Guyana/Brazil trade way below expectations - GMSA

Guyana/Brazil trade way below expectations – GMSA

Oct 09, 2010 News

– exports plunge 300% last year

Guyana’s exports to neighbouring Brazil plunged to a record low last year, moving from $176.7M in 2008 to $50M in 2009.
This was disclosed recently by President of the Guyana Manufacturing and Services Association (GMSA), Clinton Williams, during the association’s recent quarterly business luncheon at the Regency Suites, Hadfield Street. The topic was on the “Guyana/Brazil Relations”.

Clinton Williams

“Brazil, our neighbour to the south, ranks high among selected countries that can provide trade and investment opportunities for private sector companies in Guyana,” Williams said, noting at the same time that the current trade is still way below expectations.
The official underscored the fact that the unprecedented leaps made by Brazil in recent years have interesting lessons for Guyana’s entrepreneurs.
“The establishment of solid economic, social and other ties with this burgeoning economic giant next door will certainly provide a tremendous fillip for Guyana’s economy.”
The GMSA President pointed out that with a population of 192 million (World Bank 2008 World Development Indicators), Brazil ranks as the fifth most populous country in the world, and the largest market in Latin America.
In terms of its GDP, it is the tenth largest world economy with vigorous growth predicted. This huge South American nation was also classified recently as one of the BRIC countries alongside India, China and Russia.
“The prognosis is that despite high inequalities, Brazil is becoming an increasingly attractive large market for international investors,” Williams stated while reiterating that the time is now for Guyana to strengthen the foundations for stronger trade relations.
“The reality of what currently exists is that the cross border trade and investment activities that should have derived from the government-to-government Partial Scope Agreement which was initially signed in 2001 then extended indefinitely in 2008, and the recently commissioned multi-million dollar Takutu Bridge, are still way below expectations”.
The trade balance 2009 statistics indicate that Guyana’s imports from Brazil increased by a small margin from $2.5B to $3.3B, while exports dropped from $176.7M in 2008 to a record low of $50M in 2009.
The GMSA President said that the organization is preparing to aggressively correct this imbalance and is in the process of creating innovative ways to galvanize the private sector to take advantage of the opportunities being offered by that economically strong neighbour.
“The main objective is to increase exports and attract significant levels of foreign investment capital for infrastructural development, trade facilitation, technology transfer and general commercial growth,” GMSA said in a statement yesterday.
Brazil has already committed to paving the Linden/Lethem road and to bring to fruition several projects already slated for Guyana’s interior savannahs. This was announced by Brazilian Ambassador to Guyana, Luiz Gilberto Seixas de Andre, who delivered the feature address at the recent GMSA Business Luncheon.
The Brazilian Government’s objectives for the co-operative effort between the two countries, he said, are to increase trade with Guyana and achieve a better balance in trade relations.
Brazil also issued an open invitation to the Guyanese commercial sector to join the Guyana caravan that will make its way to the SEBRAE Entrepreneur Fair scheduled for November 10 to November15 in the Parque Anaua, Boa Vista.
According to the event co-ordinator who also had lunch with the business representatives, the fair is intended to help micro entrepreneurs develop ideas and opportunities and forge closer ties with counterparts in other countries in order to improve their competitiveness in agriculture, business, information technology, culture and science.
The facilitator stressed that the 2010 fair will present opportunities for face-to-face communication and exchange of ideas among Guyanese, Brazilian, Venezuelan and Colombian business representatives.
Interested business persons were then invited to contact the Guyana Manufacturing & Services Association (GMSA) for information about joining the caravan to Boa Vista in November.
The GMSA said it has been taking an aggressive approach to ensuring the growth and development of its ‘constituents’- the Guyanese business community.
The quarterly business luncheon has become a staple on the GMSA’s annual calendar. The main objective is to expose its membership to business practices in sectors outside of Guyana, to new developments and new players.
The association’s calendar year usually ends in November/December with a grand dinner and presentation of awards to select Guyanese companies that have recorded outstanding achievements during the past year.
This year’s event is expected to feature awards to the telecommunication/information technology sector for growth and development.
The Amazon Chemicals (Guyana) Ltd. (AMCAR), processor and exporter of canned fruits, will also be awarded for attaining International Standards (ISO) certification from the Switzerland-based International Standards Organisation.