Guyana did not propose an extension of the waiver on the Common External Tariff (CET) on extra-regional cement when the Council for Trade and Economic Development (COTED) met last week despite earlier indications that it would have done so.
This spells relief for Trinidad Cement Limited (TCL), which had recently opened a cement-bagging facility here.
TCL’s Group Manager of Trade and Government Relations Kissoon Sinanan who attended the COTED session told Stabroek News that since Guyana had not applied for another suspension of the CET on extra-regional cement, the tariff remained in place.
On November 1, Tourism, Industry and Commerce Minister Manniram Prashad and Cabinet Secretary Dr Roger Luncheon had indicated the government’s intention to extend the CET waiver on extra-regional cement imports. The waiver ended last month.
But as of November 5, the government had not applied to COTED through the Caricom Secretariat to have the CET suspended as is required. Article 32 of the revised Treaty of Chaguaramas as it relates to the CET, states: “any alteration or suspension of the Common External Tariff on any item shall be decided by the Council by unanimous vote.”
The CET extra-regional cement issue was ventilated at the COTED meeting on Thursday at the Buddy’s International Hotel, Providence, along with Jamaica’s decision to increase the amount of rice it takes from Guyana and the current negotiations between the African Caribbean and Pacific countries and the European Union for an Economic Partnership Agreement, among other matters. However, Guyana made no proposal on the issue.
When Stabroek News asked Foreign Trade and International Cooperation Minister Henry Jeffrey about the decision on the CET waiver on extra-regional cement after the session, his brusque response was “no decision.” Asked if this meant the CET was in place all he would say was that the CET was in place on various goods.
Sinanan, who told this newspaper that no proposal had been made, complimented Guyana for its position on the issue, which the company maintains is one of principle. He said TCL officials had conveyed to Minister Prashad that he was free to call on them and they would meet him at his convenience. He reiterated that TCL was here for the long run.
TCL General Manager of International Business and Marketing Egwin Daniel also explained that according to the revised Treaty of Chaguaramas it was an issue of supply as a percentage of demand. If 75% of the demand could be supplied the CET must be in place. Daniels said that because Guyana did not request the CET suspension on extra-regional cement it remained in place and Guyana had to abide by the process.
In relation to the issue of price, which had kept the CET off extra-regional imports since 2004, Daniels said, “I can’t give guarantees,” since cement is not immune to inflation and price increases.
What the general manager did guarantee was that there would be “hassle free availability of cement.”
Early this year TGI began operating its US$10M bagging plant at the Guyana National Industrial Company (GNIC) compound on Princes Street.
Regional supplier TCL has contended that it is able to supply the Guyana market and there is no need for imports. The local demand was put at 12,000 tonnes per month and TCL has argued that its bagging capacity at TGI is 30,000 tonnes per month.
Extra-regional cement is sold around $1,300 (Value Added Tax [VAT] inclusive) in the city and around $1,700 (VAT inclusive) outside the city. The TCL brand is sold at some $1,600 (VAT inclusive) in the city and $1,900 (VAT inclusive) outside the city. At least one large cement importer had asked for the waiver to be extended for a year.
