The strategic window for enhanced Guyana and Suriname exports to Brazil is the market entry period leading up to the Olympic Games and the World Cup in 2014 and 2016.
That is one of the opportunities identified in a report commissioned by Caribbean Export, the region’s export development agency, to assess the potential opportunities that the Guyana/Suriname-Brazil nexus can play in increasing the volume of trade among the troika and by extension expanding export trade diversification of export markets.
A meeting of officials from Guyana, Suriname and Caribbean Export is currently underway in Suriname with officials discussing the report on enhancing exports and a Troika Trade Assessment Plan that has been detailed in that report, a statement from the Private Sector Commission said.
The main result of the Troika Trade Assessment Plan (T-TAP) was the development of a strategy and a plan of action to take advantage of the opportunities identified, by supporting the development and enhancement of trade between Guyana/Suriname and Brazil. The objective of the T-TAP is to generate some US$13.5m in export sales to the other Troika markets by 2018.
The report noted that Guyana and Suriname, despite both countries sharing borders with Brazil, the data showed that trade between these countries and Brazil had historically been very limited and under-developed, and largely comprised of relatively few export products mostly of a primary nature. They have not adequately exploiting trade opportunities either between themselves or with Brazil and the negotiated Partial Scope Agreements (PSAs) between Brazil and the two Caricom countries do not cover most of their most competitive exports.
The report further said that several infrastructural limitations such as the energy costs and road networks also inhibit trade. It was also found that Brazil’s import demand does not sufficiently match the exports of Guyana and Suriname or the comparative advantages of the two members of the Troika, the statement said.
Furthermore, the report finds that the strategic window for enhance exports to Brazil is the Olympic Games and the World Cup in 2014 and 2016 which can be seen as a market entry period. The target for Guyana is US$8.4m due its geographical access to Brazil and the wider coverage of its PSA with Brazil.
According to the statement, some of the recommendations of the T-TAP include initiating a desk exchange programme amongst SEBRAE, the Brazilian private sector organisation, Caribbean Export, the Private Sector Commission and the Suriname Business Forum.
The assessment also recommended the establishment of trade desks in the Suriname Business Forum and the Private Sector Commission of Guyana to provide training for export ready firms; trade and market intelligence and trade show support, including the subsidizing of airfare and accommodation for export ready firms, the statement said.
