Guyana, US continuing talks to further reduce tariffs – VP

Vice President (VP) Bharrat Jagdeo has reiterated that Guyana and the United States (US) are continuing discussions on the possibility of a further reduction of the reciprocal tariff.
Last week, the White House revealed that the 38 per cent reciprocal tariff announced for Guyana in April has been reduced to 15 per cent.
Some sections of society were critical of the decision, arguing that Guyana could have secured a lower reduction.
During his press conference on Thursday, Jagdeo rejected those criticisms, noting that the current reduction is proof that the country’s economic diplomacy was effective.
He further noted that discussions are still ongoing, with hopes of further reducing the tariff to 10 per cent.
According to Jagdeo, the US authorities understand that the trade surplus between the two countries is largely from oil exports.
“They know that it’s almost entirely from the export of oil into the US. So given that, I think we have approached this matter differently… Now, unlike with some other countries which I think take a harder line, they understood that the [Guyana’s] surplus is as a result of the oil export, not any unfair currency practices or protective barriers in Guyana that have led to that situation which they accuse other countries of,” Jagdeo told reporters at his press conference last week.
Speaking on the issue at that press conference, Jagdeo had said that Guyana was still hopeful for a further adjustment.
“We’re still engaged in talks and discussions, and we hope upon the completion of those discussions that we can get back down to the 10 per cent. But we’re pleased that there was a downward adjustment,” Jagdeo had said.
Back in April, Guyana had been included on a list of countries facing reciprocal tariffs from the US, a measure that, once implemented, could have seen the cost of doing business increase and had resulted in the Government of Guyana reaching out to its partners in the US, seeking answers.
According to a chart US President Donald Trump read from, Guyana had a 38 per cent reciprocal tariff rate applied to its exports to the US in response to the 76 per cent tariff that Guyana was listed as imposing on US products.
However, the US then put a 90-day pause on these tariffs.
In May, Senior Minister with responsibility for Finance, Dr Ashni Singh, and a team from Guyana met with the US Trade Representative, Ambassador Jameson Greer, to discuss the tariff.
At the time, Jagdeo had revealed that the meeting focused on explaining the economic context of the surplus, including the nascent nature of Guyana’s oil and gas industry and the dominant role US companies play in its development.
“It is the quiet diplomacy that we’ll work through. And we’re working with the US Government so that they understand why the trade surplus arose. It’s mainly because of our export of oil, and most of that is from Exxon, a US company,” Jagdeo had said.