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Doing Business in Belize: 2016 Country Commercial Guide for U.S. Companies

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Doing Business in Belize: 2016 Country Commercial Guide for U.S. Companies Doing Business in Belize: 2016 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2016. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Belize Country Commercial Guide Doing Business in Belize ________________________________________________________ 4 Market Overview __________________________________________________________________ 4 Market Challenges _________________________________________________________________ 5 Market Opportunities ______________________________________________________________ 6 Market Entry Strategy ______________________________________________________________ 7 Political Environment __________________________________________________________ 8 Political Environment _______________________________________________________________ 8 Selling U.S. Products & Services __________________________________________________ 9 Using an Agent to Sell US Products and Services _________________________________________ 9 Establishing an Office _______________________________________________________________ 9 Franchising ______________________________________________________________________ 10 Direct Marketing _________________________________________________________________ 10 Joint Ventures/Licensing ___________________________________________________________ 10 Selling to the Government __________________________________________________________ 10 Distribution & Sales Channels _______________________________________________________ 11 Express Delivery __________________________________________________________________ 11 Selling Factors & Techniques ________________________________________________________ 12 eCommerce ______________________________________________________________________ 12 Trade Promotion & Advertising ______________________________________________________ 12 Pricing __________________________________________________________________________ 13 Sales Service/Customer Support _____________________________________________________ 13 Due Diligence ____________________________________________________________________ 13 1 Local Professional Services _________________________________________________________ 14 Principle Business Associations ______________________________________________________ 14 Limitations on Selling U.S. Products and Services________________________________________ 14 Selling U.S. Products and Services Web Resources _______________________________________ 14 Trade Regulations, Customs, & Standards ________________________________________ 16 Import Tariff _____________________________________________________________________ 16 Trade Barriers ____________________________________________________________________ 16 Import Requirements & Documentation ______________________________________________ 17 U.S. Export Controls _______________________________________________________________ 17 Temporary Entry __________________________________________________________________ 17 Labeling/Marking Requirements _____________________________________________________ 17 Prohibited & Restricted Imports _____________________________________________________ 18 Customs Regulations ______________________________________________________________ 18 Trade Standards __________________________________________________________________ 18 Trade Agreements ________________________________________________________________ 21 Licensing Requirements for Professional Services _______________________________________ 21 Trade Regulation Web Resources ____________________________________________________ 22 Investment Climate Statement _________________________________________________ 23 Executive Summary _______________________________________________________________ 23 Openness to and Restrictions upon Foreign Investment __________________________________ 24 Conversion and Transfer Policies _____________________________________________________ 28 Expropriation and Compensation ____________________________________________________ 29 Dispute Settlement _______________________________________________________________ 30 Performance Requirements and Investment Incentives __________________________________ 33 Protection of Property Rights _______________________________________________________ 35 Transparency of the Regulatory System _______________________________________________ 39 Efficient Capital Markets and Portfolio Investment ______________________________________ 40 Competition from State-Owned Enterprises ____________________________________________ 42 Responsible Business Conduct _______________________________________________________ 43 Political Violence _________________________________________________________________ 43 Corruption ______________________________________________________________________ 44 2 Bilateral Investment Agreements ____________________________________________________ 51 OPIC and Other Investment Insurance Programs ________________________________________ 52 Labor ___________________________________________________________________________ 52 Foreign Trade Zones/Free Ports/Trade Facilitation ______________________________________ 55 Foreign Direct Investment and Foreign Portfolio Investment Statistics ______________________ 55 Contact for More Information on the Investment Climate Statement _______________________ 57 Trade & Project Financing _____________________________________________________ 58 Methods of Payment ______________________________________________________________ 58 Banking Systems __________________________________________________________________ 58 Foreign Exchange Controls __________________________________________________________ 59 U.S. Banks & Local Correspondent Banks ______________________________________________ 60 Project Financing _________________________________________________________________ 60 Financing Web Resources __________________________________________________________ 61 Business Travel ______________________________________________________________ 62 Business Customs _________________________________________________________________ 62 Travel Advisory ___________________________________________________________________ 62 Visa Requirements ________________________________________________________________ 62 Currency ________________________________________________________________________ 62 Telecommunications/Electronics ____________________________________________________ 62 Transportation ___________________________________________________________________ 63 Language ________________________________________________________________________ 64 Health __________________________________________________________________________ 64 Local Time, Business Hours and Holidays ______________________________________________ 64 Temporary Entry of Materials or Personal Belongings ____________________________________ 65 Travel Related Web Resources ______________________________________________________ 65 Leading Sectors for US Exports & Investments _____________________________________ 66 Best Prospect Overview ____________________________________________________________ 66 Agricultural Sector ________________________________________________________________________ 66 Travel and Tourism ________________________________________________________________________ 69 Information Communication Technology ______________________________________________________ 71 Green Technology and Renewable Energy _____________________________________________________ 72 3 Doing Business in Belize Market Overview • Belize has a total area of 8,867 square miles and an estimated population of 375,909 inhabitants (estimates of April 2016). Belize has an open, private sector led economy based primarily on agriculture, tourism, and services. • Tourism remains the nation’s largest foreign exchange earner. Tourist arrivals for 2015 continued to increase for the third consecutive year amounting to 1,299,100, a 0.07% increase from 1,289,351 in 2014 and 971,527 in 2013. Overnight tourists accounted for 341,125 versus 321,220 in 2014 and 957,975 were from cruise ship arrivals versus 968,131 in 2014. Estimates of annual tourist expenditures amounted to $372.5 million and accounted for 39.2% of GDP in 2014. The sector is expected to increase further over the next several years with additional airline routes and the Norwegian Cruise Line development of a private island terminal. • Following tourism, the agriculture and agro-productive sectors rank second most important in economic performance. Belize’s gross exports for 2015 amounted to $267.67 million comprised of Sugar (25.1%), Banana (18%), Citrus Juices (16.7%), Marine Products (16.5%), Crude Petroleum (6.8%), and Papaya (2.4%) among others. • Major U.S. investments in Belize are still present in oil exploration, even though active petroleum reserves are still on the decline. In 2015, petroleum exports continued to decline and have dropped to the fifth export commodity amounting to $18.2m, a severe decrease from $51.2m since 2014. Currently, there is no company extracting Belizean light sweet crude. The seven companies with current licenses have halted exploration in light of decreasing global oil prices and depleting reserves. • As a consumer country that relies heavily on imports, Belize’s trade imbalance continues to grow. Belize’s gross imports for 2015 totaled $1,029.5 million, up from 2014’s $1,002.67 million. Together machinery & transportation equipment,
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