Pinewood importation…Local producers insist they can supply market with Guyana lumber

Nov 26, 2017 News

The Forest Products Association (FPA) has lauded the administration for taking steps to introduce import licences for Pinewood, effective January 1, 2018.
FPA’s president, Deonarine Ramsaroop, yesterday made it clear that the initiative came from the organization whose membership included loggers and sawmillers.
The introduction of the import licence was announced recently by the Ministry of Natural Resources, in a paid notice to importers, published in Kaieteur News.
According to Ramsaroop, a former official of the Guyana Forestry Commission (GFC), his organization has taken note of a recently letter by former Minister of Foreign Trade, Clement Rohee, who questioned the reasons for the import licence system being introduced.
The FPA official noted that the initiative was guided by the FPA to the government, after much lobbying.
”The views expressed by the former Minister of Home Affairs (Rohee) were somewhat mis-guided. The licences for persons importing pine lumber into Guyana come January 1, was a call from the Forest Products Association of Guyana to the Government of Guyana. This has nothing to do with the Minister of Natural Resources. It was a hard fought battle…we had to examine all ends…We are even asking for the taxes to be raised.”
Ramsaroop explained that Guyana is moving apace with the Voluntary Partnership Agreement with the European Union that will require strict controls of timber imported into Guyana.
“It must show legality and we must be able to take control of it. The first step is to have the importers licensed. It is also important for Guyana to ensure that when it has the FLEGT license that no one can bring their timber into Guyana and export it to the EU countries, as if it comes from here.
This is a key issue.”
Noting that the issue has little to with world trading rules of unfair business practices, as is being argued by Rohee, Ramsaroop said that quoting the World Trade Organisation (WTO) is not enough.
“The Forest Act 2009 states that the GFC is responsible for the licensing. This act was crafted also under the previous administration. If the former Minister needs some information on EU-FLEGT he can go to www.forestry.gov.gy and educate himself.”
Ramsaroop noted that when it comes to importation, there are many goods being dumped into Guyana.
“We import items that we can produce here. This is our problem; simple thing like plantain chips we are importing. We are exporting all of our valuable commodities and importing sometimes items that are of poor quality into our country. Is this good trade practice? Is it that we can develop our country by only importing?”
According to Ramsaroop, it is a fact that some importers capitalize on the free trade arrangements between CARICOM states.
”Let me share another trick of importers; it is called free trade between CARICOM.
They import the pine lumber to the CARICOM member country from outside and then bring it (to Guyana) here under free trade agreement. These are things we need to protect our country against. The importers are claiming that they can’t get enough supplies and quality of locally produces timber. We have a plan laid out already. We will see what they will complain about next once it comes through.”
The official insisted that Guyana’s woods remain one of the best in the world with a variety to choose from.
The country’s Greenheart is in huge demand for marine application.
The administration this year introduced Value Added Tax on lumber, forcing producers to call for incentives.
Pinewood, used mainly in interior framing, became popular a few years ago when the housing boom was fully on track.
However, consumers were complaining of the poor quality of wood available locally and the high prices being charged by sawmills.
Some importers found ways to ship the Pinewood, from Canada, at a cheap cost, thus competing with local lumber.

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Pinewood importation…Local producers insist they can supply market with Guyana lumber

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