Guyana is preparing to defend its trade policy against a finding by the United States Trade Representative (USTR) that it is importing products made with forced labour. This situation poses the risk of a 12.5 percent tariff on new exports to the U.S., according to Foreign Secretary Robert Persaud.
Persaud stated that during the public hearing, Guyana will present information regarding its efforts to prevent and prohibit all aspects of forced labour, including the issue of forced labour imports. The USTR has scheduled hearings for July 7 to discuss the proposed actions related to these investigations.
The Guyana government, through the Ministry of Labour and Manpower Planning, has submitted a request to participate in the public hearing in Washington, D.C. This is in response to statements made in a recently published USTR report concerning Section 301, which investigates various economies’ acts, policies, and practices related to the prohibition of importing goods produced with forced labour.
Persaud emphasized that the U.S. is one of Guyana’s largest and longstanding trading partners, and the government is committed to eliminating trade obstacles. He stated, “The Government of Guyana remains committed to working closely with the United States to address trade barriers through meaningful dialogue and explore new areas of trade and investment.”
If the USTR’s proposal is implemented, the new tariff would also affect 59 other countries, including The Bahamas, the Dominican Republic, and Trinidad and Tobago. For economies that impose a prohibition on forced labour imports and have committed to enforce such a prohibition through reciprocal trade agreements, the USTR proposes a 10% additional duty. For all other economies, the proposed rate is 12.5%.
Former head of the U.S. Foreign Commercial Service, Arun Venkataraman, noted that the most significant harm from the tariff is likely to suppress new categories of exports from developing industries in Guyana, particularly in agricultural production. He mentioned that the overall impact of the tariff on Guyana’s exports is expected to be limited due to current exemptions for petroleum products and bauxite.
Source: demerarawaves.com
