G/SCM/N/299/BLZ  
 
7 October 2016  
(16-5405) Page: 1/6 
Comm ittee on Subsidies and Countervailing Measures  Original: English  
 
SUBSIDIES  
FINAL TRANSPARENCY N OTIFICATION (FOR 201 5) PURSUANT TO THE  PROCEDURES  
IN THE  GENERAL COUNCIL  DECISION  IN DOCUMENT WT/L/691  ON THE  
EXTENSIONS UNDER SCM  ARTICLE 27.4  OF THE  TRANSITION  
PERIOD FOR THE ELIMINATION OF EXPORT SUBSIDIES  
BELIZE 
The follow ing communication, dated 30 September 2016 , is being circulated at the request of the 
Delegation of Belize . 
 
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Pursuant to the procedures contained in the General Council Decision in document  WT/L/691, and 
subsequent to prior notification  G/SCM/N/284/BLZ and G/SCM/N/290/BLZ, Belize hereby submits 
the following notification for 2015 assuring the Committee of its compliance with the standstill and 
transparency requirements under the Decision. This notification serves to provide an update on th e 
progress made over the period July 2015 – August 2016.  
 
Since the last notification, Belize has made no changes to the following investment programmes 
which provide for the grant of prohibited subsidy:  
 
 Programme under the Fiscal Incentives Act (Cap. 54 ) 
 Programme under the Export Processing Zone Act (Cap. 280)  
 Programme under the Free Zones Act (Cap. 278)  
In seeking conformity with its obligations to the WTO under the ASCM, Belize has developed an 
Action Plan  and established a Working Group on WTO Compl iance comprised of representatives 
of the following agencies: the Investment Policy and Compliance Unit as lead agency, the 
Directorate General for Foreign Trade, the Belize Trade and Investment Development Service 
(BELTRAIDE), the Office of the Solicitor General, the Customs and Excise Department, the Income 
Tax Department, the Department of General Sales Tax, the Ministry of Natural Resources, the 
Ministry of Agriculture and the Belize Agricultural Health Authority. The function of the Working 
Group is to  organize the process of implementing Belize 's Action Plan. The Working Group is 
Chaired by the Investment and Compliance Unit; it has convened more than 15 meetings between 
June 2015 and August 2016.  
 
In implementing the Action Plan, Belize in 2014 reque sted technical assistance from the 
Commonwealth Secretariat  and was provided a consultancy to undertake a comprehensive 
assessment of the foregoing three programmes, with the following specific objectives: an 
economic assessment of the costs and benefits o f operating the three programmes; examination of 
best practices in legislative reform; and drafting legal instruments in conjunction with the Office of 
the Solicitor General, Attorney General 's Ministry, for presentation to Cabinet for consideration and 
approval. Annex I (see overleaf) indicates the items of the Action Plan which have been executed 
within the period of this notification. Annex II provides an update on the process.  
 
The Consultant tabled a draft final report to the Government of Belize in t he third week of 
September, 2015 – that report was directed to the attention of the Working Group. The report 
presented an assessment of the Fiscal Incentives programme, Free Zones programme and the G/SCM/N/299/BLZ  
 
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  Export Processing Zones programme, and indicated the WTO -non-compliant provisions of each. 
A consultative meeting was then convened in Belize City  with stakeholders of all three incentives 
programmes countrywide on 25 September 2015. The incentive holders were provided with the 
findings of the consultancy and we re informed of various options that could bring conformity with 
the ASCM. Recommendations were presented as to the preferred path, and the Consultant shortly 
thereafter finalized the report and provided preliminary drafting instructions for the legislative  
changes needed. Unfortunately Belize then went into gear in context of national elections slated 
for October of 2015; the election process inadvertently delayed the overall process including 
finalization of drafting instructions and the necessary legislat ion actions. Further consultations 
were held in December of 2015, and additional perspectives were advanced on the legislative 
options available to Belize. The refined final recommendations were consolidated in early May 
of 2016.  
 
In furthering the WTO co mpliance process, both the Consultant 's recommendations and the final 
position agreed to by the Working Group on WTO Compliance were presented to the Belize 
Cabinet, which considered and approved the Ministry 's recommendations on 19th May, 2016. The 
Workin g Group thereafter met three times to establish the drafting instructions. The instructions to 
prepare the first draft of the amendments to the FI and FZ Acts and a new Bill for an Act to replace 
the EPZ Act will be sent to the Attorney General 's Ministry before the end of September 2016. 
After drafting is complete, the Bill will go through a final vetting by the Working Group before it is 
presented to the Executive and subsequently to the Legislature.  
 
The Government of Belize remains committed to its pol icy of seeking compliance with its 
obligations under the WTO generally and specifically the requirements of the ASCM.  
 
 G/SCM/N/299/BLZ  
 
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  ANNEX I  
EXECUTED ACTIVITIES OF THE ACTION PLAN  
 
Number  Deliverable  Status  
1 Formalization of the inter -institutional technical workin g group and 
development of its TOR  Completed  
2 Request technical assistance in conducting a comprehensive 
assessment of the incentives programs  Completed  
3 Solicit technical assistance in legal drafting from the Office of Trade 
Negotiations of the Common wealth Secretariat and have initiated 
the collaborative process and established  broad parameters of the 
way forward  Completed  
4 Completion of economic assessments  Completed  
5 Review the results of the assessment on the incentive programs  Completed  
6 Examination and agreement on the of policy and legislative options  Completed  
7 Continue the sensitization program and informal dialogue with the 
private sector  Completed  
8 Continue the sensitization program and informal dialogue with 
stakeholders, including  the private sector  with a view to updating 
and eliciting feedback  on the legislative changes envisaged  Completed  
9 Finalization  of the required framework to allow unrestricted sales of 
products from the EPZs and Free Zones into the national customs 
territory of Belize  Completed  
10 Finalization of the eligibility criteria for the fiscal incentives program 
and approaches to grant of ‘Tax Holidays’:  Completed  
11 Commencement of legal drafting along with the Attorney General’s 
Ministry and the Office of Tr ade Negotiations, Commonwealth 
Secretariat  Ongoing  
 
 
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 G/SCM/N/299/BLZ  
 
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  ANNEX II  
 
Section A: The Fiscal Incentives Programme  
 
1. Description of the programme  
 
 See paragraph A:1 of document G/SCM/N/114/BLZ.  
 
2. Period covered by the notification  
 
 July 20 15 – August 2016  
 
3. Policy objective and/or purpose of subsidy  
 
There has been no change in the standstill arrangements. See paragraph A:3 of document 
G/SCM/N/114/BLZ.  
 
4. Background and authority for the subsidy  
 
There has been no change in the standsti ll arrangements  . See paragraph A:4 of document 
G/SCM/N/114/BLZ.  
 
5. Form of the subsidy  
 
There has been no change in the standstill arrangements. See paragraph A:5 of document 
G/SCM/N/114/BLZ.  
 
6. To whom and how the subsidy is provided  
 
There has been no change in the standstill arrangements.  See paragraph A:6 of document 
G/SCM/N/114/BLZ.  
 
7. Subsidy per unit  
 
There has been no change in the standstill arrangements. See paragraph A:7 of document 
G/SCM/N/114/BLZ.  
 
8. Duration of the subsidy  
 
There has been no change in the standstill arrangements. See paragraph A:8 of document 
G/SCM/N/114/BLZ.  
 
9. Statistical data on impact of the programme  
 
10.  Measures being taken  
 
Fifteen consultations were conducted during the period of July 2015 – August 2016 to wards 
compliance of this programme. The Competent Authority received Cabinet’s approval of the 
Commonwealth Secretariat Consultant’s recommendations on 19th May, 2016. Subsequently, the 
Technical Working Group met three times to establish drafting instruct ions.  
 
Belize is in the process of sending drafting instructions to the Attorney General’s Ministry to amend 
the relevant legislation to become WTO compliant. The drafting instrument will be sent by the end 
of September. After completion of the amendment of the legal instruments, the bill will be 
presented to the Executive and subsequently to the Legislature for enactment.  
 G/SCM/N/299/BLZ  
 
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  Section B: The Export Processing Zone Programme  
 
1. Description of the programme  
 
 See paragraph B:1 of document G/SCM/N/114/BLZ.  
 
2. Period covered by the notification  
 
 July 2015 – August 2016  
 
3. Policy objective and/or purpose of subsidy  
 
There has been no change in the standstill arrangements. See paragraph B:3 of document 
G/SCM/N/114/BLZ.  
 
4. Background and authority for the subs idy 
 
There has been no change in the standstill arrangements. See paragraph B:4 of document 
G/SCM/N/114/BLZ.   
 
5. Form of the subsidy  
 
There has been no change in the standstill arrangements. See paragraph B:5 of document 
G/SCM/N/114/BLZ.   
 
6. To whom an d how the subsidy is provided  
 
There has been no change in the standstill arrangements. See paragraph B:6 of document 
G/SCM/N/114/BLZ.   
 
7. Subsidy per unit  
 
There has been no change in the standstill arrangements. See paragraph B:7 of document 
G/SCM/N/11 4/BLZ.   
 
8. Duration of the subsidy  
 
There has been no change in the standstill arrangements. See paragraph B: 8 of document 
G/SCM/N/114/BLZ.  
 
9. Statistical data on impact of the programme  
 
Year Exports (EPZ) (BZ$)  Total Belize Exports (BZ$)  
2005 243,242 ,009 413,270,000  
2006 249,032,720  536,404,348  
2007 277,708,615  507,900,000  
2008 254,057,559  585,170,000  
2009 167,493,118  501,150,000  
2010 241,180,614  541,276,766  
2011 274,797,320.82  680,900,000  
2012 316,165,831.52  678,610,000  
2013 221,872,740.72  668,630,000  
2014 274,122,750.89  614,420,000  
2015 206,358,604.88 (provisional)  535,330,000  
 1 BZ$ = 0.5 US$.   
 
10.  Measures being taken  
Fifteen consultations were conducted during the period of July 2015 – August 2016 towards 
compliance of this progra mme. The Competent Authority received Cabinet’s approval of the 
Commonwealth Secretariat Consultant’s recommendations on 19th May, 2016. Subsequently, the 
Technical Working Group met three times to establish drafting instructions.   
 G/SCM/N/299/BLZ  
 
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  Belize is in the proce ss of sending drafting instructions to the Attorney General’s Ministry to amend 
the relevant legislation to become WTO compliant. The drafting instrument will be sent by the end 
of September.  After completion of the amendment of the legal instruments, the  bill will be 
presented to the Executive and subsequently to the Legislature for enactment.  
Section C:  Commercial Free Zone Programme  
1. Description of the programme  
There has been no change in the standstill arrangements. See paragraph C:1 of document 
G/SCM/N/114/BLZ.   
2. Period covered by the notification  
 July 2015 – August 2016.  
3. Policy objective and/or purpose of subsidy  
There has been no change in the standstill arrangements. See paragraph C:3 of document 
G/SCM/N/114/BLZ.   
4. Background and auth ority for the subsidy  
There has been no change in the standstill arrangements. See paragraph C:4 of document 
G/SCM/N/114/BLZ.  
5. Form of the subsidy  
There has been no change in the standstill arrangements. See paragraph C:5 of document 
G/SCM/N/114/BLZ.  
6. To whom and how the subsidy is provided  
There has been no change in the standstill arrangements. See paragraph C:6 of document 
G/SCM/N/114/BLZ.  
7. Subsidy per unit  
There has been no change in the standstill arrangements. See paragraph C:7 of document 
G/SCM/N/114/BLZ.  
8. Duration of the subsidy  
There has been no change in the standstill arrangements. See paragraph C:8 of document 
G/SCM/N/114/BLZ.  
9. Statistical data on impact of the programme  
There has been no change in the standstill arrangements. See p aragraph C:9 of document 
G/SCM/N/114/BLZ.  
10. Measures being taken  
Fifteen consultations were conducted during the period of July 2015 – August 2016 towards 
compliance of this programme. The Competent Authority received Cabinet’s approval of the 
Commonwea lth Secretariat Consultant’s recommendations on 19 May, 2016. Subsequently, 
the Technical Working Group met three times to establish drafting instructions.  
Belize is in the process of sending drafting instructions to the Attorney General’s Ministry to ame nd 
the relevant legislation to become WTO compliant. The drafting instrument will be sent by the end 
of September. After completion of the amendment of the legal instruments, the bill will be 
presented to the Executive and subsequently to the Legislature f or enactment.  
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