Manufacturers mostly set to take advantage of single market
- private sector needs to get up to speed, officials say
By Miranda La Rose
Sunday, December 25th 2005
While the entire local private sector might not be prepared to take full advantage of the Caricom Single Market and Economy (CSME) come January 1, manufacturers believe they are equipped.
Guyana is poised to take advantage of the CSME and create niche markets for rice, sugar, fish, livestock, fresh fruits and other crops and to meet the demand in these areas, private sector officials have said.
Meanwhile, the Private Sector Commission (PSC) is commissioning the UN Economic Commission for Latin America and the Caribbean (ECLAC) to conduct an impact assessment on the state of the local private sector. The assessment would lay the basis for a country strategy for businesses to produce at competitive prices, and for the creation and sustainability of niche markets under CSME.
Executive member of the Guyana Manufacturers' and Services Association Mohabir Singh, told Stabroek News that sections of the country's manufacturing sector were equipped to take advantage of the additional opportunities afforded by CSME.
Guyana had a diversified agricultural sector and as such had a competitive advantage in this area, he said, adding that technology was not an issue because it could be purchased. "It is just a matter of attracting the right investments. Our manufacturing sector has the capability and is equipped to take full advantage of additional trading opportunities."
According to PSC Executive Director, Bal Parsaud, the impact assessment to be conducted by ECLAC, which starts next month, would be completed in about two months and until then the local private sector would treating the CSME as a fait accompli.
He said the study would be done on a sector-by-sector basis, looking at market opportunities which would be available to Guyanese businesses.
Parsaud said the private sector and the government should jointly develop a country strategy to deal with the CSME. Issues that needed a joint approach included phyto-sanitary procedures and interventions in crossing barriers that might be in the way.
"The private sector would need a lot of government assistance," he said, to remove barriers that may arise and to ensure that mechanisms put in place to protect intra-regional exports were observed. He cited the CET on rice imports as one such mechanism that needed policing.
Instead of emphasising Guyana's status as one of the poorest economies in the region, he said, government should have been working to raise the competitiveness of local businesses. Government was instead emphasising the need for special and differential treatment as a Heavily Indebted Poor Country by activating the relevant provisions of the Revised Treaty of Chaguaramas.
In addition to the traditional rice and sugar, Parsaud felt Guyana could be competitive and dominate in the intra-regional trade of fresh fruits, wood products, poultry and beef, among other products. "There is no reason why we cannot compete in these areas and create our own niche markets," he said, "once we increase our production and reduce regional imports."
He said a lot more work had to be done in the private sector to boost production and dispel the perception that Guyanese businesses were unreliable and could not sustain their export markets.
But he noted that trade fairs organised by the Guyana Office for Investment (Go- Invest) in the region have had some impact and Caricom countries were more aware of what Guyana had to offer. With regard to othe furniture industry some companies, he noted, had begun to negotiate with counterparts in the region to share warehousing facilities in Barbados and other islands.
In the banking and commercial sectors, Parsaud was of the view that Guyana's indigenous financial institutions would be challenged to become competitive or go under, given the competition within the region.
Parsaud also noted that among the tremendous disadvantages for Guyana in the manufacturing sector were high energy costs and overheads, among other things. He noted that Trinidad and Tobago was one of the region's leading manufacturers, mainly because of cheaper energy, lower overheads and port access.
But Singh said that notwithstanding the higher energy costs, Guyana could still be competitive in the production and processing of sugar, rice, fisheries or livestock. "We have a natural endowment in land and in soil types that most countries within Caricom do not have," he explained.
Observing that the government had taken a lot of bashing for the sloth in the local private sector, Singh said that this group in general had not been focusing enough on attracting investment in all areas of economic activity in the country. He believed government's policy on investment was very clear and all the fiscal incentives were available.
"This is not an era where the state acts as an impediment to fostering investment," he said. "Let's make no mistake about that. Government has the infrastructure in place - two university campuses - one in Turkeyen and one in Berbice and five technical institutions. That is the nucleus to afford all types of training."
One of the private sector's main failings, he said, was that it had not been making use of the facilities available under European Union-funded Pro-Invest and the Centre for the Development of Enterprises and Caribbean Export to attract suitable joint ventures in all areas of activity. "We cannot go and ask the government to find joint venture partners for the private sector; this is the responsibility of the private sector."
Admitting though that there might be a number of problems to overcome which would require government's intervention, Singh said the private sector had simultaneously advocated assistance to tackle skills availability, attracting appropriate investment and issues of public policy that encouraged maximum value-added activity at home.
He said the donor agencies had spent a lot of money on all types of institutional strengthening for private sector bodies, but largely on the PSC and the private sector data centre. "The question is, what has come out of all these institutional strengthening projects? My humble opinion is that we in the private sector should be in the lead to attract investment," he said.
The planned merger of the domestic markets of nine Caricom countries is just days away and while Caricom Secretary-General Edwin Carrington told media workers at the Caricom Secretariat, Turkeyen, last weekend that he was optimistic about successful implementation, CSME Unit Head Desiree Field-Ridley told the Jamaican media that there were challenges. Field-Ridley said the private sector was organising to take advantage of CSME but was not yet where it should be.
While January 1 is the target date for the CSME coming into effect, the agreement formalising the event would be signed at a ceremony to be held in Jamaica on January 23.
The nine countries set to get on board are Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Jamaica, St Lucia, Suriname, and Trinidad and Tobago.
Three countries have delayed implementation until April 1. St Vincent and the Grenadines and St Kitts and Nevis delayed because of national elections and Grenada has had to recover from damage caused by Hurricane Ivan. The Bahamas will not join the CSME because it is not a member of the Caricom common market.
The CSME will permit certain goods produced in a Caricom member country to be sold at the same price elsewhere in the region without attracting duty.
The free movement of investment capital is facilitated by the single market, which is being brought about by the Revised Treaty of Chaguaramas. The objective is to eventually establish and deepen the single market into a single economy after 2008, including the harmonisation of currency.
CSME will also allow certain categories of workers to work in Caricom territories without the need for work permits. Initially, university graduates, artistes, sportspersons and media workers will be allowed free movement.
Stabroek News
- private sector needs to get up to speed, officials say
By Miranda La Rose
Sunday, December 25th 2005
While the entire local private sector might not be prepared to take full advantage of the Caricom Single Market and Economy (CSME) come January 1, manufacturers believe they are equipped.
Guyana is poised to take advantage of the CSME and create niche markets for rice, sugar, fish, livestock, fresh fruits and other crops and to meet the demand in these areas, private sector officials have said.
Meanwhile, the Private Sector Commission (PSC) is commissioning the UN Economic Commission for Latin America and the Caribbean (ECLAC) to conduct an impact assessment on the state of the local private sector. The assessment would lay the basis for a country strategy for businesses to produce at competitive prices, and for the creation and sustainability of niche markets under CSME.
Executive member of the Guyana Manufacturers' and Services Association Mohabir Singh, told Stabroek News that sections of the country's manufacturing sector were equipped to take advantage of the additional opportunities afforded by CSME.
Guyana had a diversified agricultural sector and as such had a competitive advantage in this area, he said, adding that technology was not an issue because it could be purchased. "It is just a matter of attracting the right investments. Our manufacturing sector has the capability and is equipped to take full advantage of additional trading opportunities."
According to PSC Executive Director, Bal Parsaud, the impact assessment to be conducted by ECLAC, which starts next month, would be completed in about two months and until then the local private sector would treating the CSME as a fait accompli.
He said the study would be done on a sector-by-sector basis, looking at market opportunities which would be available to Guyanese businesses.
Parsaud said the private sector and the government should jointly develop a country strategy to deal with the CSME. Issues that needed a joint approach included phyto-sanitary procedures and interventions in crossing barriers that might be in the way.
"The private sector would need a lot of government assistance," he said, to remove barriers that may arise and to ensure that mechanisms put in place to protect intra-regional exports were observed. He cited the CET on rice imports as one such mechanism that needed policing.
Instead of emphasising Guyana's status as one of the poorest economies in the region, he said, government should have been working to raise the competitiveness of local businesses. Government was instead emphasising the need for special and differential treatment as a Heavily Indebted Poor Country by activating the relevant provisions of the Revised Treaty of Chaguaramas.
In addition to the traditional rice and sugar, Parsaud felt Guyana could be competitive and dominate in the intra-regional trade of fresh fruits, wood products, poultry and beef, among other products. "There is no reason why we cannot compete in these areas and create our own niche markets," he said, "once we increase our production and reduce regional imports."
He said a lot more work had to be done in the private sector to boost production and dispel the perception that Guyanese businesses were unreliable and could not sustain their export markets.
But he noted that trade fairs organised by the Guyana Office for Investment (Go- Invest) in the region have had some impact and Caricom countries were more aware of what Guyana had to offer. With regard to othe furniture industry some companies, he noted, had begun to negotiate with counterparts in the region to share warehousing facilities in Barbados and other islands.
In the banking and commercial sectors, Parsaud was of the view that Guyana's indigenous financial institutions would be challenged to become competitive or go under, given the competition within the region.
Parsaud also noted that among the tremendous disadvantages for Guyana in the manufacturing sector were high energy costs and overheads, among other things. He noted that Trinidad and Tobago was one of the region's leading manufacturers, mainly because of cheaper energy, lower overheads and port access.
But Singh said that notwithstanding the higher energy costs, Guyana could still be competitive in the production and processing of sugar, rice, fisheries or livestock. "We have a natural endowment in land and in soil types that most countries within Caricom do not have," he explained.
Observing that the government had taken a lot of bashing for the sloth in the local private sector, Singh said that this group in general had not been focusing enough on attracting investment in all areas of economic activity in the country. He believed government's policy on investment was very clear and all the fiscal incentives were available.
"This is not an era where the state acts as an impediment to fostering investment," he said. "Let's make no mistake about that. Government has the infrastructure in place - two university campuses - one in Turkeyen and one in Berbice and five technical institutions. That is the nucleus to afford all types of training."
One of the private sector's main failings, he said, was that it had not been making use of the facilities available under European Union-funded Pro-Invest and the Centre for the Development of Enterprises and Caribbean Export to attract suitable joint ventures in all areas of activity. "We cannot go and ask the government to find joint venture partners for the private sector; this is the responsibility of the private sector."
Admitting though that there might be a number of problems to overcome which would require government's intervention, Singh said the private sector had simultaneously advocated assistance to tackle skills availability, attracting appropriate investment and issues of public policy that encouraged maximum value-added activity at home.
He said the donor agencies had spent a lot of money on all types of institutional strengthening for private sector bodies, but largely on the PSC and the private sector data centre. "The question is, what has come out of all these institutional strengthening projects? My humble opinion is that we in the private sector should be in the lead to attract investment," he said.
The planned merger of the domestic markets of nine Caricom countries is just days away and while Caricom Secretary-General Edwin Carrington told media workers at the Caricom Secretariat, Turkeyen, last weekend that he was optimistic about successful implementation, CSME Unit Head Desiree Field-Ridley told the Jamaican media that there were challenges. Field-Ridley said the private sector was organising to take advantage of CSME but was not yet where it should be.
While January 1 is the target date for the CSME coming into effect, the agreement formalising the event would be signed at a ceremony to be held in Jamaica on January 23.
The nine countries set to get on board are Antigua and Barbuda, Barbados, Belize, Dominica, Guyana, Jamaica, St Lucia, Suriname, and Trinidad and Tobago.
Three countries have delayed implementation until April 1. St Vincent and the Grenadines and St Kitts and Nevis delayed because of national elections and Grenada has had to recover from damage caused by Hurricane Ivan. The Bahamas will not join the CSME because it is not a member of the Caricom common market.
The CSME will permit certain goods produced in a Caricom member country to be sold at the same price elsewhere in the region without attracting duty.
The free movement of investment capital is facilitated by the single market, which is being brought about by the Revised Treaty of Chaguaramas. The objective is to eventually establish and deepen the single market into a single economy after 2008, including the harmonisation of currency.
CSME will also allow certain categories of workers to work in Caricom territories without the need for work permits. Initially, university graduates, artistes, sportspersons and media workers will be allowed free movement.
Stabroek News
