RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/TPR/G/238 
5 October 2010  
 
(10-5057) 
Trade Policy Review Body Original: English 
   
 
  
 
TRADE POLICY REVIEW 
 
Report by 
 
BELIZE 
 
  
 
Pursuant to the Agreement Establishi ng 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 circ ulation and press embargo until the end of the first 
session of the meeting of the Trade Policy Review Body on Belize. Belize WT/TPR/G/238 
 Page 3 
 
 
CONTENTS 
 
 
 Page 
I. INTRODUCTION 5 
II. MACROECONOMIC CONTEXT 7 
 (1) G ROSS DOMESTIC PRODUCT (GDP) 7 
 (2) F ISCAL PERFORMANCE  7 
 (3) N ATIONAL DEBT 7 
 (4) I NTERNATIONAL TRADE  7 
III. KEY SECTORS  8 
 (1) A GRICULTURE  8 
 (2) F ISHERIES  9 
 (3) S ERVICES  10 
  (i) Tourism 10 
  (ii) Financial Services 11 
IV. INVESTMENT  11 
V. TRADE POLICY FORMULATION 12 
 (1) Q UANTITATIVE RESTRICTIONS  12 
 (2) O THER DUTIES AND CHARGES  12 
 (3) C OMPETITION POLICY  12 
 (4) T RADE REMEDIES  13 
 (5) B ELIZE COALITION OF SERVICE PROVIDERS  13 
 (6) E XPORT OF PROFESSIONAL SERVICES  13 
VI. TRADE RELATIONS 14 
 (1) W ORLD TRADE ORGANIZATION  14 
 (2) US-B ELIZE TRADE RELATIONS UNDER THE CARIBBEAN BASIN INITIATIVE  14 
 (3) R EGIONAL INTEGRATION AND IMPLEMENTATION OF THE CARICOM  SINGLE  
 M ARKET AND ECONOMY  15 
 (4) CARICOM-B ILATERALS  15 
 (5) E CONOMIC PARTNERSHIP AGREEMENT  16 
 (6) B ELIZE -GUATEMALA PARTIAL SCOPE AGREEMENT  17 
 (7) CARICOM-C ANADA TRADE NEGOTIATIONS  17 
VII. MAINSTREAMING OF TRADE 18 
VIII. CONCLUSION  19 
 Belize WT/TPR/G/238 
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 I. INTRODUCTION 
1. Belize is a small open economy with a traditi onal agricultural base and expanding services 
sector.  Its geographic location in Central America and historical links with the Caribbean allows the opportunity to further develop and sustain networks  of economic cooperation.  As a full member of 
the Central American Integration System (SICA) and CARICOM, Belize is considered to be the 
bridge between both sub-regions.  Preferential tr ading arrangements and agreements, such as the 
United States' Caribbean Basin Initiative a nd the CARIFORUM-European Union Economic 
Partnership Agreement (EPA) are fundamental to Belize’s trade performance.  The fluctuation in world commodity prices also influe nces actual trade performance.   
2. Belize's main export commodities fall within a narrow range of products:  sugar, bananas, 
citrus, aqua-culture and fisheries.  Prior to 2006, sugar, citrus, bananas and fisheries accounted for 
more than 12% of GDP.  Preferential market agre ements with the United States and European Union 
were eroded, and along with the discovery of petrol eum in 2006, led to a decline in export ranking in 
these industries' contribution to where they accounted  for only 10% of GDP and 40% of total exports 
by 2008.  Petroleum exports accounted for 40% of  total export earnings in 2008.  About 39% of 
agricultural exports go to the United Kingdom and 32%  are exported to the United States.  Trade 
between Belize and Central America has also incr eased by more than 300% over the last 5 years, 
proving to be the most vibrant avenue for new trad e expansion.  It should be noted however that the 
exports of crude oil dominates this expansion. 
3. Exports from Belize have traditionally been sugar,  citrus, shrimps and banana directed at the 
United Kingdom and the US markets.  This state of trad e is fairly vulnerable to  the external shocks of 
price instability and natural disasters;  Belize's e xport base has widened and become more diversified 
to include exports of papayas, aquaculture produ cts, beans, exceptional expansion in cruise and 
overnight tourism and extraction of petroleum.  Despite declining preferential margins progress made 
towards export diversification, remain for the most part, at the lower end of the global value chains 
(i.e. fisheries and shrimps, banan as, citrus, sugar, papayas, beans are all exported in their primary 
form).  
4. Services contribution to overall growth and deve lopment in Belize is reflected through its 
share in GDP and employment.  This share h as not increased significantly since 2004, averaging 
around 54%, though services remains the dominant sector in the economy.  Of the services sector Tourism and Financial services sub-sectors, have been  the most promoted and the most advanced of 
potential services sectors.  As part of its diversification plans, Belize has placed greater attention on services and on higher value added niche manufact uring activities, both of which are more skill 
intensive.  
5. There have been several major external a nd internal developments, both manmade and 
otherwise that have profoundly impacted Belize since its last trade policy review in 2004.  The most 
noteworthy external development has been the financia l crisis and while its effects took some time to 
manifest itself the toll continues to be visible on the economy.  Energy and food prices, climate 
change and preference erosion have also negatively impacted Belize's economic performance.  These 
factors in one form or the other, have contributed to an increase in the country's poverty rate.   
6. The country is grappling with the effects of gl obalization and liberalization in a way that was 
not previously experienced.  Traditional exports su ch as sugar and banana continue to battle the 
effects of  preference erosion on the EU market.  Shrimp aquaculture has also  been affected by the 
declining world prices such that those farms that ha ve remained operational are those that have access WT/TPR/G/238 Trade Policy Review 
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 to financing which allowed them to undertake the necessary investment s to become further 
competitive in response to the changing environment.  
7. The agricultural sector suffers from the added e ffects of frequently changing weather patterns.  
The damage and dislocations of 2008 caused by Tr opical Storm Arthur's flooding of southern Belize 
in May/June, and by Tropical Depression Number 16 in the western, central and northern Belize in 
October/November, combined caused losses amounting to 5.4% of GDP and affected agricultural 
production and road transport.  Recovery is underway , but Belize has yet to return to the pre-flood 
production levels in grains and other agricultura l crops.  Hurricanes Keith (2000) and Iris (2001) 
caused losses of 28.7% and 33.3% of GDP respectively.  
8. The Northern districts were also ravaged by Hurricane Dean in 2007.  Around 6,000 persons 
were severely affected through damaged or destro yed housing, but the number of those affected 
through loss of crops has been estimated at around 21,000, equivalent to over a quarter of the 
population of these districts.  Large parts of the country’s rural area were hit by very severe floods in 2008 leading to loss of property, assets and, more significantly, food crops.  
9. The poverty rate in Belize has worsened betw een 2002 and 2009. In terms of population, 
poverty increased from 34% to 41%; the increase is ma inly due to a 5% points rise in indigence.  
Several reasons accounts for this sharp increase in poverty: in 2002-2003 the economy grew fast, 
however real per capita income has increased by 3% per annum since then.  Further, total 
unemployment increased to 14% between 2007 and 2009 .  Growth sectors such as construction hot 
spots in San Pedro and Placencia were unable to pr ovide a multiplier impact on the wider economy;  
the same applies to the oil sector.  Traditional mainstays of the economy and the overall index of agricultural production barely increased, while the tota l value of agricultural production decreased by 
13% from 2004 to 2008, significantly affecting agricultural employment which has declined by 13% 
in the last 2 years.  
10. Belize is committed to improving the standard of living of its population, and has signed on to 
the millennium development goals - these include th e gradual reduction and eventual eradication of 
poverty. Belize is pursuing this goal on several fronts. The first is through employment creation, 
which is directly related to the promotion of inv estments in the productive sector and in services, 
especially in the tourism sector.  Secondly there is ongoing focus on the development of Small and Medium Enterprises (SMEs), in recognition of the f act that this sub-set of the private sector is 
responsible for creating most of the employment opportunities in Belize.  Poverty alleviation is also one of the central concerns to be addressed as pa rt of Belize’s 2030 Vision for development covering 
a twenty-year period, and it is also a key concer n in context of the Medium Term Development 
Strategy.  
11. The commitment to reducing poverty in Belize is  central to Belize's agricultural policy, which 
is also a feature of the Community Agricultu ral Policy under the CARICOM Single Market and 
Economy (CSME).  Effort is directed at reducing ru ral poverty through the production of crops for the 
domestic market – this generates income to producer s as well as employment in rural areas.  This 
policy approach is recognized as feasible and effe ctive in addressing poverty, and there is strong 
synchrony between agricultural policy and international trade policy – they are mutually supportive.  In this regard it is becoming increasingly n ecessary to link both economic growth and poverty 
eradication to the various dimensions of interna tional trade.  The Government of Belize (GoB) is 
undertaking this challenge, and is committed to success.  Belize WT/TPR/G/238 
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 II. MACROECONOMIC CONTEXT 
(1) GROSS DOMESTIC PRODUCT (GDP) 
12. Notwithstanding the implementation of a fiscal adjustment program since 2005, the Belizean 
economy experienced positive but modest growth since its last trade policy review in 2004, with the 
exception of 2009 when growth stalled at 0.0% in  response to the global economic downturn and the 
lingering effects of the two floods of 2008.  Du ring the 2005 to 2009 period, GDP expanded by over 
9.0% in real terms, equivalent to an annual av erage growth rate of 2.5%.  Annual performance has 
varied considerably, reflected in growths of 3.0% in 2005, 4.7% in 2006, 1.2% in 2007, 3.6% in 2008 and 0.0% in 2009.  The strongest growth of 2006 reflected the launch of commercial oil operations.  
Over the period, the main growth drivers were the petroleum, electricity and communications' industries.  Per capita GDP during the period under re view also increased by 8.1% to US$4,062 in 
2009.  
(2) F
ISCAL PERFORMANCE  
13. Government's fiscal performance over the revi ew period improved somewhat from an overall 
deficit of 6.8% of GDP in 2005 to a deficit of  2.8% of GDP in 2009.  Triggered primarily by 
worsening debt dynamics and unsustainable bala nce of payment pressures, Central Government 
implemented a fiscal adjustment program in 2005 that included new tax measures and restraints on 
GoB's capital spending. In the ensuing year, the primary balance swung from a deficit of 0.1% of 
GDP to a surplus of 3.9% of GDP.  By 2007, mounting debt servicing pressures prompted Central Government to restructure its costly external comme rcial debt that was equi valent to approximately 
US$.55 billion or 58.8% of its external debt. St rong grant inflows buoyed government's finances in 
2007 and 2008, causing the overall deficit to narrow to 1.2% of GDP in 2007 and swing to a fiscal 
surplus of 1.5% of GDP in 2008, its first in 20 years.  However, this was short-lived as the 
Government's fiscal out-turn in 2009 was a deficit of  2.8% of GDP due in part to the pass-through 
effects of the global financial crisis and econom ic downturn that eroded G overnment revenue while 
current expenditures remained robust.  The cushi oning effects of grants on the fiscal out-turn also 
declined with a 45.3% fall in grant receipts in 2009. 
(3) N
ATIONAL DEBT 
14. During the 2005 to 2009 period, the total public sector debt rose from US$1.1 billion to 
US$1.15 billion (86.7% of GDP) with the foreign component accounting for a pproximately 86.5% of 
the total disbursed outstanding debt.  The external debt service ratio was also lowered from a high of 
17.8% in 2004 to 11.1% in 2009 largely due to the 2007 debt restructuring in which principal repayments of some US$.55 billion were pushed back to the period 2019 to 2029 and the interest rate 
was to be stepped up in three phases of 4.5%, 6.0% and 8.5%.  At the end of 2009, the external debt 
payment horizon showed that US$4.5mn is expected to  mature in less than one year, while 12.5% will 
be fully amortized in the next one to ten years, leaving 87.0% (or US$.59 billion) with maturity greater than 10 years.  At the end of 2009, the Ce ntral Government held 93.2% of total public sector 
debt. 
(4) I
NTERNATIONAL TRADE  
15. As a small open economy with a limited productiv e base, imports continued to dwarf exports 
over the review period.  The trade deficit averag ed US$235.8 million over the period and peaked at 
US$308.15 million in 2008 in response to the surge in  fuel costs and foreign funded capital imports WT/TPR/G/238 Trade Policy Review 
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 before narrowing to US$238.65 million in 2009 .  Merchandise export value, which includes 
commercial free zone sales, grew from US$325.25 million in 2005, peaked at US$480.1 million in 
2008 and then contracted to US$381.85 million in  2009 with the weakening in international 
commodity prices and demand.  On the other hand,  import value stood at US$0.55 billion in 2005, 
peaked at US$0.8 billion in 2008 and levelled off again at US$0.6 billion at the end of 2009.  
16. Net receipts from trade in services amounted to US$183.25mn in 2009, reflecting a 20.3% 
contraction from a high of $229.9mn that was atta ined in 2007.  Earnings from trade in services 
followed a similar pattern, falling by 15.4% to US $345.0 in 2009 from its high in 2007.  Travel 
receipts accounted for slightly less than three four ths of the total service revenue from 2005-2009. 
Other service inflows stemmed from foreign embassies,  military and other international entities.  On 
the other hand, payments for international servi ces averaged US$161.7mn over the same five-year 
period.  On average, approximately 60.9% of the total expenditure on services was associated with 
payments for international transportation services and travel abroad.  Additional outlays included 
payments for telecommunication, miscellaneous business services and Belizean embassies and military units located abroad.  
17. The United States maintained its position as th e country's primary trading partner for the 
years 2005 through 2009, averaging 35.2% and 38 .7% of Belize’s import and export markets, 
respectively.  Trade with the United States has gr adually decreased as its 37.8% import share in 2005 
fell to 33.7% by 2009, and its export share significantly shrank from 50.4% in 2005 to 32.4% in 2009 due to the exportation of petroleum to the Centra l American countries.  In comparison, Central 
American countries and Mexico accounted for the second and third largest shares of imports into Belize.  With respect to exports for the pe riod under review, the United Kingdom accounted for 
21.8% on average, while the Central American countries accounted for 16.2% on average due to 
crude oil exports.  Trade with the member stat es  of the Caribbean Community (CARICOM) was 
minimal and has declined further throughout the fi ve years.  CARICOM's import share has averaged 
around 1.9%, while exports in 2005 were at 10.5% of total goods and halved to 5.4% in 2009. 
III. KEY SECTORS 
(1) A
GRICULTURE  
18. Agriculture is still considered the main stay of  the Belizean economy.  Inclusive of fisheries, 
forestry and agro-processing, it contributes 18.1% of GDP and 25.8% of employment, especially in rural areas.   
19. Despite some progress towards diversificati on, the economy's dependency on the four 
traditional exports, namely Sugar, Citrus, Bananas and Marine products persists .  In 2008, agricultural 
exports accounted for 57.2 % of total exports dow n from 87.7% in 2004.  Additionally traditional 
crops accounts for 51.8 % and non-tr aditional exports (papayas, peanuts, RK beans, black eye peas, 
cocoa beans, honey, chicle, and pepper products) account ed for 5.4% of Belize’s total export basket in 
2008. 
20. The Belize's Sugar Industry is a vital compone nt of Belize's economy, providing significant 
employment, foreign earnings and other social and environmental benefits.  Approximately 40,000 
persons rely on the industry for economic and social  support.  As a result of the damages from the 
October floods, the expected rebound for 08/09 crop failed to materialize as replanting efforts were 
insufficient to mitigate the damage s, resulting in harvest of 917,728 long tons, the smallest since 
1988.  Belize WT/TPR/G/238 
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 21. The industry has been affected by the reform of the EU Sugar Regime which saw the 
expected price paid per ton of sugar fall by 36% in a four year period (2006-2009).  The renunciation 
of the Sugar Protocol by the EU and the new re gime for duty-free, quota-free sugar which became 
effective in September 2009 under the EPA means that survival of the industry will demand 
improving productivity and competitiveness by more th an 50%.  The EU has provided the resources 
in fostering the competitiveness of the industr y through its programme of support under the 
Accompanying Measures for Sugar Protocol Countr ies (AMS).  Under the AMS programme Belize 
will be the recipient of some 45 million Euros.  
22. The Belize banana industry has been contributing average annual earnings of US$25m in 
foreign exchange and accounts for the direct and i ndirect employment of 10,000 people.  The Industry 
has maintained relatively constant banana acreag e of around 6,000 acres over the past five years.  
Currently, any increase in production is expected to come from improvements in field productivity 
rather than acreage expansion.  
23. The Banana Industry benefited di rectly from EU grant funds wh ich have allowed the industry 
to make significant improvements in productivity and competitiveness.  Output yield and fruit quality has improved dramatically.  However the main cha llenge facing the industry has been declining real 
prices and the erosion of longstanding preference as  a result of the successive concessions the EC has 
made to MFN countries.  For example, the EU recent ly arrived at an agreement with Latin American 
MFN banana suppliers of which the first major cu t in the tariff was from 176 Euros to 148 Euros and 
took effect on 1 January 2010.  The EU has also completed a trade agreement with Central America 
where market access concessions in banana were made.   
24. To assist with its competitiveness drive, the c ountry looks forward to the Banana Adjustment 
Programme under which the EU has committed to pr oviding much needed funds to ACP banana 
producing countries. 
25. The Citrus Industry, largely based on ora nge and grapefruit production, experienced an 
increase in output (US$44.3 million to US$59 million)  from 2004 to 2008.  The industry comprises 
over 900 farmers.  With increased investments the industry was able to diversify its product and now 
engages in value addition.  However, the disc overy of citrus greeni ng in May 2009 will pose 
potentially serious challenges in controlling the spread  and maintaining the viability of the industry as 
this incurable disease has the potential to decimate the entire industry.  
26. Non-traditional crops, including papayas, corn , rice paddy, sorghum, cowpeas (black eye 
peas) and beans represents more than 75% of gr oss output and remains relatively undiversified.  
Papayas and black- eye peas have emerged as strong new exports primarily to the CARICOM, US and 
Canadian markets.  Papaya export earnings cons titute 26% of all non-traditional output, with most 
going to the US and Canadian markets.  Other Non-traditional crops would need to meet general 
standards and labelling requirements before they can enter our major export markets as well as 
neighbouring markets in Central America and Mexico .  Non-traditional crops can also play a major 
role in safeguarding food security for the wider CARICOM Single Market. 
(2) F
ISHERIES  
27. The Fisheries Sector is functionally divided into an Aquaculture Component and a Capture 
Fishery or traditional fishery component.  Both of these Sub-Sectors are highly export oriented 
although significant amounts of fin-fish or scale fish are consumed on the local market.  Earnings from Aquaculture have declined significantly over the p ast four (4) to five (5) years.  Shrimp farming WT/TPR/G/238 Trade Policy Review 
Page 10 
 
 
 which was the main export earner has decreased by approximately fifty percent (50%) in production 
linked to disease (which is now under control) and closure of a major farm.  Fortunately, the losses 
have been offset by an increase in production and export earnings from Tilapia and Cobia farming 
over the past two (2) years.  
28. The prognosis for the Aquaculture Sub-Sector in  the short-to-medium term is for modest 
increases in earnings from small increases in farm ed shrimp on the US Market.  Recently, however 
the Financial Crisis has affected the industry as the availability of additional investment capital 
contracted thereby stalling much needed expansi on.  The Tilapia sector which started in 2004 was 
especially affected and is experiencing short-term cont ractions in exports.  It is anticipated that as the 
global financial environment impr oves farms will be able to source necessary financing to fuel 
recovery.  
29. Production from the Capture Fishery Sub-Sector has remained constant over the last two (2) 
years while earnings have decreased significantly fro m price decline on the export market.  Prices for 
the main export commodities (lobsters and conch) have shown a slight rebound which is largely 
associated with the recent British Petroleu m Oil Spill in the Gulf of Mexico.  
30. The short- to medium-term future for the Capt ure Fishery Sub-Sector is highly dependent on 
sustainable harvests and the spending habits of consum ers in the US Market, especially the restaurant 
trade.  This is a directly linked to the forecasted recovery of the US Economy. 
(3) SERVICES  
31. Services, along with agriculture form the main  drivers of the Belizean economy.  Services 
contribution to overall growth and development in Belize is reflec ted through its share in GDP and 
employment.  This share has not increased significantly since 2004, averaging around 54%, though 
services remain the dominant sector in the economy.  As part of its diversification plans, GoB 
continues to explore the means to further promot e the development of the services sector.  Of the 
services sector the Tourism and Financial services sub-sectors have been the most promoted and the most advanced.   
32. Recognizing the prominence of tourism and financial services, and the need to strengthen the 
other services sectors, two very important initiatives have been pursued, namely, the creation of the 
Belize Coalition of Services Providers, and the launching of the project "Export of Professional Services from Belize."  These are both in the early stages and substantial inputs are expected from a 
regional perspective in context of the CSME and the EPA. 
(i) Tourism 
33. Tourism is a key economic driver  and contributor to Belize's gr owth and development.  It 
represents around 22.4% of GDP and employs near ly 25% of the labour force.  The industry 
maintained increasing growth trends, until it was imp acted by the global recession in 2008.  Visitor 
arrivals declined and the sector saw for the fi rst time negative growth over a two-year period. 
34. Since then, the Government has embarked on a series of efforts aimed at promoting the 
sustainable growth of the industry.  These include  the development of Belize's first National Tourism 
Master Plan, related infrastructural developmen ts, investment incentives, standards and quality 
upgrading and the enactment of new polices and regula tions.  Belize continues to actively market its 
product using new and varied approaches. Belize WT/TPR/G/238 
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 35. Tourism arrivals have rebounded in the second quarter of this year: cruise arrivals are up 20% 
and overnight visitors have increased  by 3.5%.  It is estimated that these growth trends will continue, 
and Belize will again observe its high growth rates of the pre-recession years.  
(ii) Financial  Services 
36. Belize's international financial services industr y significantly impacts the economy positively.  
The international banking sector of this industry pr ovides much needed finan ce to real estate and 
tourism related developm ent projects owned by non-residents as well as other foreign exchange 
earning businesses in Belize, including but not limited to the citrus industry and commercial free zone 
and export processing zone businesses.  The sector pr ovides employment to over 3,000 persons and 
makes significant contributions to tax earnings and fore ign direct investment.  It is estimated that the 
industry represents about 9% of Be lize's GDP and 10% of gross imports.1  
37. Altogether the international financial ser vices sector comprises approximately 42,000 
companies in the areas of International Banking;  International Businesses Companies and Trusts and 
the International Shipping registry.  The corner stone of Belize's international financial services 
industry has invariably been to develop the i ndustry without sacrificing or diluting regulatory 
standards.  In this regard, improving control and e fficiency have resulted in stringent international 
banking regulations administered by the Central Bank.  Further the other areas of international 
financial services are regulated by the Internationa l Financial Services Commission of Belize (IFSC).  
38. Belize has enacted a series of legislation to strengthen its regulatory framework for the 
offshore sector, inclusive of Acts and Regulation fo r: International Banking, International Financial 
Services Commission Act, International Business Companies, Protected Cell Companies, Mutual 
Funds, International Insurance, Trusts, Registrati on of Merchant Ships, Financial Intelligence Unit, 
United Nations Resolutions and Co nventions (Enforcement).  More recently, Belize has enacted a 
strong Money Laundering and Terrorism (Preventi on) Act, 2008, which makes new and improved 
provisions for the investigation and prosecution of  money laundering, terrorism and other related 
crimes and provides for the forfeiture of the proceeds of crime and terrorist property. 
39. The region's Financial Services Sector has recently  been subject to negative attention in terms 
of certain concerns expressed by the Organi zation for Economic Cooperation and Development 
(OECD) on "uncooperative jurisdictions".  Belize belie ves this undermines the efforts of small states 
to keep abreast of the rapid and complex changes ta king place in the international financial markets.  
Belize cooperates fully with the OECD and has been  engaged in cooperative efforts towards greater 
transparency and exchange of information, and is  party to several double taxation and mutual legal 
assistance treaties.  
IV. INVESTMENT 
40. The main goal of investment policy and orie ntation continues to be the creation of 
employment, business incomes and foreign exchange  earnings, through continual efforts at value 
addition, and technological transfers to attain e xport diversification and ec onomic growth.  Public 
sector investments have focused by necessity on key public goods and services.  However, the 
flexibility for such investments has been seriously  compromised by the substantial debt servicing 
burdens that  limits GoB's capacity to inject financial resources into the economy.  
                                                      
1 Ministry of Finance, 2009. WT/TPR/G/238 Trade Policy Review 
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 41. GoB's efforts to promote private investments c ontinue to target Foreign Direct Investment 
(FDI).  These investments are reflected in the goods  sectors mainly in aquaculture (Tilapia and cobia), 
grains (mainly corn, rice and beans) and livestock (poultry, pork and beef) and the traditional export commodities (sugar, bananas and citrus).  Investme nts in petroleum exploration stands out in the 
review period, as petroleum exports have provided an important addition to  Belize's limited export 
basket, and has also altered the traditio nal ranking of Belize's export markets.  
42. The services sector continues to attract new invest ments, consistent with the new reality that 
the contribution of services to the country's GDP a nd foreign exchange earnings now far exceeds that 
of the traditional merchandise exports.  Not surprisi ngly, most new investment s were directed at the 
tourism sector, in particular tour ist accommodation and entertainment. 
43. The country investment strategy is now focu sed on the expansion of Micro, Small, and 
Medium Enterprises (MSMEs) to achieve continued gr owth of its established and traditional sectors.  
Belize recognises that investments should be directed to areas where there is competitive and comparative advantage 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), 
Agribusiness (non-traditional agriculture and aquacu lture), Environmental goods and services (light 
manufacturing of wood products;  bio-fuels, sustaina ble energy generation), and ICTs (back office 
data processing, tele-medicine, and software support services). 
V. TRADE POLICY FORMULATION 
(1) Q
UANTITATIVE RESTRICTIONS  
44. Belize, since its last review (2004) continu es to maintain import licensing requirement for 
certain selected sensitive products.  Belize lacks the ad ministrative and financial capacity to resort to 
traditional trade remedies to protect its domestic base when there are disturbances on world markets 
which have effects on employment or prices and in  turn can have negative effects on food security 
and human development.  Notwithstanding, Belize was able to remove the licencing requirements 
from the following goods:  liquid bleach (an Uruguay Round commitment), sodium hypo-chlorites and other hypo-chlorites, brooms, pasta, gases, matches and soaps.   
(2) O
THER DUTIES AND CHARGES   
45. Belize continues to implement Other Duties and Charges (ODCs) in accordance with its 
Uruguay Round concessions and in conformity w ith the provisions of the WTO Understanding on 
Interpretation of Article II(b) of the GATT 199 4 and other relevant provisions of the WTO 
Agreement.  The ODCs implemented by Belize at  that time were the Stamp Duty and Revenue 
Replacement Duty (RRD);  while the former has since been repealed and replaced by a non-
discriminatory Sales Tax, the latter remains in force.   Belize recognizes the need to remain within its 
bound RRD rate, and work has already begun to address this matter. 
(3) COMPETITION POLICY  
46. Belize is committed under Chapter Eight of th e Revised Treaty of Chaguaramas to the 
implementation of a Community Competition Policy.  Belize recognizes the importance and economic 
value of putting in place competition policy to  address development concerns relating to the 
strengthening and protection of competition in the domestic market, and to the protection of 
consumers and promotion of their interests.  A CARICOM Competition Commission has already been Belize WT/TPR/G/238 
 Page 13 
 
 
 established and Belize and other Member States are establishing national competition 
authorities/agencies and to implement competition polic y under the strength of national law. Belize is 
still in the process of developing draft legislation based on the CARICOM model legislation.  This is 
expected to provide for the establishment of a nati onal competition authority and it is anticipated that 
the process will be finalized by December 2010.  This capacity is essential to the preservation of a competitive market for goods and services.   
47. While the GoB recognizes the importance of competition policy to the promotion and 
preservation of competition in the domestic market, it fully endorses the need to promote and safeguard competition in the wider CSM.  Expanding  intra-regional trade in goods inevitably involves 
competition between producers in the MDCs and LD Cs in which the latter suffer from pre-existing 
disadvantages in addition to disadvantages arising di rectly from the operation of the CSM.  Belize is 
interested in ensuring that there are legitimate defe nsive policy options to support the domestic private 
sector against all anti-competitive behaviour, in partic ular those related to the abuse of a dominant 
position by CSM enterprises that export goods to the Belize market. 
(4) T
RADE REMEDIES  
48. Trade Remedies are being developed within the context of the CARICOM which seeks to 
develop institutional and administrative capacity  for surveillance and the enforcement of anti-
dumping and countervailing measures.  The objective is to contribute to the deepening of Regional 
Economic Integration through the building of capac ity for Trade Remedies relating to dumped and 
subsidised goods and imports.  Th is is in alignment with the Revised Treaty and relevant WTO 
agreements.  
49. Considering the significant administrative costs associated with administering trade remedy 
regimes, on small and vulnerable economies, a regiona l institution may be the end result.  Work has 
already begun in CARICOM Member states and a status report is expected to be finalised by December 2010; Belize has stated its desi re to host this regional institution.  
(5) B
ELIZE COALITION OF SERVICE PROVIDERS  
50. The GoB recognizes the need for greater diversif ication within services trade and as part of a 
regional initiative to stimulate other potential sectors; the Belize Coalition of Services Providers 
(BCSP) was launched in 2009.  It is envisioned th at the Coalition will be a partner in the national 
development process bringing members of the ser vice industries under one umbrella organization 
thereby allowing government to interact with a singl e body rather than various disparate entities.  This 
initiative is also to assist servi ces in becoming better organized for the purpose of giving dynamism to 
the sector, developing partnerships locally, regionall y and internationally, as well as taking advantage 
of service export and investment opportunities especially in the CSME-CARIFORUM context. 
(6) EXPORT OF PROFESSIONAL SERVICES  
51. The Professional Services sector is perhaps one of the largest for Belize in terms of the 
number of active sub-sectors, number of services providers (over 300 combined) and the number of 
persons employed.  The Government of Belize with technical assistance from the Commonwealth 
Secretariat is developing roadmaps for governme nt, business support organizations and SMEs in 
promoting and increasing the export of professional se rvices.  The GoB is actively seeking resources 
to assist with implementation of these roadmaps. WT/TPR/G/238 Trade Policy Review 
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 VI. TRADE RELATIONS 
(1) WORLD TRADE ORGANIZATION  
52. Belize is constrained by not having a presence  in Geneva, resulting in a reactive position on 
the rules-making aspect of the WTO and in the trad e liberalization negotiations .  Participation would 
have allowed greater exposure and understanding of the multilateral tr ading system of a wider range 
of public officials.  Granted, Belize would not ha ve been able to signifi cantly influence the rules 
making process at this level, but it would have a llowed for enhanced understanding of the rules and 
existing flexibilities which would be reflected in th e design of policies.  Nonetheless, the GoB has 
made efforts to ensure that the country complie s with its obligations and commitments and has 
consistently since 2003, sought out technical assistance from the WTO Secretariat on the various agreements.  This method has allowed for some me asure of exposure and unde rstanding of a wider set 
of officials and non-state actors on the multilateral trade rules and their possible implications on the 
domestic policy space. 
53. In looking at the implementation of the WT O Uruguay Round Agreement, Belize has made 
significant advancement in its implementation of WTO obligations, including the specific 
commitments in the area of market access and relate d border measures.  Important to recognize also is 
the significance of the WTO notification requirements,  in particular those relating to non-tariff border 
measures generally and specifically those relating to import licensing requirements and the grant of 
investment incentives under national in vestment promotion programmes.  
54. In the latter case, Belize's implementation of the WTO Agreement on Subsidies and 
Countervailing Measures (SCM) took center stage of relevance and attention from the WTO membership, and inescapably so from the Government  of Belize, in collaboration with the wider 
Caribbean Community.  The implementation of the WTO Agreement on Sanitary and Phyto-Sanitary 
(SPS) Measures, including the timely submission of no tifications to the WTO Secretariat, was also an 
important achievement during the period under review.  There have also been notable progress in the 
national situation and circumstan ces' relating to standards and technical regulations, and Belize 
acknowledges the benefits from a wide range of tech nical assistance and development support in these 
and other areas. 
55. Slowly, and in partial response to this era of  unprecedented globalization and liberalization, 
the country, in particular, the private sector is placing greater emphasis on the value of understanding 
trade rules to ensure that rights and commitments are not unilaterally waived and where it does occur, 
to voice their discontent and seek redress. 
(2) US-B
ELIZE TRADE RELATIONS UNDER THE CARIBBEAN BASIN INITIATIVE  
56. The US is Belize' largest trading partner for both imports and exports and, like most 
CARICOM partners, Belize maintains a historical tr ade deficit with the US.  The Caribbean Basin 
Economic Recovery Act (CBERA) and the Cari bbean Basin Trade Partnership Act (CBTPA) 
collectively known as the Caribbean Basin Initiative  (CBI) represent the trade instruments which 
govern trade and economic co-operation be tween CARICOM countries and the USA.  
57. The CBI provides unilateral duty free market acces s into the US for nearly all goods from the 
beneficiary countries;  trade under this initiative now  accounts for more than 70% of Belize's total 
exports to the USA, reflecting the curre nt importance of the CBI to Belize. Belize WT/TPR/G/238 
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 (3) REGIONAL INTEGRATION AND IMPLEMENTATION OF THE CARICOM  SINGLE MARKET 
AND ECONOMY  
58. The Caribbean regional economic integration pr ocess made some important strides forward 
since Belize's last TPR in 2004. A key factor was in activating the legal a nd institutional foundations 
for the establishment and operation of the CA RICOM Single Market and Economy (CSME).  The 
treaty revision process, under the guidance of th e Inter-Governmental Task Force on Treaty Review 
(IGTF), produced the Revised Treaty of Chaguaramas including the CSME  which provided for, 
among other things, the Organs and Institutions of the Community, along with the basic elements of a 
Community trade policy.  The major step was taken on 1st January 2006 when the CARICOM Single 
Market (CSM) component of the CSME entered into force – the Single Economy component was deferred until 2015.  
59. The operation of the CSM required the removal of all restrictions in national law and 
administrative practices and procedures.  The Movement of Factors Act provides for non-discrimination among Community nationals in the ope ration 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 fr ee movement of skilled Community nationals, and 
the free movement of Capital to some extent.  Belize is currently  implementing exchange control 
regulations.  Whereas our current account transactions are almost all liberalized, the Central Bank still 
retains the approval on all capital account transac tions.  These regimes are now in operation, and 
Belize must now compete within this expanded economic space.  As was anticipated, Belize has 
begun to experience the pressures of competition.  
60. The CSME includes provisions intended to assist those Member States that experience 
disadvantages as a direct result of the operation of the Single Market.  Special and differential 
treatment is accorded to the CARICOM LDCs based on their lower levels of economic development 
and, by extension, their lower level of capacity  to take full advantage of economic opportunities 
arising from the operation of the integration process.   
61. In 2009 CARICOM launched a special initiative to  support the integration of Belize and the 
OECS into the CSME.  The consultancy to assess th e implementation capacity of the LDCs has been 
done, and it is expected that this will inform  the development of a programme of "special 
interventions" at the national leve l of the LDCs as a first step in addressing the constraints and 
shortcomings/deficiencies they currently face.  Key amongst these identified constraints are:  human 
resource constraints;  macro-economic instability characterized by very high Debt/GDP ratio and 
persistent large fiscal deficits;  and infrastructural related services such as the lack of efficient intra-
regional transportation and communication.  These factors highlight the need for Belize to access 
assistance from regional and international financial de velopment facilities in order to deal with some 
of the identified constraints. 
62. The domestic private sector is now facing the n eed to adjust perspectives of a protected 
market and develop the skills and other attributes necessary to compete with other Member States in 
the domestic economic space.  
(4) CARICOM-B
ILATERALS  
63. The CARICOM has negotiated and signed a number of trade agreements with countries in the 
Caribbean Basin, 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 WT/TPR/G/238 Trade Policy Review 
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 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 
• The CARICOM-Colombia Agreement on Trad e, Economic and Technical Cooperation  
• The CARICOM-Cuba Agreement on Trade and Economic Cooperation 
• The CARICOM-Costa Rica Free Trade Agreement 
• The CARICOM Dominican Republic Free Trade Agreement. 
 64. While the LDCs grant no market access con cessions under these agreements, they are entitled 
to all concessions granted by the other party in th eir own domestic market, implying that any market 
access concession granted to CARICOM is open to bo th LDCs and MDCs.  Unfortunately for Belize 
it has not been able to export to these markets under the bilateral agreements listed in the foregoing 
reflecting the country's constraint in export supply ca pabilities.  In effect the export market potentials 
still remain untapped, and the core challenge lies in the development of export supply capabilities. 
(5) E
CONOMIC PARTNERSHIP AGREEMENT  
65. The CARIFORUM-EU Economic Partnership Agre ement (EPA) took effect on December 29, 
2008 and represents a fundamental departure in the trading relationship which the CARICOM 
countries have had with Europe over the last 30 years.  It obliges, among other things, to open our market to the Europeans and by extension the Dominican Republic (under the Regional Preference 
Clause) for the very first time and establishes reci procity in trade.  The EPA establishes a precedent 
for future trade engagement with third parties and also has implications for negotiations already in 
process or that have the pos sibility of being expanded. 
66. Belize instituted a three-tiered implementation st ructure to guide the policy, legislative and 
technical aspects of EPA implementation.  The Cabinet is the ultimate clearing house for 
implementation issues related to the EPA while the EPA Implementation Committee (EIC) consisting 
of Chief Executive Officers serve as the Oversi ght Committee. The third tier is comprised of 
technicians from the different key line ministries a nd from private sector and civil society.  The EPA 
Technical Committee is involved with the detailed re view of the EPA and creating obligation specific 
frameworks that detail resources needed to support implementation.   
67. Belize's approach to implementation of the EPA transcends merely honouring commitments 
and obligations.  Rather, it is viewed as an oppor tunity to support and promote sustained growth, 
facilitate structural transformation, including the modernization of our regulatory and legal 
institutions.  This with the ultimate goal of equitable integration into the global trading system and to 
use trade as a tool for stimulating the socio-economic growth of the country. 
68. The country intends to actively access the EU's commitment of EUR 2 billion
2 aid for trade 
resources that "will be potentially available every year from 2010" and of which "50% of the aid for trade package would be available for needs prior itized by ACP countries…".  As part of its own 
response to this and other donor support under aid for trade, Belize has already begun its Aid For 
Trade strategy which prioritizes some of its trade constraints.  
                                                     
 
2 C/07/235.  Luxembourg, 15 October 2007. 13873/07 (Presse 235). Belize WT/TPR/G/238 
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 Challenges of Implementation 
69. As the government continues to implement  th e EPA, unaddressed challenges associated with 
the regional integration scheme are coming to the fore .  For example structural constraints such as 
limited human and financial resources to support th e implementation process has led to the attitude of 
viewing implementation commitments as targets to be  met, and not as a complete and comprehensive 
approach to reform.  
70. There is a significant cost to the full implem entation of the EPA as the Agreement seeks to 
modernize many of Belize's legislative, trade and tr ade-related frameworks.  The challenge ahead is to 
do so with urgency by adopting necessary measures and mobilizing efforts aimed at increasing production and supply capacities, improving competitiveness, institutional and structural transformation and diversification consistent with Belize's developm ent objectives.  The extent to 
which Belize can benefit from deve lopment cooperation will depend heavily on the effectiveness of 
the EPA implementation structure in identifying, qua ntifying and accessing external assistance to fill 
resource gaps. 
71. The Government recognizes the need for greater  resource mobilization, and the support these 
can provide to the implementation of the EPA for instance, to basic needs like laboratory facilities, 
training and certification, risk analysis and post au dit controls, or equipment.  As such, there are 
efforts underway to obtain resources to boos t EPA implementation support through the UK 
Government's Caribbean Aid for Trade and Regional Integration Trust Fund (CARTFUND).  
(6) B
ELIZE -GUATEMALA PARTIAL SCOPE AGREEMENT  
72. In 2004, Belize negotiated a partial scope trade agreement with Guatemala which took effect 
on 4 April 2010.  The Agreement is expected to provide a much needed export outlet for small and 
large producers as well as to attract foreign invest ments into the country with the aim of accessing 
both the Guatemalan and the CARICOM’s market. 
73. Belize is actively promoting export trade with Co sta Rica especially in light of the emergence 
of the petroleum industry in which the latter is a prim ary export destination.  From a trade perspective, 
Central America is regarded as an attractive export market in light of the proximity and similarities 
across cultures.  A formal agreement would allo w Belize exporters preferential access to certain 
sensitive sectors as well as attain relative competitiveness.   
74. Belize is fully aware of the unexplored possibilities and continues its efforts to obtain 
commitment towards achieving a broader vision of CARICOM-SICA relations which would span 
cooperation, and the development of linkages in economic, social and cultural areas, among others. 
75. Belize is very pleased with the launching of the CARICOM-Central America trade 
negotiations in 2008.  Since then , and for varying reasons, these nego tiations have been put on hold.  
Belize, which is currently holding the SICA Pro-Te mpore Presidency, has as one of its objectives, the 
resumption of the negotiations.  
(7) CARICOM-C ANADA TRADE NEGOTIATIONS  
76. Belize as a member of CARICOM is engaged in the regional process of negotiating a Trade 
and Development Agreement with Canada. Beli ze advocates that such agreements establish 
instruments of cooperation designed to improve  production and export capacity, thereby allowing WT/TPR/G/238 Trade Policy Review 
Page 18 
 
 
 developing countries to better compete and participate in the global market economy, and agrees fully 
with CARICOM that concluding such  arrangements is particularly im portant to developing countries 
if they are to reduce the negative c onsequences of trade liberalization.  
VII. MAINSTREAMING OF TRADE 
77. There have been concerted efforts on the part of  GoB towards the mainstreaming of trade into 
the country’s development agenda.  The divers ification of the economy, expanding trade and 
generating export-led growth are seen as being fund amental to the achievement of the overarching 
socio-economic policy objectives.  This policy thru st is articulated in several national policy 
documents such as the Medium  Term Development Strategy  (2010-2013), Horizon 2030 (the 
country’s twenty year development framework),  the draft National Export Strategy (NES) , as well as 
other sector specific plans and projects.  
78. Horizon 2030 report of the first set of consulta tions speaks to trade and trade related issues 
through a section termed Economic Issues.  Of co ncern to respondents are Belize’s negative trade 
balance, and the need for a resilient economy built by the development of agro-business and a strong 
small business sector.   
79. Two of the five priority areas of The Medium Term Development Strategy  (MTES) (2010-
2013) focus on economic and trade issues.  These priority areas are Enterprise Development and 
International Trade Capacity.   
80. The draft NES identifies certain constraints faced by SME's some of which include: 
insufficient policies enacted to encourage the development of productive chains prioritized and 
focused on creating more added value products;  a hesitation for companies and associations to get 
organized and commit to projects that allow them to face any challenges from foreign trade;  limited 
emphasis on market development and financial analys is - this results in production, processing and 
marketing decisions which do not advance competitiveness and sustainability.  These constraints need 
to be addressed since they are crucial to the development of Belize’s export capacity.  
81. This mainstreaming of trade into the developmen t agenda has led to the urgent need for active 
resource mobilization in order to address some of the constraints hindering expans ion of export trade.  
This requires more generous bila teral and multilateral donor support, especially in view of the GoB's 
heavy debt servicing burden.  If these bottlenecks ar e not properly dealt with, private sector response 
will continue to be slow in taking advantage of  the many trade opportunities present under the various 
trade agreements.   
82. The GoB has seized the moment to take stock of these constraints, put them in order of 
priority and commit resources within its remit, as well as to seek donor support in addressing them.  
With assistance from the Inter-American Develo pment Bank, the GoB has embarked on the 
development of an Aid for Trade Strategy.  Count rywide consultations with  both public and non-state 
actors assisted significantly in the identification of th e four main pillars of the Strategy:  Sanitary and 
Phytosanitary Measures and Technical Barriers to Tr ade, Regional Integration and Implementation of 
Trade Agreements, Private Sector Competitiveness, and Trade Facilitation.  It is anticipated that the 
strategy document will be comp leted by end of September 2010. Belize WT/TPR/G/238 
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 VIII.  CONCLUSION 
83. Despite the many challenges faced over the revi ew period, Belize has achieved a fair measure 
of progress on several fronts, including the almost complete liberalization of its economy in context of the CSME and in the ongoing process of integrat ion into the multilateral trading system under the 
aegis of the WTO.  The process of globalization and liberalization continues, and this holds increasing 
significance for a small economy like Belize which must  seek to promote and safeguard its economic 
and social interests within the framework of the rules-based system of the WTO.  The development 
challenges already identified are numerous, and the Government of Belize wi ll continue its ongoing 
effort to design, implement and pursue a developm ent strategy which recognizes the vital importance 
of placing trade at the centre of national economic an d social development.  The road ahead is clearly 
more challenging for trade and sustainable deve lopment, and Belize must meet the challenges 
inclusive of the dimensions related to achiev ement of the millennium development goals.  
__________