DOING BUSINESS WITH GUYANA - CE Intelligence

DOING BUSINESS WITH GUYANA

DOING BUSINESS WITH

GUYANA

December 2007

Caribbean Export Development Agency (Caribbean Export)

P. O. Box 34B, Brittons Hill

St. Michael

Barbados

Tel: (246) 436-0578

Fax: (246) 436-9999

E-mail: info@carib-

Website: carib-

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DOING BUSINESS WITH GUYANA

TABLE OF CONTENTS

1.

2.

GENERAL INFORMATION..................................................................................... 3

THE ECONOMY........................................................................................................ 4

2.1

Structure of the Economy ................................................................................... 4

2.2

Recent Economic Performance........................................................................... 4

2.3

Overview of Trade .............................................................................................. 5

2.4

Exports ................................................................................................................ 5

2.5

Imports ................................................................................................................ 5

2.6

Trade With CARICOM....................................................................................... 5

3. GENERAL MARKETING FACTORS...................................................................... 6

3.1

Distribution and Sales Channels ......................................................................... 6

3.2

Use of Agents/Distributors ................................................................................. 6

3.3

Franchising.......................................................................................................... 6

3.4

Advertising & Trade Promotion ......................................................................... 6

3.5

Transportation ..................................................................................................... 6

4. MARKET ACCESS CONDITIONS .......................................................................... 8

4.1

Customs Tariffs................................................................................................... 8

4.2

Other Taxes......................................................................................................... 8

4.3

Free Trade Agreements....................................................................................... 8

4.4

Non-Tariff Barriers ............................................................................................. 8

4.5

Import Documentation ..................................................................................... 10

4.6

Labelling and Marking Requirements .............................................................. 11

4.7

Sanitary and Phytosanitary (SPS) Measures..................................................... 11

4.8

Prohibited and Restricted Imports .................................................................... 11

4.9

Standards........................................................................................................... 12

4.10 Product Certification......................................................................................... 12

5. INVESTMENT PROFILE........................................................................................ 13

5.1

Investment Incentives Schemes ........................................................................ 13

5.2

Foreign Investment Regime .............................................................................. 14

5.3

Free Trade Zones .............................................................................................. 16

5.4

Investment Agreements .................................................................................... 16

6. ESTABLISHMENT OF BUSINESSES ................................................................... 18

6.1

Right to Private Ownership............................................................................... 18

6.2

Establishing an Office....................................................................................... 18

6.3

Work Permit Requirements............................................................................... 20

6.4

Intellectual Property Rights .............................................................................. 20

6.5

Conversion and Transfer Policies ..................................................................... 22

7. CULTURAL PRACTICES....................................................................................... 23

7.1

Business Customs ............................................................................................. 23

7.2

Entry/Exit Requirements:.................................................................................. 23

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DOING BUSINESS WITH GUYANA

1. GENERAL INFORMATION

Official Name:

Cooperative

Republic of Guyana

Capital:

Georgetown

Area:

214,970 sq km

Population:

Ports:

Kaituma

769,095 (July 2007)

Population growth index:

percent (2007 est.)

0.234

Population density: 3.58 inhabitants

per sq kilometer

Official language: English,

Amerindian dialects, Creole, Caribbean

Hindustani (a dialect of Hindi), Urdu

Currency:

Guyanese dollar (GYD)

Exchange rate:

Georgetown,

Holidays:

New Year¡¯s Day

Mashramani-Republic Day

Phagwah

Eid-ul-Fitr

Youm Un Nabi

Good Friday

Easter Monday

Labour Day

Indian Arrival Day

Independence Day

CARICOM Day

Emancipation Day

Diwali

Christmas

Boxing Day

Port

Jan 01

Feb 23

May 01

May 05

May 26

Aug 01

Dec 25

Dec 26

US$1 = G$200

Climate:

Tropical; hot, humid,

moderated by northeast trade winds; two

rainy seasons (May to August,

November to January)

Principal Cities and Population:

(2005 est.)

Georgetown

229,600

Linden

44,500

New Amsterdam

32,900

Corriverton

12,500

Bartica

10,7001

Airports:

One international airport

(Cheddi Jagan International Airport,

Timehri); 1 regional international airport

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(Ogle Airport); and about 90 airstrips, 9

of which have paved runways (2006

estimate).

Life Expectancy:

66.17 years

Total Population -

Literacy Rate:

96.5 percent

Total Population -

Local Time: UTC-4 (1 hour ahead of

Washington, DC during Standard Time)

Telephone Codes:

592

Health:

Medical care is available

for

minor

medical

conditions.

Emergency care and hospitalization for

major medical illnesses or surgery is

limited, due to a lack of trained

specialists.



cities-GY.htm

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DOING BUSINESS WITH GUYANA

2.

THE ECONOMY

2.1

Structure of the Economy

The Guyanese economy exhibited

moderate economic growth in 2001-02,

based on expansion in the agricultural

and mining sectors, a more favorable

atmosphere for business initiatives, a

more realistic exchange rate, fairly low

inflation, and the continued support of

international organizations. Chronic

problems include a shortage of skilled

labor and a deficient infrastructure.

Export earnings from agriculture and

mining have fallen sharply, while the

import bill has risen, driven by higher

energy prices. Guyana¡¯s entrance into

the CARICOM Single Market and

Economy (CSME) in January 2006 will

broaden the country¡¯s export market,

primarily in the raw materials sector. 2

2.2

Recent Economic Performance

Agriculture, forestry, fishing and mining

are Guyana's most important economic

activities, with sugar, bauxite, rice,

timber, sea food, and gold accounting for

70%-75% of export earnings in 2006.

The rice and sugar industries performed

well in 2006. Rice export earnings, for

example, rose 20% from $46.2 million in

2005 to $54.6 million in 2006. Sugar,

too, saw a strong climb in earnings from

$118 million in 2005 to $145 million in

2006. A new European Union

arrangement signed in 2007 gradually

phases out long-standing preferential

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treatment for Guyana sugar exports over

the next three years. Prices for sugar are

expected to drop significantly, reducing

income from the commodity by as much

as 30% in the coming years.

Over the past two years the forestry and

fisheries sector have recorded strong

performance, contributing 15%-20% to

export earnings. Forestry, in particular,

is viewed as a strong income opportunity

for the country. The government is

considering calls to ban the raw export

of certain types of logs in favor of valueadded export opportunities that will

bring in more foreign exchange.

The stagnant mining sector recorded

minimal growth in 2006. Bauxite export

earnings rose to U.S. $67 million in

2006, a slight increase over 2005. Gold

export earnings experienced a similar

increase, reaching $114.4 million in

2006 compared to U.S. $111 million in

2005.

The engineering and construction sectors

recorded 12% growth in 2006. Most of

this was driven by new hotel

construction in the buildup to Guyana's

hosting of the Cricket World Cup in

March 2007. New housing projects also

spurred the sector forward.

As with many developing countries,

Guyana is a heavily indebted poor

country (HIPC). Reduction of the debt

burden has been one of the

administration's top priorities. In 2006

the government continued to pursue

initiatives to bring the external debt

stock and debt service to a sustainable

level. At the end of 2006, these two

indicators stood at U.S. $920 million and

U.S. $22.6 million, respectively. In

March 2007, the Inter-American

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DOING BUSINESS WITH GUYANA

Development Bank (IADB) provided

100% debt relief for Guyana's

outstanding loan balance and interest as

of December 31, 2004, amounting to

U.S.

$467

million.

Immediately

preceding the IADB write-off, both the

IMF and World Bank also granted $237

million in debt relief, bringing the total

to U.S. $701 million.

Exports - partners: US 18.2%, Canada

15.9%, UK 8.4%, Portugal 6.3%,

Jamaica 6%, Trinidad and Tobago 4.8%,

Netherlands 4.2%, Belgium 4.2% (2006)

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2.5

Imports

Imports: US$706.9 million (2006 est.)

Also in 2006, through the Paris Club

debt relief process, the government

concluded an agreement with Japan,

which provided for 100% write-off of

principal

and

accrued

interest,

amounting to US$591,327. 3

GDP - real growth rate: 4.7% (2006 est.)

GDP - per capita (PPP): $US4,900

(2006)

GDP - composition by sector:

? agriculture: 35.5%

? industry: 19.3%

? services: 45.2% (2006 est.)

Unemployment rate: 9.1% (2000) 4

2.3

Overview of Trade

Current account balance:

-US$84.3 million (2006 est.)

2.4

Exports

Exports: US$621.6 million (2006 est.)

Exports - commodities: sugar, gold,

bauxite, alumina, rice, shrimp, molasses,

rum, timber

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4



Imports - commodities: manufactures,

machinery, petroleum, food

Imports - partners: Trinidad and Tobago

23%, US 21.3%, China 9.7%, Cuba

6.4%, UK 4.5% (2006) 6

2.6

Trade With CARICOM

Guyana is also a member of the

Caribbean Community and Common

Market (CARICOM). Most goods can be

imported into Guyana under open

general license, but some goods require

specific licenses. Goods that are

produced in the Eastern Caribbean

receive additional protection; in May

1991, the CARICOM common external

tariff (CET) was implemented. The CET

aims to facilitate economic growth

through intra-regional trade by offering

duty-free trade among CARICOM

members and duties on goods imported

from outside CARICOM. 7

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