Referencing recent moves between Guyana and Barbados to remove trade barriers, President Irfaan Ali on Friday night sounded a warning for other CARICOM nations that are bent on making it tougher for the local manufacturing sector to take advantage of the Caribbean Single Market and Economy (CSME).
“But we cannot be serious in this region about integration — all the fancy talk — if we are not willing to remove the barriers. And we are going to lead the charge to remove the barriers on products all across this region. There will be consequences for those who think they can keep the barriers forever. I am very frank with this… if you believe that you want to keep the barriers forever, go right ahead. But trust me, there will be consequences,” Ali told the Guyana Manufacturing and Services Association (GMSA) award ceremony and dinner, at the Princess Ramada Hotel, Providence, East Bank Demerara (EBD).
He noted that his government has been working overtime with countries to create opportunities for businesses in Guyana and the recent commitment by Barbadian Prime Minister Mia Mottley to the establishment of a timetable for the removal of trade barriers between the two countries is a testament to the work done.
The CSME arrangement creates a singular enlarged economic space for CARICOM member states and the removal of restrictions resulting in the free movement of goods, services, persons, capital and technology. Additionally, it allows CARICOM nationals to establish businesses in the participating member states.
However, for many years Guyana has been complaining about unfair barriers imposed on its products by member states. Those barriers are wide-ranging, from the imposition of quotas, levies and sanctions on certain trading countries within the CARICOM bloc.
Singling out Carla Barnett, the new CARICOM Secretary-General at the GMSA event, Ali said that Guyana should not be dubbed as the “food basket” of the Caribbean while it is being blocked by countries and their unfair impositions.
On Tuesday, Ali addressed the Trinidad and Tobago Manufacturers’ Association (TTMA) President’s Dinner and Award Ceremony, where he also called on them to take steps for the removal of “nonsensical” barriers. He had said that based on the data he possesses, those barriers could be removed “overnight” if the countries are serious about building capacity and opening up opportunities for their private sectors.
“I have made the point and we too have to change. The government is going to invest in all the facilities, the testing labs, everything. We are going to build it state-of-the-art and remove all the excuses that exist, all the excuses. It is not because we want to have a bigger market share. All we are asking for is fairness in the system,” the Guyanese head of state told the local manufacturing bloc.
The President also told the GMSA that it needs to be prepared to take advantage of the opportunities to meet demands. He urged them to follow the policies of the government, while noting that all of them have been looked at and evaluated by the International Monetary Fund (IMF), World Bank and Inter-American Development Bank (IDB).
Strategic partnerships
During his address to the manufacturing and services fraternity, GMSA’s President Rafeek Khan related that while the association’s membership has grown by 20%, there is a disconnect between small enterprises and their participation in the emerging market opportunities.
He also said that businesses now have to face the reality that Guyana “possesses limited industrial capacity for manufacturing” and depends more on the importation of goods to satisfy demands. On that note, he urged the fraternity to transition their economic mindset from being a predominantly trading country to a production one.
Responding to the call, and tailoring his address to meet the theme of the event “Changing the Paradigm for Advancing Sustainable Industry Transformation and Growth”, President Ali urged the Manufacturing Association to have an honest evaluation of the industry and come up with solutions to make it more sustainable. He further urged the association to identify the gaps in the industry and come up with a solution to bridge those gaps while simultaneously pledging his government’s support for the creation of the policy framework to accommodate the bridging.
“We are taking it step by step, strategic partnership, bridging the gap and then building the strategic outcome and this is a very important conversation in the context of your theme…changing the paradigm, businesses, manufacturing sector. What is the outlook for the manufacturing sector? What are the industries you want to target and what is your strategic approach in achieving this outcome? What is the government role in helping you to achieve the outcome?” Ali questioned.
“You spoke about the challenges of small and medium-sized businesses but do the environment and the opportunities that we’re talking about create a hindrance to small and medium-sized businesses because of competitive advantages?” he further questioned.
He urged small businesses to form themselves into corporations to strategically position themselves to take advantage of available opportunities.
“Yes, the family businesses are good. But time is changing, circumstances are changing and if 10 small businesses can come together and take away 35% or 30% share in that market, aren’t they better of? There is a better competitive advantage but this has to be led strategically by the leaders in the industry,” he explained.
Ali said that his government is willing to engage any person with an idea to give Guyana the competitive edge as well meet demands.
“At the end of the day, we have to build one common theme in this country. We are all winners…We have to develop a winning culture. In this room, how do we see ourselves? Do we see ourselves as competitors or members of a manufacturing industry, who no doubt will have to come together…if we want to win, we have to come together and build the capacity and the industry to win and we can do it,” Ali said.
The GMSA, at the event, also awarded several of its members for the strides they have made for the year. President Ali handed out three awards as well – President’s Export Achievement Award to Superior Woods, Award for Excellence to GAICO Construction Inc, and Award for Excellence to Corn and Soya Bean Consortium-Doublay Ranch.
