Suriname

Location : Northern South America, bordering the North Atlantic Ocean, between French Guiana and Guyana

Capital : Paramaribo

Languages : Dutch (official), English (widely spoken), Sranang Tongo (Surinamese, sometimes called Taki-Taki, is native language of Creoles and much of the younger population and is lingua franca among others), Hindustani (a dialect of Hindi), Javanese 

Area : 163,270 sq km

Land Use : arable land: 0.37%; permanent crops: 0.06%; other: 99.57% (2001)

Natural Resources : timber, hydropower, fish, kaolin, shrimp, bauxite, gold, and small amounts of nickel, copper, platinum, iron ore

Population : 438,144 (July 2005 est.)

Population below poverty line 70% (2002 est.)

Labour force : 104,000 (2003) 

Labour force participation rate : 23.74% of population (2003)

International Organisation participation : ACP, Caricom, CSN, FAO, G-77, IADB, IBRD, ICAO, ICFTU, ICRM, IDB, IFAD, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, ITU, LAES, MIGA, NAM, OAS, OIC, OPANAL, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WHO, WIPO, WMO, WTO

GDP per capita : U$4,300 (2004 est.)

GDP Real Growth Rate : 4.2% (2004 est.)

GDP sectoral composition : agriculture: 13%; industry: 22%; services: 65% (2001 est.)

Industries: bauxite and gold mining, alumina production, oil, lumbering, food processing, fishing

Industrial production growth rate : 6.5% (1994 est.) 

Agriculture - products : paddy rice, bananas, palm kernels, coconuts, plantains, peanuts; beef, chickens; forest products; shrimp

Exports : U$495 million f.o.b. (2002)

Exports - commodities : alumina, bauxite, sugar, bananas, rum, coffee, yams, beverages, chemicals, wearing apparel, mineral fuels

Exports - partners : Norway 29.3%, US 15.1%, Canada 12.5%, Belgium 10.2%, France 8.4%, UAE 6.1%, Iceland 4.3% (2004)

Imports : U$604 million f.o.b. (2002)

Imports - commodities : capital equipment, petroleum, foodstuffs, cotton, consumer goods

Imports - partners : US 26.2%, Netherlands 19.3%, Trinidad and Tobago 13.5%, Japan 6.6%, China 4.6%, Brazil 4.2% (2004)

QUALITATIVE TRADE PROFILE  

In 2001, the Government adopted the Multi-annual Development Plan (MOP 2001-2005) which states that one of Suriname's principal trade policy objectives is to continue the liberalization of trade and transport in order to enhance efficiency and reduce costs through increased competition. The cornerstone of Suriname's trade policy is the establishment of a trade and investment climate that is transparent, stable, and as liberal as possible while preserving the interests of the Surinamese economy and its business sector

During the Uruguay Round, Suriname bound some 30% of its tariff lines. The average bound rate is 18.4%. Suriname bound all agricultural products at a general ceiling rate of 20%, except for some products bound at lower rates. Other duties and charges on agricultural products are bound at 50%. The highest bound rate for non-agricultural products is 40%. Other duties and charges on non-agricultural products bound during the Uruguay Round are bound at 50%.

Suriname applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic.

The simple average applied MFN tariff rate as at April 2004 was 11.1% Suriname's tariff schedule comprises nine bands between 0 and 50%. Almost 60% of all tariff lines carry a rate of 5%; some 20% a rate of 20%; 6% a rate of 40%; and another 6% are duty free.

INSTITUTIONAL FRAMEWORK 

No single ministry or government agency in Suriname is solely responsible for trade policy formulation. The coordinating entity is usually the Ministry of Trade and Industry (MTI), which is also the main body for the design of, and decision-making related to trade policies. Traditionally, the MTI performed mainly an administrative role in relation to the administration of trade licenses. More recently, this role has shifted to more policy-related tasks. Apart from managing, monitoring, and coordinating Suriname's external trade relations, the MTI is charged with creating an enabling environment for exports and other functions such as dissemination of information . The authorities note that, due to human resource constraints, there has been a shift in the organization of work within the MTI. The division of responsibilities within the Ministry now focuses on thematic areas through which there is a horizontal consideration of subjects in the different trade organizations and negotiations in which Suriname participates. This new arrangement replaced an organization centered on "desks" that focused on tasks related to the WTO, CARICOM, FTAA, and the EU/ACP Cotonou functions.

As a member of CARICOM, Suriname is committed to a regionally coordinated external trade policy for the group. The MTI therefore coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM), particularly as regards trade negotiations in the FTAA.

The Ministry of Foreign Affairs plays a secondary role in foreign trade matters, although it has traditionally taken the lead in matters related to the WTO. In contrast to the MTI, which focuses on the economic and technical side of trade matters and is responsible for trade and investment agreements, the Ministry of Foreign Affairs works primarily with the political and diplomatic elements of Suriname's various trade agreements.

The Ministry of Agriculture, Animal Husbandry and Fisheries (MAAHF) has been involved in various issues in the formulation of trade policy concerning agricultural products, mostly in the context of international negotiations. Concerning sanitary and phytosanitary measures, the MAAHF maintains coordination with the Ministry of Health. Over the past few decades, the MAAHF has also considered trade issues related to maintaining coordination with various state-owned enterprises in the agriculture sector and the international marketing of rice and bananas. The MAAHF has also played a role in the import and export of animals, plants, fish, and products and parts thereof by way of providing binding advice to the MTI for the issue of licences and certificates.

For all trade issues, the MTI also coordinates with the Ministry of Finance. The Ministry of Finance has direct involvement in trade and investment matters through its Directorate of Taxation, which is divided into direct and indirect taxes. The controller of Customs is responsible for the enforcement of customs legislation, as well as cross-border movements, the harmonized system, customs valuation procedures, and rules of origin. It maintains contacts with delegations in the business community and participates in consultations on CARICOM, FTAA, and the WTO. The interaction between the MTI and the Customs Department is based on the MTI setting out policies, and the Customs Department assuming responsibility for their implementation.

In fulfilling its coordination role the MTI seeks participation from different players with a direct stake in trade and economic issues. For this, the Ministry uses the mechanism of networks to bring together representatives from different ministries, the Chamber of Commerce, and civil society.

TRADE AGREEMENTS

Bilateral

Suriname maintains regular consultations with Brazil to explore the possibility of increasing bilateral trade and investment flows and communication infrastructure . Suriname has bilateral trade agreements with Costa Rica, Cuba and the Dominican Republic through the Caribbean Community (CARICOM). Suriname is not a party to the CARICOM-Colombia or the CARICOM-Venezuela agreements. Nevertheless, i t is a beneficiary of various General System of Preferences schemes as well as the Caribbean Basin Initiative (CBI) and the Canadian market through the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Suriname is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR.

Regional

Suriname is a member of the Caribbean Community and Common Market (CARICOM). It is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

Suriname is an original Member of the WTO and grants at least MFN treatment to all its trading partners. It has GATS commitments in 12 sectors.

NEED PRIORITIES  

Priority areas for Suriname are; assistance to renegotiate bound rates; EPA negotiations, training in negotiating skills; developing trade policy strategic place; incorporating WTO rules into domestic legislation; improving inter-agency communication and interaction in relation to trade policy formulation; improving trade data collection and sensitising stakeholders.

Source: World Fact Book, WTO Secretariat.