Guyana. A. Definitions and sources of data

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1 Guyana A. Definitions and sources of data Foreign direct investment (FDI) data in Guyana are collected by the Central Bank. The definition of FDI used in Guyana follows the one recommended in the Balance of Payments Manual: Fifth Edition of the International Monetary Fund. FDI is generally afforded national treatment. Foreign investors have equal access to privatization opportunities. In terms of exchange control, the Guyana dollar is fully convertible and there are no limits on inflows or outflows of funds, although there are occasionally spot shortages of foreign currency. The Government eased restriction on the establishment of foreign currency bank accounts in Guyana, a step that has significantly simplified the process of transferring money, since funds can now be wired in and out of the country electronically without having to go through cumbersome foreign exchange control procedures. The Government of Guyana provides three forms of incentives to foreign investors: general incentives, special incentives and sectoral incentives (applicable to the following sectors: agriculture, manufacturing, forestry, mining, tourism, fisheries, housing, information and communication technology and garments and textiles). The following general incentives target the productive sectors: Zero-rate on customs duty and consumption tax on most items of plant, machinery and equipment; Zero-rate on customs duty and consumption tax on raw materials used in the production of goods for export. Under a duty-drawback system, for qualifying firms and products, consumption tax paid on imported raw materials may be remitted; Unlimited loss carry-over of losses from previous years; Accelerated depreciation on plant and equipment; Double taxation treaties currently exist with the United States, the United Kingdom, Canada, and members of the Caribbean Community Common Market (CARICOM); and Full and unrestricted repatriation of capital, profits and dividends. Guyana is one of the fifteen members of CARICOM. In addition, (foreign) investors can benefit from agreements with Venezuela, Colombia and the Dominican Republic (CARICOM/Venezuela Agreement, Colombia Agreement, and Dominican Republic Agreement). Finally, Guyana is also a member of the Caribbean Basin Initiative (CBI) and CARIBCAN.

2 B. Statistics on FDI and the operations of TNCs

3 Table 1. Summary of FDI Variable Inward Outward 1. FDI flows, (annual average) FDI flows as a percentage of GFCF, (annual average) FDI stock, FDI stock as a percentage of GDP, Sources : Based on tables 3 and 4 and UNCTAD, FDI/TNC database. Note: Data for 2003 are estimates.

4 Table 3. FDI flows, by type of investment, Inward investment Outward investment Reinvested Reinvested Year Equity earnings Other Total Equity earnings Other Total Sources: UNCTAD, FDI/TNC database. FDI inflows are based on information from Bank of Guyana for ; International Monetary Fund, Balance of Payments CD ROM, January 2004, for , and and UNCTAD estimates. FDI outflows are UNCTAD estimates.

5 Table 4. FDI stock, by type of investment, Year Equity Inward investment Intracompany Reinvested earnings loans Total Equity Outward investment Intracompany Reinvested earnings loans Total Sources: UNCTAD, FDI/TNC database. Notes: Inward stock is an accumulation of inflows since Outward stock is an accumulation of outflows since 1993.

6 Table 5. FDI flows in the host economy, by industry, (Millions of US dollars) Sector / industry Total Primary Agriculture, hunting, forestry and fishing Mining, quarrying and petroleum Mining and quarrying Secondary Tertiary Trade Transport, storage and communications Finance Unspecified Source : Bank of Guyana. Note: Totals may not be comparable to those shown in table 3 because the tables have been revised at different times.

7 Table 6. FDI flows in the host economy, by geographical origin, Economy Belgium / Luxembourg China France Malaysia Republic of Korea United States Source : UNCTAD, FDI/TNC database. Notes: Data are based on information reported by the economies listed above. Data for China are on an approval basis. Table 9. FDI flows abroad, by geographical destination, Economy Brazil China France United States Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 12. FDI stock in the host economy, by geographical origin, Economy Canada China Malaysia Republic of Korea United States Source : UNCTAD, FDI/TNC database. Notes: Data are based on information reported by the economies listed above. Data for China are on an approval basis. Table 15. FDI stock abroad, by geographical destination, Economy Brazil United States Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above. Table 23. The number of affiliates of foreign TNCs in the host economy, by geographical origin, Economy Republic of Korea United States Source : UNCTAD, FDI/TNC database. Note: Data are based on information reported by the economies listed above.

8 Tables 30,35,40,45,50,55. Assets, employment, wages and salaries, sales, value added and profits of affiliates of United States TNCs in Guyana, (Millions of dollars and thousands of employees) Table no. Variable Assets Employees Wages and salaries Sales Value added Profits before taxes Source : UNCTAD, FDI/TNC database. Notes: Data are based on information reported by the United States. Except for employees, data refer to majority-owned affiliates only.

9 Table 88. Largest affiliates of foreign TNCs in the host economy, 2002 (Millions of dollars and number) Company Home economy Industry Sales Employees A. Industrial Omai Goldmines Ltd. Canada Mining and quarrying National Milling Company of Guyana, Inc United States Food Friendship Oxygen Ltd. United States Chemicals.. 23 Demerara Tobacco Co. Ltd. United Kingdom Tobacco.... B. Tertiary Guyana Telephone & Telegraph Co. Ltd. United States Telecommunications Geddes Grant (Guayana) Ltd. Trinidad & Tobago Trade Associated Industries Trinidad & Tobago Other business services C.C.S. (Guyana) Ltd Bahamas Trade.. 65 Ansa Mcal Trading Ltd. Trinidad & Tobago Trade.. 47 Mcal Trading Ltd. Trinidad & Tobago Trade.. 46 Farfan & Mendes Ltd. Trinidad & Tobago Trade.. 40 Grace Kennedy Guyana Ltd. Jamaica Trade.. 35 Caribbean Chemicals Guyana Ltd. Trinidad & Tobago Trade.. 24 Guyana Broadcasting Corp United Kingdom Telecommunications.... Rentokil Initial Guyana Ltd United Kingdom Other business services.... Esso Standard Oil Sa Ltd United States Other business services.... Societe Gyuanaise de L Air Liquide France Other business services.... Air Liquide Spatial Guyana France Other business services.... Tropical Power (Guyana) Ltd. Trinidad & Tobago Other business services.... C. Finance and Insurance Assets Employees National Bank of Industry And Commerce Trinidad & Tobago Finance Sources: The Banker's Almanac, 2003 (London, Reed Information Services, 2003); Thomson Analytics ( Who Owns Whom, 2003 (London, Dun and Bradstreet, 2003); and information from ECLAC.

10 C. Legal framework for FDI I. National policy framework Companies Act 1991 Amendment: 1995 Amendment: 1997 Source: 5 March 2004 Banking (Amendment) Act 1993 Financial Institutions Act 1995 Amendment: 1996 Financial Institutions (Provisions for Conversion into Public Companies) Act 1996 Financial Institutions Act 1998 Dealers in Foreign Currency (Licensing) Act 1995 Amendment: 1995 Co-operative Financial Institutions (Amendment) Act 1995 Capital Issues (Control) Act 1995 Guyana's Arbitration Act 1931 Customs (Amendment) Act 1993 Amendment: 1994 Amendment: 1999 Fiscal Enactments (Amendment) Act 1993 Amendment: 1994 Amendment: 1995 Amendment: 1996 Amendment: 1997 Amendment: 2002 Amendment: 2003 Amendment: No Foreign Exchange (Miscellaneous Provisions) Act 1996

11 Bank of Guyana Act 1995 Amendment: 1996 Bank of Guyana Act 1998 Banking Laws (Amendment) Act 1995 Tax (Amendment) Act 1993 Amendment: 1994 Income Tax (In Aid of Industry) (Amendment) Act 1998 Amendment: 2000 Corporation Tax Act 1998 Capital Gains Tax Act 1998 Property Tax Act Chapter 81: Insurance Act 1998 Guyana Manufacturing and Industrial Development Agency (Repeal) Act 1993 Trade Mark Act 1998 Environment Protection Act 1996 Guyana Energy Agency Act 1997 Energy Sector (Harmonisation of Laws) Act 2002 Electricity Sector Reform Act 1997 Electricity Sector Reform Act 1999 Business Names (Registration) (Amendment) Act 2000

12 Procurement Act 2002 Procurement Act 2003 II. International framework 1. Multilateral and regional instruments Paris Convention for the Protection of Industrial Property, 1995 Source: 24 Feb 2004 Convention establishing the Multilateral Investment Guarantee Agency (MIGA) of 11 October 1985 Source: Depository of the original convention: World Bank; International Legal Materials, vol. XXIV (November 1985), p Convention on the Settlement of Investment Disputes Between States and Nationals of Other States 1965, signed 3 July 1969 (effective 10 August 1969) Source: 24 Feb 2004 Law 170 ratifying Agreement on Trade-Related Aspects of Intellectual Property Rights 1994, (effective 1 January, 1995) General Agreement on Trade in Services 1994, (effective 1 January, 1995), Fourth Protocol to the General Agreement on Trade in Services 15 February 1997, Fifth Protocol to the General Agreement on Trade in Services 12 December 1997 The ILO Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy, adopted 16 November 1977 The Caribbean Community and Common Market (CARICOM) established by the Treaty of Chaguaramas 1973 Caribbean Investment Fund Act Source: Source: 5 March Bilateral treaties 1. Bilateral investment treaties for the promotion and protection of foreign direct investment with Germany 1989, United Kingdom 1989, Cuba 1999 Source: UNCTAD database on BITs and DTTs 2. Bilateral treaties for the avoidance of double taxation with Canada 1985 Income and Capital, United States 1990 Cooperation and Exchange of Information, United Kingdom 1992 Income and Capital, United States 1992 Cooperation and Exchange of Information Source: UNCTAD database on BITs and DTTs

13 D. Sources of information Official 1. Bank of Guyana: Secondary 1. Anonymous, Guyana to privatize its bauxite industry, Journal of Commerce, 13 November 1998, p. 4.A. 2. Anonymous, A 180-degree turn, Euromoney, September 1994, pp Canute, James, Market prospects, Business Latin America, 8 July 1996, vol. 31, No. 27, pp Ferris, Stephen P., Rodney G. Thompson, and Calin Valson, An analysis of foreign direct investment in Latin America: the case of the Guyanese economy, Indian Journal of Quantitative Economics, vol. 10, No. 1, 1995, pp Gafar, John, Growth, inequality and poverty in selected Caribbean and Latin American countries, with emphasis on Guyana, Journal of Latin American Studies, vol. 30, No. 3. October 1998, pp Hilaire, Alvin D. L., Economic stabilization in the Caribbean, Finance and Development, March 2001, vol. 38, No. 1, pp Ishmael, O., Investing in Guyana, Embassy of Guyana, 10 April ( 8. Simon, Helen J., No longer ignored, Business Latin America, 23 May 1994, vol. 29, No. 20, pp Trevor Hamilton and associates, Diagnostic evaluation of the enabling environment for private sector investment in Belize, Guyana and Suriname, CARICOM Secretariat, 1997.