RESTRICTED  
  
WT/TPR/G/ 353 
20 March 2017  
(17-1522) Page: 1/20 
Trade Policy Review Body   Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
BELIZE 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Belize  
is attached.  
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Belize . WT/TPR/G/ 353 • Belize  
 
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  Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   MACROECONOMIC CONTEX T................................ ................................ ........................  3 
2.1   Gross Domestic Product  ................................ ................................ ...............................  3 
2.2   Fiscal Performance  ................................ ................................ ................................ ....... 3 
2.3   National Debt  ................................ ................................ ................................ ..............  4 
2.4   International Trade  ................................ ................................ ................................ ...... 4 
2.5   Net Foreign Remittances & Other Inflows – The Diaspora  ................................ .................  5 
3   KEY SECTORS  ................................ ................................ ................................ ..............  5 
3.1   Agriculture  ................................ ................................ ................................ ..................  5 
3.2   Fisheries  ................................ ................................ ................................ .....................  6 
3.3   Manufacturing  ................................ ................................ ................................ .............  7 
3.4   Services  ................................ ................................ ................................ .....................  8 
4   SANITARY AND PHYTOSA NITARY MEASURES AND TECHNICAL BARRIERS T O 
TRADE  ................................ ................................ ................................ ............................  12 
4.1   Sanitary and Phytosanitary Meas ures ................................ ................................ ............ 12 
4.2   Technical Barriers to Trade  ................................ ................................ .......................... 13 
5   INVESTMENT  ................................ ................................ ................................ .............  13 
5.1   The Investment Climate  ................................ ................................ .............................. 13 
5.2   Belize Investment Programmes: EPZ, CFZ, and FI  ................................ .......................... 14 
6   TRADE POLICY FORMULA TION  ................................ ................................ ..................  15 
6.1   Multilateral Dimension: Belize’s Approach to general compliance with WTO 
Obligations  ................................ ................................ ................................ ........................ 15 
6.2   The Regional Dimens ion: The Revised Treaty of Chaguaramas including the CSME, 
and Related Decisions of the COTED and Conference of Heads of Government  ........................... 16 
6.3   The National Dimension of Trade Policy: Belize’s Trade Policy Framework  .......................... 16 
6.4   Competition Policy  ................................ ................................ ................................ ......17 
7   TRADE RELATIONS  ................................ ................................ ................................ .... 17 
7.1   World Trade Organization  ................................ ................................ ............................ 17 
7.2   U.S.-Belize Trade Relations under the Caribbean Basin I nitiative  ................................ ......17 
7.3   Regional Integration and implementation of the CARICOM Single Market and 
Economy  ................................ ................................ ................................ ........................... 18 
7.4   CARICOM Bi -Laterals  ................................ ................................ ................................ ..18 
7.5   Economic Partnership Agreeme nt ................................ ................................ ................. 19 
7.6   Belize -Guatemala Partial Scope Agreement  ................................ ................................ ....19 
8   CONCLUSION ................................ ................................ ................................ .............  19 
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  1  INTRODUCTION  
1.1.  Belize’s economy remains rooted in the performance of the services sector an d the resilience 
of the agro -productive sector, which contribute significantly to the country’s foreign exchange 
earnings. The focus remains on developing a strategic approach to trade policy and attainment of 
the Global Sustainable Development Goals, whic h have resulted in a National Trade Policy 
Framework (NTPF) and a Growth and Sustainable Development Strategy (GSDS). The Cabinet of 
Belize has also recently endorsed in principle the development of the National Investme nt Policy 
and Strategy (NIPS).  
1.2.  Belize is faced with serious challenges and constraints emanating from: the need to become 
climate resilient in the marine and agro -productive sectors; correspondent bank de -risking 
impacting the Latin America and Caribbean (LAC) region stemming from tightening  of controls in 
the international financial regulatory environment to promote Anti -Money Laundering and Counter -
Terrorist Financing (AML/CTF). In addition to pre -existing supply capacity constraints faced by 
small economies, these new challenges have negat ively impacted trade growth and financing. 
Despite these constraints, Belize continues to take advantage of unique opportunities with respect 
to its economic sustainability. Significant investments have been made in the diversification of 
exports in the pr imary, secondary, and tertiary economic sectors. Over the last five years, the 
tourism sector in particular has seen consistently strong growth in the cruise and overnight 
tourism subsectors. There was also significant expansion in the agro -productive and light 
manufacturing sectors particularly in sugar, grains, cornmeal, sauces, spices, poultry, live cattle, 
and dairy products.  
1.3.  This document highlights the National Trade Policy Framework approved in 2015, which 
provides a set of policy commitments fo r both the G overnment and the private sector and which 
will lead to the development of Belize’s first comprehensive National Trade Policy. It will look at the 
macroeconomic context, such as the expansion in the GDP, fiscal performance, national debt, 
internatio nal trade and remittances . It addresses the state of play and the corresponding 
advancements in the key productive sectors of the economy as well as the development of new 
sectors. It looks at Belize’s commitments under the WTO agreements such as the Agree ment on 
Sanitary and Phytosanitary (SPS) Measures, and the Agreement on Technical Barriers to Trade 
(TBT). It concludes with an overview of the investment climate and policy developments  to 
mainstream trade.  
2  MACROECONOMIC CONTEX T 
2.1  Gross Domestic Product  
2.1.  Belize’s real gross domestic product (GDP) expanded by 16.8% between 2010 and 2015, 
reflecting modest average annual growth of  2.6% over the six -year period.  Economic expansion 
was driven primarily by the continued expansion in service industries, buoyed part icularly by 
sustained growth in merchandising, tourism and government services, whil e financial services 
weakened. Contributions from the primary sector varied with the inconsistent production of 
agricultural crops and farmed shrimp. Output in the secondar y sector contracted due to the steady 
decline in oil extraction. Despite the oil sector decline, the construction industry experienced 
growth. Although there was a slump in food manufacturing and an uneven supply of electricity, 
GDP per capita increased by  8.7% to US$4,704 in 2015.  
2.2  Fiscal Performance  
2.2.  After undergoing some measure of fiscal consolidation during 2010 -2012, Central 
Government expanded its fiscal operations from 2013 to 2015 notwithstanding a heavy debt 
overhang. Fiscal operations produced, on average, a primary surplus of 2.2% of GDP and an 
overall deficit of 1.1% of GDP during 2010 to 2012. Central Government’s revenue rose at an 
annual average rate of 6.0%, driven by increases in receipts from the oil industry and several 
revenue enhancing me asures, such as increased rates for the gross sales tax and business tax 
from 10.0% to 12.5% and from 1.5% to 6.0%, respectively in April 2010. In March 2013, the 
Government restructured US$547.5  million in debt with external creditors, but the external pu blic 
sector debt still expanded that year to 78.5% of GDP, fueled by borrowings under the Venezuela 
PetroCaribe Agreement (VPCA) initiative. Inflows from the VPCA, coupled with increased borrowing WT/TPR/G/ 353 • Belize  
 
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  from domestic sources, financed the growth in Government sp ending that ensued. Central 
Government’s overall deficits rose from 2.9% of GDP in 2014 to 7.9% in 2015, as expenditure 
outpaced increases in revenue by an average of almost ten percentage points. This surge in 
spending was due to the hike in emoluments to  public officers, heightened capital spending amidst 
several local and general elections, and compensation payments for nationalization of two utility 
companies.  
2.3  National Debt  
2.3.  From 2010 to 2015, the total public sector debt stock rose from US$1.2 billion t o US$1.4 
billion, but fell as a share of GDP from 88.0% at the end 2009 to 82.7% at the end of 2015. The 
share of foreign loans in the total outstanding debt stock decreased from 86.4% to 82.6%, while 
the domestic debt share increased from 15.7% to 21.0%. This trend pointed to the heightened 
dependence on financing from domestic sources, principally through the issuance of debt 
securities, to fund budgetary shortfalls, given Central Government’s limited access to international 
financial markets. Venezuela b ecame Central Government’s second largest creditor with 
disbursements of $338.8  million over the six -year period.  
2.4.  The external debt service ratio fell from 9.4% at the end of 2010 to 5.9% at the end of 2013 
due to the second restructuring of the bond durin g that year. Thereafter, the ratio climbed 
steadily, reaching 11.7% at the end of 2015 on account of Government’s one -off settlement of the 
British Caribbean Bank loan to the Belize Telemedia Ltd. (BTL), which had been the subject of an 
extended dispute. A s at 31st December 2015, the maturity structure of the external public sector 
debt showed that US$1.3  million  is expected to mature in less than one year, while 10.3% will be 
fully amortized in the next one to ten years, leaving 89.6% (or US$1.1 billion) w ith maturity 
greater than ten years. At the end of 2015, Central Government accounted for 96.6% of the 
outstanding external public sector debt.  
2.4  International Trade  
2.5.  The trade imbalance worsened significantly over the review period, as the trade deficit 
widened from US$174.8  million  in 2010 to US$423.4  million  in 2015. This outcome resulted as the 
annual growth in imports outpaced that of exports for most of the review period. Merchandise 
exports, which include sales from the Commercial Free Zone (CFZ), peake d at US$621.6  million  in 
2012 then contracted for three consecutive years to US$537.9  million  in 2015. While from 2010 to 
2012 exports grew largely due to increased CFZ sales and petroleum exports, thereafter, exports 
contracted largely due to reductions i n the same. On the other hand, imports grew at an average 
annual pace of 7.6%, rising from US$653.0  million  in 2010 to US$961.3  million  in 2015  
2.6.  Net earnings from trade in services were more buoyant, as it expanded at an average annual 
pace of 7.9% over th e review period. Net receipts amounted to US$277.4  million  in 2015, 
reflecting a 3.0% drop from the high of US$285.6  million  attained in 2014. The marginal 
contraction was attributed to an increase in spending on international freight, owing to the rise in  
imports, and lower revenue from tourism. From 2010 to 2015, inflows from services averaged 
US$419.7  million  with earnings from tourism and other miscellaneous services accounting for 
approximately 75.0% and 20.0%, respectively, of total service receipts. Receipts for other 
miscellaneous services mainly included inflows from foreign embassies, military agencies and a 
wide range of other professional services. Payments for international services averaged 
US$189.7  million  over the six -year period. On average,  55.8% of the total expenditure on services 
was associated with payments for international transportati on services and travel abroad. 
Additional outlays included payments for telecommunication, miscellaneous business services and 
Belizean embassies and mil itary units stationed abroad.  
2.7.  The United States remained Belize’s second largest export market, even though the share of 
trade narrowed significantly from 31.5% in 2010 to  20.5% in 2015. In contrast, the share of 
imports from the United States grew from 27 .4% in 2010 to 33.7% in 2015, driven largely by 
increased purchases of manufactured goods, machinery and transport equipment. Mexico 
maintained its position as Belize’s largest export market, as its share expanded from 34.0% in 
2010 to 47.8% in 2015 with i ncreased sales of food and live animal products and re -exports from 
the CFZ to that country. However, the share of imports from Mexico decreased from 28.3% in 
2010 to 10.6% at the end of the period, while the share of goods purchased from other markets WT/TPR/G/ 353 • Belize  
 
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  such as Central America and China rose. While the share of exports to Central America fell from 
5.5% in 2010 to less than one percentage point over the rest of the review period as petroleum 
sales to that market waned, the share of imports inched up and avera ged 14.7%, mostly due to 
increased p urchases of goods from Panama. The share of exports to China remained miniscule, 
however the share of imports from that country rose from 1.1% in 2010 to 10.8% in 2015 with 
increased purchases by commercial free zone bus inesses. Trade with the member states of the 
Caribbean Community (CARICOM) picked up too, as the export and import shares with CARICOM 
rose to an average of 5.8% and 2.7%, respectively, between 2010 and 2015.  
2.5  Net Foreign Remittances & Other Inflows – The D iaspora  
2.8.  Against the backdrop of tepid growth in developing countries, remittance inflows grew at a 
modest annual average growth rate of 1.7% from 2010 to 2015 and reached US$82.4  million  in 
2015. Remittance inflows as a share of GDP fell from 5.4% in 2010 to 4.4% in 2013, but has 
inched up since then to 4.8% in 2015, largely on account of the economic recovery in the United 
States. The United States remained the main source country for remittance flows to Belize and 
accounted for more than half of total inf lows. Remittance outflows grew at a faster pace, however, 
with the United States being the major country of destination, followed by China and Central 
America, particularly Honduras, Guatemala and El Salvador.  
3  KEY SECTORS  
3.1  Agriculture  
3.1.  The Agriculture and Fo od Sector continues to be one of the main pillars of the Belizean 
economy. It contributes significantly to Gross Do mestic Product (GDP) (13.06%), employment 
(17.9%)1, income generation, and food and nutrition security. In addition agriculture contributes 
to the macroeconomic growth of the country and its development as a major ear ner/saver of 
foreign exchange.2 Moreover, it is a key contributor to solutions of the major national challenges 
which includes low economic growth, high debt to GDP ratio, and the high level of unemployment.3 
3.2.  Belize’s primary agricultural outputs include citrus, banana, sugar, fruits, legumes, grains, 
vegetables, livestock and marine products. In 2015, the sector contributed US$321.5 mi llion to the 
economy of Belize.  Overall the eco nomic output of the agricultural sector is growing steadily. 
During 2000 to 2005 the contribution of agricultural outputs increased by 22%. For the following 
five years, from 2006 to 2010, outputs increased slightly by 7%, however from 2011 to 2015 
output grew by 22%. Even though the agricultural sector is steadily growing it is constantly being 
threatened by disease and natural disasters. For the year 2016 for example, Hurricane Earl 
damages resulted in a total loss of approximately US$38.35  million  for th e agricultural sector.  
3.3.  Sugar output for the period 2011 to 2015 increased by 32%. Production for the period of 
2011 to 2013 increased by 21% and export income values increased by more than 100%. From 
2014 to 2015 production decreased by 11% however world p rices for the commodity were high 
and as a consequence income earned by the industry increased by 10%. On the upside, total 
sugarcane production will increase, as the Santander Sugar Mill commences operations in western 
Belize. As of May 2016, 165,146 long  tons of sugar cane (3,600 hectares) were harvested and 
6,311 tons of molasses were produced.  For the year 2017 Santander intends to plant 5,100 
hectares (12,750 acres). The 2017 estimated figures however may change due to the effects of 
hurricane Earl in August of 2016. The company suffered losses estimated at 50,000 tons in sugar 
cane production which equate to a tot al of US$1  million  in export losses. The sugar industry as of 
2015 employs approximately 5,402 farmers, most of which are in the northern sug ar belt; western 
Belize welcomed a huge investment in the sugar growing and manufacturing. The investment is 
expected to boost domestic exports of raw sugar and molasses, and also has potential to increase 
energy production from sugar waste. There are good  prospects for more employment, export 
earnings and saving of for eign exchange from this source.  
3.4.  Banana output during the period of 2011 to 2015 increased by 27%. Production from 2008 to 
2016 has increased by 20% and export income value by 31%. The Banana Industry for the past 
                                                
1 World Bank, 2011.  
2 Statistical Institute of Belize LFS, 2014.  
3 National Agricultural Food Pol icy, 2015 -2030.  WT/TPR/G/ 353 • Belize  
 
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  three years has been encountering several challenges with the exiting of a major farm from the 
industry and the prevalence of natural disasters including disease. The company, Meridian, which 
accounted for 12.9% of production, was clo sed in October 2016. In addition, during mid -2015- 
mid 2016, the Banana growers of Belize had to overcome the harsh dry conditions of El Niño, the 
flood conditions of La Niña, hurricane Earl in August 2016 and the negative i mpacts of the Black 
Sigatoka - banana disease. The economic effect of Hurricane Earl impacted negatively on banana’s 
contribution to this year’s agriculture GDP. It resulted in a value loss of US$7.45  million , 
equivalent to a 17% reduction in the 2012 -2015 average of US$44  million  per ye ar. The banana 
industry as of 2015 emplo ys approximately 2,399 people.  
3.5.  Citrus output during the period 2011 to 2015 increased 2 %. Exports during the period of 
2011 to 2015 decreased  by 29%. Citrus exports have been relatively unstable as the 
Huanglongbing  (HLB or Citrus Greening) disease and the aged trees have caused a drastic 
reduction in fruit production. Even so the industry is responsible for 15% or more of the exported 
domestic income and by extension responsible for approximately 15% of the country’ s foreign 
exchange. The Citrus industry suffered a total loss of US$5.2  million  due to Hurricane Earl 
primarily from fruit drop. The citrus industry as of 2015 employs approximately 1,609 people. The 
industry has commenced the necessary task of replanting its orchards, and with the introduction of 
disease -resistant plants, with technical inputs from the Citrus Research and E ducation Institute 
(CREI).  
3.6.  The papaya industry experienced the lowest levels of production and export income during 
the year 2016. Expo rt value contribution of papaya for the year 2011 was US$13  million  as 
compared to the 2016 export value of approximately US$3  million . This was due to the fact that 
the largest domestic producer of papaya, reduced acreage under cultivation i n the second h alf of 
the year. The company decided to cease operations in Belize in 2017  
3.7.  Other agricultural commodities that experienced a growth in output during the period of 2011 
to 2015 were marine products (43%), fruits, grains, legumes, vegeta bles (7%) and livesto ck 
(22%).  
3.2  Fisheries  
3.8.  The Belize fishing industry is still characterized as small -scale but contributes significantly to 
the socio -economic well -being of the country, employing almost 2,500 fishers and benefitting 
approximately 15,000 Belizeans in 2015.  
3.9.  The Caribbean Spiny Lobster and Queen Conch continue to be the main export commodities 
generating BZ$32.3  million  in export earnings in 2015, which is an increase of 17.9% compared to 
2014. Significant increases were observed in Spiny Lobster tail landings (53 6,863 lbs – an increase 
of 18.3% compared to 2015) and whole Spiny Lobster landings (306,447 lbs – an increase of 
393% compared to 2014).  
3.10.   Recent results of field research on Queen Conch and Sea Cucumber stocks have helped 
Belize to develop and implement im proved management strategies for these fisheries to ensure 
sound management and sustainable use. The full implementation of Managed Access Program and 
implementation of an Adaptive Management Framework (AMF) to all fishing areas in Belize is 
designed to ad dress the need for assessment and management of data -limited fisheries. The 
expansion of marine protected areas to 21.7% of the territorial sea, coupled with a planned 
expansion of replenishment area (no -take zones) from 3.15% to 10% will undoubtedly place  
Belize in an advantageous position to better manage its fishery resources and contribute to the 
sustainable growth and development of the sector.  
3.11.   The national implementation of the Belize Electronic License and Permit System (BELAPS), 
will help to improve  customer satisfaction through an easy and simple online application and 
granting of licenses and permits which aims to increase effectiveness and improve fisheries export 
data collection and monitoring.  
3.12.   Belize continues to identify ways to use its fishery  resources in a sustainable manner and 
fight illegal and unreported fishing activities through continued development and implementation 
of adequate fisheries legislation. Training of enforcement personnel and continued cooperation WT/TPR/G/ 353 • Belize  
 
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  with collaborators and pa rtners in co -management and compliance with sub -regional and regional 
fisheries is ongoing.  
3.13.   The aquaculture sector in Belize is primarily focused on shrimp farming, with small -scale 
tilapia production. For 2014, the contribution from shrimp aquaculture wa s US$43 million. Overall, 
the fisheries sector, including capture fisheries and aquaculture, contributed to 4.7% GDP in 2014.  
3.3  Manufacturing  
3.14.   Sugar and Molasses  
a. Although sugarcane deliveries were down by 2.3% for the 2014/2015 crop year, output 
of sugar rose  by 15.6% to 140,051 long tons, a record high that reflected a 15.3% 
improvement in the cane/sugar ratio. At 8.35, the latter was the lowest yet Production 
34 recorded in Belize. The exceptional performance resulted from a 2.8% increase in 
factory time eff iciency, adherence to delivery schedules that minimised the “kill -to-mill” 
time during which sugars deteriorate in the cut sugarcane, and the extended dry 
weather, which helped to concentrate the sucrose in the sugarcane and raised the 
average sugar conten t from the 11.82% recorded for the previous crop to 13.54%. Due 
to its inverse relationship with sugar output, molasses production fell by 12.3% to 
37,567 long tons.  
b. Reflecting development and expansion of the sugar industry over the review period, it 
should be noted that cane sugar production was also boosted significantly by production 
from a new company – Santander – which commenced production of raw sugar and 
made its first export shipment in 2015. This new production has led to an increase in 
exports t o the EU (Spain) where the raw sugar is to be refined. The production of 
molasses also increased with operation by the new company. In a related understanding, 
the new company will now be generating an additional volume of cane waste (bagasse) 
which it int ends to convert to electricity for the national grid.  
3.15.   Citrus Juices, Citrus Oil and Pulp  
a. Improvements in husbandry and factory efficiency boosted the average citrus juice out -
turns by 5.1% to 6.4 ps per box of orange and by 6.5% to 4.3 ps per box of grapef ruit. 
Consequently, even with the 1.0% slippage in fruit deliveries, citrus juice production 
rose by 3.0% to 28.5  million  ps with output of grapefruit concentrate surging by 31.9% 
to 3.1  million  ps, while orange concentrate edged up by 0.9% to 25.3  million  ps. In 
contrast, juices produced not -from concentrates which accounted for only 0.5% of juice 
output, plummeted by 47.8% for the fourth consecutive year of decline. Production of 
pulp increased by 18.3%, but that of citrus oils was down by 9.5%.  
3.16.   Other Man ufactured Products  
a. The outturn was mixed for the rest of the manufacturing sector, as growth in soft drinks, 
beer, and fertilizer coincided with declines in flour and crude oil. Factory upgrade and 
expansion of capacity facilitated increases of 8.9% in sof t drinks and 1.3% in beer, while 
heightened demand by bean and corn farmers, especially during the first half of the 
year, supported a 5.7% growth in fertilizer output. For a third consecutive year, 
domestic production of wheat flour declined. Among the re asons cited for the 5.8% 
decrease in 2015 were competition from lower -priced flour imported from Mexico 
through informal trade and increasing domestic consumption of corn substitutes.  
3.17.   Petroleum  
a. Petroleum extraction declined by a further 17.9% to 527,741 ba rrels with output from 
the Spanish Lookout and Never Delay fields down by 17.6% and 82.2%, respectively. 
Operation at the Never Delay Field was limited to field testing that produced only 468 
barrels in 2015. At the Spanish Lookout field, the daily average  extraction rate fell by 
18.7% to 1,445 barrels per day. After ten years of operation, cumulative production WT/TPR/G/ 353 • Belize  
 
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  from the field amounted to 10.1  million  of the 18.0  million  barrels of extractable 
reserves.  
3.4  Services  
3.18.   Services contribution to overall growth and d evelopment in Belize is reflected through its 
61.3% contribution to GDP in 2015. Over the past five years, tourism has seen a significant rise in 
its economic impact, representing over 38% of total GDP, employing approximately 25,000, 
providing for over US $150 million  in Investments, and enjoying annual growth rates in arrival of 
6% and above. The Tourism and International Financial Service subsectors continue to be highly 
promoted and advanced. However, Financial Services have experienced challenges due to  
Corresponding Bank Relationships with U .S. Banks.  
3.19.   Tourism and Travel  
a. Tourism is a key economic driver and contributor to Belize's growth and development. In 
2015, total contribution of travel and tourism to GDP was 38.6% from which 14.7% 
accounts for dire ct contribution of travel and tourism to GDP. Proportionally, direct 
contribution of travel and tourism to employment was 13.1% of total employment. 
Overall, the total contribution of Travel and Tourism to employment was 34.8% of total 
employment in 2015 w hich is representative of the sector’s significant indirect and 
induced impacts. In an effort to ensure a sustainable and profitable tourism sector, the 
Government has supported a value of US$93.35  million  in travel and tourism capital 
investment.  
b. Complime ntary to the growth of Belize’s tourism sector, according to UNWTTC Travel & 
Tourism Economic Impact 2016 Belize Report, visitor export has exponentially increased 
since 2010 to arrive at peak of US$396.45  million  total exports in 2015. Furthermore, 
visito r export (or foreign visitor spending) continues to generate the greatest share of 
direct contribution to GDP while domestic travel spending generated 15.3% of direct 
travel and tourism GDP in 2015. Although it is projected that business travel spending 
should have grown in 2016, leisure travel spending accounted for 83.4% of travel and 
tourism direct contribution to GDP in 2015. More so, accounting for all subsectors of the 
Tourism industry, total annual tourism expenditure in 2015 peaked at 
US$385.45  million.The economic contribution of Travel and Tourism sector is paramount 
to Belize’s socio -economic development and prosperity.  
c. The Government has embarked on a series of efforts aimed at promoting the sustainable 
growth of the industry. In 2012, the Govern ment of Belize launched its National 
Sustainable Tourism Master Plan (NSTMP) 2012 -2030, which serves as a long -term 
strategic framework for sustainable development of Belize’s tourism sector. As a result of 
the implementation of NSTMP, the G overnment has i nvested over US$40  million  in 
capital investments that have served to enhance the tourism product and services 
offered by Belize with the goal of ensuring tourism’s contribution to national economic 
growth and giving full consideration for environmental an d social developmental needs.  
d. Over the past five years, the overnight sector has experienced constant growth in tourist 
arrivals of which the US holds the greatest market share. This is as a direct effect of an 
increase in airlifts leading to a consistent growth in air passengers. International air 
arrivals peaked at a little over 255,000 passengers in 2015, boasting a 48% increase 
over 2010. Total overnight arrivals in 2015 were 341,126 visitors, representing an 
increase of 41% since 2010. In terms of Crui se Tourism, cruise arrivals have 
experienced a 25% increase since 2010, with 2015 reporting 957,975 cruise visitors to 
Belizean shores. As a result, overall the total growth over the last three years has 
maintained well above the regional growth numbers an d above projections provided 
within the National Sustainable Tourism Master Plan. Continued growth is expected albeit 
at a more conservative rate, but within the national projection of a Compound Annual 
Growth Rate of 4% established in the National Sustain able Tourism Master Plan.  
e. In 2015 -2016, Belize added three new airlines to the national number of airlifts namely, 
West Jet Airline Ltd, South West Airlines Co ., and Copa Airlines. This allows Belize to WT/TPR/G/ 353 • Belize  
 
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  extend its marketing efforts more northward to Canada  and further southward to South 
America to increase our number of tourist arrivals and meet slated targets set out in the 
NSTMP by 2030. Other accomplishments within the civil aviation sector over the past 
five years include expansion of regional flights t o Guatemala, Honduras, and Mexico via 
a domestic airline. This development gives Belize a cutting edge as one of the countries 
that effectively connects the Munda Maya area. The government’s due diligence in the 
opening discussions to establish Air Transpo rt Agreements with Mexico, Panama, 
Guatemala as well as the proposal to establish Open Skies Agreements with Canada and 
USA has added to the competitiveness of the air travel market.  
f. The inauguration of the Sir Barry Bowen Municipal Airport in Belize City as the main 
domestic hub for air travel occurred on November 11th of 2016. This investment creates 
a viable financial opportunity to realign key areas that are support structures (facilities, 
services, concessions programs) through Public -Private Partnersh ips. Other areas of 
interest for the Belize Airport Authority are the development of key strategic 
aerodromes, namely the Basil Jones and Douglas D’Silva airstrip in Ambergris Caye and 
Mountain Pine Ridge respectively, to serve as added catalyst to develop ment in both 
these critical tour ism corridors for the Country. Future development for the domestic 
airport network and the diversification of services through potential airport development 
concession programs, provide a strategic path to develop and enhanc e the air 
connectivity services for the travel and trade sector.  
3.20.   Financial Services  
a. In 2016, the portion of Belize’s financial system that is regulated by the Central Bank of 
Belize comprised of five domestic banks, five international (offshore) banks, and  12 
credit unions (see Table 3.1). These three sectors represent the sources of formal credit 
in the Belizean economy.  
b. Traditionally, domestic banks hold the largest share of assets in the financial system, 
with credit unions offering similar services such  as loans, checking accounts, and access 
to Automated Teller Machines (ATM) and other electronic services. International banks 
can only conduct banking transactions with non -residents, the Government of Belize 
(GOB), domestic banks, public corporations who lly-owned by GOB, export processing 
zone and commercial free zone companies. They are primarily engaged in traditional 
banking activities and, in recent years, have become significant intermediaries for the 
financing of non -resident investments into the to urism and  real estate sectors of Belize.  
Table 3.1 Financial Institutions Regulated by Central Bank of Belize  
 No. of Institutions   Asset Size (BZ$ million)   % of Total  
 Dec-14 Dec-15 Sept-16  Dec-14 Dec-15 Sept-16  Dec-14 Dec-15 Sept-16 
Depository! Institutions           
Domestic 
Banks  6 6 5  2,997  3,249  3,337   52.8 57.6 59.1 
International 
Banks  5 5 5  1,573  1,204  1,065   27.7 21.4 18.9 
Credit Unions  12 12 12  765 873 886  13.5 14.7 15.7 
Source:  Central Ban k of Belize.  
c. Domestic banks assets grew by 8% in 2015 and 3% in first three q uarters of 2016 (see 
Table 3.1). Despite a bank voluntarily exiting the market via divestment of its assets and 
deposit liabilities to another bank in early 2016, this sector of t he financial system grew 
to account for 59% of total financial system assets in September 2016. Conversely, 
assets of the international banks contracted by 32.3% between December 2014 and 
September 2016 reflecting the impact of the de -risking phenomena imp osed by foreign 
correspondent banks against Belize. Nevertheless, despite the fall in this sector’s share 
of the system’s assets from 27.7% in 2014 to 18.9% in September 2016, it represents 
the second largest share of assets in the Belizean financial syste m. At 1.5%, growth in 
credit unions’ asset base slowed in the first nine months of 2016, after growing by 
14.0% in 2015. Nonetheless, the asset share for the credit union sector rose to 15.7% of 
total financial s ystem assets in September 2016.  WT/TPR/G/ 353 • Belize  
 
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  d. Since 2014, several measures were taken to strengthen the country's legal and 
regulatory architecture. These measures included several amendments to the Money 
Laundering and Terrorism (Prevention) Act, with a view to bringing Belize’s legal 
framework further in line w ith interna tional standards. The Central Bank recognizes the 
importance of minimizing reputational risks and other threats to the system that may 
arise from money laundering. As such, its anti -money laundering unit is staffed with 
Certified Anti Money Laun dering Specialists and on -site AML examinations are 
undertaken using a Risk Based Approach (RBA) tool  that was promoted by the IMF. A 
Memorandum of Understanding between the Central Bank and the Financial Intelligence 
Unit (FIU) was signed in July 2014.  This allows for increased collaboration and the 
sharing of information between the Central Bank and the FIU.  
e. The Domestic Banks & Financial Institutions Act (DBFIA) which was revised in 2012 and 
came into effect in January 2013, introduced a number of new le gislative arrangements. 
In particular, it reinforced improvement of the resolution structure by allowing for a 
Statutory Administrator with sufficient legal powers to undertake restructuring 
transactions and implement a mechanism for an orderly liquidation . In addition, the 
Central Bank drafted a detailed bank resolution policy in 2014, including a tool or 
framework for responding to a bank in distress. The latter contains a plan of action that 
allows for a distressed bank to remain fully or partly operatio nal while an appropriate 
long-term solution to its failure is identified.  
f. The Central Bank also took decisive action to enhance the consolidated supervision of 
banks affiliated with institutions involved in cross -border activity so as to better contain 
and minimise the risk of contagion in banking. Assisted by Caribbean Regional Technical 
Assistance Centre, the Central Bank completed a consolidated supervision framework for 
Belize in April 2014 that is in line with global international standards, particular ly the 
Basel Committee of Banking Supervision Core Principles for Effective Banking 
supervision. The framework is aimed at empowering the Central Bank to practice 
consolidated supervision in a manner that enables the effective monitoring of group risk, 
group capital adequacy, group gover nance and regulatory arbitrage.  
g. Given the significant negative ramifications of the global financial crisis and the CL 
Financial/CLICO affair at the regional level, the Central Bank has taken steps to prepare 
an appropriate contingency framework known as the “Financial System Management 
Plan for Banks and Financial Institutions” to aid in strengthening the resilience of the 
Belizean financial sector to unanticipated shocks.  
h. In response to the significant growth in adversely c lassified loans between June 2008 
and November 2011, the Central Bank had issued revised circulars to all banking 
institutions mandating an improvement in loan classification procedures and requiring 
increases in the level of loan loss reserves. The revise d circulars were implemented on 1 
December 2011. Since the implementation of the new provisioning regime, Non -
Performing Loans (NPL) ratio (net of specific loan loss provisions) in the domestic 
banking sector have reduced significantly from 15.68% to 2.69%  at September 2016. 
Similar NPL reductions were experienced in the international banking sector as the NPL 
ratio d ecreased from 25.67% to 7.01%. Additionally, revised requirements for credit 
unions governing loan classification and provisioning were introd uced in March 2013.  
i. In April 2015, the Central Bank introduced guidelines on Corporate Governance that 
were applicable to all banks and financial institutions (and the groups to which they 
belong) which carry on activities in Belize and are supervised by the Central Bank. This 
guideline aims to promote international best practice in corporate governance which 
encompasses the role of the Central Bank, the conduct and compensation of boards, risk 
management, senior management, internal controls, disclosure and transparency.  
3.21.   Health and Wellness  
a. This sector is quickly expanding in Belize as more Massage Therapists, Yoga 
Professionals and Dietitians become trained and offer a healthier way of life for Belizeans 
and visitors alike. The Belize Spa and Wellness Asso ciation (BS&WA) remains very active WT/TPR/G/ 353 • Belize  
 
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  in creating a brand for the industry and for Belize through its ongoing Standards 
Development. Recently, the Spa Product Development Initiative is assisting industry 
stakeholders with Quality Assurance Training and creat ing a unique spa product brand 
for Belize including techniques. As a member of the Caribbean Spa and Wellness 
Association (CSWA), this unique brand can be exported to CARICOM Membe r States as a 
Belizean product.  The BS&WA continues to export its services a s tourists visit our shores 
and take advantage of our various spa resorts and day spas around the country.  
3.22.   Medical Tourism  
a. Certification and Accreditation of medical institutions, practitioners and service providers 
remain a challenge because of the high c ost involved to become certified or accredited in 
this very competitive industry. These are no doubt important components to moving this 
sector forward. Certification and accreditation in medical tourism sector would 
undoubtedly attract investments which w ould help to strengthen the industry. Currently, 
there are a select number of services available including dental and minor surgeries. The 
Belize Medical Tourism Association (BMTA) is actively working with stakeholders to 
formulate a strategy for the devel opment and strengthening of the industry to be abl e to 
compete within the region.  
3.23.   Cultural Services  
a. In March, 2016, the Government of Belize launched its first National Culture Policy. This 
Policy provides a framework for safeguarding Belize’s tangible her itage promoting 
cultural expression and creativity, developing culture and the creative industries and 
ensuring the sustainable management of Belize’s cultural resources.  
b. This Policy recognizes that Belize’s tourism product is nature and culture based and that 
investments in culture (Mayan archeological sites and cave systems as well as in the 
performing arts) contribute to sustainable s ocial and economic development.  
c. The Ministry with responsibility for Culture and the National Institute of Culture and 
History worked closely with the Ministry of Trade and Investment to activate Protocol III 
of the European Union Economic Partnership Agreement (EPA) and to establish a 
Services Sector sub -committee of the Trade Technical Team (TTT).  
d. Priorities for implementat ion under the EPA and other Regional (CARICOM and SICA) as 
well as Bi -lateral Agreements include:  
 facilitating  the free movement of registered culture service providers within 
CARICOM and into the EU;  
 enhancing the quality of Belize’s culture products (a rcheological sites and cave 
systems, heritage buildings, arts and craft, the performing arts) for tourism 
development and export readiness;  
 conducting research to determine the contribution of culture and creative industries 
to the national economy ; 
 creating enabling conditions for the development of Private Public Partnerships for 
the effective and viable development, marketing and distribution of cultural goods 
and services within Belize and internationally ; 
 promoting culture -based small businesses parti cularly among women and youth ; 
 developing a calendar of major local fairs and festivals to enhance the promotion of 
local cultural products ; 
 Ensuring the development and passage of a Culture Heritage Legislation and laws for 
the film industry, amend the NI CH Act and ensure that the new Intellectual Property 
Rights legislation  supports the culture industry.  
e. These priorities will be implemented with technical and financial support from the 
Government of Belize as well as through investments from the private s ector and WT/TPR/G/ 353 • Belize  
 
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  international partners, in particular the European Union through the European 
Development Fund (EDF) facility. In th is regard, two major projects, " Sustainable  
Tourism Project II" and the " House of Culture an d Downtown Rejuvenation Project"  are 
providing significant investment in culture development in Belize. The Ministry of 
Tourism manages these two Projects in collaboration with the Ministry of Education, 
Youth, Sports and Culture and other stakeholders.  
3.24.   Professional Services  
a. This sector contin ues to expand rapidly and work continues on amendment to existing 
legislation, standards development, training an d regulation of these services.  Roadmaps 
have been developed for priority services to promote and increase exports in the 
services sector. Impr oving the regulatory framework for movement of professionals 
continues to be a priority  for the Government of Belize.  
3.25.   Belize Coalition of Services Providers  
a. The Belize Coalition of Service Providers (BCSP) officially opened its offices in May 2013 
under a grant from the Caribbean Development Bank (CDB) and acts as the umbrella 
organization for lobbying on behalf of the  services sector associations. The BCSP works 
in partnerships with Belize Trade and Investment Development Services (BELTRAIDE) 
and the Beliz e Chamber of Commerce and Industry (BCCI) in identifying investment 
opportunities, networking and training on behalf of its members. The BCSP in 
collaboration with the Caribbean Network of Services Coalitions (CNSC) continues to 
build capacity within its m embership to promote the export of services r egionally and 
internationally. The BCSP was established under the auspices of the Directorate General 
for Foreign Trade (DGFT), which facilitated its establishment as part of a regional 
initiative to boost suppl y capacity for export of services.  
4  SANITARY AND PHYTOSA NITARY MEASURES AND TECHNICAL BARRIERS T O TRADE  
4.1  Sanitary and Phytosanitary Measures  
4.1.  The Government of Belize takes its commitments under the  the WTO Agreement on 
Application of Sanitary and Phytosanita ry (SPS) Measures very seriously and to that effect 
continues to take initiatives to strengthen its SPS capacity.  A loan agreement was signed in 2010 
with the Inter -American Development Bank (IDB) to strengthen the capacity of the Belize 
Agricultural Healt h Authority (BAHA), the competent authority for SPS matters in agricultural 
health and food safety.  
4.2.  The project was implemented during the period 2011 -2015, and had several significant 
outputs. All five laborat ories under BAHA were improved:  two in the Ani mal Health Department of 
which one is for veterinary diagnostics and another specifically for diagnosis of animal diseases 
using Polymerase Chain Reaction; the laboratory in the Plant Health Department for pest diagnosis 
(all plant pest); and the Food Labo ratory in the Food Safety Department with capacity for both 
microbiological (Food Microbiology Laboratory) and chemical (residues) analysis in fo od (the 
Chemistry Laboratory). In collaboration with other regional and international initiatives 
programmes we re also implemented to work toward the laboratories attaining ISO 17025 
accreditation by 2017.  
4.3.  Under the IDB Project, quarantine stations were established in an effort to reduce pest 
incursions through unofficial points of entry along Belize’s borders. Als o, with the acquisition of 
surveillance and other equipment, and training of technical staff in respective areas of 
competence, BAHA’s quaranti ne capacity has been enhanced.  
4.4.  BAHA conducted a number of educational campaigns to sensitize the general public o n its 
roles and functions. To strengthen BAHA’s public/private dialogue, a customer service survey was 
also launched with the objective of this feeding directly into a communication strategy for the 
organization.  WT/TPR/G/ 353 • Belize  
 
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  4.5.  Three additional outputs of the IDB Project  included a five years strategic plan (2016 -2020) 
for BAHA, a Monitoring and Evaluation plan for the implementation of the strategic plan and a 
Communications Strategy. Additional initiatives are still on stream through technical cooperation 
programmes and  initiatives.  
4.2  Technical Barriers to Trade  
4.6.  In 2015, the Belize Bureau of Standards (BBS) finalized and commenced the implementation 
of Belize’s first National Standardization Programme (NSP), 2015 -2020 using the International 
Organization for Standardizatio n’s (ISO) methodology for setting national standardization 
priorities. The programme focused on key economic sectors for the development of a five (5) year 
standards development plan which includes: contribution to Gross Domestic Product (GDP) and/or 
volum e of trade, contribution to national export earnings, assessment of important non -economic 
priorities, national development policies, strategies and action plans for key sectors, and 
contribution of stakeholders. A total of 110 work items (standards) were identified across priority 
sectors such as Tourism, Agriculture, Manufacturing, among others. To date, the Bureau is 
approximately 12.0% into the implementation of the programme which has led to the 
establishment of new technical committees (TCs) in order to meet the expected target. With this 
development, the Bureau anticipates that it will serve as a trigger to meet its wider obligations as 
prescribed under Annex 3: Code of Good Practice for the Preparation and Application of Standards 
of the TBT Agreemen t. 
4.7.  Over the last five (5) years BBS has, through national and regional initiatives been arduously 
working towards elevating its institutional capacity to meet regional and international trade 
obligations. At the national level the Bureau, with funds from t he European Union, has recently 
constructed a state of the art facility to meet the country’s metrological needs for traceable 
measurements in various basic quantities (mass, volume, temperature, length and pressure). 
Despite the significant advances in Me trology, the Bureau embarked on a more holistic approach to 
accelerate the development of all pillars of a functional National Quality Infrastructure, such as 
Standardizat ion and Conformity Assessment. This it pursued through a successful grant from the 
Caribbean Development Bank which is aimed at Enhancing the National Quality Infrastructure of 
Belize.  
4.8.  These national and regional initiatives will place the Bureau among key institutions in 
meeting the GOB’s development policy and programmes. At the same tim e, it will allow Belize to 
actively and effectively participate in regional and international multilateral trading system through 
institutions that remain ever so cognizant of the need to meet trade obligations within this 
framework.  
5  INVESTMENT  
5.1  The Investm ent Climate  
5.1.  Belize recognizes the importance of investment oriented national policies that help to create 
employment, that generate business incomes and foreign exchange earnings through continual 
efforts to attain value addition, and facilitate technologi cal transfers towards ensuring export 
diversification and economic growth. Key public goods and services remains a substantial portion 
of the investments made by the public sector. Given Belize’s high level of deb t servicing burden 
much of the G overnment’s  capacity to inject financial resources into the economy to enhance the 
investment climate has been limi ted in the period under review.  
5.2.  The Government of Belize’s efforts to promote private investments continue to target Foreign 
Direct Investment (FDI) as well as facilitating domestic investments. These investments are 
reflected in the performance of the goods sectors mainly in aquaculture (Tilapia, shrimp and 
cobia), grains (mainly corn, rice and beans), livestock (poultry, pork and beef), traditional expo rt 
commodities (sugar, bananas and citrus) and non -traditional exports (cacao beans and chocolate, 
rums, coffee beans). New investments in petroleum exploration did not result in viable commercial 
finds during the period under review.  
5.3.  Global downturn contr ibuted substantially to attractiveness of the macroeconomic climate, 
and thereby impacted the level of FDI negatively. However the services sector continues to attract WT/TPR/G/ 353 • Belize  
 
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  new investments, consistent with the new reality that the contribution of services to th e country's 
GDP and foreign exchange earnings now far exceeds that of the traditional merchandise exports. 
Not surprisingly, most new investments were directed at the tourism sector, in particular tourist 
accommodation and entertainment and supporting amen ities and ventures.  
5.4.  The country investment strategy with augmented emphasis encompassing the expansion of 
Micro, Small, and Medium Enterprises (MSMEs) to achieve continued growth of its established and 
traditional sectors is currently in place. It is now a ligned with the regional MSME strategy that was 
approved at the 43rd Meeting of the CARICOM Council for Trade an d Economic Development 
(COTED).  
5.5.  Belize recognises that investments should be directed to areas where there is competitive 
and comparative advant ages and where potential for growth is strong. Such priority areas for 
investment have been identified in: Tourism (Mayan ruins/sites, sports tourism, and education 
tourism) and Medical Tourism, Agribusiness (non -traditional agriculture and aquaculture), 
environmental goods and services (light manufacturing of wood products; bio -fuels, sustainable 
energy generation), and ICTs (Offshore Outsourcing, inclusive of Business Process Outsourcing 
(BPO), Informational Technology Outsourcing (ITO), and Knowledge Pro cess Outsourcing (KPO).  
5.2  Belize Investme nt Programmes: EPZ, CFZ, and FI  
5.6.  The three incentive programs grant combinations of duty and tax concessions via the Fiscal 
Incentive Act, the Export Processing Zone Act and the Commercial Free Zones Act. These 
program mes have, as their ultimate objective, promoting investment to increase production of 
non-traditional crops and value -added products, to improve the manufacturing and processing 
activities and to create employment for Belizeans. These programmes have contr ibuted 
substantially to the economic growth of the country and are partly responsible for successful 
development of a more diverse export service sector.  
5.7.   Some adjustments in the incentives programs currently in place are necessary to ensure 
that they are consistent with World Trade Organization (WTO) agreements, and in particular the 
Agreement on Subsidies and Countervailing Measures (ASCM). This will include adjustments to 
criteria for approval and the incentives in the Export Processing Zones (EPZs), Fre e Zones (FZs) 
and Fiscal Incentive programmes. The Ministry with responsibility for Trade and Investment will 
lead efforts to establish new criteria that are WTO compliant.  
5.8.  The Ministry of Finance and the Ministry responsible for Investment, Trade and Comm erce 
(MITC) are in the process of preparing a comprehensive review of the tax incentive regime, and 
the range of non -tax incentives that are currently available or that can be enhanced. These may 
include incentives related to access to financing, technical  assistance and training. The result of 
this exercise will maximise on Government’s revenue generating potential while maintaining a tax 
system that is equitable and a regulatory regime that encourages productive in vestment by the 
private sector.  
5.9.   The Nati onal Sustainable Tourism Master Plan, the Economic Partnership Agreement (EPA) 
Implementation Plan which have been approved and the National Export Strategy (NES) which is 
to be approved, are integral elements of the Growth and Sustainable Development Stra tegy 
(GSDS). The GSDS proposes to strategically prioritize sectors for development, improve access to 
development finance, make existing markets more efficient and penetrate new markets among 
other objectives. This will involve promoting investment in agri culture, local manufacturing, agro -
processing and other productive activities wi th tax and incentives policies.  
5.10.    Between 2010 and 2016, the services sector continued strong growth while agriculture has 
remained steady even in the face of erosion of prefere nces in European markets for the traditional 
exports of sugar and banana. Citrus, papayas and shrimp have done well but, of recent, major 
challenges with production have occurred in these industries. However, there has been growth in 
the exportation of cor n, beans, and live cattle and there is room for incentivising these new high 
growth industries to maximize on the potential.  
5.11.   The services sector continues to be the sector that has attracted the majority of the foreign 
direct investment with several flagsh ip tourism brands calling on or establishing in Belize over the WT/TPR/G/ 353 • Belize  
 
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  past five years. Investments have included high -end resorts as well as tour operations and a new 
cruise port, most of which benefited from investment attraction and incentivization. The Busine ss 
Process Outsourcing Sector has also shown steady growth over the past four years. There are 
currently 23 call centres which employ 2,500 agents. Of these 23 businesses, the larger which 
number 9 are EPZ beneficiaries.  
5.12.   Belize has upheld its commitment to  complying with the WTO Agreement on Subsidies and 
Countervailing Measures (ASCM). Work towards this goal has been systematic with the formation 
of a Working Group and the entrance of a consultant expert on WTO issues. Data from the study of 
Belize’s three  incentive programmes has shown that where the local comparative advantage is 
utilized, Belize is a competitive producer. Higher levels of subsidization were noted when raw 
materials are not sourced locally.  
5.13.   The three incentive programs remain related to t he granting of combinations of duty and 
tax concessions. These programmes have as their ultimate objective: the promotion of investment 
to increase production of non -traditional crops and value -added products, the improvement of 
manufacturing and processin g activities; and generation of employment for Belizeans. These 
programmes have contributed substantially to the economic growth of the country and are partly 
responsible for successful dev elopment of the service sector.  
5.14.    Refinements in the Fiscal Incentiv e Act have given additional attention to the streamlining 
of the process of granting an incentive taking consideration of the difficulties faced by SMEs and 
the need for integration of novel business ideas into the traditional supply chain. The EPZ act is 
being repealed and replaced and Free Zones Act will be amended – both to comply with the ASCM.  
6  TRADE POLICY FORMULA TION  
6.1  Multilateral Dimension: Belize’s Approach to general compliance with WTO 
Obligations  
6.1.  Belize continues to be constrained by not having a presence in Geneva, resulting in reactive 
positions on the rules making process aspect of the WTO and in the trade liberalization 
negotiations. Currently, the Belize Mission in Brussels is accredited to the WTO. Primary 
responsibility for implementation of  WTO rules rests with the Ministry of Trade, mostly through the 
DGFT as the WTO Focal Point for implementation matters; the DGFT is also responsible for 
implementation of Community trade policy under the RTC. The DGFT works in close collaboration 
with othe r departments within the ministry, including the Investment Policy and Compliance Unit 
(IPCU) and the Belize Bureau of Standards (BBS). The IPCU is the national Inquiry Point for 
matters relating to Investment and implementation of the Agreement on Subsidi es and 
Countervailing Measures (ASCM), whiles the BBS is responsible as Inquiry Point to the WTO under 
the Agreement on Standards and Technical Regulations. Other agencies notified as Focal Points in 
relation to specific WTO agreements include: the Ministr y of Agriculture (Agreement on 
Agriculture); the Customs and Excise Department (Agreement on Rules of Origin); and the Belize 
Agricultural Health Authority (BAHA) under the Agreement on the Application of Sanitary and 
Phyto -Sanitary Measures. The mechanism  for interaction between the DGFT and public agencies is 
the inter -ministerial Trade Technical Team (TTT) and the Trade Negotiating Team (TNT). The DGFT 
functions as Secretariat to both bodies and provide guidance and advic e on all trade related 
matters.  
6.2.  Belize had participated in the GATT -Uruguay Round of multilateral trade negotiations as a 
small developing country with ties to the regional economic integration initiative of the 
Commonwealth Caribbean states, and became a founding member of the World Trad e 
Organization in 1995. Under the Uruguay Round commitments Belize made commitments in the 
three core areas, i.e. trade in goods, trade in services and the protection of intellectual property 
rights. Belize is bound under the WTO Agreement to observe the e lements of multilateral trade 
policy, and this obligation is addressed from both an individual country perspective and from a 
regional perspective in light of the regional integration commitments under the Revised Treaty of 
Chaguaramas (RTC) including the Community Trade Policy. It is to be noted that member states of 
the Caribbean Community (CARICOM) participated in the negotiations and undertook 
commitments as individuals rather t han CARICOM as a single group.  WT/TPR/G/ 353 • Belize  
 
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  6.2  The Regional Dimension: The Revised Treaty of  Chaguaramas including the CSME, 
and Related Decisions of the COTED and Conference of Heads of Government  
6.3.  At the regional level, Belize has been participating in the ongoing regional economic 
integration process of the Commonwealth Caribbean countries. The  integration process was 
boosted by the Declaration of Grand Anse, made by the Conference of Heads of Government in 
Grenada in 1989, to establish a CARICOM Single Market and Economy (CSME). The Conference 
appointed an Independent West Indian Commission wit h a mandate to examine the concept of a 
single market and economy as it would pertain to the Caribbean. The Commission recommended 
that the Community should seek to both broaden and deepen the regional integration process, 
with the deepening focused on est ablishment and operation of the CSME. The region then 
launched its process of reaching CSME -readiness at all levels, and the regional focus shifted to 
establishment of the legal and institutional framework through a revision of the Treaty of 
Chaguaramas. T he result was the Revised Treaty of Chaguaramas (RTC) including the CARICOM 
Single Market and Economy (2001).  
6.4.  The RTC provides for a comprehensive trade policy (Chapter 5) to be applied within an 
expanded economic space, and for a coordinated approach to r elations with third countries and 
groups of countries. The move to this new level of integration took effect on 1st January 2006 
when the CARICOM Single Market (CSM) was officially entered into force. A ten -year moratorium 
was placed on the effective date of entry into force of the CARICOM Single Economy, which should 
complete the integration process in an environment wherein no sovereign power would have been 
ceded to a regional authority. The CSM is currently comprised of five free -movement regimes 
includ ing the free movement of goods and services. Belize remains committed under the RTC 
which was incorporated into national law under the Caribbean Community Act 2004. The effective 
liberalization of the domestic market to other CARICOM nationals was also leg ally established 
under the Free Movement of Factors Act 2004. Perhaps not unfortunately, the Single Economy 
timeline of 2016 has passed without either movement or fanfare.  
6.3  The National Dimension of Trade Policy: Belize’s Trade Policy Framework  
6.5.  Since the la st TPR Belize has taken some important strides towards the consolidation of its 
legal regime, and its attendant administrative practices and procedures, into a coherent and 
unified national trade policy framework to be used as the foundation for defining a nd consolidating 
in law a legitimate national trade policy for Belize in conformity with requirements of the CSME 
trade policy established mainly under the prov isions of Chapter 5 of the RTC.  A basic 
understanding is that the Community Trade Policy is auto matically Belize’s national trade policy, as 
the RTC is already empowered under national law through the Caribbean Community Act of 2004. 
The definition of an individual trade policy must therefore seek to address national requirements in 
a context of regi onal and multilateral rules of trade and economic integration.  
6.6.  In seeking to establish a national trade policy for Belize, assistance was secured from the 
European Union through the EDF facility in 2014 leading to the initial draft and extensive review 
and finalization of the Belize’s first Trade Polic y Framework (TPF) by the DGFT. The Cabinet - 
approved TPF Belize was instrumental in securing technical assistance from the Commonwealth 
Secretariat under its Enhancing Trade Capacity Development  in ACP Program me (Hub & 
Spokes  II). The Trade Adviser provided to the DGFT is engaged in the crafting of a national trade 
policy for Belize, based on the TPF, as  one of the major deliverables.  
6.7.  The National Trade Policy Framework provides the impetus for the formulation of a 
comprehensive National Trade Policy.  The Framework guides both the G overnment and the private 
sector in identifying policy needs to support policy development and accountability. The framework 
will be achieved under three guiding principles: promoting  competitiveness for the productive 
sector, special and differential treatment, and support for regionalism. These principles are 
underpinned by four pillars: Institutional Capacity, Supply Capacity, Market Access and Trade 
Facilitation. These pillars will  be implemented through ten defined policy commitments, thirty 
policy instruments, and seventy -three specific government actions. The TPF is intended to 
stimulate and grow Belize’s trade do mestically and internationally.  WT/TPR/G/ 353 • Belize  
 
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  6.4  Competition Policy  
6.8.  Belize currently  has no established legislat ive framework for competition. However, it has 
legal obligations to establish competition infrastructure under the RTC (Chapter 8) and under the 
CARIFORUM -EU Economic Partnership Agreement  (EPA).  In addition, Belize’s prospects for 
attracting investment both domestically and internationally would be enhanced with the 
establishment of a competition law framework.  
6.9.  Under the CSME and Integration Financing Agreement signed between the CARICOM 
Secretariat and the European Commission, Belize was allocated funding to develop and enforce an 
effective national fair competition regime consistent with its treaty obligations through the Belize 
Competition Project (BCP).  
6.10.   The BCP, under Programme Estimate 2 (PE2), focuses on the actions that wi ll contribute to 
the establishment of a national competition law framework. Two studies of Belize’s prevailing 
market and market regulatory environment were commissioned under PE2 - Economic Mapping 
Study and a Legal Inventory study/Legal Mapping - have bee n completed and serve as the 
foundation for a regulatory impact assessment. The Economic Mapping study informs as to the 
type of rules defined under competition law while the Legal mapping study assesses whether 
Belize’s current laws and policies act as re gulatory barriers, preventing the realization of more 
competitive market structures. Secondly, they are in line with the RTC mandate to review all laws 
to ensure they are consistent with competition law and policy. The findings regarding the impact of 
comp etition law and policy in Belize are guided by these studies. A draft national competition 
policy and draft competition legislation have been developed, and a legislative consultation process 
was completed in January 2017. The stage is now being set for th e legislative process to be 
completed, after which the focus will shift to the institutional requirements – the establishment of 
a national competition authority of Belize.  
7  TRADE RELATIONS  
7.1  World Trade Organization  
7.1.  Belize continues to be constrained with re spect to not having a presence in Geneva, resulting 
in a reactive position on the rules making process of the WTO and in the trade liberalization 
negotiations. Currently, the Belize Mission in Brussels is accredited to the WTO but is constrained 
by the nee d to handle matters from Brussels as Belize has no office in Geneva.  
7.2.  Belize recognizes the urgent need to address compliance issues identified in the WTO 
Secretariat report, and commits to work assiduously towards rectifying outstanding non -
compliance in t he areas of taxes and tariffs.  
7.2  U.S.-Belize Trade Relations under the Caribbean Basin Initiative  
7.3.  Belize imports a significant quantity of goods from the USA which is also the second largest 
market for its merchandise exports after Mexico. There is no trade agreement between B elize (or 
CARICOM) and the USA.  However, Belize and other countries in the Caribbean continue to benefit 
from preferential market access for goods into the U .S. market under the Caribbean Basin 
Initiative (CBI). The CBI did not cover a f ew high value goods including jewellery, watches, etc. 
nor did it cover trade in textile and clothing products, which were not yet under the WTO but was 
governed by the Multi -Fibre Arrangement (MFA) for eventual transition to the WTO. Shortly after 
the MFA  expired and textiles and clothing came under the umbrella of the WTO, the USA 
immediately took action to expand market access to the Caribbean under the Caribbean Basin 
Trade Partnership Act (CBTPA). This expansion was mostly in clothing and textile produ cts and 
unfortunately did not provide any new export opportunities for Belize which had already lost its 
clothing industry to more attractive investment locations including the Mexican “maquiladora” on 
the U .S.-Mexico border. However, the CBI -CBTPA still r emains the most important preferential 
trade arrangement from which Belize continues to benefit in its export merchandise trade. The 
main exports are in agricultural commodities including c ane sugar, citrus concentrates.  
7.4.  Most Caribbean beneficiaries under the CBI -CBTPA have locked -in these preferences by 
negotiating trade agreements with the USA. The most significant was the U .S.-Central America WT/TPR/G/ 353 • Belize  
 
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  Free Trade Agreement (USCAFTA) which liberalized trade between the USA and Central American 
countries other than Belize – the Dominican Republic subsequently signed onto the FTA making it 
the U .S.-CA-DR FTA. However, the CARICOM group of beneficiaries continue to enjoy the trade 
preferences but without long -term security. The trade preferences can be withdrawn at any  time 
from any beneficiary by a unilateral decision of the USA. Also relevant is that the CBI -CBTPA is 
dependent on a WTO waiver without which the USA cannot legally operate the regime. This regime 
is similar to the unilateral country programme of Canada - the CARIBCAN - which has provided 
market access concessions to countries of the Commonwealth Caribbean and which is also subject 
to a WTO waiver. It was in an attempt to lock -in CARIBCAN trade preferences that CARICOM 
actually launched negotiations with C anada for a Trade and Development Agreement. The 
negotiations have unfortunately not been concluded after almost one decade and were finally 
suspended in 2014. Unlike Canada the USA has not indicated any interest in a trade agreement 
with CARICOM. However there is engagement through a CARICOM -USA Trade and Investment 
Council (TIC) which remains active. The TIC meets on a regular basis.  
7.3  Regional Integration and implementation of the CARICOM Single Market and 
Economy  
7.5.  At the regional level, Belize h as been pa rticipating in the on going regional economic 
integration process of the Commonwealth Caribbean countries. In 2001, the treaty -revision 
process was completed and the Revised Treaty of Chaguaramas published in 2001. After an 
extended period dedicated to “CSM E-readiness”, The CARICOM Single Market (CSM) took was 
finally entered into force on 1st January 2006 - and the Single Economy component was deferred 
to 2016. Belize was one of the first signatories to that first phase of the CARICOM Single Market 
and Econ omy (CSME) The revised legal and institutional framework of the CSME provided  for non -
discrimination among Community nationals in the operation of the five core CSME free movement 
regimes, namely: the right of establishment; the free movement of goods; the  free movement of 
services; free movement of persons, including the free movement of skilled Community nationals, 
and the free movement of Capital to some extent. Since the last review, the region has been 
engaged in the implementation of a number of harmo nized administrative online systems such as, 
Online Companies Registry, Single Jurisdiction Policy, CSME Application Processing System for the 
Free Movement of Skills Regime.  
7.6.  The CSME initiative i ncludes an on -going process of " establishment"  (of organs an d functional 
institut ions, etc.) and the element of "operation"  – i.e. the operation of those elements already in 
place. Belize continues to be negatively affected by the extent of its geographic separation from 
the other member states and near -absence of all modes of transportation. Work continues on the 
establishment of two key institutional arrangements – the establishment of a national authority 
with responsibility for competition, and completion of a national accreditation autho rity. Belize 
continues t o participate actively in the establishment and  implementation of the CSME.  
7.4  CARICOM Bi -Laterals  
7.7.  The CARICOM has negotiated and signed a number of trade agreements with countries in the 
region, all reflecting the internal policy of special and differential treatment to the Less Developed 
Countries (LDCS) who are not required to grant market access concessions to any party with 
whom CARICOM signs a trade agreement – only the More Developed Countries (MDCs) grant such 
concessions. The existing Agreements are:  
 The CARICOM -Venezuela Trade & Investment Agreement - October 1992 . 
 The CARICOM -Colombia Agreement on Trade, Economic and Technical Cooperation - 
July 1994 . 
 The CARICOM -Cuba Agreement on Trade and Economic Cooperation 5th July 2000 . 
 The CARICOM Dominican Re public Free Trade Agreement - December 2001 . 
 The CARICOM -Costa Rica Free Trade Agreement March 9th, 2004 . 
7.8.  The administrative bodies under the CARICOM -DR and CARICOM -Cuba agreements have 
been recently activated with the objective of expanding the scope of p roduct coverage.  WT/TPR/G/ 353 • Belize  
 
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  7.5  Economic Partnership Agreement  
7.9.  Belize as a part of CARIFORUM signed the CARIFORUM -EU Economic Partnership Agreement 
(EPA) in 2008. Belize ratified the agreement in late 2011 and has been progressively implementing 
its liberalization commit ments under the agreement.  
7.10.   Belize benefited from the British -financed Caribbean Aid for Trade Regional Integration Trust 
Fund (CARTFUND). The project was aimed at enhancing the capacity of the DGFT to promote and 
implement the CSME and the EPA. The project  saw the development of a national EPA 
Implementation Plan and a legal review of existing legislation. The National Implementation Plan, 
upon validation by the stakeholders, was ap proved by the Cabinet in 2014. The legal review 
identified legislation gaps and resulted in draft legislations in the areas of consumer protection, 
metrology, and geographical indication – however, these still await passage into law. EPA National 
Implementation Unit was established in the DGFT in March 2015 to lead in executing th e 
implementation plan . 
7.11.   The Objectives of the national EPA Implementation Unit are to:  
 Communicate and disseminate the Contents of the Agreement ; 
 Assist line ministries in developing the required institutional capacities for 
implementation of the Agreement ; 
 Review existing policies, legislation and regulations for consistency with Treaty 
obligations under the RTC ; 
 Assist the public and private sect or to develop capacity to reap the economic and trade 
benefits of the agreement ; 
 Provide advice to the Governmen t of Belize on EPA implementation at the Regional and 
National Level and to advise on constraints impacting the progress of implementation ; 
 Assist in coordination and monitoring  the impact of the Agreement.  
7.6  Belize -Guatemala Partial Scope Agreement  
7.12.   Belize a nd Guatemala signed a Partial Scope Agreement in 2006; Belize ratified in 2009 and 
Guatemala in 2010. Eight years later in 2014, Belize hosted the first meeting of the Administrative 
Commission established under the agreement and subsequently the second me eting in 2015. In 
both these meetings, Belize and Guatemala activated subject specific committees established 
under the agreement in areas of SPS, TBT, Customs Procedures of Rules of Origin and Land 
Transportation and an additional committee was formed for  Market Access. The Commission has 
mandated the Market Access Technical Group to pursue these negotiations and report to the 
Technical Coordinating Group, which  will then transmit the results to the Commission for final 
vetting and decision.  
8  CONCLUSION  
8.1.  Belize has sought to put the necessary strategic policies in place that would assist in 
modernizing its economy. This Trade Policy Review has occurred at an opportune time, where the 
results would be used as benchmarks to be leveraged within the development o f the national trade 
policy, with the intention of bridging the compliance gap. Considerable challenges emerging from 
the financial services sector in relation to its correspondent banking relationships, low resilience to 
the adverse effects of climate cha nge and vulnerability to external trade factors affecting the 
productive sector need to be overcome. Belize will have to work closely with its regional partners 
in CARICOM, the Americas, Europe and the wider donor and trade development community to be 
able to find solutions to the many impediments  to trade growth and expansion.  
8.2.  As a result of global economic downturn, Belize’s economic expansion decreased but its 
economy remained resilient over the review period. According to the Central Bank of Belize, the  
economy expanded by 16.8% from 2010 – 2015 reflecting a modest average annual growth of 
2.60%. However, the medium term outlook is challenging and growth is projected to be 1.6% for 
the period 2016 -2021, below the average of the past five years. According  the Central Bank of WT/TPR/G/ 353 • Belize  
 
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  Belize, the G overnment’s fiscal policy initiatives seek to balance the need for fiscal consolidation 
and the equally important consideration of maintaining the stability of the economy. The 
government has calibrated its program to ensu re that the policy package does not push the 
economy into a recession. Additional key structural initiatives enshrined in its national sustainable 
development, and trade and investment strategies that would drive the economy, including 
restoration of expor ts, attraction of Foreign Direct Investments (FDI), improvement of industrial 
policies, enhancement of market efficiencies, enhanced infrastructure, and the increased 
investments in human capital are underway. Belize remains committed to the principles of the 
multilateral trading system and continues to strive for trade and economic development within the 
context of an increasingly globalizing world.  
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