WORLD  TRADE  
ORGANIZATION  WT/TPR/S/238/Rev.1 
23 November 2010  
 
(10-6230) 
Trade Policy Review Body  
   
 
  
 
TRADE POLICY REVIEW 
 
Report by the Secretariat 
 
BELIZE 
 
Revision 
 
 
 
 
This report, prepared for the second Trad e Policy Review of Belize, has been 
drawn up by the WTO Secretariat on its own responsibility.  The Secretariat has, 
as required by the Agreement establishing the Trade Policy Review Mechanism 
(Annex 3 of the Marrakesh Agreement Establishing the World Trade 
Organization), sought clarification from Belize on its trade policies and 
practices. 
 
Any technical questions arising from this report may be addressed to 
Ms. Katie Waters (tel:  022.739 5067) or  Mr. John Finn (tel:  022 739 5081) or 
Mr. Willy Alfaro (tel:  022 739 5372). 
 
Document WT/TPR/G/238 contains the policy statement submitted by Belize. 
 
 
 Belize WT/TPR/S/238/Rev.1 
 Page iii 
 
 
CONTENTS 
 
 Page 
SUMMARY   vii 
I. ECONOMIC ENVIRONMENT 1 
 (1) I NTRODUCTION  1 
 (2) R ECENT ECONOMIC DEVELOPMENTS  2 
 (i) Structure of the economy 2  (ii) Fiscal policy 4 
 (iii) Monetary and exchange rate policy 6 
 (iv) Balance of payments and external debt 7 
 (3) M
ERCHANDISE TRADE AND INVESTMENT FLOWS  8 
 (i) Composition and geographical distribution of trade 8  (ii) Foreign direct investment 12 
 (4) O
UTLOOK  12 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 14 
 (1) I NTRODUCTION  14 
 (2) G ENERAL CONSTITUTIONAL AND LEGAL FRAMEWORK  14 
 (3) D EVELOPMENT AND ADMINISTRATION OF TRADE POLICY  15 
 (4) T RADE AGREEMENTS AND ARRANGEMENTS  16 
 (i) Multilateral agreements 16 
 (ii) CARICOM 18  (iii) Bilateral agreements 19 
 (iv) Foreign investment regime 19 
 (5) D
OING BUSINESS  20 
 (i) Setting up a business 20 
 (ii) Taxes and ease of doing business 21 
 (6) A ID FOR TRADE  22 
 (i) Overview 22 
 (ii) Mainstreaming trade into national development strategies 23 
 (iii) Supply side and infrastructure constraints 24 
 (iv) Aid-for-trade support to Belize 27 
 (v) Outlook for aid-for-trade in Belize 30 
III. TRADE POLICIES AND PRACTICES BY MEASURE 32 
 (1) I NTRODUCTION  32 
 (2) M EASURES DIRECTLY AFFECTING IMPORTS  33 
 (i) Customs procedures 33 
 (ii) Customs valuation 36 
 (iii) Rules of origin 37  (iv) Tariffs 38 
 (v) Other charges affecting imports 41 
 (vi) Import prohibitions, restrictions, and licensing 46  (vii) Contingency measures 51 
 (viii) Standards and other technical requirements 52 
 (ix) Sanitary and phytosanitary measures 55 WT/TPR/S/238/Rev.1 Trade Policy Review 
Page iv 
 
 
  Page 
 (3) M EASURES DIRECTLY AFFECTING EXPORTS  57 
 (i) Procedures 57 
 (ii) Export taxes, charges, and levies 58  (iii) Export prohibitions, re strictions, and licensing 58 
 (iv) Duty and tax concessions 59 
 (v) Export finance, insurance, and guarantees 61  (vi) Export promotion and marketing assistance 61 
 (4) M
EASURES AFFECTING PRODUCTION AND TRADE  61 
 (i) Competition policy and price controls 61  (ii) State trading, state-owned enterprises, and privatization 63 
 (iii) Incentives and other government assistance 63 
 (iv) Government procurement 64  (v) Intellectual property rights 66 
IV. TRADE POLICIES BY SECTOR 70 
 (1) I
NTRODUCTION  70 
 (2) A GRICULTURE  71 
 (i) Features 71 
 (ii) Public policy 74 
 (iii) Fisheries 76 
 (3) M ANUFACTURING (PETROLEUM , MANUFACTURED GOODS , AND MINING AND 
QUARRYING ) 78 
 (4) S ERVICES  79 
 (i) Main features 79  (ii) Banking and insurance 80 
 (iii) Telecommunications 85 
 (iv) Air transport 87  (v) Maritime transport services 89 
 (vi) Tourism services 90 
REFERENCES   93 
APPENDIX TABLES  95 
 
  Belize WT/TPR/S/238/Rev.1 
 Page v 
 
 
CHARTS 
 Page 
 
I. ECONOMIC ENVIRONMENT 
 
I.1 Structure of merchandise trade, 2003 and 2008 9 I.2 Direction of merchandise trade, 2003 and 2008 11 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES
 
 II.1 Main donors, 2006-08 29  
IV. TRADE POLICIES BY SECTOR 
 IV.1 Export of agriculture and fisheries products, and other commodities, 2000-08 72 
IV.2 Agriculture exports by product group, 2000-08 73 
IV.3 Weighted average intere st rates in Belize, 2002-09 83 
 
 
TABLES 
 I. ECONOMIC ENVIRONMENT 
 I.1 Basic economic indicators, 2003-09 1 
I.2 Structure of GDP, 2003-09 2 
I.3 Government revenue and expenditure by fiscal year, 2004-10 5 I.4 Public sector external debt outstanding by source, 31 December 2004-09 5 
I.5 Main monetary indicators, 2003-09 7 
I.6 Balance of payments, 2003-09 8 I.7 Foreign direct investment, 2003-09 12 
 
II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES
 
 
II.1 Notifications to the WTO, January 2004-June 2010  17 
II.2 Key legal requirements to establish a business in Belize, 2010 20 II.3 Doing business in Belize and selected countries, 2010 22 
II.4 Official development a ssistance to Belize, 2006-08 27 
II.5 Sector-specific breakdown of aid-for-trade commitments for Belize, 2002-08 27 II.6 Donor operations  29 
 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
III.1 Preferential rules of origin 37 III.2 Structure of the tariff schedule, 2004 and 2010 38 
III.3 Summary analysis of the MFN tariff, 2010  39 
III.4 Products subject to revenue re placement duty (RRD), 2010  42 
III.5 GST exempt and zero-rated items, 2010  45 
III.6 Excise taxes, March 2010  46 
III.7 Import prohibitions, May 2010  47 III.8 Products subject to import licensing requirements under the Supplies  
 Control (Import/Export) Regulations, 2010 48 
III.9 Products subject to import permit and licensing requirements under the Prohibited  Goods Order and the Customs Regulation (Prohibited and Restricted Goods) (Consolidation)  
 Order   51 WT/TPR/S/238/Rev.1 Trade Policy Review 
Page vi 
 
 
 Page 
 
III.10 Declared National Standards 54 
III.11 Export prohibitions and licensing, May 2010  58 III.12 Legislation governing incentives and other assistance, July 2010  63 
III.13 Tendering procedures under the Finance and Audit (Reform) Act, 2010 65 
 IV. TRADE POLICIES BY SECTOR 
 
IV.1 Production of selected agricultural products, 1996-2008 72 IV.2 Producer prices for selected commodities and countries, 2000-07 75 
IV.3 Fisheries production, 2004-08 77 
IV.4 High-seas fisheries production, 2000-08 77 IV.5 Manufacturing production, 2004-08 78 
IV.6 Summary of specific commitments in individual service sectors for Modes 1, 2, and 3 79 
IV.7 Overview of the domestic banking and insurance sector, 2010 81 IV.8 Licensed telecommunications  operators, July 2010  85 
IV.9 Selected telecommunica tions indicators, 2004-09 86 
 
 
 
APPENDIX - TABLES 
 
I. ECONOMIC ENVIRONMENT  
AI.1 Merchandise exports and re-exports by group of products, 2002-08 97 
AI.2 Merchandise imports by group of product, 2002-08 98 AI.3 Merchandise exports and re-exports by trading partner, 2002-08 100 
AI.4 Merchandise imports by trading partner, 2002-08 101 
 III. TRADE POLICIES AND PRACTICES BY MEASURE 
 
AIII.1 Products subject to price controls, July 2010  102  
 
IV. TRADE POLICIES BY SECTOR 
 
AIV.1 Selected features of the Acts governing banking and insurance 103 
 Belize WT/TPR/S/238/Rev.1 
 Page vii 
 
 
SUMMARY 
 
1. Belize has a small relatively open 
economy and is the only member of 
CARICOM geographically situated in Central 
America.  Belize has few barriers to investment.  Services industries make the biggest contribution to GDP and employment.  Agriculture is important, particularly since it 
provides inputs to Belize's agri-processing 
industries, which comprise the bulk of Belize's manufacturing base.  In addition, agriculture accounts for most of Belize's exports.  Sugar and bananas are exported to the EU under the CARIFORUM-EU Economic Partnership 
Agreement, and citrus juice and papaya are 
exported to the United States under the Caribbean Basin Initiative.  High quality crude oil has been discovered and, since 2006, has been commercially exploited.  Belize also has 
an active offshore sector for business and 
financial services companies as well as an international maritime registry.   
2. In spite of its vulnerability to severe 
weather conditions, Belize has significant natural advantages and the potential to develop 
them further.  It has untapped productive 
agricultural land, the world's second largest coral reef, unspoilt forests, and ancient ruins, and is only a short flight from some major tourist markets.  Many Belizeans are fluent in 
both English and Spanish, an added advantage 
given Belize's geographical location. 
3. Since independence, economic 
performance has been cyclical and driven by government spending.  High levels of 
government spending have lead to high growth 
periods, but also to unsustainable levels of government debt, with the result that reduced public spending has meant lower growth.  Thus, the Government's fiscal policy options have been limite d by its debt levels.  
In addition, following restructuring of its 
commercial debt in 2007, the Government’s borrowing options have been restricted to bilateral sources and international organizations.  The use of monetary policy is 
constrained by its fixed exchange rate with the 
U.S. dollar. 4. As a result, the Government may need 
to concentrate its efforts on developing and supporting a competitive, and efficient private sector as the key driver of economic growth.  
This is becoming more urgent given the reality 
of preference erosion.  In this regard, trade policy, and trade policy-related reforms have a crucial role to play, supported by targeted aid-for-trade assistance. 
5. Belize's trade regime remains similar 
to that in place at the time of its previous TPR in 2004.  It faces the dilemma of continued reliance on taxes on international trade as a key source of government revenue;  a perceived need to protect domestic producers;  
as well as a need to ensu re the affordability of 
basic necessities for consumers.  This has led to a complex mix of policies, some of which are at odds with each other.  For example, the impact of border protection, which raises the 
prices of goods for producers and investors, is 
then offset by an array of tax exemptions and price controls intended to reduce prices for consumers. 
6. Belize's main instruments of border 
protection are tariffs and a non-automatic 
import licensing system applied mainly to 
agricultural products and processed foods.  The significant binding overhang between applied and bound tariffs, as well as the apparently arbitrary and non-transparent nature 
of the licensing system, make Belize's trading 
regime less predictable.  As an unintended consequence of these policies, the productive capacity of domestic manufacturing industries may be undermined by limiting their access to 
either affordable or available inputs.  
Protection afforded to domestic producers gives them no incentive to operate more efficiently, and also raises prices for consumers and investors.   
7. There is scope for tax reform and 
simplification.  Belize levies three internal 
taxes on goods and services:  a General Sales Tax (which functions lik e a VAT), at a general 
rate of 12.5%;  excise duties, which are levied at varying specific rates on certain locally 
produced goods;  and a revenue replacement WT/TPR/S/238/Rev.1 Trade Policy Review 
Page viii 
 
 
duty (RRD), levied on 219 tariff lines (imports 
and locally produced goods, with the exception of locally produced goods already subject to excise duties).  Belize charges a 2% 
environmental tax on imports only.  The 
corporate tax system, with both business and income taxes, could be simplified.  Exemptions from some of these taxes are in place to ensure the affordability of basic 
necessities, some of these are applied on a 
discriminatory basis. 
8. Tax breaks are also used as a main 
incentive to producers and investors:  Customs duty exemptions are available to targeted sectors under Customs and Fiscal Incentives 
laws.  Broader tax incentives are provided to 
promote exports through export processing zone and commercial free  zone programmes.  
However, the revenue implications of these incentive programmes are not clear, nor the 
distortions they might introduce in the 
economy.  Belize's obligation to phase out the export subsidy elements of its incentive programmes by 2015 could provide an opportunity for a closer look at the costs and benefits its tax incentives. 
9. While Belize's economy is largely in 
the hands of the private sector, its small size may not naturally lead to price competition.  
Indeed, there is some evidence of a lack of 
competition in some areas.  For example, there have been complaints from industry regarding high port charges, and telecommunications tariffs are higher than in most neighbouring countries.  In this regard, Belize's objective of 
enacting competition legislation would be a 
positive and necessary step.  Likewise, it is crucial that the Public Utilities Commission is able to effectively regulate the telecommunications and utilities sectors, 
where there are a limited number of players. 
10. Trade facilitation is another area 
where improvements can continue to be made.  For example, customs processing is presently 
manual and cumbersome.  A Customs Reform 
and Modernization Project, which is in train, should see the gradual introduction of ASYCUDA World at Belize's customs entry 
points, which will allow electronic submission of customs documentation.  The creation of a Customs Tariff Board to deal with valuation 
and classification disputes, which is also 
foreseen, should give a better structure to dispute resolution.   
11. Increased transparency, centralization 
and uniformity in procurement practices could 
help making effective use of scarce public money and engender greater competition among suppliers..  This is  being considered by 
the authorities.  While recent reforms have 
importantly introduced clearer procurement 
rules and stronger oversight by the National Assembly through the Contractor-General's office, the experience of decentralized procurement decision-making has not been so 
positive. 
12. Aid for trade could have a significant 
role to play in assisting Belize to develop.  Despite the relatively small AfT assistance 
Belize has received so far, this has already had 
positive impacts on its ability to expand export opportunities, particularly with respect to tropical fruit, through the expansion of productive capacity and the enhancement of 
SPS facilities.  Aid for Trade could be pivotal 
in alleviating several bo ttlenecks to trade that 
have been identified by the private sector.  Access to finance on reasonable terms is one:  in the absence of any governmental support in the form of trade finance, insurance, and 
guarantees, loans have to be drawn from 
commercial banks and the cost of borrowing is extremely high.  There are deficiencies in trade-related infrastructure, with investments needed to replace and build bridges, improve 
highway networks, im prove drainage and 
feeder roads, and develop solid waste management.  Upgrades to the international airport and a cruise ship docking facility could help develop the tourist industry.  Likewise, the agriculture sector, for example, would 
benefit from better storage facilities and 
investments in the agri-processing and aquaculture sectors to develop new products.