The World Trade Organization (WTO) conducted a trade policy review of Guyana on 15 and 17 September 2015. To prepare for the review a report was written by the WTO Secretariat.
Guyana’s economic performance has improved in recent years with estimated GDP growth of 5.6% in 2014. In the view of the WTO sustained economic growth depends on continuing with prudent macroeconomic policies and structural reforms. The WTO report notes that recent measures to improve foreign direct investment (FDI) into Guyana include lowering corporation tax rates, restructuring property registration fees and setting up a credit report system. Tax incentives for FDI include income tax holidays and exemptions from value added tax and tariffs.
The Ministry of Foreign Affairs is responsible for trade policy. The National Trade Strategy aims to enhance market access for exports. Guyana is a member of the Caribbean Community (CARICOM), a regional trading bloc. Negotiations have begun for a trade agreement between CARICOM and Canada.
The simple average applied MFN tariff rate in 2014 for imports into Guyana was 12.1% while the average bound rate was 58.3%. The bound tariff rate is the maximum level to which the MFN tariff could rise on a given commodity. 9.5% of tariff lines are duty free while 52.2% of tariff lines are subject to a tariff between 0% and 5%. The simple average applied MFN tariff for WTO non-agricultural products was 10%, but for WTO agricultural products the average applied MFN tariff was 22.7%.
VAT and excise tax apply to certain domestically produce or imported goods. In some categories a zero rate of VAT applies to domestic goods but not to imports. According to the WTO the tariffs and other taxes collected from imports amounted to 45.2% of total tax revenue in 2013. Guyana has continued to streamline customs procedures and the length of time required for completion of procedures has been reduced. A national committee was established in April 2015 to coordinate the implementation of the WTO Agreement on Trade Facilitation.