Belize

Location : Central America, bordering the Caribbean Sea, between Guatemala and Mexico

Capital : Belmopan

Languages : English (official), Spanish, Mayan, Garifuna (Carib), Creole 

Area : 22,966 sq km

Land Use : arable land: 2.85%; permanent crops: 1.71%; other: 95.44% (2001)

Natural Resources : arable land potential, timber, fish, hydropower

Population : 279,457 (July 2005 est.).

Labour force : 90,000 (2001 est.) 

Labour force participation rate : 32.21% of population (2001 est.)

Population below poverty line : 33% (1999 est.)

International Organisation participation : ACP, C, Caricom, CDB, FAO, G-77, IADB, IBRD, ICAO, ICC, ICFTU, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, ITU, LAES, MIGA, NAM, OAS, OPANAL, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UPU, WCL, WHO, WIPO, WMO, WTO

GDP per capita : U$6,500 (2004 est.)

GDP Real Growth Rate : 3.5% (2004 est.)

GDP sectoral composition : agriculture: 17.7%; industry: 15%; services: 67.3% (2003 est.)

Investment (gross fixed): 33.6% of GDP (2004 est.)

Industries: garment production, food processing, tourism, construction

Industrial production growth rate : 4.6% (1999) 

Agriculture - products : bananas, coca, citrus, sugar; fish, cultured shrimp; lumber; garments

Exports : U$401.4 million f.o.b. (2004 est.)

Exports - commodities : sugar, bananas, citrus, clothing, fish products, molasses, wood

Exports - partners : US 37.2%, UK 26.8%, Jamaica 4.6% (2004)

Imports : U $579.9 million f.o.b. (2004 est.)

Imports - commodities : machinery and transport equipment, manufactured goods; fuels, chemicals, pharmaceuticals; food, beverages, tobacco

Imports - partners : US 30.1%, Mexico 12%, Guatemala 7.4%, Cuba 7.2%, China 4.2%, Japan 4.1% (2004)

QUALITATIVE TRADE PROFILE  

Belize 's trade policy is influenced by its participation in the Caribbean Community and Common Market (CARICOM), with which it conducts a common external policy and negotiations. In this context, Belize formulates national trade policies, which are then fed into CARICOM. The Revised Treaty of Chaguaramas 2001 aims to consolidate a 1989 initiative to create the CARICOM Single Market Economy (CSME). The goals are to allow the free movement of goods, services, and factors of production, as well as to harmonize laws and regulations governing economic activities. The Single Market aspect of the CSME is expected to be operationalized in January 2006.

Belize applies the CARICOM Common External Tariff (CET). The tariff generally applies a top rate of 20% for industrial goods and 45% for agricultural products. The structure of the tariff is based on the concept of the economic use of the goods, differentiated between inputs and final goods. Inputs are identified as primary, intermediate or capital goods, while for final goods, distinction is made between basic and non-basic categories of goods. Certain foodstuffs and other supplies are classified as basic, while all other final goods are non-basic.

In the Uruguay Round negotiations, Belize bound around 97% of its tariff schedule. The unbound tariff lines concern mostly fish and fish products. Agricultural products were bound at a general ceiling rate of 100%, except for some tariff lines bound at 110% or 70%. With a few exceptions, other duties and charges on agricultural products were bound at 14%. In general, applied non-specific tariff rates are well below their bound rates. Based on the WTO definition, agriculture has the highest tariff protection with an average applied MFN tariff rate of 17.9%; the average for the non-agriculture sector (including petroleum) is 10%. Some 53% of tariff lines carry a rate of 5%, some 18% a rate of 20%, and some 10% a zero rate; 10% of tariff lines are above 20%. Tariffs rates between 50% and 70% apply to a variety of products.

INSTITUTIONAL FRAMEWORK 

The Trade Policy Unit (TPU) within the Ministry of Foreign Trade has the task of implementing all trade related matters, performing a direct and hands-on role in trade policy formulation, coordination, and implementation of obligations. The Unit's primary tasks are advising other ministries and acting on Belize's obligations with respect to trade policy issues related to participation in CARICOM, ACP-EU relations, the WTO Agreements, the FTAA; and developing the country's regional and bilateral trade policy. The TPU is staffed by five technical staff members. As a member of CARICOM, Belize is committed to a regionally coordinated external trade policy for the group. Therefore, Belize coordinates closely with the relevant regional agencies on trade policy matters, including the Caribbean Regional Negotiating Machinery (RNM).

Other key agencies involved in trade issues include the Ministries of Agriculture, Fisheries and Cooperatives; Foreign Affairs; Natural Resources and the Environment, Commerce and Industry; Finance and Home Affairs; Economic Development, Investment, Tourism and Culture; Health and Communications; Local Government and Labour; the Central Bank; and the Attorney General's Ministry.

The main direct consultation mechanism is the National Trade Negotiating Commission (NTNC) where the private sector, civil society, and government officials are represented. The NTNC's recommendations are referred to Cabinet for approval (depending on the issue). The NTNC receives technical support from the trade technical team (TTT), an inter-departmental team with the primary objective of ensuring that trade policy recommendations are consistent with related domestic policies and that negotiations are informed by concerns of ministries, departments, and agencies whose policies and regulations may be affected by various negotiations.

TRADE AGREEMENTS

Bilateral

Belize has bilateral trade agreements with Colombia, Costa Rica, Cuba, Dominican Republic, and Venezuela through the Caribbean Community (CARICOM). It is a beneficiary of the General System of Preferences, the Caribbean Basin Initiative (CBI) and the Canadian Programs for Commonwealth Caribbean Trade, Investment and Industrial Cooperation (CARIBCAN). Through CARICOM, Belize is currently negotiating a free trade agreement to replace CARIBCAN as well as a free trade agreement with MERCUSOR. On its own, Belize maintains regular consultations with Mexico to explore the possibility of increasing bilateral trade and investment flows.

Regional

Belize is a member of CARICOM . Within CARICOM, Belize is listed as a less developed country (LDC), and thus benefits from measures to protecting sensitive and vulnerable industries while also receiving financial and technical assistance to address development needs. . It is currently negotiating an Economic Partnership Agreement with the EU through the CARIFORUM configuration. It is also involved in negotiations to form the hemispheric Free Trade Area of the Americas.

Multilateral

Belize is an original Member of the WTO and grants MFN treatment to all its trading partners. It has GATS commitments in 17 sectors.

NEED PRIORITIES  

Priority areas for Belize are; expanding human resources; comprehensive assessment of laws and institutions to make recommendations for the modernization of laws and the upgrading of institutions to comply with multilateral commitments; training private sector organisations; liberalization impact studies for agriculture; development and identification of NTMs; developing foreign direct investment policy and awareness workshops on services negotiations.

Source: Commonwealth Yearbook 2005, World Fact Book, WTO Secretariat.