GUYANA on Friday commenced loading 17,000 tonnes of paddy for export to Mexico following that Government’s decision to allow tax-free importation of 150,000 metric tonnes of paddy and rice products from outside of the North American Free Trade Agreement (NAFTA) member states.

The value of the contract is US$17.7M, the equivalent of approximately G$3.8B.

Witnessing the loading of the first shipment of rice to be sent under the Guyana/ Mexico rice agreement, at John Fernandes Wharf, was General Manager of the Guyana Rice Development Board (GRDB), Allison Peters.

She said the contract to export the paddy is between two private companies although the government to government export to the Mexican rice council is pending.

“We are due to visit them sometime later in the year with the hope of expanding on our exports,” she said.

The general manager said the first vessel will be loaded with 17,000 tonnes and the exporter has signed a contract for 60,000 tonnes to be shipped to Mexico, by next month.

Guyana will now be able to send paddy to the Spanish-speaking nation as the National Service of Health, Safety and Agro-Food Quality (SENASICA) recently approved imports of paddy from Guyana.

The SENASICA is currently processing Guyana’s sanitary and phytosanitary certificate to import rice.

Guyana is among a group of countries set to make bids for exports into the market and negotiations are currently ongoing between the ministers of agriculture from both countries, to ensure Guyana satisfies the necessary criteria to be part of the bidding process.
However, applications from countries can only be made in quotas of 10,000 metric tonnes, and each country is only allowed to apply for three quotas.

Representatives from the GRDB, the Guyana Rice Exporters and Millers Association (GREMA), along with private millers, earlier in the year attended the Expo Antad in Guadalajara, Mexico.

It was during this visit that Mexican Ambassador to Guyana and Plenipotentiary Representative to CARICOM, Ivan Sierra, made provisions for the team to have a liaison who related the information that was later published in the Mexican Official Gazette.

The Gazette stated that during the period January to December 2017, the Government of Mexico has granted approval for 150,000 metric tonnes of paddy and rice products to enter Mexico from outside of NAFTA, free of the payment of taxes.

Normally taxes for countries, other than NAFTA member states, trading with Mexico, are nine per cent on paddy and 20 per cent on rice products.