GUYANA will be seeking to capitalise on the opportunities presented for increased trade with the United Kingdom (UK), opportunities presented by the departure of the UK from the European Union (EU), according to Minister of Foreign Affairs and International Cooperation, Hugh Todd.

As reported by the BBC, the UK voted to leave the EU in 2016 and officially left the trading bloc — it’s nearest and biggest trading partner — on January 31, 2020. Despite that, both the UK and the EU have agreed to maintain many of the relations until December 31, so that there would be enough time for both sides to agree to the terms of a new trade deal.

“The post-Brexit era provides a lot of opportunities for Guyana, given the fact that the UK would have much more policy space to work with; so they won’t be confined to the rules of engagement under the EU umbrella,” Minister Todd affirmed in a recent interview with the Guyana Chronicle.

With its increased autonomy, he explained that the UK now has the ability to strengthen bilateral relations with a number of its partners, including Guyana. Already, the UK is Guyana’s largest trading partner in Europe and its sixth largest trading partner overall. Some 8.8 per cent of all of Guyana’s exports — including sugar, rice and rum — goes to that nation.

“I’ve had discussions with the Minister of International Trade, [Ranil Jayawardena]… and he assured me that the UK is very focused on its trade relations, not only with Guyana, but with the rest of CARICOM and he’s already committed that they’re going to remove all of their barriers and hindrances that affect trade with Guyana and the UK,” Minister Todd highlighted.

In 2008, the 15 Caribbean countries organised into a group called the Caribbean Forum (CARIFORUM) and the EU’s 28 countries signed on to an Economic Partnership Agreement (EPA) to foster trade relations. Since then, trade between CARIFORUM states and the UK has been governed by the CARIFORUM-EU EPA.

As of December 31, 2020, however, the CARIFORUM-EU EPA ceased to apply to trade between CARIFORUM states and the UK. Resultantly, on December 30, Senior Minister in the Office of the President with responsibility for Finance, Dr. Ashni Singh, signed and issued a Ministerial Order that gives effect to the CARIFORUM-UK EPA. This newer EPA serves as the fundamental mechanism that ensures continuity in the existing preferential trading and investment relations and facilitates uninterrupted market access and other EPA benefits for CARIFORUM states in trade with the UK.

Recently, the Foreign Affairs Ministry explained that the CARIFORUM-UK EPA is a roll-over agreement from the CARIFORUM-EU EPA as it replicates all relevant sections of the existing EPA with necessary technical and administrative changes to make the agreement operable in a CARIFORUM-UK context.

“I think we’re very optimistic that this new relationship, [the] UK having exited the union, would provide a lot of opportunities for us in terms of our trade relations,” Minister Todd affirmed.

The Foreign Minister noted that Guyana will continue to enjoy duty-free, quota-free access for its sugar to the UK market. Additionally, other provisions related to goods and services’ liberalisation, investment, and development cooperation will continue to apply.

Even as Guyana looks to capitalise on the opportunities presented by the UK’s departure from the EU, Minister Todd highlighted that Guyana’s relations with the EU will not be affected.

“We’ve already had discussions with the [EU Ambassador, Fernando Ponz Canto] here in Georgetown and all indications show that we will continue to have very warm and productive relations with the EU,” he said.