A working group is to be established following a forum hosted by the World Trade Centre Georgetown in collaboration with the Embassy of Brazil in Guyana to explore trade and business opportunities between Guyana and Brazil, particularly the prospects and benefits of Guyana becoming a full member of MERCOSUR.
MERCOSUR is a South American trade and economic bloc established in 1991 to promote free trade, economic integration, and cooperation among member countries. Its main members include Brazil, Argentina, Paraguay, and Uruguay. The bloc seeks to reduce trade barriers and expand regional markets, creating opportunities for increased exports, investment, and economic cooperation among participating countries.
According to a press release issued on Wednesday, the forum was held on Monday and featured Brazil’s Vice Minister in the Ministry of Foreign Affairs with responsibility for Economic and Financial Affairs, Ambassador Philip Fox-Drummond Gough, as the keynote speaker.
In his presentation, Ambassador Gough highlighted the significant trade and investment opportunities Guyana could gain through full membership in MERCOSUR, including expanded market access to support the country’s export diversification efforts. He also called for stronger and broader trade relations between Guyana and Brazil.
The Ambassador further outlined several initiatives that could be pursued by the private sectors in both countries to better utilise the existing Partial Scope Trade Agreement between Guyana and Brazil, noting that the arrangement remains underutilised.
The release stated that the forum generated lively discussion among participants from both the public and private sectors, many of whom acknowledged limited awareness of the provisions of the agreement, including uncertainty regarding which products qualify for special treatment.
Some participants indicated that although they currently conduct business with Brazil, there remains uncertainty within the Brazilian business community as to whether the agreement is fully operational. Others expressed concern that administrative procedures required by the Guyana Revenue Authority to access the agreement’s benefits are overly complicated, resulting in some importers opting to pay the applicable duties instead.
Co-Founder of the Guyana Women’s Chamber of Commerce, Lyndell Danzie-Black, pointed to ongoing efforts to establish stronger linkages with women-owned businesses in Brazil, noting the potential these partnerships hold for expanding bilateral trade.
Deputy Chief Executive Officer of Demerara Distillers Limited, Vasudeo Singh, also identified challenges associated with exporting rum to Brazil under the current agreement.
Participants, the release said, acknowledged the significant opportunities that broader access to MERCOSUR markets could create, while emphasising the importance of fully operationalising the existing Partial Scope Agreement as a foundation for maximizing future benefits.
Director of the Centre for International and Border Studies, Dr. Mark Kirton, stated that “while bilateral trade and economic links between Guyana and Brazil are growing significantly, the changing regional economic landscape has brought with it the need for CARICOM to urgently consider diversification of its trade relations.”
He added that “in this regard, the region can consider utilizing some of the elements of the recently established EU-MERCOSUR agreement as a model,” while suggesting the design of an agreement capable of reducing some of the asymmetries in current trade relations.
To advance these efforts, the World Trade Centre Georgetown proposed the establishment of a working group to engage with the Embassy of Brazil, the Ministry of Foreign Affairs and International Cooperation of Guyana, and the Guyana Revenue Authority.
According to the release, the working group’s objective will be to provide the local private sector with greater information and guidance on the agreement, while also exploring more simplified and efficient procedures for utilizing its provisions.
