Partial Scope Agreement Guyana Brazil

On August 17, 2020, Guyana and Brazil signed a Partial Scope Agreement (PSA) aimed at boosting trade between the two countries. The PSA covers a wide range of products, including agricultural goods, chemicals, and plastics.

This agreement is significant for both countries as it marks an important step in enhancing economic cooperation and promoting regional integration. The PSA is expected to provide new opportunities for businesses in Guyana and Brazil to expand their trade and investment prospects.

The PSA is a type of trade agreement that covers only a limited number of products or services, unlike a Free Trade Agreement (FTA) that covers a broader range of items. The PSA can be seen as a stepping stone towards an FTA between Guyana and Brazil.

The agreement is expected to benefit Guyana`s agro-processing and value-added sectors. Brazil, on the other hand, is expected to benefit from increased access to Guyana`s oil and gas sectors. Both countries will benefit from increased trade and investment flows, job creation, and economic growth.

The PSA is a significant development for Guyana, as it provides the small South American nation with access to the larger Brazilian market. This access will help diversify Guyana`s economy and create new opportunities for businesses in the country.

The PSA also provides Brazil with an opportunity to deepen its economic engagement in the Caribbean region. Brazil`s interest in expanding trade with Guyana is driven by its desire to secure new markets for its exports and reduce its dependence on traditional trading partners.

In conclusion, the Partial Scope Agreement between Guyana and Brazil is a significant development that has the potential to boost trade and investment flows between the two countries. The agreement provides a framework for enhanced economic cooperation and regional integration, which can create new opportunities for businesses and drive economic growth in both countries. The PSA can be seen as a stepping stone towards a broader Free Trade Agreement, which can further deepen economic engagement between Guyana and Brazil.