GMSA raises concerns over operations at GA-FDD
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The Guyana Manufacturing and Services Association (GMSA) has been monitoring the recent developments at the Government Analyst Food and Drug Department (GA-FDD) and wishes to express its concerns.
The GA-FDD has a crucial role in maintaining the nation’s health and well-being through speaking directly as a regulatory body on the importation of food, drugs and other like materials into Guyana.
Over the last few years, the GA-FDD had made significant strides towards delivering on its mandate to the nation. The GMSA, through the Agro-Processing Sub-sector Chairman, indicated that there is a seeming lack of leadership as a result of the Director’s absence, which could call this quality reputation of GA-FDD into question, hinder progress and also raises concerns of transparency and accountability.
The GMSA therefore wishes to urge that this Department, which comes under the Ministry of Health, be empowered to carry out its mandate independently and effectively.
We also request that the relaxing of the rules mandated by law regarding the importation of food and other products into Guyana, be re-examined. The Association has actively engaged with the Ministry of Health to review and relax said provisions made by law however, we are concerned that the agreement created which allows for the importation of items on the basis of documentation from a non-regulatory body in Florida, is not working as was initially intended since we continue to see questionable items imported into the country based on documentation from the said body in Florida.
While we are cognizant of the many challenges due to the COVID-19 pandemic and the issues associated with the global supply chain, we should not compromise on the nation’s health and well-being.
The Standards regarding the origin, labeling and naming of local distributors on labels where necessary is very clear, however, this standard is being flouted in some cases, while our sister Caricom countries rigidly enforce this. These actions are contradictory to the spirit of the recently passed Local Content Act.
The GMSA calls on the Minister to ensure the compliance of rules, regulations, and standards and to empower the GA-FDD to so do.
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‘Rapid progression’ for local manufacturers with two new laws governing oil sector – GMSA
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The GMSA, made up of the country’s largest manufacturers and service providers, says the recently passed laws governing how oil revenues will be spent and how Guyanese individuals and companies should be used in the oil industry, would see rapid progression for the sector.
Below is a full statement from the GMSA:
The Guyana Manufacturing & Services Association (GMSA) commends the concerted efforts of the Government to finalize and pass the Local Content Policy (LCP) and the Natural Resource Funds (NRF) Bill.
These legislations are critical to having sound and effective management of the extractive sectors for Guyana’s economic growth and stability. The Association therefore extends full support of the passage of the “Local Content Policy for the Development of Guyana’s Petroleum Economy” and the “Natural Resource Fund Bill 2021” legislations, with precedented anticipation that each Bill will provide avenues for the rapid progression of the manufacturing and services value chain.
As a key contributor to the LCP and the NRF Bill from the initial consultation stages, the GMSA attests that the Government’s inclusion of the private sector assured of its intention for transparency and governance in developing the framework which guides each Bill. However, in consideration of the Government’s highpriority agenda to pass the legislations, the Association acknowledges that these policies will be subject to emergent revisions and improvements.
As a major contributor to economic growth in Guyana, the GMSA calls for continued and more participative consultations with private sector support organizations.
Recommendations from each industry must be fully considered with timely feedback from the Government, to successfully develop and reinforce the regulatory strategies with respect to the LCP and NRF Bills.
This proactive collaboration will therefore guarantee improved capacity-building for private businesses and ensure public-private cooperation.
As Guyana moves into a new dispensation of growth, Sovereign Wealth Funds (SWF) will play an integral
role in the stabilization and sustainability of the country’s economy and accelerate the national objectives for socio-economic progress.
In order to maximize the benefits of resource revenues, the GMSA lauds the Government’s recognition that these funds must have strict governance under the management of a Board comprising of a team of specialists with knowledge in international investments and markets.
We wish to reiterate that members must be adequately qualified and represent varied segments of the community. Moreover, private-sector representation on the Board is of critical importance and the GMSA strongly encourages that this representative be meticulously evaluated prior to selection, to ensure the requisite experience, knowledge and expertise are met.
The Natural Resource Fund Bill will provide a mechanism to enable and accelerate the development and advancement of industries in Guyana. The country will be positioned to transition from a predominant primary economy to enhanced manufacturing and services industries.
For decades the major hindrances to growth and competitiveness in Guyana have been limited access to finance, inadequate and poor infrastructure, high energy costs, outdated technology, and shortage qualified skills. It is imperative that priority be given in these areas as we seek to strengthen and diversify the non-oil industries.
While the GMSA is cognizant that there is much to be done in terms of capacity building among local stakeholders, the Association believes that with the right strategies which include technology transfer and partnership between experienced companies and the local private sector, a sustainable and lucrative pathway can be achieved for Guyanese as we continue to collaborate for more inclusion in local content and natural resource benefits.
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UK Trade Adviser meets GMSA..
The Guyana Manufacturing and Services Association (GMSA), on March 6th, engaged in a discussion with the Caribbean’s Regional Trade Adviser of the UK’s Department of International Trade (DIT) and Department for International Development (DFID), Ms. Rachel Wilson. She met with members of the Forestry Sub-sector (of the GMS), specifically those exporting to the UK.
Those in attendance included GMSA’s President, Mr. Shyam Nokta, Executive Member, Mr. Ramesh Dookhoo, Chairman of the Forestry & Wood Products Sub-sector, Mr. Rafeek Khan, and representatives from Barama Company and Variety Woods.
Ms. Wilson explained that the UK is currently in the process of transforming economic partnership between the European Union (EU) and the CARIFORUM to the UK and the CARIFORUM. She claimed that they are hoping to have that in place for the end of March 2019. She also stated that currently, no agreement has been made. Additionally, she iterated that in the case of there being no deal for Brexit, there will be a fall back on the UK-CARIFORUM agreement. However, this has not been signed yet. Furthermore, she lamented that there is a risk that there would not be an agreement in place.
Ms. Wilson informed the GMSA representatives that there can be a possible situation where there may be a trading gap in terms of market access and duties. She further stated that Guyana would only be subjected to tariffs in the case of no withdrawal agreement and no EPA agreement signed.
Mr. Nokta alluded to the fact that Guyana has been exporting to the UK for a period, but in the last few years, Guyana now faces the situation where a decision was taken by the UK to require certification and other measures for Greenheart lumber. Furthermore, he claimed that attaining FSC Certification for manufacturers in the forestry sector is a challenge because of the system of multiple resource use. However, Ms. Wilson was in no position to give an update about the UK’s recent ban on the Greenheart lumber.
Mr. Khan hoped that Brexit would give the UK a chance to work independently with Guyana regarding the recent restriction on greenheart lumber. He shared the same concerns as Mr. Nokta in that many operators in Guyana have not been able to acquire FSC certification and this proves to be a challenge for the Forestry sector as a whole.
Ms Wilson stated that the UK-EPA is currently designing a fund for firms that are affected by Brexit. She claimed that this would be in the form of a Grant. However, the UK-EPA are still in the process of designing the criteria for access of these funds.
The following below are resource links for members who are currently trading or wish to trade with the UK following the scheduled Brexit. The resources are as follows:
- Technical Notices: A set of papers developed by HM Government to provide detail on how to prepare for Brexit if there is no deal. Section on importing and exporting likely to be of particular relevance: https://www.gov.uk/government/collections/how-to-prepare-if-the-uk-leaves-the-eu-with-no-deal
- Business Readiness Tool: A tool, including a set of questions, to direct businesses to the most relevant information and to outline the steps they should take ahead of the EU exit: www.euexit.campaign.gov.uk
- Partnership Pack: HMRC produced pack to support businesses preparing for day one if the UK leaves the EU without a deal, particular focus on issues at the border: https://www.gov.uk/government/publications/partnership-pack-preparing-for-a-no-deal-eu-exit
- Online Enquiry Tool: Use this if you still have questions after having visited all of the above websites: www.great.gov.uk/eu-exit-news/contact/.
VICE PRESIDENT & MINISTER OF FOREIGN AFFAIRS CARL GREENIDGE UPDATED BUSINESS COMMUNITY ON GOVT’S RESPONSE TO VENEZUELAN AGGRESSION
Minister of Foreign Affairs, Vice President Carl B. Greenidge was the featured speaker at the GMSA’s mid-year Business Luncheon held on Monday 20th July, 2015 at the Guyana Pegasus. The Minister had recently accompanied President David Granger to the CARICOM Heads of Government Summit. There the President, in his inaugural address to this august body, strongly advocated for the region’s support against Venezuela’s aggressive moves to subsume the entire Essequibo county (5/8 of Guyana’s land mass) and all of our maritime Exclusive Economic Zone (EEZ).
The Nicolas Maduro government had by then made a series of aggressive pronouncements against Guyana and the US-based Exxon Mobil oil exploration company which had last May announced a significant find of hydrocarbons in the Stabroek Block. He followed up by recalling his Ambassador in Guyana, Reina Margarita Arratia Diaz, while threatening to issue Venezuelan identification cards to Essequibians.
After the CARICOM conference of Heads, President Granger made a stirring appeal to the community of world leaders at the September General Assembly of the United Nations in New York. This was his maiden address to the UNGA. In addition, he has taken Guyana’s appeal to the Commonwealth of Nations and to UNASUR, some of whose members including Colombia have also engaged Venezuela about the inclusion of their EEZ’s in Maduro’s 2015 decrees.
Minister Greenidge, in a Power-Point assisted discourse, brought the local and expatriate business community and the Diplomatic Corps up to date on the measures the Government was taking to address Maduro’s threat to the nation’s progress.
PRESIDENT McLEAN’S WELCOME TO OUR BUSINESS LUNCHEON
(Extract) “Apart from a limited labour force, the high cost of doing business in Guyana keeps the investors away. We’re referring here to astronomical energy charges, high Customs fees and long, undue delays to process import and export documents. We were pleased to learn that the new government is going to confront these issues in the short term.
The Private Sector is now more committed than ever to changing the business landscape from reliance on the sale of raw products to promoting new businesses that process rice, fruits and vegetables, meat and milk, wood, bauxite by-products, and the amazing variety of medicinal plants into secondary and tertiary products. Our in-country market is small by comparison, so the emphasis has to be placed on sourcing external markets alongside improving procedures at the GRA.
We renew our pledge to the Government and the Guyanese people to unreservedly support all programmes towards national development. We look forward to playing any role that will enhance the ability of our entrepreneurs to earn more than subsistence level revenue, and to eliminate the barriers to external trade which our exporters have been dealing with for many years.”
GMSA calls for better infrastructure, lower transportation costs for farmers, business owners
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The Guyana Manufacturing & Services Association (GMSA) on Friday sounded the need for better roads and other infrastructure to reduce transportation costs; the government has said projects are ongoing across the country.
President of the Association Rafeek Khan said the cost of transportation is sometimes more than 50 per cent of the value of goods and services being transported to markets or factories.
While noting the infrastructural works ongoing across the country, Khan said farmers and local producers are still faced with challenges.
Khan was speaking at a business luncheon on Friday at the Pegasus Hotel in Kingston, Georgetown. The focal point of the discussion was plans to improve public infrastructure in Guyana’s Oil and Gas Economy.
“The cost for infrastructure, getting in to where we need to go regardless if it is primary production or tourism, it is high,” Khan stated.
The Association is calling on the government to provide an environment for easier trade, both locally and regionally.
Khan also stated the authorities must not neglect to prioritise what they do not experience such as farmers transporting produce to the market using deplorable roads.
“Sometimes we don’t realise what it takes to get the products from the farms whether it is North West, the Rupununi, Essequibo and bring it to the regions; sometimes a product comes here and before it reaches here a significant percentage of it is spoilt, so infrastructure cost is significant,” Khan said.
He further called on the government to build infrastructure that will last and withstand the climate here.
Minister within the Ministry of Public Works Deodat Indar in response said the government has infrastructural projects ongoing all across the country. These projects he said is in keeping with the People’s Progressive Party manifesto.
Additionally, Minister Indar stated that the government has removed VAT from hinterland travel.
However, there are still complaints from citizens about the high transportation costs. He said the government is working with the local operators to rectify this issue.
Read MoreGMSA collaborates with FAO to conduct study
– aims at pushing Private Sector to achieve SDGs
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Kaieteur News – As the COVID-19 pandemic continues to impact food and nutrition security globally, there are major recessions and disruptions in the food value chains. The Food and Agriculture Organization’s (FAO) vision for nutrition continues to be enabling healthy diets for all from a sustainable, inclusive, and resilient agri-food system. In response to aiding in the current recovery strategies for the agriculture and food sectors, the Guyana Manufacturing and Services Association (GMSA), on August 13, 2021, officially signed a Letter of Agreement valued at G$3.3 million with the FAO to conduct a study on “Strengthening Strategic Engagement with the Private Sector in Guyana towards achieving the Sustainable Development Goals (SDGs).”
This is detailed in a release the GMSA issued yesterday. According to the release, the study, in support of the FAO’s Strategy for Private Sector Engagement (2021-2025) initiative, is expected to commence on August 16, 2021, with an anticipated duration of four months. The initiative, it continued, acknowledges the importance of engaging and mobilising the capacities and resources of the private sector, specifically those that play a critical role in food systems transformation, measurable sustainable impact, ultimately contributing to the Sustainable Development Goals (SDGs).
Through a consultative process facilitated and managed by the GMSA, the release noted, the key stakeholders from various business support organisations within Guyana will have the opportunity to collaborate closely to form strategic partnerships, improve collective multi-stakeholder efforts, and bring regional, sub-regional, and country-owned and led innovative solutions through the development of a Private Sector Engagement Plan.
It added that consultation will commence with the preparation of a comprehensive work plan, outlining the resource mobilisation strategy to be implemented in completing the study.
Some of the key objectives and requirements of the study were outlined. They are: identifying potential private sector partners and entry-points for partnership and collaborative initiative between FAO and private sector entities in Guyana, according to country priorities; identifying key private sector entities for engagement in channelling and delivering the country-specific priorities; introducing and promoting the use of the CONNECT Portal and gain feedback for improvement, while utilising and inputting data in the Portal as a tool for facilitating private sector engagements.
Upon completion of the study, the FAO’s, Resource Mobilization and Private Sector Partnerships Division (PSR) will oversee the implementation of the strategy organisation wide to capitalise on the opportunities at the country level.
As a strategic development partner, the GMSA noted that it is committed to working with the FAO to create influential local representation, as the entities collaborate to achieve transformational change and innovation, including sustainable and measurable impacts and benefits to Guyana.