in the multilateral tr ading system to allow for critical developmental 
objectives to be achieved, including special and di fferential treatment and technical and financial 
assistance to enable Guyana to implement its multilateral obligations. WT/TPR/M/122 
Page 4  
 
II. OPENING STATEMENT BY THE REPRESENTATIVE OF GUYANA 
5. The representative of Guyana
 (Mr. Clement Rohee, Minister of Foreign Trade and 
International Cooperation), thanked the member s of the Trade Policy Review Body for the 
opportunity to present Guyana's trade policies.  He also thanked the WTO Secretariat, especially the Trade Policy Review Division, for its efforts in the conduct of the Review. 
6. The Minister noted that the decision by the Government of Guyana to undertake this Trade 
Policy Review was not a simple one due to res ource constraints.  The decision was nevertheless 
important and timely, given the extent of the econom ic reforms that were taking place at the national 
level, Guyana’s participation in several external trade negotiations, and the country’s commitment to 
regional integration in the Caribbean Community. 
Commitment to Economic Reform 
7. Guyana had undertaken drastic reforms sinc e the 1980s to reorient the economy after a 
protracted period of decline and neglect.  Prio r to 1988, Guyana had followed a set of economic 
policies that had led to the domination of the public  sector and the marginalization of the private 
sector in the economy.  He noted that this situation had to be reversed quickly if the country was to 
return to a path of self-sustaining growth , expanding incomes, and poverty reduction. 
8. The Government of Guyana had taken the n ecessary actions and measures, including the 
liberalization of exchange controls and of the tr ade and payments systems, the removal of price 
controls and of restrictions on capital flows, and re forms in tax policy and tax administration.  Among 
the structural measures undertaken were reforms of the financial sector and the judiciary, 
modernization and deepening of the banking sector, and an aggressive privati zation programme.  As a 
result, the macroeconomic fundamentals of the ec onomy had improved dramatically, including:  an 
average annual rate of growth of over 7% between  1992 and 1997;  single-digit inflation and fiscal 
deficit;  and a more than doubling of the per capita income of the country. 
9. Over the last five years, the Government of Guyana had been faced, increasingly, with 
difficult challenges at the international and national le vels in its quest to build  a more diversified and 
competitive economy.  Internationally, it had had to grapple, inter alia , with threats to the country’s 
survival, occasioned by globalization and the gather ing momentum of trade liberalization, loss of 
some preferential market access, and depressed prices for its key commodity exports.  Nationally, the changing weather patterns, political instability, st rikes, infrastructural bottlenecks, and sectoral 
challenges, among others, had posed problems for i nvestment and trade, while slowing the growth 
rate and progress towards poverty reduction.  Th ese challenges had brought into sharp relief the 
vulnerability and fragility of the economy. 
10. Despite the magnitude of the task, the Govern ment of Guyana had sought to deepen the 
reform process, and had accelerated the pace of reforms while strengthening the infrastructural, 
governance, and investment environments.  In par ticular, it had passed legislation in the areas of 
procurement, securities market, money laundering, a nd land acquisition, and ha d introduced bills to 
improve competition and the investment framework and incentives.  Working with the International 
Monetary Fund, Guyana had developed a comprehe nsive, three-year tax reform action plan to 
improve transparency and efficiency in tax administ ration and collection, to widen the tax base, and to 
provide appropriate incentives for tr ade, investment and work.  The plan’s implementation had started 
in 2003 and among its goals was the implementa tion of the value-added tax in 2006.   WT/TPR/M/122 
Page 5 
 
 
Investment and Trade 
11. The Government was firmly of the view that i nvestment and trade formed the twin fuels of 
growth and that every effort had to be made to remove impediments to their smooth functioning and 
flow.  The Government of Guyana would pass legisl ation shortly to guide a nd encourage investment 
in all areas.  Trade reform was a key element of the market-oriented approach to development that 
Guyana had been pursuing.  In addition to autonom ous reforms, this had entailed the negotiation of 
substantial commitments with partners at all leve ls.  These included sub-regional agreements in the 
Caribbean Community (CARICOM), regional negotia tions for a Free Trade Area of the Americas 
(FTAA), more active participation at the multilatera l level in the World Trade Organization (WTO), 
and a variety of complementary initiatives in bi lateral and plurilateral fora.  These negotiations 
collectively made for a very ambitious set of goals, and had put great strains on the limited resources 
of Guyana’s nascent trade policy community. 
12. In 2001, the Government of Guyana, with the assistance of the international donor community 
and a wide cross-section of the Guyanese comm unity, had completed a P overty Reduction Strategy 
Paper (PRSP) as part of the HIPC Initiative pro cess.  In terms of trade development, the PRSP 
entreated the Government “to create conditions for the export sector to be an instrument for sustaining 
rapid and broad-based growth.”  In particular , it identified a three-pronged approach on which 
Guyana’s policies and interventions in the econom y would be built, namely:  fiscal and monetary 
policy (maintaining a competitive exchange rate);  trade policy (eliminating trade barriers);  and 
export promotion (providing effective export promotion services). 
Building Trade Capacity 
13. In another negotiating forum, Guyana was par ticipating with several countries to develop 
National Trade Capacity Building Strategies (NTCBS ).  For Guyana, the development of its NTCBS 
represented a continuation of efforts to overcome th e human resources’ constraint to undertake trade 
reforms.  It was the product of surveys conduc ted with several segments of Guyana’s policy 
community, for which trade policy was a core el ement in the country’s  development strategy .  In an 
effort to enhance and rationalize the flow of tec hnical assistance from international organizations and 
other partners, the trade-related in stitutions of the Government of Guyana had cooperated with civil 
society and the donor community to  identify and prioritize needs in this field.  The general and 
specific capacity building needs that were documen ted in the Strategy grouped Guyana’s key and 
critical needs into at least three areas:  negotia ting capacity, implementation capacity, and adjustment 
capacity. 
14. In the area of negotiating capacity, Guyana ha d taken important steps over the past decade 
and particularly in the context of the ongoing nego tiations in the WTO and other trade fora, to address 
its capacity to participate in the exte rnal negotiations.  At the institutional  level, Guyana had 
established appropriate structures and mechanisms  to facilitate inter-a gency coordination and 
consultation, including at the levels of the public-pri vate sectors.  In this context, the Government of 
Guyana had established, in September 1997, the National Advisory Committee on External 
Negotiations (NACEN), a public-private sector body that fed directly into the Caribbean Regional 
Negotiating Machinery (CRNM).  At the personnel le vel, Guyana had sought technical training for 
officials in both the public and private sectors. 
15. With respect to implementation capacity, the G overnment of Guyana continued to make the 
necessary efforts to meet its multilateral obligations .  However, these initiatives were often hampered 
by the shortage of skilled and experienced techni cal personnel and the acute shortage of financial 
resources.  Guyana was a good example of how the best efforts of a small economy to meet its 
international trade obligations and continue on th e path of economic liberalization could easily be 
undermined or stultified by the lack of resour ces in both the governmental and non-governmental WT/TPR/M/122 
Page 6  
 
sectors.  For example, in the WTO, Guyana’s non- resident status limited its ability to monitor and 
participate fully in negotiations and related ac tivities conducted under the auspices of the WTO.  
While it would have been ideal for Guyana to est ablish a mission, that was presently unaffordable. 
16. In the area of adjustment capacity, because of th e inter-related nature of actions and events, 
implementation of post-negotiation matters could act ually commence during the negotiation stage.  As 
such, the adjustment needs of Guya na for effective integration into  the global economy could not be 
isolated or separated totally from the negotiati on and implementation phases.  Importantly, however, 
the adjustment phase would require efforts that went  beyond mere technical assistance.  The matter of 
financial assistance and th e establishment of appropriate funding mech anisms had to be realized if the 
smaller economies like Guyana’s were to be successfu lly integrated into the global market place.  It 
was also critical if Guyana was to meaningful ly embrace the impending changes and manage the 
asymmetries and disparities as a result of its small size and low level of development.  Guyana, therefore, pleaded for greater technical and financial assistance from its traditional, as well as non-traditional, donors, in order to adequately prepare for, participate in, and implement the results from 
multiple negotiations while meeting its  WTO obligations on a timely basis. 
Equal Treatment of LDCs and HIPCs 
17. Guyana was not classified as a least developed country (LDC).  Therefore, it did not benefit 
from various forms of special treatment that we re extended to such countries by international 
agreements and national laws.  Among the addi tional benefits extended to LDCs were more 
preferential access to the EU market under the “E verything But Arms” (EBA) Initiative, exoneration 
from some obligations under the WTO Agreements , and eligibility for host government support for 
the establishment of a WTO mission in Geneva.  Ye t Guyana, because of its low per capita income 
and high debt burden, had been identified for, and had been receiving assistance under the international financial community’s Highly In debted Poor Countries (HIPC) Initiative. 
18. The representative of Guyana called for an end to the differential treatment between the two 
sets of lowly, desperately poor countries.  While th ere was no initiative in the WTO that would extend 
special treatment to HIPC  members, the Government of Guyana remained strongly convinced that, in 
extending its support for greater liberalization in sm all developing economies and in its drive towards 
policy coherence, the international trading communi ty should extend without delay LDC parity status 
to HIPC-designated countries. 
Conclusion 
19. The representative of Guyana concluded by re iterating his country’s commitment to the ideals 
of the multilateral trading system, based on a “truly free, fair, rules-based and predictable system of governance for international trade practices.” WT/TPR/M/122 
Page 7 
 
 
III. STATEMENT BY THE DISCUSSANT 
20. The discussant  (H.E. Mr. Jan-Meinte Postma) welcomed the delegation of Guyana headed by 
Mr. Clement Rohee.  He had organized his presentati on on the basis, as was traditional, of three main 
headings:  the macroeconomic environment;  th e trade policy regime;  and sectoral policies. 
The Macroeconomic Environment 
21. The discussant commended Guyana for its effort s to liberalize and reform its economy since 
1988, autonomously and in the frame of its par ticipation in the CARICOM and the multilateral 
trading system.  As a result of these efforts, Gu yana's trade policy had undergone major changes over 
the past 15 years, evolving from an economy with a rigid state-controlled trad e regime to a market 
economy with progressively liberalized trade policies.   As both the Government and the Secretariat 
reports noted, the economic reform programme was continuing under the present administration and 
trade policy remained a crucial factor in this programme.  It was reassuring to note, from reading both reports, that the Government of Guyana recognized  the importance of trade to the economy, and the 
need to respond to the challenges of globalization, and endorsed participation in bilateral, regional, 
and multilateral trade negotiations. 
22. Despite its remarkable reform efforts, Guyana 's economy had been growing at a very slow 
pace in recent years, partly affected by a deterioration in its terms of trade and an erosion in preferences.  Average GDP growth over the 1997-20 02 period had been 0.6%, and per capita GDP, at 
some US$900, was one of the lowest in the west ern hemisphere.  Also, emigration continued to 
proceed at a fast pace, draining the country of much-needed human capital.  The Secretariat report 
noted that growth and investment possibilities were limited by the large external debt and relatively 
high production costs, and in this context, dive rsification of the economy was generally seen in 
Guyana as an imperative.  The discussant stated th at the best way to achieve this was through 
continued and reinforced participation in the multila teral trading system, complemented by the efforts 
undertaken inside the CARICOM, which could be used to pave the way for further multilateral 
liberalization commitments. 
23. He observed that Guyana had been successful in fighting inflation th rough tight monetary 
policy.  However, despite the fact that most public enterprises posted surpluses, the overall fiscal 
deficit had been increasing, due to a Central Governme nt deficit of some 6.8% of GDP in 2002.  The 
Government had been applying corrective measures to lower the deficit, including a reduction in 
expenditure and an improvement in tax collection.  It would be interesting to hear the views of the 
authorities with respect to future action to be un dertaken to increase receip ts and reduce expenditure, 
considering Guyana's dependence on indirect taxes, particularly on imports.  Also, the financing of 
part of the Central Government's deficit by p ublic enterprises' surpluses could be hindering the 
impetus for fiscal reform.  He asked whether the G overnment was considering limiting this financing. 
24. Guyana ran a traditionally large balance-of-pay ments current account deficit, which in 2002 
had represented 13.9% of GDP.  Remittances from abroad and external aid contributed importantly to 
finance this deficit.  However, this situation did not appear to be sustainable over the medium run, 
particularly because the external debt was already la rge, about twice the size of GDP.  As both reports 
noted, Guyana benefited from the Heavily Indebted  Poor Countries Initiative and the IMF's Poverty 
Reduction and Growth Facility, and in 2002, the IMF had approved a US$73 million three-year credit 
under this facility.  It would be interesting to h ear from the authorities how they envisaged reducing 
debt over time, as well as their reliance on remittances. 
25. The discussant noted that Guyana was an ope n economy, with total trade almost doubling 
GDP.  Most trade was with the United States, th e United Kingdom, Canada, and CARICOM partners.  
Exports relied mainly on commodities such as sugar, rice and bauxite, and increasingly on gold.  Over WT/TPR/M/122 
Page 8  
 
three quarters of Guyana's exports benefited from preferential market access conditions.  Sugar and 
rice dominated the agriculture sector, accounting fo r nearly three quarters of agricultural production, 
and almost one fourth of the total economy.  T ogether with bauxite, sugar and rice accounted for 
almost half of Guyana's exports.  These three i ndustries faced competitive challenges, compounded, in 
the case of sugar and rice, by a potential erosion in the margins of preferential access to Guyana's 
main markets.  This made the economy vulnerable to market developments in a limited number of 
industries and countries.  He stated that it would be  desirable for Guyana to diversify the scope and 
geographic composition of its trade. 
26. Guyana's investment regime was generally ope n to foreign investors and granted national 
treatment with few exceptions.  Foreign investors could benefit from a number of import duty and tax 
concessions.  Although these concessions could play a fundamental role in attracting investment, he 
asked whether Guyana didn't consider that they could be undermining the fiscal situation if, 
especially, as the authorities noted in the Government  report, fiscal revenue was to a large extent 
dependent on taxes on imports.  Also, investment decisions could gain more from a more predictable 
business environment, which would certainly be enco uraged by the adoption of a unified Investment 
Code, which was currently been prepared. 
27. From the documentation prepared for the review, it emerged that privatization had taken place 
as part of the process of structural reform, en compassing some 20 companies, and that six other 
enterprises were being considered for privatization.  However, it was also noted that, in some cases, 
this process had not produced the expected results, a nd some enterprises had been resold to the State, 
for example in the bauxite and electricity sectors.  He asked the authorities to elaborate on the situation that had led to this resale and explain if measures were being taken to prevent this from 
happening again. 
Trade Policy Regime 
28. The discussant noted that both the Secretariat and Government reports highlighted that as a 
member of the CARICOM, Guyana's policy decisions  on trade were taken in consideration of the 
country's obligations under the Treaty of Chaguaram as that established the CARICOM in 1973.  As 
both reports noted, this Treaty had been amended to provide the appropriate legal framework to allow 
for further integration, to result in the establishment of the CARICOM Single Market and Economy (CSME).  It was clear that this process had also  been accompanied by an increasing degree of policy 
coordination between members, including the establishment in 1997 of the Caribbean Regional 
Negotiating Machinery (CRNM) to develop and coor dinate positions in external negotiations.  He 
noted with interest that CARICOM had also identif ied specific Ministerial Spokespersons at the level 
of the Trade Ministers for the four key negotiating fora in which the region was involved, and that Guyana was Ministerial Spokesperson for WTO issues. 
29. Guyana applied the Common External Tariff (CET) and Rules of Origin of CARICOM.  The 
maximum rate on agricultural products was 40%  (CET) and the CET on manufactured goods had 
been reduced to a range of 0-20%.  However, the Secretariat report noted that there were numerous 
exceptions to the CET  and, although the average tariff was 12.1%,  a few tariff lines were subject to 
high rates.  Also there was a considerable gap between applied and bound tariffs, since Guyana had 
bound its entire tariff in the WTO at a 50% for non-agricultural products (with some exceptions), and at 100% for all agricultural products. 
30. Guyana granted duty-free access to the vast majority of imports from other CARICOM 
countries, provided that they met CARICOM rules of  origin.  Guyana also granted tariff preferences 
to a limited number of products from Colombia.  Guyana made extensive use of import-duty relief 
schemes and CET exceptions;  these schemes and excep tions were actually used as policy instruments 
and in cases could reduce the degree of predictabilit y and transparency of the applied tariff.   WT/TPR/M/122 
Page 9 
 
 
31. Most items, including imported goods, were subject to a 30% Consumption Tax rate, 
although some goods could be subject to lower rat es and a few to higher ones.  This relatively high 
rate of taxation stemmed from Guya na's dependence on indirect taxes for fiscal revenue.  However, 
this high rate would seem to penalize consump tion among a population with a relatively low per 
capita income and, given Guyana's large share of im ports as a percentage of GD P, would seem to fall 
to a large extent on imported goods (as shown in the Secretariat report (Table I.5)).  The Secretariat 
report noted that the Government of Guyana was c onsidering introducing a value-added tax by 2006 
to replace the consumption tax.  He was interested  to know whether the authorities were considering 
lowering rates as a part of the change in tax systems. 
32. Guyana was to be commended for its spare use of non-tariff measures.  It applied no anti-
dumping, countervailing duty or safeguard measur es, its valuation system followed the WTO 
Customs Valuation Agreement, and it made no use of  quantitative restrictions or tariff quotas.  There 
remained, however, a few areas of concern.  One of them was the relatively extensive use of import-licensing requirements.  Both automatic and non-auto matic licensing was used.  Although products 
under licensing requirements were subject neither to  quotas nor to tariff quotas, Guyana had not fully 
explained in its notification to the WTO the reasons  for the maintenance of its licensing regime, as 
had been noted in the advanced written questions s ubmitted for this Review.  He was interested in 
hearing these reasons, although he anticipated a more detailed answer as part of the written answers to 
advanced questions. 
33. The Secretariat report noted that Guyana main tained over 200 national standards, half of 
which had been adapted from international standard s.  The Guyana National Bureau of Standards 
monitored 19 categories of goods imported into Guya na, and had issued 14 technical regulations to 
this aim, generally dealing with labelling.  Alth ough this number was relativ ely small, none of these 
technical regulations had been notified to the WTO,  and he encouraged Guyana to do so as soon as 
possible.  Also, he was interested to know whet her other bodies, apart from the Guyana National 
Bureau of Standards had issued technical regulati ons.  He noted the relatively widespread use of 
sanitary and phytosanitary certificate requirements fo r agricultural imports, and wished to know more 
about the interaction of Customs and the Ministries of Agriculture, and of Health in this respect. 
34. Guyana applied a number of incentive schemes:  some were applied across-the-board;  others 
were available if specific criteria, such as local va lue-added content, were met.  Guyana also offered 
several sector-specific programme s, and one contingent on export results, granting an export 
allowance as a percentage of export profits, varying between 25% and 75%, for non-traditional 
exports outside of CARICOM.  Recent legislation had curtailed somewhat th ese incentives, but that 
most remained in place.  It would be interes ting to know how Guyana managed all these different 
incentive schemes, and to hear if this did not co mplicate unnecessarily and make less transparent the 
trade and investment regimes. 
35. Guyana was not a party to the WTO Agr eement on Government Procurement.  The 
Secretariat report stated that Guyana was in th e process of introducing new government procurement 
legislation to enhance transparency, and to prom ote competition among supplie rs and the general use 
of public tendering.  He asked the authorities to pr ovide more details on the scope and contents of the 
new legislation, and when they expected it to come to force. 
36. Guyana was in the process of amending its inte llectual property rights legislation to comply 
with the provisions of the TRIPS Agreement.  Implementation of this Ag reement was awaiting the 
passing of this new legislation.  Existing laws pr e-dated independence and their terms and scope of 
protection were, in general, less favourable than those in the TRIPS Agreement.  He encouraged 
Guyana to speed up the reform of its intellectual prope rty legislation, to make it fully compatible with 
the TRIPS Agreement. WT/TPR/M/122 
Page 10  
 
Sectoral Policies 
37. Primary activities, namely agriculture and mining continued to be of great importance for the 
economy of Guyana.  Although their share of GDP had been falling, they still represented some 45% 
of GDP in 2002 and generated most of Guyana's fo reign exchange earnings.  Traditional agriculture, 
comprised mainly of sugar and rice, continued to be supported by preferential access to the 
CARICOM, EU, and U.S.  markets.  This prefer ential access made exports profitable.  However, 
some erosion of preferences was starting to occu r.  For example, preferential quota access for rice 
exports to the EU had been limited.  To restruct ure the sugar sector and regain competitiveness, the 
Guyana Sugar Corporation was implementing a multi-y ear plan to make the industry viable.  He was 
interested in hearing from the authorities what other efforts they intended to undertake to increase the 
competitiveness of their traditional agricultural products. 
38. Guyana had a large endowment of mining res ources;  the main products were gold, bauxite, 
and diamonds.  Despite the difficulties faced in recen t years, mining continued to be an important 
activity.  Bauxite production in pa rticular had suffered from high cost s, and attempts to redress the 
industry, including through privatization, had prove n unfruitful.  Some of the problems faced by the 
industry were linked to lacking infrastructure.  It would be illuminating to hear what the Government 
intended to do to face this problem. 
39. Guyana had a vast electricity generation pote ntial.  The Guyana Power and Light, Inc.  
(GP&L) was the main public supplier of electricity .  Although Guyana's electricity generation had 
increased by over 30% between 1997 and 2002, there had been significant problems in GP&L's management and regulation, and private investors ha d sold their 50% share in the company back to 
the Government for US$1 in 2003.  He asked how the Government envisaged the company's future, 
and what actions had been taken to overcome the ma nagement and regulation problems that had led to 
private divestment from the company. 
40. The Secretariat report noted that services acc ounted for some 40% of GDP, and that Guyana 
had made GATS commitments in five sectors:  business, communication, financial, tourism, and 
transport services.  Tourism was the most important service activity in terms of foreign exchange 
earnings, and enjoyed various incentives.  However,  although it had been expanding, Guyana had not 
yet reaped all the potential gains that this industry co uld bring to the country.  Here again, investment 
was needed in infrastructure, both to overcome geographical difficulties, and to expand the accommodation and service offer. 
41. Financial services were generally open to fore ign investors, as witnessed by the relatively 
large number of foreign banks operating in the c ountry.  He welcomed the opening of a stock 
exchange this year, which would contribute to the development of capital markets in the country and 
to a better allocation of resources and risks.  In telecommunications, there was a monopoly in the provision of fixed telephony servi ces until 2010, which could be exte nded, but the provision of non-
landline services, such as cellular telephony, was open to domestic and foreign competition.  Some 
Members had raised concerns about the lack of competition in the telecommunications sector.  In 
maritime transport, a  cabotage rule was in place under which only Guyana ships could trade between 
Guyana ports, but this rule was subject to exemptions. 
42. He congratulated Guyana for the effort undertaken  in the past 15 years to liberalize its trade 
and investment regimes, as well as for its commitment to the multilateral trading system.  He encouraged Guyana to strengthen the pace of refo rm in the few areas where it was still lagging, with 
support from the international community, if necessar y.  He had little doubt th at continuing in this 
reform path would play an important role in Guya na's development efforts and help to improve living 
standards.  He wished Guyana a successful first Trade Policy Review. WT/TPR/M/122 
Page 11 
 
 
IV. STATEMENTS BY MEMBERS OF THE TRADE POLICY REVIEW BODY 
43. Members welcomed the delegation of Guya na, and thanked Minister Rohee for his 
introductory remarks, the discussant for his contribution.  Numerous delegates took note of the many economic and political reforms that Guyana has undertaken since the 1980s, including the 
liberalization of its trade and forei gn exchange regimes.  Many also noted the reforms that were still 
under way in investment, intellectual property rights , and competition policy, and encouraged Guyana 
to continue its efforts in these and other areas.  A number of Members referred to the questions they 
had submitted to the Guyanese delegation in writing;  they looked forward to receiving the replies to 
these questions. 
44. The representative of Hong Kong, China
 noted that there were quite large gaps between 
Guyana's bound and MFN applied rates, as well as significant tariff escalation in respect of certain 
products.  Observing that the predictability and transp arency of the tariff regime were reduced by the 
extensive use of import-duty relief schemes, th e representative encouraged Guyana to improve 
its tariff regime in these areas.  The representative also encouraged Guyana to continue its efforts 
in respect of notifications required under the TBT Agreement.  The representative stated that 
Hong Kong, China fully acknowledged the importance of capacity-building and technical assistance 
for Guyana to implement its WTO obligations, and appreciated the importance that Guyana placed on 
the issues of implementation and special and diffe rential treatment for developing countries.  
Underscoring the benefits that c ould be brought to the economy thr ough liberalization of services, the 
representative encouraged Guyana to participat e actively in the current services negotiations. 
45. The representative of Japan  observed that Guyana had not notified any state-trading 
enterprises, even though a number of state-owned ente rprises engaged in the trade of sugar, gold, and 
petroleum.  Japan considered that Guyana shou ld notify these enterprises under Article XVII, in 
accordance with the understanding on the interpretation of this article of the GATT 1994;  whether the 
activities of the enterprises were in  accordance with this article could only be judged after notification 
by Guyana.  Japan welcomed Guyana’s intentio n to develop a competition law based on the model 
law distributed by CARICOM, and hoped that the new competition law covered wider areas and 
would be enacted and implemented at an early stag e.  The representative also expressed the hope that 
Guyana would enhance the protection of intellectua l property rights and implement the provisions of 
the TRIPS Agreement in the near future. 
46. The representative of the United States  commended Guyana for lowering its average applied 
MFN tariff rates and for having comprehensive tariff bindings, but noted that Guyana’s bindings were 
at ceiling levels that greatly exceed the applied ra tes.  She suggested that Guyana's conditional duty 
exemptions reduced predictability and transparency while also resulting in decreased fiscal revenue.  
The representative enquired into any plans to phase out or discipline these programmes.  The United 
States also posed a series of questions regarding intellectual property rights, as well as Guyana’s use 
of reference prices for customs valuation, auto matic and non-automatic licensing requirements, 
incentives to attract investment and promote expor ts, and any plans to join the WTO Agreement on 
Government Procurement or the B asic Telecommunications Agreement. 
47. The representative of the European Union  observed that further steps would be needed to 
improve Guyana’s political and security situation;  it was also necessary to ensure  that the benefits of 
increased trade and investment were shared across the population as a whole and especially the poorest.  Guyana’s integration in CARICOM and its bilateral agreements we re important tools for 
promoting trade, provided that Guyana continued to fully support the WTO system and its further 
development.  The representative stated that there wa s a need for tax reform in Guyana to ensure that 
the budget was based on revenues other than duties,  thus enabling the country to continue in 
multilateral and bilateral trade negotiations.   WT/TPR/M/122 
Page 12  
 
48. The representative of the Argentina
 stated that one of the clear est challenges for Guyana was 
the diversification of its economy and growth, given its dependence on a limited range of products.  
He observed that investment policy provided a means to improve efficiency, competitiveness, and 
sustainable development.  While appreciating the effo rts that Guyana had made to liberalize its trade 
regime, the representative stated that further efforts were needed in areas such as intellectual property, 
technical barriers to trade, and sanitary and phytosanitary measures.   
49. The representative of Brazil  encouraged the Government of Guyana to pursue the goal of 
development of its economy by di versifying production and moderniz ing industry, and congratulated 
the Government of Guyana for the successful results  achieved in bringing in flation under control. 
50. The representative of Canada  noted that his country and Guyana shared strong commercial 
ties.  Guyana benefited from the Canadian programmes for Commonwealth Caribbean Trade, 
Investment, and Industrial Cooperation.  Recogni zing that Guyana had one of the most open 
economies of the region, the repres entative noted Guyana’s consistent  support for regional integration 
within the Caribbean Single Market Economy and th e bilateral agreements it had concluded or was 
negotiating.  Guyana was in the process of appr oving a National Trade Strategy that stressed the 
importance of trade to the economy and the need to respond to the challenges of globalization, Canada 
was interested in the work of the National A dvisory Committee on External Negotiations in 
formulating and implementing Guyana’s trade policy.   
51. While several trade-related refo rms were under consideration, th ere remained some areas of 
concern.  There was a substantial difference between most of Guyana’s bound and applied tariff rates, 
the representative encouraged the Government of G uyana to allow for more predictable market-access 
conditions by bringing its bound tariffs  closer to its applied rates.  He also encouraged Guyana to 
develop new and renewable energy sources, to make investment conditions more transparent, and to 
proceed with the  reform of the judicial system in order to  provide for quick and fair settlement of 
commercial disputes. 
52. The representative of Venezuela  stressed the high priority that his country placed on its 
relations with Guyana, noting joint activities and sectoral cooperation programmes in such areas as 
agriculture, the environment, transportation, teleco mmunications, and health.  Trade relations between 
Guyana and Venezuela were conducted in a climate of normality;  they were governed by various 
legal instruments such as the bilateral Guyana-Ven ezuela agreement and Venezuela’s agreement with 
CARICOM.  The Government of Venezuela hoped to  amplify and diversify its commercial exchanges 
with Guyana. 
53. The representative of Trinidad and Tobago  noted that his country, as a fellow CARICOM 
member, shared many of the challenges faced by Gu yana.  The likely further erosion of preferential 
access for rice, as well as the threat posed to the EU Sugar Regime, were of grave concern to Guyana.  To realize its developmental goals , Guyana required the support of the WTO and other international 
organizations, as well as its trading partners, w ho needed to exhibit greater flexibility in the 
negotiating arena.  He commended Guyana for th e creation of NACEN and its technical working 
groups, thus ensuring that all relevant ministries had a voice in the making of trade policy.  He observed that other countries might wish to emulate this approach. 
54. The representative of Barbados
 stated that the interests and c oncerns of his country coincided 
to a very high degree with those of Guyana, and that Barbados fully shared the views expressed by Guyana regarding the problems faced by small, deve loping economies.  It was imperative that small 
economies be given the policy space required to impl ement national policies in accordance with their 
developmental and trade needs, and hoped that WT O members would strive to work together in a 
constructive and positive manner in order to ensure  that progress in the Work Programme on Small WT/TPR/M/122 
Page 13 
 
 
Economies was accelerated, and specific and conc rete measures were adopted to facilitate the 
integration of small developing economies into the multilateral trading system.  The negative impact 
of the erosion of preferences had to be appropria tely addressed in negotiations, which should provide 
for special and differential treatment as well as a less-than-full-reciprocity component.  Reliance on a 
few traditional commodity exports was a problem that  continued to afflict many Caribbean countries, 
and the negative impact of declining prices on commodity-dependent countries was well known;  in 
this regard Barbados welcomed the extensive de liberation of this issue in UNCTAD’s Trade and 
Development Board and the WTO Committee on Trade a nd Development.  He stated that Barbados 
looked forward to an appropriate in-depth treat ment of this key trade issue in the WTO. 
55. The representative of India  observed that Guyana felt threatened by some of the elements of 
the Doha work programme.  Preferential tariffs we re important to the country, and therefore the 
NAMA negotiations were problematic.  The representativ e stated that the trading system must provide 
confidence to countries such as Guyana to facilita te their participation in the negotiations, and 
strengthen the special and differential treatme nt provisions of the WTO agreements.   
56. The representative of Jamaica  said that Guyana was in many ways an archetypical small, 
preference-receiving economy that demonstrated such structural features as openness, dependence on 
trade, a large and chronic trade deficit, h eavy reliance on debt, and dependence on trade for 
government revenue.  Guyana was dependent upon a narrow export base,  and its exports of sugar and 
rice were beneficiaries of preferential arrangements that were threatened by preference erosion, reform in the preference-giving country, and legal challenge in the WTO.  The representative stated 
that the case of Guyana and other CARICOM members underscored the need to pay more attention in 
the WTO and elsewhere to the relationship between  size, openness, growth, and development.  The 
structural hurdles were not easily cleared, and re quired the introduction an d continuation of positive 
measures that responded to the peculiar needs and c onstraints of small, undiversified economies.  A 
fuller and more positive response was needed from the WTO, other multilateral institutions, and the 
international community as a whole. 
57. The representative of Cuba
 took note of the erosion of preferential treatment for Guyana's 
exports to the European Union, and called for a so lution that would preserve benefits while permitting 
the authorities to meet the enormous costs of adju stment required by the multilateral trading system.  
Highlighting the efforts that Guyana had made in in stitutional and political reforms, she noted that the 
benefits from the economic reform process had been  clear, and that Guyana had achieved a positive 
rate of growth during most of the 1990s.  Cuba shar ed the view with Guyana that for the multilateral 
system to generate tangible benefits the small me mbers of the WTO had to be given a margin of 
policy space that would permit them to meet thei r development needs and preserve their income 
bases. 
58. The representative of Haiti  noted that Guyana had reengineered its structure by adopting 
regulations and undertaking reforms to allow the ec onomy to benefit more from its integration in the 
global economy while protecting itself from any threat s caused by this integration.  Guyana was 
menaced by its small size and de pendence on a limited range of pr imary products.  Haiti supported the 
idea of granting aid and technical assistance to the Government of Guyana to enable it to move 
forward in the framework of multilateral trade.  Guya na had showed the world that whatever its size, 
courageous reform allowed the po ssibility of obtaining advantages. 
59. The representative of Korea  expressed the hope that the government of Guyana would 
enhance the transparency of its trade regime, particularly in the field of import licensing. 
60. The representative of the Secretariat  presented the programme of reviews for the remainder of 
2003 and for 2004.  WT/TPR/M/122 
Page 14  
 
V. REPLIES FROM THE REPRESENTATIVE OF GUYANA AND ADDITIONAL 
COMMENTS 
Macroeconomic and Institutional Environment 
61. The representative of Guyana
 highlighted some key issues in Guyana's efforts to improve the 
country’s economic base.  Regarding poverty reduc tion his Government recognized that trade policy 
and export promotion were only two aspects of a broa der national strategy.  The Government aimed to 
widen the tax base through increased coverage, reduc e duty exemptions, introduce a value-added tax 
in 2006, increase transparency and efficiency in the administrati on and collection of taxes, and 
stimulate investment, savings, and growth.  
62. He reviewed the state of financing of public en terprises, focusing in particular on the Linmine 
bauxite enterprise and the Guyana Sugar Corporation (Guysuco).  The Government had financed part 
of the cost of electricity consumed by the ba uxite mining industry, and loans granted to the 
Government by international financia l institutions had in turn been lent  to Guysuco.  Apart from these 
activities, the Government had greatly reduced the support provided to public enterprises. 
63. The representative described the Government's multi-pronged efforts to reduce debt, within 
the context of the Enhanced HIPC initiative.  Th e Government anticipated up to 90% write-offs for 
eligible debts, resulting in a saving of US$500 milli on over 20 years.  He described the efforts being 
undertaken with both Paris Club and non-Paris Club donors. 
64. In the area of public procurement, he said th at a new law was passed in June, 2003 but was 
awaiting the detailed regulations to br ing it into force.  This was expected to be completed before the 
end of 2003. 
65. The representative stressed that the National Tr ade Strategy had identified capacity-building 
as a priority, and that a draft National Trade Ca pacity Building Strategy was presently before a 
Cabinet Sub-Committee on Trade. 
66. The discussant  took note of Guyana's intention to continue the process of economic reform 
and liberalization. Recent reforms in investment were a positive step to enhance transparency and 
predictability of the investment regime.  He i nvited comments from the authorities on this point, and 
the expected impact on the fiscal accounts.  He noted Guyana’s pursuit of bilateral agreements 
individually and through CARICOM, and asked the authorities for their views on the compatibility of bilateral agreements with the rules of the multila teral system.  The discussant also enquired whether 
these multiple negotiations taxed the limited resources of Guyana’s trade officials.  He observed that 
both traditional and new industries needed to be de veloped further, and hoped to hear more about the 
Government’s strategies to develop these areas.  He  stressed that international cooperation should be 
focused on capacity-building and training to help foster growth and development. 
67. The representative of Guyana
 stated that he was in full ag reement with the discussant on the 
issue of capacity-building.  It was important to harmonize bilateral and mu ltilateral initiatives, and, 
from Guyana's perspective the multilateral system w as overarching.  Nevertheless, due to Guyana’s 
geographic circumstances and its involvement in  CARICOM, the country was engaged in trade 
negotiations with South and Central America.  Ac knowledging that the many  negotiations now under 
way did place a strain on Guyana’s limited resources, he noted that the Caribbean Regional Negotiating Machinery eased this problem by providi ng the necessary technical resources to negotiate 
these agreements with third countries.  
68. Competitiveness would be one of the areas wh ere Guyana would focus its attention, 
particularly in the sugar and rice industries.  The European Union had provided some €24 million to 
enhance the competitiveness of the rice industry, a nd the sugar industry modernization project aimed WT/TPR/M/122 
Page 15 
 
 
to improve the competitiveness of this industry.  These industries were, nevertheless, under pressure 
from the reform of the EU’s Common Agricultural Po licy, the erosion of both prices and preference 
margins, and the threat to the sugar regime bei ng posed through challenges in the WTO.  Given these 
impending difficulties, these traditional Guyanese indu stries sought to procure the necessary funds to 
put them on a more efficient footing. 
69. The representative also stated that the Govern ment had developed strategies to promote new 
investment in depressed areas of the country. 
Trade Policies by Measure 
70. The representative of Guyana  stated that the Government continued to improve the 
institutional and regulatory mechanism in trade-rela ted institutions.  The strengthening of these bodies 
was important not only in relation to Guyana’s multilat eral obligations, but also for its participation in 
the CARICOM Single Market and Economy.  
71. He responded to questions raised by several me mbers regarding Guyana’s tariff.  He noted 
that transparency was important to the promot ion of trade, and was addressed in the Fiscal 
Enactments (Amendment) Act of 2003.  This Act w ould improve the transparency and predictability 
of the tax system.  He explained that Guyana app lied the Common External Tariff in conformity with 
the rules of the Tariff, and that CARICOM rules allowed each country to use the CET to fully or 
partially exempt goods from duty.  The tariff bi ndings represented the maximum rates, and Guyana 
had applied the maximum rates in only one instance.   As a CARICOM member, Guyana had to obtain 
the prior approval of the Council for Trade and Ec onomic Development before it could adjust the 
applied rate above the established CET rate.  Because CARICOM count ries were not in a position to 
use subsidies, they had to rely solely on the tariff to respond to unfair trade practices. 
72. The discussant  observed that Guyana had made great progress in liberalization over a short 
period of time, and must be commended.  He hoped that these efforts would continue.  Noting that 
several members had raised questions regarding th e implementation of commitments, he observed that 
in most cases legislation was currently in the pipeline.  
Trade Policies by Sector 
73. The representative of Guyana  stated that the Guyanese econom y remained heavily dependent 
on the primary sectors, and faced serious challeng es from declining prices.  The viability of the 
country’s traditional industries would be crucia l for diversification of the economy, and the 
Government was moving to improve the competitiveness of these industries. 
74. The discussant  welcomed the answers provided by the representative of Guyana.  It was clear 
that the sugar and rice industries face challenges.  He  noted that the recent repeal of the sugar levy 
was a welcome step, and appreciated the efforts to restructure the bauxite industry.  He thanked the 
delegation for its comprehensive answers, and stated  that both the Government and the country were 
on the right road. 
75. The representative of Guyana  said that as a weak, trade-dependent country Guyana needed 
special and differential treatment.  This was neces sitated by the social and economic realities of the 
country, as well as the asymmetries between developing and industrialized countries.  The main objective of trade policy was to bring about improve ment in the wellbeing of the country’s people.  
The representative noted that the Trade Policy Review would generate certain expectations on the part 
of Guyana’s authorities, and that cooperation with the WTO to provide capacity-building and 
institutional strengthening would help make Guyana a stronger and more vibrant Member of the 
WTO. WT/TPR/M/122 
Page 16  
 
VI. CONCLUDING REMARKS BY THE CHAIRPERSON 
76. This first Trade Policy Review of Guyana h as 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 instituti onal framework within which its policies are 
formulated and implemented, both at the national level and through partic ipation in CARICOM.  
We owe this particularly to the active partic ipation of the delegation of Guyana led by 
Minister Rohee. 
77. Guyana was commended for the efforts undertak en to reform its economy since the late 
1980s.  Members expressed their appreciation for th e efforts undertaken at the domestic level to 
liberalize trade and 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. 
78. Members also expressed support for the steps that Guyana has taken at the international level, 
including the development of a National Trade St rategy and the negotiation of market-opening 
agreements at the multilateral, regional, and bilatera l levels.  Guyana was enc ouraged to continue and 
accelerate the pace and scope of these domestic and international reform efforts. 
79. Members also noted that, despite these wide-ra nging 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 traditi onal 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 regard ing dependency on tariff 
revenue, preferential market access, and the special problems of small economies. 
80. Members took note of the importance Guyana a ttaches 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. 
81. Members noted that Guyana is dependent upon trade taxes as a source of government 
revenue, and that the efforts under way 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. 
82. 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 phyt osanitary measures.  Some Members observed that 
Guyana's laws have not been amended yet to fu lly conform with the requirements of the TRIPS 
Agreement, and requested information on the stat us of the efforts to enact new legislation. 
83. Members noted the importance of targeted t echnical assistance to support Guyana in its 
efforts to improve its participation in the multilatera l trading system and to continue to work towards WT/TPR/M/122 
Page 17 
 
 
the achievement of its development objectives.  In this respect, some Members expressed their wish to 
continue providing assistance to Guya na, as had been the case in the past. 
84. In addition to the aforementioned topics, Memb ers sought clarification on several specific 
issues, including: 
• investment; 
• customs valuation and rules of origin; 
• import prohibitions, restrictions, and licensing; 
• technical regulations; 
• government procurement; 
• competition policy; 
• intellectual property right legislation; 
• electricity; 
• agriculture and mining;  and 
• financial and telecommunications services. 
 85. The delegation of Guyana provide d 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. 
86. This brings us to the conclusion of the first Re view of Guyana.  It has given Members a better 
understanding of the effort displayed and the num erous reforms undertaken by Guyana in recent 
years, and of the challenges that lie ahead.  I we lcome 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 deri ved from this participation. 
 
__________