U.S. imports from Guyana in 2010 pegged at US$ 302.1M

The United States imports from Guyana in 2010 totalled US$ 302.1 million, while exports were pegged at US$ 280.2 million, Washington said in the “Ninth Report to Congress on the operations of the Caribbean Basin Economic Recovery Act 2011”.

Trinidad and Tobago has become the leading source of United States imports entering under the Caribbean Basin Initiative (CBI) tariff preferences, displacing the Dominican Republic, according to the latest report issued by the Office of the United States Trade Representative.

The United States imported US$ 2.2 billion from T& T under CBI tariff preferences in 2010, an increase of 43.8 per cent from 2009. “Imports under CBI tariff preferences from Trinidad and Tobago are dominated by petroleum and methanol, and 75 per cent of imports of these two goods entered under CBI provisions in 2010. U. S. imports of petroleum under CBI tariff preferences increased in value in 2010 because of both higher volume and higher prices. U. S. imports of methanol increased in value mainly because of higher prices.”

The report noted that Haiti became the second leading source of U. S. imports entering under CBI tariff preferences in 2009 after Costa Rica left CBI. It said that apparel accounts for over 90 per cent of U. S. imports from Haiti, and almost all imports of apparel from Haiti enter under CBTPA or the two HOPE Acts. Imports of apparel from Haiti at preferential tariff rates increased nearly 26 per cent in 2009, as utilisation of preferences under the HOPE Acts became established.

The report noted that the January 2010 earthquake in Haiti slowed the growth of imports of apparel under preferential tariffs to 0.7 per cent in 2010, but such imports surged 46 per cent in the January– August 2011 period compared to same period in 2010. Since Costa Rica left the CBI in 2009, Haiti has become the source of virtually all imports of apparel from CBI countries.

The Bahamas replaced Jamaica as the third leading source of U. S. imports entering under CBI tariff preferences in 2010 as imports of fuel ethanol from Jamaica plummeted and imports of apparel from Jamaica declined.

“Jamaica had been the major U. S. source of fuel ethanol in past years, but market conditions in 2009 and 2010 radically changed the profitability of fuel ethanol production in Jamaica, and there were no imports of fuel ethanol from Jamaica from March 2010 to June 2011,” the report noted. It said that after several years of decline, there were no U.S. imports of apparel from Jamaica under CBI tariff preferences in 2010. The United States continues to have a small amount of bilateral trade with many of the Caribbean economies.

“While the overall value of imports is small, imports under CBI tariff preferences account for relatively significant proportions of total U. S. imports from these countries. Cane sugar, nonmonetary gold, orange juice, papayas, and electrical machinery were some of the leading categories of CBI imports from the smaller Caribbean economies,” the report noted.

The Office of the United States Trade Representative said that although the CBI was initially envisioned as a programme to facilitate the economic development and export diversification of the Caribbean Basin economies, U. S. export growth to the region has been a “welcome corollary benefit”. It said that the value of total U. S. exports to CBI countries fell 38.4 per cent in 2009, but rose 27.6 per cent in 2010.

When only 2010 beneficiaries are considered, U. S. exports decreased 21.5 per cent in 2010. Collectively, at US$ 18.5 billion, the CBI region ranked 16th among U. S. export destinations in 2010 and absorbed 1.7 per cent of total U. S. exports to the world. “Panama, The Bahamas, the Netherlands Antilles, and Trinidad and Tobago were the principal markets for U. S. products in 2010, accounting for 72 per cent of U. S. exports to the CBI region in 2010,” the report said, noting that the United States exports a broad range of products to the CBI region. In 2010, the leading categories included refined petroleum products, aircraft, jewellery and jewellery parts, rice, and corn.

Guyana

Meanwhile, the report stated that despite the global financial crisis, the economy of Guyana has experienced five consecutive years of growth. Real GDP grew by 3.3 per cent in 2009, and by 3.4 per cent in 2010. Three activities have traditionally dominated Guyana’s economy: sugar, rice, and mining.

Sugar production plays a key role in Guyana, as a major contributor to both foreign exchange earnings and employment, the U. S. said, but noted that despite large capital investments and attempts at further mechanising production and expanding acreage, sugar output has been disappointing.

The report noted too that economic diversification is a key element in the government’s development strategy.

The report quoted the International Monetary Fund as saying that the Guyanese economy is particularly exposed to oil price movements, as it relies exclusively on imports for its oil consumption.

“In 2010, oil-related imports represented some 16 per cent of GDP and were a main driver in the widening of the external current account deficit.” Part of these imports (four per cent of GDP) is required for electricity generation by the public electricity company, Guyana Power & Light, which uses antiquated, energy intensive processes.

According to the report, Guyana has demonstrated a general commitment to undertaking its obligations under the World Trade Organisation (WTO) agreements, although it lags behind in the process of updating domestic laws and trade policies to reflect those obligations.