WORLD TRADE  
ORGANIZATION  G/SCM/N/211/BLZ 
2 Septembre 2010 
 (10-4547) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
Continuation of Extension under SCM Artic le 27.4 of the Transition Period for  
the Elimination of Export Subsidies Pursuant to the Procedures Contained  
in the General Council Decision in Document WT/L/691  
 
BELIZE 
  
 The following notification, dated 20 August 2010,  is being circulated at the request of the 
Delegation of Belize.    
_______________ 
 
 
 In accordance with its rights and obligati ons under the procedures for extending programmes 
that comprise subsidies classified as prohibited unde r Article 3.1 of the Agreement on Subsidies and 
Countervailing Measures (SCM) of the World Trade Organization (WTO), Belize is submitting for the Committee's consideration the following notification in order to meet its obligations in respect of 
the extension of the transition period for programmes subject to renewal.  
 
 Please be informed that there have no ch anges to the following applicable subsidy 
programmes in terms of the provision of any additi onal benefits or modification of the definition or 
requirements of the programmes.  The programme s to which this notification applies are: 
  Programme under the Fiscal Incentives Act 
 Programme under the Export Processing Zone Act 
 Programme under the Commercial Free Zone Act  G/SCM/N/211/BLZ 
Page 2  
 
   
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 2009 – June 2010.  3. Policy objective and/or purpose of subsidy
 
 
 See paragraph A:3 of document G/SCM/N/114/BLZ. 
 4. Background and authority for the subsidy
  
  See paragraph A:4 of document G/SCM/N/114/BLZ.  
5. Form of the subsidy
 
  See paragraph A:5 of document G/SCM/N/114/BLZ.  6. To whom and how the subsidy is provided
 
 
 See paragraph A:6 of document G/SCM/N/114/BLZ.  7. Subsidy per unit
 
  See paragraph A:7 of document G/SCM/N/114/BLZ. 
 
8. Duration of the subsidy
 
  See paragraph A:8 of document G/SCM/N/114/BLZ.  
9. Statistical data on impact of the programme 
 
  
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 2009 – June 2010..    G/SCM/N/211/BLZ 
 Page 3 
 
 
  3. Policy objective and/or purpose of subsidy  
  See paragraph B:3 of document G/SCM/N/114/BLZ.  4. Background and authority for the subsidy
  
 
 See paragraph B:4 of document G/SCM/N/114/BLZ.  5. Form of the subsidy
 
 
 See paragraph B:5 of document G/SCM/N/114/BLZ. 
 6. To whom and how the subsidy is provided
 
  See paragraph B:6 of document G/SCM/N/114/BLZ. 
 
7. Subsidy per unit
 
  See paragraph B:7 of document G/SCM/N/114/BLZ.  8. Duration of the subsidy
 
 
 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 (Revised) 507,900,000 
2008 254,057,559 (Revised) 585,170,000 
2009 167,493,118  (Provisional)  501,150,000 
 
 1. BZ$ = 0.5 US$ 
 2. EPZ Export Figures include that of go ods and services, while total exports represent 
that of goods only.  
 
 SECTION C  Commercial Free Zone Programme  
 
1. Description of the programme
 
 
 See paragraph C:1 of document G/SCM/N/114/BLZ.  2. Period covered by the notification
 
  July 2009 – June 2010. 
 G/SCM/N/211/BLZ 
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  3. Policy objective and/or purpose of subsidy
 
  See paragraph C:3 of document G/SCM/N/114/BLZ.  4. Background and authority for the subsidy
  
 
 See paragraph C:4 of document G/SCM/N/114/BLZ.  5. Form of the subsidy
 
 
 See paragraph C:5 of document G/SCM/N/114/BLZ. 
 6. To whom and how the subsidy is provided
 
  See paragraph C:6 of document G/SCM/N/114/BLZ. 
 
7. Subsidy per unit
 
  See paragraph C:7 of document G/SCM/N/114/BLZ.  8. Duration of the subsidy
 
 
 See paragraph C:8 of document G/SCM/N/114/BLZ.  9. Statistical data on impact of the programme 
 
 
 See paragraph C:9 of document G/SCM/N/114/BLZ. 
  G/SCM/N/211/BLZ 
 Page 5 
 
 
  Information referred to in paragraph 2 (a) of the GC Decision of 2007  
  Belize is pleased to notify the significant in ternal steps it has undertaken in its process to 
eliminate export subsidies.  The Government of Belize solicited technical assistance, which was 
provided by both the CARICOM Secretariat and the Rules Division of the WTO Secretariat.  
  In this regard, since 2008, the operations cont ract of new EPZ entrants has been amended to 
include a reference to the fact that there may be am endments to the programme in the future to ensure 
WTO compliance as it related to the SCM Agreement and the conditions set out in the July 2007 General Council Decision (WT/L/691).  
 
In addition, a clause has been entered in the Medium-Term Development Strategy, 2010-
2013, which has indicated that Belize would strive to ensure that its export subsidy programmes are 
compliant with the conditions of the extension of  granted under Article 27.4 of the SCM Agreement. 
 
Further, three Officials from Belize participated in a Regional Workshop on Export Subsidies 
– Compliance with the Requirements of the WTO General Council Decision of 31 July 2007 
(WT/L/691 -hosted by the CARICOM Secretariat H ub and Spokes Project and the WTO Secretariat, 
29 September – 1 October 2009, Commonwealth of Do minica.  The objective of the Workshop was to 
explain the relevant WTO rules, with special em phasis on the requirements of the General Council 
Decision, especially in respect of the measures that  will need to be adopted, and the transparency 
requirements related to these measures.  The form at of the Workshop was a combination of plenary 
sessions and individual sessions with the participating CARICOM countries.  
 
In July 2010, technical assistance was provide d by the CARICOM Secretariat and the Rules 
Division of the WTO Secretariat, in respect of the legislations and attendant  regulations governing the 
three subsidy programmes in question in order to identify the aspects, which may be problematic to 
the WTO by conferring export contingency; and would have to be substantively addressed.  
Moreover, Belize has also solicited technical assistance in legal drafting from the Office of Trade 
Negotiations of the CARICOM Secretariat and has initiated the collaborative process and established 
broad parameters of the way forward. 
 
Concomitantly, in July 2010, with assistance of  the CARICOM Secretariat presentations were 
made to representatives of the public sector and priv ate sector agencies to build their capacity and 
understanding of the SCM Agreement, the conditions of  the Article 27.4 extension, and the aspects of 
the domestic subsidy legislations  and regulations governing the th ree extended programmes that are 
problematic under WTO rules.  The latter would guide the legislative redrafting and programme 
amendment processes that Belize will be engaging in.  This intervention has provided public sector 
Officials with the necessary tools to move forward in  the requisite reform process and ensured that the 
private sector organizations were verbally notif ied of pending changes in the subsidy regimes 
necessary to eliminate export subsidies no later than 31 December 2015.   
 
During the period 9-16 August 2010, again with the assistance of the Regional Trade Policy 
Adviser of the CARICOM Secretariat; the Ministry of  Foreign Affairs, Directorate of Foreign Trade, 
Belize Trade and Investment Development Se rvice (BELTRAIDE) and Ministry of Economic 
Development  engaged in a comprehensive consultativ e process with all the beneficiaries of the three 
programmes which have been granted Article 27.4 extensions, clearly outlining Belize's WTO 
commitments with regard to the SCM Agreement, defining export subsidies within the meaning of  
the SCM Agreement, notifying that Belize will ha ve to amend the  investment and incentives 
programmes, which have been granted extensio ns, to ensure WTO compliance no later than 
31 December 2015; and eliciting feedback on the wa y forward.  As such, by 16 August 2010 the 
beneficiaries of the three (3) programmes granted Artic le 27.4 extensions were verbally notified of the 
GC Decision of 2007 and Belize's legally binding commitments in this respect. G/SCM/N/211/BLZ 
Page 6  
 
   
Coming out of the consultative process an ad  hoc inter-institutional working group has been 
established, which will be formalized by the end of October 2010.  It is envisaged that this Working 
Group shall have responsibility for overseeing: analys is; policy dialogue; public awareness initiatives; 
and preparation of draft legislation.  
On 17-18 August 2010, with the assistance of  the Regional Trade Policy Adviser of the 
CARICOM Secretariat, Belize hosted a meeting of  an ad hoc Technical Working Group on Export 
Subsidies.  This Working Group finalized the attached Action Plan, (Annex I) which is to be 
forwarded to Cabinet for approval.   The Working Group also crafted a draft letter of notification 
(Annex II) to the beneficiaries of export subsidies programmes, as we ll as a Draft Cabinet Brief, 
which will accompany the Action Plan.  
 
 Belize will therefore be formally notifying the beneficiaries in writing, by 
31 August 2010, of the elimination of the export subsidy programmes, within the meaning of 
Article 3 of the SCM Agreement, to ensure conformity with the conditions of the extension granted under Article 27.4 of the SCM Agreement and the GC decision of 2007.  An addendum 
to this notification, confirming that all the benefi ciaries have been notified, as well as indicating 
any modification to the Action Plan made by Cabinet, will be submitted to the WTO by 15 September 2010. 
  
 The CARICOM Secretariat, the WTO and other sources will continue to be targeted for the provision of the requisite technical assistance, including economic analyses, at different stages of the 
reform process.  
  
   G/SCM/N/211/BLZ
 Page 7Draft Action Plan:  Annex I 
  
PROPOSED OUTLINE FOR PREPARATION OF ACTION PLANS IN 
ACCORDANCE WITH THE DECISION OF THE GENERAL COUNCIL 
(WT/L/691) 
  
 
(a)   Description of the programmes   
Free Zones: 
 
The subsidies provided under the Free Zones Act of 2005 generally take the form of, inter alia , import duty and 
sales tax exemptions, and business and other corporate tax exemptions (S.27).  The export contingency element of 
these subsidies is attributable to the fact that any sal es of free zones products into the national market requires 
approval by the Ministry of Finance.  In addition, dom estic sales are capped at 25% of the goods produced by the 
CFZ (Section 19(10)).     There is an acceptance that in order to remove the expor t contingency element of the subsidies provide under the 
Free Zones Act, and thereby ensuring conformity with th e July 2007 General Council Decision, both the 25% limit 
and the requirement to obtain government approval must be removed.  
Export Processing Zones: 
 
The EPZ programme provides subsidies in the form of exemp tions from taxes of any kind, both direct and indirect, 
including customs duties, with the excep tion of payroll taxes and social security (S. 12).  Direct tax exemptions are 
time-limited (20 years).  The EPZs are essentially agro -processing, manufacturing and service providing zones, 
which are sometimes factory-specific.  The export contingency element of the EPZ Act lies in the restriction of sales  of products manufactured in the EPZ 
into Belize's national customs territory.  In order to remove this export continge ncy, it is important that unrestricted 
sales of products originating from the EPZs into the nationa l customs territory be permitted, upon payment of the 
applicable duties calculated on imported inputs.  If the waiv er requirement is to maintained it would have to be 
automatic in nature.     Fiscal Incentives Act: 
 
Belize's Fiscal Incentives Act provides incentives in the form of customs duty and revenue replacement duty 
exemptions.    
  G/SCM/N/211/BLZ 
Page 8  
The aspects of the Fiscal Incentives Act which are problematic  within the context of the SCM Agreement are:  the 
possibility of an extension of the import duty exemption and tax holidays up to 25 years for 'pure exporters'; and that 
in the application process and a pproval criteria, information is  solicited with regard to the exports, foreign exchange 
earnings  
 (b) Description of the domestic 
procedures necessary to eliminate export subsidies  
Administrative Amendments: 
 
Developing an agreed Framework for Permitting sales of pr oducts originating in the Free Zones and EPZs into the 
national customs territory if the subsidies provided to enterprises benefiting from subsidies under the Free Zones and 
EPZs Acts are not to be considered to be export-cont ingent.  This would require at least three years.  
 Determining whether to retain flexibility currently  in the Free Zones Legislation to engage in 
manufacturing/assembly or similar activity in the future, given that such activity is not curre ntly been undertaken.  In 
essence, the activity currently being undertaken in the Fr ee Zone can be described as warehousing and distribution 
services.  This would necessitate require significant consultati ons and analysis and hence require at least three years 
as well.   In respect of reforming the Fiscal Incen tives Act, the goal is to repeal the export and local content requirements in 
the current Fiscal Incentives Act.  Specific issues that  will be addressed include the fact that the import duty 
exemption could be extended for up to 25 years where the enterprise is a pure "exporter" ; and in the application 
process information on exports, foreign exchange, etc is solicited,  which may appear to limit access to export-
oriented enterprises.  With respect to  the latter, new eligibility criteria will be developed, which omit any explicit 
reference to exports or export performance and the applica tion process designed in such a way as not to give rise to 
any export contingency on a de facto basis.   
 
In respect of legal drafting, one option that is currently being considered is replacing the Fiscal Incentives Act with 
legislation based on the Draft OECS Model Legislation on the Fiscal Incentives (Amended) Act, with modifications to address elements in the current iteration that Belize be lieves may be problematic in respect of  WTO rules. 
 
Legislative Procedures: 
 The requisite legal drafting will be a collaborative effort undertaken by the Attorney General's Ministry of Belize 
and the Office of Trade Negotiations, CARICOM Secretaria t.  Once there is agreement by the inter-institutional 
working group on the Draft Legislation, the legal amen dments are presented to Cabinet for examination and 
approval.  Once this process is completed and recommenda tions made, the Attorney General's Ministry then 
prepares the draft Bills. 
   
   G/SCM/N/211/BLZ
 Page 9 
Upon Cabinet's approval, the draft Bills  are presented to the House of Repr esentatives for the first reading;  
subsequently they are submitted to the relevant House Co mmittee for review and approva l; and then forwarded to 
the House of Representatives for the second and third readings 
 Once accepted the Bills are submitted to the Senate for approval and then forw arded to the Governor General for 
signature.  The final step is the preparation of the Commencement Order. 
 
 (c) Description of actions that have 
been or are in the process of being undertaken.  
These actions include: 
 
• Since 2008, the operations contract of new EPZ entrants h as been amended to include a reference to the fact 
that there may be amendments to the programme in th e future to ensure WTO compliance as it related to the 
SCM Agreement and the conditions set out in th e July 2007 General Council Decision (WT/L/691) 
 
• Participation in a Regional Workshop on Export Subs idies – Compliance with the Requirements of the 
WTO General Council Decision of 31 July 2007 (WT/L/ 691 -hosted by the CARICOM Secretariat Hub and 
Spokes Project and the WTO Secretariat, 29 September – 1 October 2009, Commonwealth of Dominica. The objective of the Workshop was to explain the re levant WTO rules, with special emphasis on the 
requirements of the General Council Decision, especially in respect of the measures that will need to be 
adopted, and the transparency requirements related to these measures The format of the Workshop was a 
combination of plenary sessions and individual sessi ons with the participating CARICOM countries; 
 
• Technical assistance was provided by the CARICOM Secretariat and the Rules Division of the WTO 
Secretariat, in identifying the aspects of the legislati on and attendant regulations governing the three subsidy 
programmes in question in order to identify the aspect s, which may be problematic to the WTO; confer 
export contingency; and would have  to be substantively addressed; 
 
• Entered a clause in the Medium-term Development Stra tegy, 2010-2013, that indicated that Belize would 
strive to ensure that its export subsidy programmes ar e compliant with the conditions of the extension of 
granted under Article 27.4 of the SCM Agreement; 
 
• In July 2010, with assistance of the CARICOM Secretaria t presentations were made to representatives of the 
public sector and private sector agencies to build th eir capacity and understanding of the SCM Agreement, 
the conditions of the Article 27.4 extension, and th e aspects of the domestic subsidy legislations and 
regulations governing the three extended programmes th at are considered problematic by the WTO.  The 
latter would guide the legislative redrafting and programme amendment processes that Belize will be 
engaging in;  
  G/SCM/N/211/BLZ 
Page 10  
• In August 2010, again with the assistance of a trade e xpert from the CARICOM Secretariat, the Ministry of 
Foreign Affairs, Directorate of Trade, Belize Tr ade and Investment Devel opment Service (BELTRAIDE) 
and Ministry of Economic Developm ent  engaged in a comprehensive consultative process with all the 
beneficiaries of the three programmes which have b een granted Article 27.4 extensions, clearly outlining 
Belize's WTO commitments with regard to the SCM Agreement, defining export subsidies within the 
meaning of  the SCM Agreement, notifying that Belize will have to amend the  investment and incentives 
programmes, which have been granted extensi ons, to ensure WTO compliance no later than 
31 December 2015; and eliciting feedback on the way forward; 
 
• Formation of an inter-institutional working group whic h would have responsibility for overseeing  analysis; 
policy dialogue; public awareness initiatives; and preparation of draft legislation; 
 
• Solicited technical assistance in legal drafting from the Office of Trade Negotiations of the CARICOM 
Secretariat and have initiated the collaborative process  and established  broad parameters of the way 
forward;  
 
• The CARICOM Secretariat, the WTO and other sources will c ontinue to be targeted for the provision of  the 
requisite  technical assistance, including economic an alyses, at different stages of the reform process; 
 
• Formally notify beneficiaries in writing of intended  reform  of the export element of the subsidy 
programmes to comply with the conditions of th e extension granted under Article 27.4 of the SCM 
Agreement.  
 
 
(d) Description of future actions  
Despite its capacity constraints, Belize will strive to im plement its commitments under Article 27.4 at the earliest 
time possible.  Future actions pursuant to ensuring conf ormity with the SCM Agreement will be guided by the 
necessary domestic procedures, timelines set by the General Council Decision, the need to ensure that a consultative 
approach is maintained throughout th e entire process, and the importance of  these programmes within the domestic 
macro- economic policy landscape.  These will include, inter alia:     
 
August-December 2010  
• Formalization of the inter-institutional technical  working group and de velopment of its TOR 
• Continue the sensitization programme and in formal dialogue with the private sector 
• Request technical assistance in conducting a comp rehensive assessment of the incentives programmes 
• Formal notification to the beneficiaries 
• Completion of the Action Plan  
   G/SCM/N/211/BLZ
 Page 11 
Jan 2011 – Dec 2012 
 
Analytical, Legislative and Consultative Processes 
 
• Completion of economic assessments  
• Review the results of the assessment on the incentive programmes 
• Examination and agreement on the of policy and legislative options 
• Continue the sensitization programme and in formal dialogue with the private sector 
 Jan 2013 – Dec 2015   
 
Consultative Process 
 
• Continue the sensitization programme and informal dialogue  with stakeholders, including the private sector  
with a view to updating and eliciting feedb ack  on the legislative changes envisaged 
• Finalization of the framework to allow unrestricted sa les of products from the EPZs and Free Zones into the 
national customs territory of Belize 
• Finalization of the eligibility criteria for the fiscal incentives programme and approaches to grant of 'Tax 
Holidays' 
 
Legislative Process   
 
• Commencement of legal drafting along with the Atto rney General's Ministry and the Office of Trade 
Negotiations, CARICOM Secretariat 
• Agreed draft of legal amendments presented to Cabinet for examination and approval.   
• The Attorney General's Ministry then prepares the draft Bills  
• Upon Cabinet's approval, the draft Bills are presented to  the House of Representatives for the first reading  
• Submission  to the relevant House Committee for review and approval 
• Forwarded to the House of Representatives for second and third readings 
• Submission to the Senate for approval 
• Forwarding to the Governor General for signature  
• Preparation of the Commencement Order 
  
 G/SCM/N/211/BLZ 
Page 12  
 
  Appendix I:  Draft Briefing Notes to Beneficiaries 
 
 
31 August 2010 
 
Re:  Adjustment of Belize's Incentives Programmes to be compliant with the 
World Trade Organization (WTO) Agreement on Subsidies and  
Countervailing Measures by 31 December 2015 
 
 The WTO is an International Organization that set s the rules of international trade.  Belize is a 
founding member of the WTO since 1995, and is bound by the rules and decisions agreed to in this 
body.    The WTO Agreement on Subsidies and Countervailing Measures (SCM) was brought into force in 1995 with a prohibition on export subsidi es applicable to all members.  Export subsidies 
within the WTO include concessions, duty exemptions , and tax holidays and other forms of financial 
transfer from the government that are conditiona l on export performance.  However, developing 
countries benefit from special and differential tr eatment provisions in Article 27 of the SCM 
Agreement.  As a result an initial transition period of eight years from the entry into force of the 
Agreement was granted to developing countries to br ing their export subsidies into conformity with 
the rules was granted to developing countries.  Th e SCM Agreement contains a clause providing for 
an extension of that transition period, on an annual basis, under certain circumstances. 
  On the basis of the extension clause, the WTO implemented a special 'fast-track' system for 
extensions of the transition period for the elimina tion of export subsidies for certain types of export 
subsidies of certain developing country Members.  These extension procedures took effect in 2002, as 
the original eight-year transition period was expi ring.  Belize maintains three programmes that are 
export subsidy programmes within the meaning of the Agreement on Subsidies and Countervailing 
Measures:  the Fiscal Incentiv es Act, 1990 (Cap. 54, 2003), the Export Processing Zones Act, 1990 
(Cap. 280, 2000), and the Commercial Free Z one Act 1995 (Cap. 278, 2000).  All of these 
programmes qualified for, and obtained extens ions under, the fast-track procedures. 
 
 The General Council of the WTO, in July 2007,  adopted a decision to continue, with certain 
modifications, the fast-track procedures.  The deci sion enables the Subsidies Committee to continue to 
grant extensions of the transition period until the end of 2013, with a final phase-out period of two 
years, which shall end no later than 31 December 2015.  The granting of annual extensions up until 
31 December 2015 is conditional upon Members satisfying the stand-still (i.e. the programmes shall 
not be modified so as to make them more fa vourable than they were as at 1 September 2001)  and 
transparency (i.e. annual reviews by the SCM Committee,  on the basis of annual notifications for 
verification that the standstill requirements are be ing met and that internal steps are being 
undertaken to eliminate the export subsidies)  commitments enshrined in the WTO General Council 
Decision of 2007.   
 As a condition of the grant of the extensi on under the General Council Decision, Belize is 
required to undertake or must already have taken spec ific steps, for which distinct timelines have been 
set.  These include, inter alia , as from January 2008 initiation of the necessary internal steps to bring 
programmes with extensions in conformity w ith WTO rules.  These steps "shall include" 
consultations with relevant government bodies and organisations.  As at 30/6/2009, Belize was 
required to provide the WTO with information on these internal steps.  
  In addition, not later than 31 December 2009, individual beneficiaries of the programmes are 
to be notified in writing that modifications will be  made to the export contingency element of the 
programmes.  Further, by 30 June 2010, Belize w as required to complete and notify to the WTO an  G/SCM/N/211/BLZ 
 Page 13 
 
 
  "Action Plan", providing a detailed explanation of how the export subsidies will be reformed during 
the period leading up to 31 December 2010.  These would include legislative changes and administrative amendments, etc.  This notification wa s also expected to include information in respect 
of whether these actions had been undertaken or we re in the process of being undertaken, as well as 
confirmation of how the individual benefi ciaries were sensitized and notified.  
 
 In keeping with this obligation, the Govern ment of Belize has begun a consultative process 
with the private sector, including the beneficiaries of  the three programmes, to inform them that the 
programmes will need to be modified to bring them  into conformity with Belize's obligations under 
the WTO, and to obtain input as to possible ways to accomplish this.  This letter serves as the required 
written notification to beneficiaries to that effect.  By the end of 2015, Belize will have had to modify 
the programmes such that any subsidies provided thereunder are no longer c ontingent, explicitly or 
implicitly, on export performance.  Between now a nd then, the Government will be developing and 
consulting with stakeholders on opt ions for making the necessary modifications to the programmes.  
 
 It is important to note that a "Mid-period review" by the WTO SCM Committee is scheduled 
for October 2010.  This will essentially be "sto cktaking" exercise of the measures undertaken, 
including an examination of action plans for bringi ng the programmes into conformity with the WTO 
rules.    In view of its commitments under the WTO SCM Agreement, with a view to satisfying the 
conditions of the continuation of the extension of its export subsidy programmes granted under the 
WTO General Council Decision (2007), Belize has be gan to undertake the necessary internal steps 
with a view to eliminating export (elements of) s ubsidies under the programme before the end of the 
final two-year phase out period (i.e 2013-2015).  Th ese steps shall include further consultations with 
relevant government bodies and the private sec tor and any necessary technical and/or legal 
assessments and amendments. 
 G/SCM/N/211/BLZ 
Page 14  
 
   
Appendix II – Draft Letter to Beneficiaries 
 
  The World Trade Organization's (WTO) main  objective is to supervise and liberalize 
international trade.  Belize has been a member of  the WTO since 1995 and, as a signatory, is legally 
bound to comply with its various rules.  One of its rules is the "Subsidies and Countervailing 
Measures" which states that export subsidies are not  allowed, since it gives an unfair advantage in 
international trade to its beneficiaries.  Be lize has three export subsidy programmes: Export 
Processing Zones (EPZ), Fiscal Incentives, and Free Zones.    
 
 In keeping with this obligation, the Govern ment of Belize has begun a consultative process 
with the private sector, including the beneficiaries of  the three programmes, to inform them that the 
programmes will need to be modified to bring them  into conformity with Belize's obligations under 
the WTO, and to obtain input as to possibl e ways to accomplish this.  (See Appendix I) 
 
 This letter serves as the required written notification to beneficiaries to that effect.  By the end 
of 2015, Belize will have had to modify the progr ammes such that any subsidies provided thereunder 
are no longer contingent, explicitly or implicitly, on export performance.  Between now and then, the 
Government will be developing an d consulting with stakeholders on options for making the necessary 
modifications to the programmes.  
 
__________