Guyana engaging US Govt to ensure favourable trade agreement – VP

– says lobbyist may be needed to represent C’bean region

The Guyana Government will continue to engage its United States (US) counterpart to ensure that trade relations remain favourable not just between the two countries but the wider Caribbean region.
This commitment was given by Vice President Dr Bharrat Jagdeo amid plans by the US Government to impose tariffs on imports from several countries including Canada, Mexico and China.
In light of this potential tightening of global trade, Jagdeo told reporters at his press conference on Thursday last that the Government is paying attention to the issue, which could see the potential tightening of global trade.
“Clearly, we have to remain engaged with the US Government in ensuring that there is, for the Caribbean countries particularly, a favourable environment for our trade with the US. You know, we’ve had some special treatment with the US for a long time and we hope that those don’t get eroded,” the Vice President stated.
He added that the recent engagement between President Dr Irfaan Ali and newly appointed US Secretary of State, Marco Rubio, was crucial in ensuring that the Donald Trump-led US Administration understand very early on that the Caribbean cannot distort global trade since the regional trade figures are below some de minimis level.
On January 27, President Ali had a telephone conversation with the new US Secretary of State. The Guyanese leader said he reiterated Guyana’s support for the extended partnership with the US in energy, security, democracy, and regional prosperity.
In a brief statement, the State Department Spokespersons, Tammy Bruce, said during their call, Secretary of State Rubio and President Ali addressed the crisis of illegal migration and agreed to jointly address this regional imperative and challenge.
The Secretary also affirmed the US’s steadfast support of Guyana’s territorial integrity in the face of threats from the Nicolás Maduro-led regime in Venezuela.
Nevertheless, on Thursday, VP Jagdeo told reporters at his press conference that the tightening of global trade can have negative effects and maybe through diversion of trade, positive effects for some places.
He explained that if some markets are closed off, the US in this case, and there is an oversupply of production from the tariffed countries, then prices can come down for the other markets across the globe.
However, the Vice President pointed out that that Guyana will have to rely on its exports for prosperity.
Jagdeo noted that US, because of its huge purchasing power, could drive their prosperity and economic growth from internal demand. Even China, he added, at the beginning could not have done this but has since reoriented and has bolstered domestic demand – something which they were able to do given the scale of its population.
“Small countries cannot do that. They rely heavily on export markets for their products to enhance prosperity. That is why we have to keep our rates competitive – our agriculture, our manufacturing, a whole range of activities – that they are done competitively, that our exchange rate policy doesn’t affect their global competitiveness,” he stated.
The Vice President went onto highlight the importance of having a sympathetic environment for products out of the Global South.
“That is why we’ve always supported special and differential treatment for countries coming from the Global South. Should that change and the tariff regime changes globally for the small countries, I don’t think President Trump has said that he wants that done but should that change, it could adversely affect many countries.”
“So, it’s up to us to ensure that the US Administration – President Trump’s Administration, don’t allow the issues that they have with Canada and Mexico, which are large global trading partners to affect us. And it requires probably lobbyists not just for Guyana but also for the [Caribbean] region to engage with the new US Administration to ensure that those complexities are in their thinking when they announce trade policies,” Jagdeo asserted.
While the US Government has gone ahead with its implementation of a 10 per cent tariff on imports from China, there has been a 30-day delay on the 25 per cent tariff to be imposed on imports from Canada and Mexico. This latter move has brought some level of relief but this was short-lived as President Trump threatens to hit more countries with similar tariffs.
Based on a BBC report, President Trump said on Friday that he was planning “reciprocal tariffs” on other nations in the coming days as he aims to reshape the US’ global trade relationships.
The President, the article stated, did not say which countries could be targeted but suggested it would be a broad effort that may also help solve US budget problems.