GMSA welcomes export incentive, again laments shipping woes 

The Guyana Manufacturing and Services Association (GMSA) has welcomed new export incentives announced in the 2026 National Budget, describing them as a timely measure to support local manufacturers.

In the budget presentation, Finance Minister Dr Ashni Singh announced that government will expand the list of products eligible for export allowances to include timber value-added products under the forestry subsector. The measure is expected to enhance the competitiveness of exporters by lowering their effective tax burden, allowing them to price goods more competitively in international markets while encouraging value-added production.

GMSA’s President Rafeek Khan said export incentives have long been advocated by the Association and welcomed the government’s decision to act on the proposal.

“The export incentive was a measure proposed by the Guyana Manufacturers and Services Association,” Khan said at a press conference on Wednesday.

Such a measure, he explained, was particularly crucial to help companies cope with the fallout from United States tariffs on Guyanese exports. Khan said local manufacturers initially absorbed some of the additional costs but were eventually forced to raise their prices.

“As you know, the US tariffs have really impacted exports to the United States. These export incentives will help cushion some of the additional costs manufacturers are having to pass on to consumers for the export market,” he said.

Despite the challenges, Khan said export demand has remained strong.

“So far, we have not seen any major pushback. Our export demand is continuing to grow,” he said.

He emphasised the importance of exports to national development, noting that without a strong export sector, economic growth and foreign currency earnings would be constrained.

“Without exports, we cannot grow our GDP in a certain manner, and we cannot get the foreign currency that we need. So we must keep improving exports,” Khan said.

Under the new incentive structure, companies exporting as little as 10 per cent of their output will qualify for benefits, with greater incentives available to firms exporting up to 75 per cent or more. Khan explained that the more a company exports, the greater the reduction in corporate taxes it can receive.

SHIPPING WOES REMAIN

Meanwhile, GMSA’s Vice President, Ramsay Ali said shipping costs remain one of the most serious challenges facing local businesses.

Guyana’s ports, Ali noted, are unable to accommodate larger vessels, forcing exporters to rely on transshipment through Trinidad and Jamaica. As a result, shipping costs have climbed sharply, nearly returning to post-COVID costs.

“It is almost US$10,000 to US$12,000 to ship a container from the quarries,” Ali said, compared to approximately US$6,000 before the pandemic.

Beyond cost, Ali highlighted the unreliability of shipping schedules, which has forced companies to hold larger inventories and invest in expanded warehousing.

To address these challenges, he said, collaboration is essential.

In response to rising international shipping costs, the Government announced in the 2026 Budget that it will once again extend its measure to calculate import taxes using pre-pandemic freight charges. First introduced in 2021, the policy has saved consumers more than $28 billion to date.

The measure will be extended for another 12 months, from January 1 to December 31, 2026, at an estimated cost of $6 billion annually.