By Hon. Albert Baldeo:
U.S. Ambassador Nicole Theriot is advocating for American commercial interests. Our Government must defend Guyanese interests with equal resolve. Guyana’s oil wealth must secure its people’s future and not become an invitation for foreign companies to demand ever greater concessions.
Now, as the United States seeks more tax incentives and other concessions for American firms entering our market, the Government must answer a fundamental question: how much more must Guyana give away to attract investors, and what guarantees do Guyanese have of a fair return?
The 2016 ExxonMobil agreement is a warning. It provides for the Government to meet the contractors’ income-tax obligations from its share of profit oil. Those payments must not be presented as additional revenue contributed from the companies’ own pockets. A signed agreement cannot place an unequal bargain beyond scrutiny.
Guyana should also welcome competition from every part of the world, not only from the USA, embracing the time-honored principles of a free, open capitalism style process. In an open, competitive market, priority should go to companies offering the strongest commitments to manufacturing, technology, services, decent employment, skills transfer and local purchasing. Nationality alone should confer no entitlement to preferential treatment.
Every incentive must earn its place. Its economic value, duration and contribution to national development must be clear, published and measurable. Concessions should expire, commitments should be enforceable, and companies that fail to deliver should lose their benefits, while local businesses deserve fair access to support.
Meanwhile, the Government must lower energy costs, strengthen infrastructure and develop our workforce. These improvements build a competitive economy and provide the foundation for mutually beneficial investment partnerships.
Every dollar surrendered in concessions is public revenue forgone. Guyanese deserve proof that the return justifies the sacrifice.
Our oil is finite. Our development needs are urgent, but we cannot squander this unique opportunity by bargaining away tomorrow’s prosperity for today’s investment conveniences.
Albert Baldeo, Community Leader, Judicial Delegate, Little Guyana, Queens, NY, USA
President: One Guyana, Beyond Borders