United Kingdom-based local content expert, Dr Michael Warner, has underscored the importance of Guyana’s draft local content policy providing a level playing field for both local and foreign investors so as to avoid any breaches of the World Trade Organisation (WTO).
Provisions under the WTO TRIMS Agreement bar against measures that discriminate against suppliers who are foreign investors from other WTO Member States in favour of suppliers who are nationals of the host country.
“Leave the canvas wide for different class of alliances … The more the policy is interpreted to give direct preferences of the market to local suppliers … the more likely it is you’re in breach of WTO rules…,” Warner cautioned.
The British specialist was at the time making a presentation to local stakeholders in the Private Sector on the best practices in implementing a local content policy. He is currently in Guyana working with the Centre for Local Business Development – a global developer. The event hosted by Development Alternatives Incorporated (DAI) on Wednesday at the Pegasus Hotel saw the attendance of representatives from the Private Sector and legal fraternity as well as officials from ExxonMobil. The US oil giant has been successful in its offshore exploration activities in Guyana, thus paving the way for first oil in 2020.
Having examined Guyana’s local content policy, Dr Warner noted that the draft document was “heading in the right direction”. However, he pointed out that the focus would now have to be on the implementation of the policy.
According to Dr Warner, there needs to be a balance in pushing local content.
“But I think Governments are maturing … Politicians and the policy makers have to deliver the expectations of their society … and the two can come together, especially in a place like Guyana, where relatively people meet and talk…,” he posited.
While further warning against Guyana falling victim to the ‘Dutch Disease’, the British expert outlined that the entire Guyana would have to work hard to maximise the opportunities that would become available, suggesting that extensive on-the-job training be done. “There’s going to be huge amounts of opportunities for local folks to raise their game and meet the standards of international requirements,” Dr Warner stated.
