GUYANA has exported 88,000 tonnes of paddy to Mexico in 2017, making Mexico the single largest destination of Guyanese grain exports.
In July, Guyana loaded 17,000 tonnes of paddy for export to Mexico following that country’s 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 that contract is US$17.7M, the equivalent of approximately G$3.8B.
Guyana has been able to send paddy to the Spanish-speaking nation as the National Service of Health, Safety and Agro-Food Quality (SENASICA) approved imports of paddy from Guyana. The SENASICA is also processing Guyana’s sanitary and phytosanitary certificate to import rice.
Representatives from the Guyana Rice Development Board (GRDB), the Guyana Rice Exporters and Millers Association (GREMA), along with private millers, earlier in the year attended the Expo Antad International Trade Fair in Guadalajara, Mexico. It was during that 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. It was in March 2017, that the Embassy of Mexico and the senior leadership of the GRDB worked together to organise the first business mission to Mexico. That mission aimed at establishing contacts with large supermarket chains in Mexico.
A country booth was set up at the Expo ANTAD International Trade Fair in Guadalajara; the largest trade fair in Latin America with a focus on supermarkets. For approximately 35 years, the fair has brought together senior managers and sourcing executives from 40 countries.
It was through the Mexican Embassy that initial appointments with large supermarkets in Mexico were facilitated and through which permits to introduce samples were achieved. The business contacts at Expo ANTAD 2017 made it possible to begin exporting Guyana’s paddy to Mexico.
In 2015, Prime Minister Moses Nagamootoo had traveled to Mexico for the Open Governance Global Summit held in Mexico City and there he met with Mexico’s Agriculture Minister, Jose Calzada, on the matter. Nagamootoo’s meeting followed concerns raised by rice farmers over the loss of the Venezuelan rice market. Calzada had advised PM Nagamootoo, after representation was made, that Mexico is keen on buying Guyana’s rice and assured that steps would have been tracked to open market for Guyana’s rice in Mexico. Mexico imports some one million tons of rice annually.
Meanwhile, as a result of the success, the Mexican Embassy has teamed up with the GRDB and COPA Airlines to ensure that Guyana has a bigger presence at the Expo this year. The Expo will take place from March 6-8 and more than 50,000 people from 30 countries are expected to attend.