WT/TPR/M/353

9 June 2017

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Trade Policy Review Body

24 and 26 April 2017

TRADE POLICY REVIEW

BELIZE

MINUTES OF THE MEETING

Chairperson: Ms Irene Young (, )

CONTENTS

1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ...... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF ...... 4 3 STATEMENT BY THE DISCUSSANT ...... 8 4 STATEMENTS BY MEMBERS ...... 12 5 REPLIES BY THE REPRESENTATIVE OF BELIZE AND ADDITIONAL COMMENTS ...... 23 6 CONCLUDING REMARKS BY THE CHAIRPERSON ...... 28 7 ELECTION OF A NEW TPRB CHAIRPERSON ...... 30

Note: Advance written questions and additional questions by WTO Members, and the replies provided by Belize are reproduced in document WT/TPR/M/353/Add.1 and will be available online at http://www.wto.org/english/tratop_e/tpr_e/tp_rep_e.htm.

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1 INTRODUCTORY REMARKS BY THE CHAIRPERSON

1.1. The third Trade Policy Review of Belize was held on 24 and 26 April 2017. The Chairperson, Ms. Irene Young (Hong Kong, China), welcomed the delegation of Belize headed by H.E. Ambassador Dylan Vernon; the delegation from ; and the discussant, H.E. Ambassador Peter Matt (Liechtenstein).

1.2. For this particular meeting, Members noted from Airgram WTO/AIR/TPR/49/Add.1 of 11 April that, at the end of Day 2, there would be a special agenda item to select the new Chairperson of the TPRB.

1.3. Members were informed that the draft revisions to the Rules of Procedures circulated in January, necessary to reflect the outcome of the 6th TPRM Appraisal, were still going through certain domestic procedures of one Member. As such, they could not yet be submitted for formal approval by the Body. The Secretariat would monitor the development and keep Members informed.

1.4. The Chairperson recalled the purpose of the Trade Policy Reviews and the main elements of the procedures for the meeting. The report by Belize was contained in document WT/TPR/G/353 and that of the WTO Secretariat in WT/TPR/S/353.

1.5. Questions by the following delegations had been submitted in writing before the deadline: ; Canada; and the . The following delegations submitted written questions after the deadline: ; ; ; Thailand; and .

1.6. At the last TPR in 2010, Members had recognized that Belize, being a small open , was at risk of various economic and environmental shocks, such as extreme weather events, the global financial crisis, fluctuations in commodity prices, and diseases affecting farm products. At the same time, domestic factors (such as high levels of foreign debts and loans) had limited the authorities' flexibility in using fiscal and monetary policies to address those shocks. Supply-side constraints, such as inadequate infrastructure and connectivity, also meant that considerable potentials for growth in and had remained untapped.

1.7. As a result, economic growth had been volatile and the current account deficit had widened significantly during this review period. The outlook was not optimistic either, with GDP projected to go down by 1.5% in 2016, alongside declining productivity, competitiveness and public investment.

1.8. And this was despite the notable efforts and progress that Belize had made, during this and the previous review periods, to improve productivity in agriculture and diversify its economy through expansion of the services sector.

1.9. So, what more could Belize do to turn the tide?

1.10. At the last TPR, Members had suggested domestic reforms to create a better business environment for foreign traders and investors. When they said so, Members had in mind the non-automatic import licenses, as well as the complex, and sometimes contradictory, set of policies affecting the trade regime. Some of these concerns had yet to be addressed. The fact that, between the two TPRs, Belize's Ease of Doing Business ranking had dropped from the 80th place to the 120th seemed to tell Members that changes were needed immediately.

1.11. Measures to streamline procedures were useful, but more so would be the development of a long-term trade strategy, as foreshadowed by the Belize delegation at the last TPR. Six years on, Belize had established its first National Trade Policy Framework, emphasizing the importance of institutional capacity, supply capacity, market access and trade facilitation. In the near future, Members could expect the Framework to develop into specific policies, new legislation to strengthen the competition and government procurement regimes, and new strategies for investment and intellectual property. The Chairperson could see in Members' advance written questions their strong interest in these developments, so she looked forward to hearing more about that from the Belize delegation.

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1.12. Members' advance questions also called for Belize to comply with WTO rules, more specifically to submit timely notifications, eliminate export subsidies, and keep applied tariffs within bound rates. Although more of these concerns had been identified since the last TPR, it was encouraging to see in its Government report that Belize "recognized the urgent need to address compliance issues". Belize was a founding Member of the WTO. It did not have a permanent Mission in Geneva, but this had not prevented it from being among the first countries to ratify the Trade Facilitation Agreement. Taking prompt action to address non-compliance would demonstrate further the country's strong commitment to this Organization. It would be helpful to hear from the delegation its plans in this regard.

1.13. There were other issues raised in Members' questions, such as TBT, SPS, and various sectoral policies. This meeting would be a good opportunity for Members to discuss in greater detail all these issues of interest to them and of importance to the multilateral trading system.

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2 OPENING STATEMENT BY THE REPRESENTATIVE OF BELIZE (H.E. AMBASSADOR DYLAN VERNON)

2.1. Madam Chairperson, Ambassadors, and distinguished representatives.

2.2. Distinguished Ambassador from Liechtenstein, Mr. Peter MATT, we are honoured to have you as our discussant. And our most sincere appreciation to the Secretariat who has been engaged in the conduct of Belize's third TPR under the TPRM – thanks to you also.

2.3. The Minister of Investment, Trade and Commerce, the Honourable Tracy Panton Taegar, is unable to join us for this meeting due to other very important business in Belize and has asked me to offer her sincerest apologies. I do have also the pleasure of introducing my own delegation seating before me, Mr. Andy Sutherland, Acting Director General for Foreign Trade, Mr. Richard E. Reid, Senior Trade Economist, Mr. Terrence Simfukwe, National Trade Advisor, and myself, Ambassador of Belize to the European Union based in Brussels but also with representation here at the WTO.

2.4. I also want before beginning to especially acknowledge Mr. John Finn, Mrs. Martha Lara Fernandez and Ms. Zheng Whang of the WTO Secretariat who conducted an excellent policy review of Belize over the past year, highly professionally done and because of their impressive efforts I think that we have an extremely detailed and comprehensive report tabled before us today.

2.5. Madam Chairperson, it is with great pleasure that I introduce this third trade policy review for Belize. I am indeed pleased to see such a wide level of participation here today, especially representatives of Belize's foremost trading partners - the European Union and the United States. I also want to acknowledge and thank all those countries who have sent questions to which we have responded and a special acknowledgment of our neighbors Mexico and Guatemala and our regional neighbors in CARICOM.

2.6. Madam Chairperson, it is indeed a great honour to present this third trade policy review which we believe clearly establishes the substantial progress and improvements Belize has accomplished since its last TPR in 2010. During this period, Belize has made advancements on several fronts of implementation and capacity development, and most notably so in the area of international trade policy. Proactive actions and initiatives were undertaken to secure technical assistance from the EU to conduct the work necessary to establish a formal Trade Policy Framework (TPF) for Belize. This TPF was finalized and approved by the Belize Cabinet in August of 2015. As a follow-up Belize secured technical assistance from the Commonwealth Secretariat and a Trade Adviser is now attached to the Directorate General for Foreign Trade with the primary objective of crafting a national trade policy document for Belize, conceptualized within the TPF. Although this process is still indeed very much in train, much progress has already been made. The TPF is actually providing the necessary pathway and direction for the conduct of trade policy, and is a basis for modernization of the country's legal and institutional structures. This must be acknowledged as a substantial achievement for a small .

2.7. Please also permit me to express my hope, and that of my delegation and my Country that we have effectively satisfied you and answered the questions that have been put to us by various Members. We have worked arduously to provide comprehensive responses and hope that the concerns and interests raised have been addressed to your satisfaction. But, of course, we stand open to clarifying these in the next two days.

2.8. While Belize has embarked on a number of reforms to reposition its economy over the review period, the structural constraints and the challenges that are synonymous with a small vulnerable economy like Belize remain. My Government's ability to improve the socio-economic wellbeing of continues to be tested. However, we remain resolute in our desire to better the lives of our people. For a greater appreciation of the vast challenges the country faces, I thought it would be apt to share a brief summary of the macroeconomic challenges and highlights.

2.9. In the last two years, Belize has been hit with two years of challenging economic situations. Fish and citrus production have been hit by diseases; production has been impaired by financing difficulties; and oil production has plummeted to virtually zero. The fiscal effects have

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- 5 - been compounded by the fall in the global oil price, and oil earnings fell from a peak of BZ$196 million in 2011 to BZ$22.5 million in 2016.

2.10. The banking sector came under significant pressure in the last couple of years. As a result of the increasingly stringent banking regulations in the domestic environment of global banks, Belize alongside other Caribbean countries experienced a wave of de-risking, which led to increased transaction costs, threatening remittances, and upsetting the efficiency of the local banking system. Though the situation remains tenuous, all banks in Belize have operational corresponding banking relationships with U.S. banks.

2.11. Additionally, natural disasters continued to threaten the economic stability of Belize. In August 2016, hurricane Earl caused an estimated BZ$150 million of damages. The resulting mix of occurrences saw Belize's real GDP growth rate vary during the review period, rising from a low of 0.7% in 2013 to a high of 4.1% in 2014 and falling again to 2.9% in 2015. It is instructive to note that Belize's economy further shrank in 2016 with a 3.5% projected decline in its GDP. It is important to note that the foregoing realities placed an even tighter pressure on Government flexibilities in trade policy matters affecting agriculture generally and the few major export industries in particular.

2.12. However and on a brighter side, our economic story is not all doom and gloom. There have also been instances of success. In particular, the services sector remains robust contributing more than 60% to the GDP. The tourism industry continues to be integral to the growth of the economy – the sector contributed as much as 39% to the economy in 2014. Tourism has outpaced oil as the largest foreign exchange earner and agriculture, with its challenges, continues to be the mainstream of Belize's exports.

2.13. This yearlong review process conducted by the WTO comes with incredible benefits to my country and my Government. The elicited benefits of highlighting areas of WTO obligations that might have received little attention and the addressing of those issues thereafter have been very evident so far – which is also very helpful to the multilateral trading system. My Director General can attest to the fact that the process has challenged and strengthened the institutional capacity of his staff in Belmopan. Months of reviewing responses by trade-related agencies to queries from the Secretariat have broadened the economic perspective of our trade officials. They now possess an increased understanding and appreciation of the linkages between trade and internal economic systems and reform. Further to that, there is an across the board recognition of the urgent need for improved inter-agency synergies and cooperation for policy efficiency.

2.14. The comprehensiveness of the Trade Policy Review Process and the Secretariat's report significantly contribute to public and private sector awareness, and assist in highlighting the compliance gaps which will inform the development of Belize's first national trade policy.

2.15. My Government remains committed to the principles of the multilateral trading system and the corresponding measures that ensure the smooth flow of trade in a prevailing atmosphere trends towards protectionism. We are well aware of our shortcomings regarding some of our notification obligations. It is as a result of a lack of technical legal capacity to a large extent on the scale required. However, we are not sitting put, we see the value in transparency and aim to be a better WTO citizen. My Government has recently approved a National Trade Policy Framework (2016–2026) aimed at trade policy reform which includes the enhancement of institutional capacity as a critical pillar. The consolidation of the Directorate General for Foreign Trade (DGFT) is a key focus area that will help improve the functioning of that department and also enhance Government's compliance capacity. In 2016, a new unit with responsibility for WTO matters was established. Embedded in the work plan of this Unit is an action plan for meeting notification obligations through enhanced coordination with trade-interfacing agencies of Government. Member States should expect increased activity in that regard from my Government.

2.16. During the review period, Belize has embarked on a number of reforms needed to reposition our economy. We have stayed true to our principle of regionalism as a foundation for growth and development. We continue to honor our commitment and obligations to our regional brothers and sisters in CARICOM with respect to the implementation of the Single Market Component of the CARICOM Single Market and Economy (CSME) even as we further explore a simultaneous economic integration with our geographical partners in . My Government

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- 6 - recognizes the critical nexus between economic integration and improving the competitiveness of our private sector.

2.17. The National Trade Policy Framework to which I refer seeks to address also our national development priorities in the context of regional and multilateral trade and economic integration. The framework clearly outlines the guiding principles among which it promotes competitiveness for the productive sector and support for regionalism. The principles underline four pillars that will enhance our trade policy landscape: We will build institutional capacity, improve our supply capacity, expand market access and implement the WTO's Trade Facilitation Agreement.

2.18. Through the programme, we have a trade advisor stationed in our foreign trade department to assist the Government in developing a comprehensive national trade policy for Belize – the first for us. Last month, we began our policy formulation process by engaging trade facilitating government agencies to better understand the state of play in their various operational spaces and inform the foreign trade policy formulation. Moving forward, we will continue our consultative process by engaging the private sector across all economic activity. The framework and the resulting trade policy will be rooted in multilateral rules based system, it will converge the development dimension of national sectorial policies and strategies aimed at growth policy.

2.19. As we stand and witness a significant and unprecedented historical achievement in our history of our trade club, the WTO, allow me to proudly mention that Belize was among the first countries to ratify the WTO Trade Facilitation Agreement and we are very much committed to implementing its provisions, of course, with the support of our development partners. This action demonstrates the faith and optimism that the has at this time, believing that the results to be had from this agreement would be significant ones once entered into force. It is this optimism that still propels us today to marshal our technical and financial strength to implement the TFA and reap the benefit therefrom. In 2014, we conducted a Needs Assessment where we categorized TFA matters into Categories A, B and C. Subsequently, we notified our Category A commitments. At the moment, my Government is currently undergoing a validation exercise to ensure that the 2014 categorization are representative of our current realities, especially since our Customs and Excise department has gone full steam ahead in modernizing a programme hinged on the effective implementation of ASYCUDA world. A custom harmonization bill with the provisions of the TFA is currently pending a legal review in the office of our Solicitor General.

2.20. Madam Chairperson, taking the bull by its horn, we have constituted our National Committee on Trade Facilitation (NCTF). In March 2017, we finalized the terms of reference and the rules of procedures for the Committee. We already have had an inaugural meeting where we prioritized the development of a national implementation plan that is aligned to the Regional Trade Facilitation Implementation Strategy in CARICOM.

2.21. My Government has engaged in a comprehensive review and reform of its three incentive legislations to comply with the WTO as well as other regional commitments. The Cabinet of Belize, with buy-in from the relevant stakeholders, including the private sector, is on board with the needed amendments to the Free Zones Act, the Fiscal Incentives Act and the replacement of the Export Processing Zones Act. These legislative challenges will bring Belize's three incentive programmes into compliance with the WTO Agreement on Subsidies and Countervailing Measures (ASCM). We are also taking the opportunity of the reform to ensure that the three incentive laws are consistent with the Caribbean Financial Action Task Force (CFATF) commitments. The CFATF reform is being conducted in conjunction with the and the Financial Intelligence Unit of Belize. The amendments to the Fiscal Incentives Act and the Free Zones Act and replacement of the EPZ Act are expected to be finalized by the end of 2017.

2.22. Belize is intent on spreading these reforms across the whole regulatory sphere in Belize to truly reposition the economy and reap the benefits from efficiency. However, we remain mindful that the Belizean economy is largely agricultural based and thus prone to adverse effects of international trade and exogenous shocks. In this, among other things, is compounded by the need to protect plant and animal health through critical scrutiny of imports of agricultural products. According to Belize's last country poverty assessment, the poverty rate stands at 41% of the population; Belize must therefore ensure that the core and fragile domestic agricultural sector in relation to its importance to rural livelihoods and poverty reduction remain. Despite these challenges and without having anti-dumping and countervailing legislation, in 2012, we removed

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- 7 - half of the products with import license requirements and are currently exploring the possibility for further reduction. In 2015, we piloted a semblance of a single window that allows for the virtual communication between Belize Electronic Licensing and Permit System (BELAPS) and ASYCUDA. This virtual license application system has greatly reduced the business transaction costs, and improved efficiency and timeliness of the process.

2.23. The enormity of the tasks ahead of us with regard to our trade and development agenda cannot be achieved by domestic resources only. This undoubtedly underscores the significance of development cooperation and Aid for Trade. At a glance, review of aid for trade statistics from the OECD creditor reporting system 2015 report reveals that the Caribbean is one of the least recipients of aid for trade, alongside Oceania. Belize, for example, received a total AfT outlay of US$17.93 million spread across all sectors. Of the total amount, US$ 8.9 million and US$6.79 million were respectively channeled towards transport/storage and agriculture//fisheries. A quick analysis of the above flows is an insignificant share of the optimal resource requirement estimates for our trade priorities.

2.24. It is worth noting and appreciating that of the five main components of AfT, Belize is in critical need of efficient transport infrastructure, export diversification (supply capacity enhancement) and trade policy. The Government is in the process of creating an AfT strategy to guide its systematic approach to AfT in line with trade and development priorities.

2.25. We thus seek development cooperation from all our partners, regionally and beyond to supplement our own significant domestic inputs so as to better integrate effectively and achieve our development goals and multilateral commitments.

2.26. Belize reaffirms its commitment to the rules-based system of the WTO and remains committed to the principles of non-discrimination, transparency, promoting fair trade and gradual liberalization of trade. However, given our particular economic challenges as a highly indebted small and vulnerable economy, we are caught between the need to reform and the survival of our domestic industries in the face of international competition brought about by progressive liberalization. Substantial progress has been made since our last review. However, we acknowledge that much more needs to be done and we have begun the process of reform based upon a more focused strategic approach to economic development and trade policy formulation.

2.27. Finally, the Government of Belize has recently approved an overarching sustainable development policy, our Growth and Sustainable Development Strategy (GSDS) to guide national development over the medium term (2016–2019) and which outlines a proactive role for the State, it prioritizes accessing global markets and the creation of an innovative social policy. Additionally, we are implementing our National Trade Policy Framework (2016–2026) which will cumulate into a Belize's first national Trade Policy by the end of 2018. It is our intention to use this trade policy review as a springboard for effective trade policy development and deeper integration of our trade into the global economy.

2.28. We look forward to a fruitful discussions and a successful conclusion to Belize's third trade policy review. I thank you.

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3 STATEMENT BY THE DISCUSSANT

3.1. Thank you, Madam Chair. I'd like also to welcome the distinguished delegation from Belize led by H.E. Ambassador Dylan Vernon. A special welcome goes also to Acting Director for Foreign Trade, Andy Sutherland and his colleagues from Capital. It is my pleasure and honour to participate as a discussant in the third Trade Policy Review of Belize.

3.2. I would also like to thank Belize and the Secretariat for their comprehensive reports and Ambassador Vernon for his introductory statement. These reports and statement give us a sound basis for a fruitful and constructive exchange during this third trade policy of Belize.

3.3. In my intervention I will first make some remarks regarding the broader economic context and the trade policy in general before I touch upon some specific aspects of Belize's economic environment and trade regime.

Broader economic context and trade policy

3.4. Belize is a small and open economy located at the Eastern coast of Central America, boarding both Mexico and Guatemala. It is the only English speaking country in Central America. With a surface of 22,966 km2 – a bit more than half the size of – and a population of 377,968 - which is about ten times Liechtenstein - Belize has the lowest population density in Central America. Belize is – like my own country - a constitutional, parliamentary monarchy. In the case of Belize, the Head of State is Queen Elizabeth II and the Governor-General acts as Her representative.

3.5. Belize is an upper-middle income country with a per capita GDP of US$4,757 in 2015. GDP growth has been volatile during the reporting period, rising from 0.7% in 2013 to 4.1 in 2014 and then falling again to 2.9% in 2015. The Central Bank had projected a contraction of GDP by 2.4%. For the fourth quarter the Statistical Institute of Belize estimates a contraction of -1.2%. This reflects in general terms the exposure of the Belizean economy to internal and external shocks including natural hazard and diseases affecting both agriculture and aquaculture. The main driver for economic growth has been the services sector, more specifically the tourism sector.

3.6. During the period reported Belize was – as already indicated - hit by several shocks that affected the economic growth in general, but especially agriculture as well as aquaculture. In particular, in 2016, hurricane Earl caused severe damages estimated at BZ$183.6 million. Both subsectors referred to were furthermore hit by disease outbreak regarding citrus fruits, papaya and shrimp.

3.7. Furthermore, the "de-risking" of Belize by global banks led to the loss of the corresponding bank relationships for most banks in Belize and added to the already difficult economic environment.

3.8. As already mentioned, services continue to be the largest sector in the economy, amounting to 60% of the GDP. Tourism has been and continues to be of growing importance during the reporting period. It contributed to 15% to GDP in 2014 according the World Travel Tourism Council. Its total contribution to the economy was 39%. Wholesale and retail trade, transportation and communications as well as general government services are the other biggest subsectors. The secondary industries are the second largest contributor to the GDP, amounting to 13.3% followed by primary industries with 12.9%.

3.9. Petroleum production is an important sector for the economy and a main contributor to government revenue. But during the reported period the production shrank as reserves became depleted and because of the low world price of oil.

3.10. Belize faces particular challenges regarding its transportation infrastructure. The low population density prevents the creation of agglomeration and scale . In addition, poor infrastructures add to the challenges to get goods to domestic and international markets. Better long-haul flight connections, in particular to Europe, might help to further boost the important tourism sector. The Government has undertaken considerable efforts to improve the infrastructure in the last two decades. Despite this, the road network needs further improvement.

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3.11. Belize's public finances have been marked by expansionary fiscal policies from 2013/2014 with the fiscal deficit at its peak in 2014/2015 (BZ$141 million). The Government's fiscal space was limited by high debts, distortions in trade and tax policy regime and high cost of finance. Large fiscal expenditure due to settlement payments in the aftermath of the nationalization of Belize Telemedia Ltd. and Belize Electricity Ltd. further limited Belize's fiscal space.

Trade and Investment Regime

3.12. Let me now turn to Belize's engagement in the WTO and the trade and investment regime in general. As Belize does not maintain a permanent Mission to the WTO here Geneva, but covers WTO from its Mission in Brussels, Belize's activities in the WTO are necessarily limited and resulting in a reactive position to rules making process and the liberalization negotiations as the Government of Belize puts it in the Government report. One has, of course, also to take into account the size of the country. Belize was one of the first countries to ratify the Trade Facilitation Agreement on 2 September 2015. Belize has made already its category A notifications. And Category B and C notification are expected to be made in the third quarter of 2017. On 15 September 2015, it deposited its instrument of acceptance for the 2005 protocol amending the WTO's TRIPS agreement.

3.13. Belize's major concern in the WTO is to seek flexibility for SVEs in agricultural and non-agricultural products as well as targeted tariff reductions. Building up institutional capacity for trade is another main concern of Belize.

3.14. Belize is a member of the and Common Market (CARICOM) and adhered to the CARICOM Single Market, the first component of the CARICOM Single Market and Economy (CSME) established by the Treaty of Chaguaramas. The joining of the second component, the single economy is delayed due to administrative, legal and fiscal issues. Within CARICOM Belize is a designated less developed country allowing it to protect vulnerable and sensitive domestic industries to redress disadvantages arising from its membership obligations under the CSME. Belize is at the same time full member of the Central American Integration System (SICA) and is currently evaluating the implications of joining the Central American Economic Integration Subsystem, the economic component of SICA. The outcome of this process is still open. Belize being the only CARICOM member in Central America it could play an important role as link between both subsystems as was already mentioned in the previous TPR.

3.15. Belize participates in the CARIFORUM partnership agreement with the EU and maintains a Partial Scope Agreement with Guatemala. Belize also profits from unilateral trade preferences, namely the U.S. led Caribbean Basin Initiative and the Canada led CARIBCAN established for Caribbean Commonwealth partners.

3.16. On customs procedures, it is to be noted that Belize has implemented ASYCUDA World throughout its since 2011. According to the authorities, the implementation of ASYCUDA led in particular to a reduced customs clearance time. Despite these efforts Belize fell to the 117th ranking (down from 107th) in the 's Doing Business report.

3.17. Belize applies 17 tariff rates ranging from zero to 100%. The highest tariff was raised from 70% to 100% in 2016. The simple MFN tariff went up from 11.6% in 2010 to 12.6% in 2016. The reason for this is to be attributed partly to the change of the tariff nomenclature from HS2007 to HS2012 and to the increase of the highest tariff.

3.18. Belize bound 97.7% of its tariff lines in 2007 nomenclature with a simple bound rate of 58.8%. Agricultural products are bound at a general ceiling rate of 100%, except for some rates bound at 110% (in particular certain meat and certain vegetables). The general ceiling for non-agricultural products is 50% with some exceptions (70%, 100% and 110%). Unbound tariff lines include in particular fish and crustaceans.

3.19. As a result of the tariff rate increases the applied MFN rates of a number of tariff lines are in breach with their bound rate. In response to advance written questions by Members, the Government expects to correct by June 2017. I welcome this positive development.

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3.20. Belize maintains an extensive and largely discretionary import licensing system. Import permits and import licensing continue to be required for a range of products. I would like to welcome the efforts undertaken by the Government to remove part of these requirements.

3.21. Belize runs three investment programmes which involve prohibited subsidies under Article 3 of the Agreement on Subsidies and Countervailing Measures of the WTO. These programmes are based on the Fiscal Incentive Act, the Free Zones Act and the Export Processing Zone Act. The extended transition period for the elimination of these subsidies expired end of 2015. Upon written advanced questions, the Government specified that the first of two mentioned acts will be amended while the last mentioned will be replaced to bring it into conformity with WTO as well as the Caribbean Action Task Force commitments. These changes should take effect by the end of this year.

3.22. Turning to the Government Procurement system in place the most striking features are certainly the lack of a centralized government procurement system (including lack of uniformity in documentary requirements and evaluation criteria) as well as the openness of the Belizean system in absence of a distinction between foreign and domestic suppliers. Efforts to re-establish a centralized system and the development of a website to increase transparency are still pending since the last report. Belize is neither party nor observer to the GPA. The Belizean authorities indicated in line with their position during the last review that a decision on whether to join GPA will be taken in the context of CARICOM. Upon questions by a Member, Belize however specified that CARICOM had no plans to seek observer status, but that the individual members have an option to do so. They also indicated that GPA-observer status was depending on establishment of a diplomatic mission in Geneva.

Closer look at the economic environment and trade regime

3.23. Let me now briefly turn to trade policies by sector. I will limit my remarks on three sectors of major importance for Belize, i.e. agriculture, tourism and financial industries.

3.24. Agriculture continues to be of importance for Belize. Horticulture and livestock farming contribute to 9.9% of the GDP. The structure of the agricultural production is very diverse, from subsistence farming to large commercial farms producing for export. Most farms are, however, small, 53% are less than 5 acres or 2.02 hectares; 85% of cattle farms have less than 30 animals. Production of some products like banana and citrus tend to be centralized in a small number of large farms on the other side.

3.25. The Government of Belize developed a National Agricultural Policy 2015–2030 whose main objectives consist in particular in enhancing production, productivity and competitiveness and in increasing market development, access and penetration. These efforts are certainly to be welcomed and we should encourage the Government to continue this path.

3.26. This policy development is all the more important as agriculture in Belize has a considerable potential for expansion as 38% of Belize's territory, about 800'000 acres, are suitable for agriculture but only 78'000 hectares are currently being used. Agriculture faced during the reporting period a considerable number of challenges. Disease outbreaks reduced production of citrus fruits, papaya and shrimp. Belize was also seriously hit by tropical storms and floods. Poor infrastructure adds to these challenges.

3.27. Tourism is a key economic driver in Belize. The Government has launched a National Sustainable Tourism Master Plan aimed at promoting sustainable tourism. In the reporting period cruise arrivals increased by 25% and continue to be a major part of tourism. It is however encouraging that overnight arrivals have increased by 41%. Belize with its natural beauties like rain forest and its barrier reef as well as the Mayan remains, has huge potential for sustainable overnight tourism. The Government is also promoting medical tourism.

3.28. Let me finally briefly comment on banking and insurance services. The structure of Belize's financial system has not changed since the last review. Its distinctive feature is certainly the separation between domestic and international (offshore) financial institutions with their distinct legal framework. Two major developments are to be noticed in the reported period. Belize has on the one hand strengthened its anti-money laundering and combating terrorism financing

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(AML/CTF) framework to align it with the Financial Action Task Force (FATF) Recommendations. On the other hand, "de-risking" measures taken by international banks to comply with stringent international AML/CTF requirements led to the loss of international correspondent banks of local banks in Belize. Apparently all banks have in the meantime re-established correspondence relations with international banks.

Conclusion

3.29. To sum up, Belize is a country with a great potential in many areas, in particular agriculture and tourism. As the only English speaking country in Central America it also could act as a hub for the Caribbean community as it is both member of CARICOM and SICA. This hub function however has not been realized so far, presumably because of the still unclear status of Belize regarding its further economic integration into CARICOM and SICA. The country faces challenges both in improving its infrastructure and to cope with the consequences of natural disasters. The poor infrastructure is an impediment to Belize's economic development in many sectors. While the situation and capacity of the maritime ports has considerably improved, increased international flight connection would further contribute to Belize's economic development. It is to be noted that Belize has expanded its flight network within the region. However, In particular a direct flight to Europe could considerably facilitate economic exchange with Europe, in particular also with regard to Belize as a tourist destination.

3.30. Coming myself from a small country that is considerably smaller than Belize, I would like to encourage Belize to systematically seek the advantages that, we, small countries have: having short administrative ways, being flexible and to be able to quickly react to international trends and regulations. Small countries are also often excellent niche players. Belize has excellent potential in this regard, in particular as it comes to agriculture (including food processing) and tourism. In this context, I would also like to re-iterate the need to diversify the economy and to reduce exposure. The approval of a Growth and Sustainable Development Strategy and a National Trade Policy Framework are certainly important steps to achieve this goal. The Government of Belize certainly merits our full support.

3.31. I wish Belize a successful and fruitful trade policy review.

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4 STATEMENTS BY MEMBERS

UNITED STATES

4.1. Though one of the 's smaller markets, Belize has an important role in the region as an open and growing economy and through its membership in this organization, the CARICOM Single Market and Economy, and various regional political organizations. Its engagement has helped increase not only citizens' prosperity, but also enhanced regional security and improved systems of good governance. It is also an important partner to the United States. Our countries continue to maintain close and cooperative relations. Bilateral trade in goods totaled US$323 million in 2016, and the United States provides for duty-free import for a variety of products from Belize. The United States is home to the largest expatriate Belizean community, estimated to be more than 70,000. Reflective of Belize's success in tourism, more than a million visitors come from the United States each year.

4.2. The Secretariat report notes Belize's commendable reduction in its rate of unemployment since the last Review, from more than 23 percent to just six percent measured a year ago. This achievement is particularly remarkable given the cyclical nature of the economy and its dependence on key industries including the tourism sector that suffered – and is recovering from – a devastating hurricane in 2016. However, one of the challenges of governance is keeping expenditures under control relative to revenues, and the Secretariat's report notes Belize's difficult fiscal situation. After missing a large bond payment in January, the government appears to recognize that it must rein in budgets across the board in order to keep its debt under control.

4.3. We believe a better fiscal environment will complement efforts to shift from a resource- focused economy to a trade-oriented economy. Indeed, Belize is well-suited to prioritize trade and structure its policies accordingly. Hydrocarbon exports have declined significantly since 2010, with the slack taken up by a relatively diversified mix of foodstuffs, agricultural, and other exports. But this welcome shift has not been accompanied by significant policy changes to support trade. The number of lines subject to tariffs has increased, and tariff rates themselves have inched up. These policies affect Belizean consumers, companies that utilize inputs for trade, and the increasingly vital tourism sector.

4.4. The United States welcomed Belize's acceptance of the Trade Facilitation Agreement in 2015. This agreement holds great promise for developing country Members to boost trade performance. However, the Secretariat report noted Belize's low ranking in the World Bank's Ease of Doing Business 2016 study and pointed out that Belize can do better in Trade Facilitation indicators relative to countries in the region and countries of similar income. A step in this direction would be for the Government to notify the WTO of its Category B and C commitments.

4.5. The Secretariat's report discussed the need for the Government of Belize to address prohibited export subsidies, applied MFN rates that breach the bound rate, and outstanding WTO notification requirements. We look to the Government of Belize to ensure these issues are addressed expeditiously, and appreciate Ambassador Vernon's comments on these issues in the course of this morning's discussions.

4.6. The United States would be pleased to see Belize adopt a more significant role at the WTO. As the report suggests, a representative in Geneva responsible for WTO affairs would be helpful. Belize could also demonstrate its commitment to intellectual property protection by joining the WIPO Internet Treaties.

4.7. The United States looks forward to continuing to work with Belize to increase prosperity in the hemisphere. With recent growth in tourism and services – along with its many natural advantages – Belize is on the right track. We encourage Belize, in the implementation of its National Trade Policy Framework, to focus on policies that enable greater trade and economic activity. And we thank Belize for its active participation in this process and wish Belize a successful Trade Policy Review.

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CANADA

4.8. Canada and Belize are both Commonwealth countries enjoying a longstanding, positive relationship. Although Belize is Canada's smallest bilateral trade partner in the region, with $13 million in merchandise trade in 2016, recent enhancements will facilitate growth in our trade and investment relationship. As an example, in October 2016, WestJet entered the Belizean market, launching the first direct air service between Canada and Belize. This was followed by the conclusion of negotiations towards the Canada-Belize Air Transportation Agreement in December 2016. Belize is a member of the Caribbean Community, better known as CARICOM, and benefits from CARIBCAN, Canada's preferential trade arrangement under which 97% of Commonwealth Caribbean exports to Canada enter duty free. Canada is also pleased to regularly host Belizean students.

4.9. Furthermore, Canada as a number of development projects in Belize through the Caribbean Regional Development Programme as well as security co-operation projects through the Canada's Anti-Crime Capacity Building Programme. For instance, the Compete Caribbean programme is supporting Belize's Economic Development Council, which is Belize's main public-private dialogue mechanism on private sector development. The Council is addressing proposed reforms, such as: taxation, the ease of doing business, land, and trade and logistics. The programme has also financed other concrete initiatives such as a project that helped the shrimp farmers association of Belize to achieve ASC shrimp standard certification. The certification, which ensures the environmentally and socially responsible production of farmed shrimp, is providing Belize with access to high value premium markets in Europe, the U.S. and Canada.

4.10. As a friend and partner of Belize, Canada welcomes the Government of Belize's latest policy initiatives. As highlighted in the Secretariat report, important changes were made to the legislation on domestic banks, the strengthening of the framework against money laundering and combating the financing of terrorism. Canada also applauds Belize's signing of the United Nations Convention Against Corruption in December 2016, which will further support the economic growth of the country. The establishment of Belize's first Internet Exchange Point in April 2016, expected to reduce the cost of local internet traffic, is also a measure worth mentioning.

4.11. I have taken note of Belize's intent to target investments in areas where there is competitive and comparative advantages and where potential for growth is strong, including in priority areas such as environmental goods and services. As noted in our written questions, Canada is interested in hearing more from Belize on their plans to attract investment in this area.

4.12. Canada welcomes Belize's ratification of the WTO's Agreement on Trade Facilitation and notification of its Category A commitments. I encourage Belize to submit its Category B and C commitments as soon as possible. We also recognize Belize's efforts towards trade liberalization through CARICOM's bilateral trade agreements.

4.13. However, Canada wishes to convey two areas of concern.

4.14. First, Canada is very concerned about the increasing insecurity in the country. Belize consistently ranks among the top 10 countries in the world for homicides, according to the United Nations Office on Drugs and Crime, with an average of around 40 homicides per 100,000 residents. The murder rate increased in 2016, with 130 homicides through November compared to 119 the previous year. Fear for personal safety, organized transnational crime, and the lack of faith in local institutions to combat these and other challenges will limit economic growth and development in the country.

4.15. Second, while the Government of Belize has taken action to resolve the issue of previously expropriated foreign-owned companies in telecommunications and electricity, including Canada's Fortis Inc, it should do more to enact legislation and implement policy to prevent this type of issue in the future and reassure potential foreign investors.

4.16. We look forward to a constructive exchange of views on all aspects of Belize's trade policy.

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4.17. We also wish to express our continued commitment to working with Belize as a bilateral trading partner, and to support the Government and the people of Belize in pursuing sustainable economic growth and combatting the challenges it faces domestically and regionally.

EUROPEAN UNION

4.18. Let me start by commending Belize for having carried out important reforms aimed at the diversification of its economy during the period under review. The EU considers these reforms a step in the right direction.

4.19. Indeed, the need to diversify Belize's economy was one of the main concerns raised by Members at the last review in 2010. On that occasion, Belize was encouraged to give trade a central role. Considering the small-size of its economy, its high dependence on exports and imports, and its exposure to natural disasters, the country is particularly vulnerable to terms-of- trade shocks and volatility as demonstrated by a slowdown in real GDP growth and an increase in poverty.

4.20. On a positive note, recently, the country has begun its recovery as a result of Belize's efforts leading to a significant economic transformation over the last two decades, mainly due to the growing tourism industry.

4.21. The EU welcomes the recently adopted first National Trade Policy Framework and would like to receive further details on the specific actions and measures Belize intends to implement under the pillar "Trade Facilitation". In this respect, the EU commends Belize for its notification of the Category A commitments, the swift ratification of the WTO Trade Facilitation Agreement as well as the presence of the National Committee for Trade Facilitation. We also take note of the newly established unit on WTO matters. The EU encourages Belize to complete its categorization work for the submission of its Category B and C commitments to the WTO and stands ready to work with Belize to clearly identify its needs for providing tailored and adequate technical and financial assistance.

4.22. A word on our bilateral relationship. The EU is the second largest trading partner of Belize in terms of total trade and trade between Belize and the EU has, over the years, continually increased.

4.23. The EU's relations and cooperation with Belize are carried out both on a bilateral and a regional basis, the latter within the framework of the on-going EU-CELAC and EU-CARIFORUM dialogues. Belize is also a signatory of the EU-Caribbean Economic Partnership Agreement, a comprehensive free trade agreement with a strong focus on development cooperation. Further, Belize is also a signatory of the EU-Central America Association Agreement.

4.24. We took note of the comments of the Ambassador on Aid for Trade in the opening statement. In this context, the EU remains today the main provider of grant funding to Belize. The financial support for Belize for the period 2014-2020 amounts to €27 million and focuses on three sectors, namely renewable and sustainable energy, health and public finance management. Belize will also benefit from the EU-Caribbean regional indicative programme amounting to €346 million, with a substantial component of €102 dedicated to regional economic cooperation, including for EPA implementation and €135 million for the Caribbean Investment Facility.

4.25. The EU does not have too many concerns to table. Most of them have been addressed by Head of Delegation, Discussant and other delegations. We have submitted a set of questions seeking clarifications in several areas of Belize's trade policy and I would like to raise today only three general remarks.

4.26. First, the EU notes that Belize has submitted some notifications to the WTO but no notifications have ever been made in some areas such as agriculture (domestic support and export subsidies), government procurement, import licensing, and state trading enterprises. In this context we welcome the statement by Ambassador today. The EU would encourage Belize to adopt the necessary measures for improving its notification compliance rate at the WTO.

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4.27. Second, the EU encourages Belize to engage with its neighbours in the region and participate in the Caribbean regional programme, including on citizen security issues, and on inclusive development.

4.28. Last, the EU shares Belize's view on the need to work closely with the wider donor and trade development community to be able to find solutions to the many impediments to trade growth and expansion. In this respect, the EU remains committed to support the country's efforts to face socioeconomic challenges.

4.29. The EU is confident that this review will help Belize in continuing its economic reform process in compliance with its international commitments in this forum.

4.30. On behalf of the EU, I look forward to a constructive exchange of views during this review. I wish the Belize delegation the utmost success during its Trade Policy Review.

DOMINICAN REPUBLIC

4.31. The Dominican Republic enjoys important ties of friendship with Belize; both countries are members of CARIFORUM and party to the European Union-CARIFORUM Partnership Agreement.

4.32. We share Belize's concerns as a small economy, one that is vulnerable, as noted in the Secretariat report, to internal and external shocks, including natural hazards and diseases that affect the agricultural and aquaculture industries. As a result, GDP growth has been volatile in recent years - it fell to 2.9% in 2015 - reflecting a sharp drop in agricultural production, petroleum extraction and exports.

4.33. We note, however, that the main driver of growth has been the services sector, particularly tourism, which is the biggest export and foreign exchange earner and a major source of employment. We would therefore urge Belize to continue looking for sources of production and revenue other than petroleum extraction, so as to promote development and diversify its economy.

4.34. We congratulate Belize on the steps it has taken since its last review to adjust its trade policy regime. These include the ratification of the Trade Facilitation Agreement, the implementation of ASYCUDA World, the halving of the number of products subject to import licences in 2012, and the approval of a National Trade Policy Framework.

4.35. It is clear that while Belize faces significant challenges, it also has a lot of potential to further develop its economic sectors, including agriculture, aquaculture, tourism, telecommunications, and transport.

4.36. We urge the country to continue with the reforms needed to ensure its economy's full integration into the multilateral trading system. Such reforms include finalizing legislation on government procurement and competition policy, harmonizing its tariffs with bound levels, bringing its free zone regime into line with the WTO Agreements, and introducing a foreign investment regime.

4.37. We submitted a number of questions to Belize within the framework of this review, and appreciate the replies we received, which will be studied in our capital. Lastly, we congratulate Belize on this review and wish it every success in the future.

GUATEMALA

4.38. Trade relations between Guatemala and Belize are framed by the Partial Scope Agreement signed in 2006. Trade flows between Belize and Guatemala have expanded by approximately 39% in the last seven years, increasing from US$55 million in 2010 to US$77 million in 2016. The balance of trade ran a surplus for Guatemala during this period. According to figures from 2016, Guatemala was the ninth most important destination for exports from Belize, and Belize's fifth largest source of imports.

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4.39. Guatemala's main exports to Belize are plastic materials and articles thereof, fertilizers, and other petroleum products. The main products imported into Guatemala from Belize are , vehicles and transportation equipment, and machines and mechanical apparatus for electro-technical use.

4.40. During the period under review, we note that positive steps include the adoption of ASYCUDA World, and the efforts made in conjunction with other CARICOM members to improve legislation on government procurement and to reduce the number of products subject to import licensing. Together, these efforts should strengthen trade-related institutions and help to increase Belize's trade flows with third countries.

4.41. Despite all this progress, Belize's economy continues to face significant challenges. As explained in the Secretariat report, its vulnerability to internal and external changes, such as climatic events or outbreaks of disease affecting agricultural and aquaculture products, has a very strong impact on the country's annual GDP performance. We also consider it important to assess the various options for controlling the significant growth of Belize's internal and external debt. In tariff terms, it would also be advisable to review the tariffication process referred to in the Secretariat report, with a view to bringing applied tariffs for all products into line with WTO-bound levels.

4.42. We thank Belize for its replies to Guatemala's questions and wish the Belizean delegation a successful conclusion to the country's third trade policy review.

MEXICO

4.43. I am pleased to begin by highlighting the positive growth of the Belizean economy, which, during the review period, grew at an average annual rate of almost 3%. As mentioned by some of our colleagues, this growth occurred despite the economy's vulnerability to external and internal factors such as natural disasters, pests and diseases affecting the country's agriculture and fisheries, and the effects of the drop in oil prices that occurred several years ago.

4.44. Despite serious problems with unemployment, Belize has taken a number of steps to strengthen the tourism sector, which has become one of the country's main sources of employment and foreign exchange, and, as noted by Ambassador Vernon, significantly contributes to its GDP. These steps include:

 The promotion of eco-tourism and the Sustainable Tourism Master Plan 2012-2030;

 The relaxation of visa requirements for tourists from a dozen countries; and

 The launch of the second phase of the Sustainable Tourism Programme (STP II), which seeks to restore and expand visitor facilities at archaeological sites.

4.45. It should be noted that the Belizean Government has also strengthened its passenger air transport sector, a move that has helped to boost tourism, diversify the economy and create jobs. The most notable improvements are:

 The inauguration of the Sir Barry Bowen Municipal Airport;

 The launch of three new airlines (West Jet Airline Ltd, South West Airlines Co. and Copa Airlines); and

 The conclusion of an ASA with Mexico, which is pending ratification by the Belizean Parliament.

4.46. My delegation hopes that these efforts and achievements will be replicated for Belize's land and maritime transport infrastructure. We are sure that this would result in a more efficient and productive economy.

4.47. Belize, as Ambassador Vernon also pointed out, was one of the first Members to ratify the Trade Facilitation Agreement and has made a number of improvements in this area, including:

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 The implementation of ASYCUDA World throughout Belizean customs since 2011;

 The halving of the number of products subject to import licences in 2012; and

 The introduction of a voluntary compliance programme for the top traders, under which 80% of these operators' imports go through the green channel, which enables cargo to be released without examination.

4.48. There are still, however, some opportunities for improvement. One would be to reduce not only the number of hours it takes for exporters and importers to complete the cross-border trade process, but also the average cost of these operations, bearing mind that Belize was ranked 101st in this area in the World Bank's Doing Business Index.

4.49. Mexico and Belize are neighbouring countries that share not only almost 300 km of border, but also a Mayan cultural heritage and the enviable beauty of Caribbean beaches that have considerably favoured the development of tourism in both nations.

4.50. Our diplomatic relations go back to the independence of Belize just over 35 years ago. Mexico is one of Belize's most important trading partners. We are its main electricity supplier, its second largest supplier of natural gas, and the source of around 10% of its imports.

4.51. I would like to conclude by thanking Belize in advance for its replies to the questions formulated by my delegation. We wish the Belizean delegation every success in the country's third trade policy review.

JAMAICA

4.52. Belize is one of fifteen Members of the Caribbean Community of which is also a member. Belize is also a fellow small vulnerable economy which shares many of the vulnerabilities and challenges faced by Jamaica and most CARICOM members. Like many countries of the Caribbean, Belize's economy is heavily dependent upon its services and agro-productive sectors for foreign exchange earnings.

4.53. The delegation of Jamaica notes the challenges faced by Belize due to factors such as climate change and its impact on the marine and agro-productive sectors. We mention, in this regard, that Belize is host to the Caribbean Regional Fisheries Mechanism. We also recognize the more recent challenge stemming from de-risking of correspondent banking relationships as well as pre-existing supply capacity constraints which have impacted its trade growth and financing.

4.54. We note with concern that the trade imbalance for Belize deteriorated significantly over the review period, evidenced by a widening trade deficit from US$174.8 million in 2010 to US$423.4 million in 2015. Despite these challenges, we are happy to commend Belize for the articulation of a National Trade Policy Framework. We also commend Belize for achieving real (GDP) growth averaging 2.6% per annum over the six-year period from 2010 to 2015 with an overall expansion in GDP of 16.8%.

4.55. The delegation of Jamaica recognizes Belize's efforts to mitigate possible economic fallout based on an anticipated reduction in GDP growth which is projected at 1.6% for the period 2016-2021. We take note of the Government's initiative to calibrate its programme to ensure that its policy package does not push the economy into a recession and to maintain its commitment to the principles of the multilateral trading system.

4.56. The preparation for a Trade Policy Review is by no means a simple or easy process for resource challenged countries like ours, especially one with no resident Mission in Geneva. Jamaica wishes for Belize a positive and productive review and the successful completion of this your third Trade Policy Review in the WTO.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

4.57. We have learned a lot of trade facts about Belize from the previous speakers, so I won't repeat them again. However, my country, as a small island, also suffer from the loss of Typhoons

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- 18 - every year, thus we share the same feeling in facing natural disasters as Belize. We also know that Belize has been making special efforts to attract foreign direct investment (FDI), both through the implementation of its "Investment Promotion Act", and the incentives contained in such programmes as the "exporting processing zone", the "free zone" and the "fiscal incentive programme". In addition, with a view to facilitating offshore services in Belize, it has introduced an "Offshore Banking Act" and an "International Business Companies Act". Information and communications technology (ICT) services are also fast becoming more popular in Belize. It now has a "DataPro e-Business Centre" for ICT services, which is attracting lots of IT companies to set up customer service centres there. Since my country has advantages at ICT industries so I believe we will have lots of cooperation with Belize in this regards. And, to its credit, Belize was one the first Members to ratify the "Trade Facilitation Agreement" in the WTO.

4.58. We have long enjoyed close and mutually constructive relations with Belize, and the level of economic cooperation between us is particularly strong. Through this cooperation, a total of 21 technical assistance programmes have been implemented in Belize, mostly in the key areas of agriculture, tourism, ICT and trade facilitation. In agriculture, for example, we have helped to control and prevent Huanglongbing (HLB), also known as "citrus greening disease", in oranges and citrus fruits. In tourism, we have provided assistance in building the "Belize Cultural Centre" and the "Eco-Museum". In the area of ICT, we have established the "National ICT Centre" and "E-Government" for Belize. And, in trade facilitation and capacity building, the "Belize Electronic Licenses and Permits System (BELAPS)" has been set up through our joint efforts to streamline customs services and introduce single-window licensing. There is an Investment Promotion and Protection Agreement between us as well. We are certainly convinced that all these projects and agreements that have been introduced in Belize will help to increase its trading capacity and lead to its further integration into the multilateral trading system.

4.59. So, all-in-all, our cooperative relationship with Belize is strong and thriving. We would simply encourage Belize to maintain its open trade regime and continue to develop its trade and investment policies aimed at stimulating economic growth and improving the welfare of its people.

INDIA

4.60. Belize with a GDP of US$1.743 billion in 2015 and per capita income of US$4757 is a middle income country. We note from the Secretariat's report that during the period under review though the GDP growth of Belize has been volatile the economy has continued to grow with a rate of 2.9% in 2015. The main drivers of growth of the economy of Belize are the services sector, particularly tourism sector, agriculture and fishing and aquaculture. Belize also has a strong presence of foreign companies in the financial sector. The major challenges for Belize include the high debt levels, limited fiscal space, impact of natural disasters, falling revenues from petroleum production and the need to diversify the manufacturing and export sectors in the country. We commend the Government of Belize for taking measures to address these challenges including developing a national trade policy framework, growth and sustainable development strategy, the national investment policy and strategy and making significant investments for diversification of exports.

4.61. India and Belize share warm, cordial and friendly ties. The bilateral trade between both countries though modest has the potential to grow in various areas like textiles, chemicals, pharmaceuticals, automobiles etc. There is also potential to promote investments from India in sectors of the Belize economy including tourism, food processing and fisheries.

4.62. India also has been offering assistance to Belize under the development partnership cooperation in various areas including upgradation of the computer centre at Walk Institute and for setting up a Vocational Training Centre. For capacity building in human resources India has been regularly offering slots to professionals from Belize under India's Technical Economic Cooperation (ITEC) programme.

4.63. Belize is blessed with natural resources and has tremendous potential for growth in sectors like tourism, agriculture, fisheries and services. To conclude, we look forward to working closely with the authorities of Belize for further expanding our trade and investment ties for mutual benefit. We wish the delegation of Belize a productive and successful TPR.

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SINGAPORE

4.64. We note the growing role of trade in Belize's economy, as well as positive developments that have taken place since Belize's last TPR. Total trade accounted for 129% of GDP in 2015, up from 113% in 2010. We commend Belize for the launch of its first trade policy framework last July. This framework, underpinned by the four pillars of institutional capacity, market access, supply capacity and trade facilitation, will hopefully play a role in sustained trade growth. In particular, we note that Belize has taken concrete action to improve trade facilitation by showing its commitment to the WTO Trade Facilitation Agreement. Belize was the 13th WTO Member to submit its instrument of acceptance, along with its Category A notification in September 2015. With the TFA in force, we urge Belize to submit its Category B and C notifications as soon as possible to avail itself to the flexibilities and technical assistance opportunities built into the Agreement.

4.65. We are also encouraged that Belize is currently developing, together with other CARICOM members, legislation on government procurement and competition policy. This will further contribute towards creating an enabling environment for sustainable economic growth, and provide more opportunities to leverage on trade for development. We also commend Belize for its acceptance of the Protocol amending the TRIPS Agreement, which is another concrete example of the linkages between trade and development.

4.66. Singapore recognizes that capacity constraints may have limited Belize's participation in the WTO thus far. That said, we strongly encourage Belize to consider devoting resources towards enhancing its engagement in the WTO, especially given the growing role of trade in its economy. We note that Belize's record of WTO notifications has been patchy1, and we strongly urge Belize to fulfil its notification obligations as soon as possible. Transparency is an essential pre-requisite to a predictable, rules-based trading system, which benefits all Members including Belize. The WTO Secretariat, other relevant international organisations and development partners have capacity building and technical assistance programmes that could be of interest to Belize in this regard. Finally, Singapore is also concerned that Belize continues to apply MFN tariffs on seven lines in excess of its bound rates. This is an issue with systemic implications and we urge Belize to bring its tariff regime into conformity with its WTO commitments as soon as possible.

NIGERIA

4.67. is pleased to note from the Secretariat Report that Belize has been able to achieve a reasonable and successful level of progress, despite its small size and the challenges relating to poor infrastructure which have also contributed to the country’s weak economic and trade performance. We also note from the same report that, the growth in tourism has been beneficial to them. We commend Belize for the success its Government has had in both maintaining production and exports of and banana’s as well as developing new products. In this context, we wish to also commend Belize for the determination to liberalize its economy.

4.68. As indicated in the Secretariat Report, Nigeria note that, during the period under review, Belize economy hit by several shocks which have affected the country, in particular, in the areas of Agriculture and fisheries sector. Other series of shocks that hit Belize include lack of institutional resources and the slow pace of domestic reform which further hampered their economy’s ability to adjust to such shocks. In this context, we call on development partners to assist Belize in overcoming the challenges faced.

4.69. It is commendable to also note that, Belize in April adopted a Growth and Sustainable Development Strategy (GSDS), which is aimed at guiding policies for sustainable and inclusive growth during the period 2016-2020 which is based on several pillars, including market access for exports, attracting foreign investment, conducting effective industrial policy, enhancing market efficiency, alleviating infrastructural bottlenecks and alignment with the WTO requirements. According to Secretariat Report major infrastructure projects envisaged will include the construction of new port facilities and upgrading of transport links. It also emphasizes the

1 Belize has submitted some notifications to the WTO in the past on: sanitary and phytosanitary measures (SPS); anti-dumping; subsidies and countervailing measures; safeguards; regional trade agreements (regarding CARIFORUM); and rules of origin. However, no notifications have ever been made in the areas of agriculture (domestic support and export subsidies); trade-related investment measures (TRIMs); government procurement; import licensing; and state trading enterprises.

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- 20 - development of priority sectors such as agriculture, agro-processing, tourism, energy and the diversification into new products and services among others. It would be interesting to hear any information the delegation of Belize could share regarding the implementation achieved so far?

4.70. However, Madam Chairperson, there remains some implementation challenges to be tackled for Belize to tap the potential and to accelerate its economic growth. In particular, there is the need for more policy reforms to lessen the impediments to trade and to carefully prioritize public investments. It is my delegation’s view that urgent attention be given to the challenges highlighted in the report in order to help Belize economy to further enhance the country’s trade policy making processes and implementation.

4.71. As highlighted in the same report, Nigeria also notes the courageous policies Belize launched in 2016 as its first trade policy framework. The policy’s main objective is to develop a policy that will guide long-term planning and evaluation of implementation projects over the next ten years. According to the report, the long term plan has five objectives that include: to expand foreign trade for sustainable economic development; to develop human capital and foster an entrepreneurial spirit; to achieve higher standards of living for Belizeans; to develop efficient productive practices to boost international competitiveness; and; to enhance trade relations with a focus on Latin America and Caribbean. We commend Belize for the reform policies which we believe would address the economic challenges facing the country.

4.72. As a Member of ACP Group, my delegation looks forward to further collaboration with the delegation of Belize.

4.73. We wish Belize a successful trade policy review. I thank you.

EL SALVADOR

4.74. In spite of the challenges and vulnerabilities experienced by Belize, we note its focus on developing a strategic approach to trade policy and attaining the Global Sustainable Development Goals. This has resulted in a National Trade Policy Framework and a Growth and Sustainable Development Strategy, as well as the adoption of the National Trade Policy Framework approved in 2015, which provides a set of policy commitments for both the Government and the private sector and which will lead to the development of Belize's first comprehensive National Trade Policy, as explained in the Government report.

4.75. Belize's economy is strongly supported by the services sector, especially tourism, which benefits from a number of factors including the country's wealth of natural resources and their beauty. As highlighted in the Secretariat report, the tourism sector has received the greatest amount of foreign direct investment, destined for hotels and restaurants.

4.76. Belize has a diaspora of more than 50,000 Salvadorans, many of whom were born in Belize, which also makes them Belizeans.

4.77. Belize has been a member of the Central American Integration System (SICA) since 2000. While negotiations on a partial scope agreement between Belize and El Salvador have not yet been concluded, a Basic Convention on Technical, Scientific and Educational Cooperation between the two countries was signed in 2015 within the framework of their political relations.

4.78. With regard to trade, the Secretariat report explains that in 2015, 10% of Belize's total goods imports were of Salvadoran origin, a proportion that remained fairly stable throughout the period under review. According to data from our Central Reserve Bank, the average value of total trade between El Salvador and Belize was US$12 million, the main export products being cardboard boxes, cement, medicines for human use, cereals, profiles of aluminium alloys and preforms for plastic containers, while the main products imported from Belize included vegetable materials used for animal feed, and organic chemicals.

4.79. In light of the foregoing, it only remains for us to congratulate Belize and wish it every success in this exercise and in the years to come.

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4.80. May I take this opportunity to express our appreciation and gratitude to you, Madam Chair, for your dedicated and productive work at the helm of the Trade Policy Review Body. Your professionalism, dynamism and leadership skills have been clear to see throughout this period.

BRAZIL

4.81. The Secretariat reports that foreign trade is important to Belize, accounting for 129% of GDP in 2015. Tourism, oil and agriculture are particularly relevant sectors. Although GDP growth has been volatile in recent years, the Growth and Sustainable Development Strategy and the National Trade Policy Framework will be relevant tools to tackle the country's challenges and attract international investment.

4.82. In trade, important improvements have taken place recently in areas such as customs procedures, with the implementation of UNCTAD's Automated System for Customs Data and the ratification of the Trade Facilitation Agreement. Legislation on government procurement and competition policy is going forward. Also, the number of products subject to import licenses was halved, even though the following "tariffication" resulted in some applied tariffs exceeding their bound rates

4.83. Brazil welcomes Belize's efforts to improve its compliance with WTO transparency provisions. In our experience, fulfilling these obligations has a twofold purpose: internationally, it gives predictability to trade partners and, domestically, it can be a useful means to educate national regulators.

4.84. On the bilateral front, the Brazilian Government looks forward to the intensification of trade flows, which remain extremely modest, and could be improved. Brazil continues to follow with interest domestic developments in Belize with regard to its trade policy.

BARBADOS

4.85. We wish to commend the Government of Belize for its credible economic performance since its last trade policy review in 2010. Belize has been faced with various challenges over the review period which have resulted in fluctuations in GDP growth having risen from 0.7% in 2013 to 4.1% in 2014, and then falling to 2.9% in 2015.

4.86. The country's vulnerability to internal and external shocks including natural disasters and diseases which have affected its agriculture and fisheries sectors; its poor infrastructure and high debt levels, have been attributed to much of the country's inability to maintain sustained economic growth and development.

4.87. therefore recognizes Belize's efforts to address its challenges through policies which seek to modernize its economy, improve its infrastructure framework and to diversify its production base into new products and services. In this regard, we commend Belize on the conceptualization of its National Tourism Act which will serve as an instrument for long-term planning and development for its tourism industry and the adoption of its Growth and Sustainable Development Strategy (GSDS) which is aimed at galvanizing the country' sustainable and inclusive growth policies over the period 2016-2020. The key initiatives to be undertaken include: the construction of new port facilities, and upgrading of transport links and the identification of the priority sectors – agriculture, agro-processing, tourism, and energy – for enhanced development. We believe that these and other initiatives augur well for the future of Belize and wish them well in their implementation.

4.88. Barbados and Belize, as sister Caribbean Community (CARICOM) members and partners, maintain a strong trade and political bond. Trade policy forms an integral part of this relationship. The region's efforts at regional integration seek among other things to expand the export potential of the small economies in CARICOM. This has been outlined as one of the key objectives in the Belize's core economic thrusts and is elaborated in their trade policy framework which envisions long-term planning, the evaluation of the implementation of projects over the next 10 years, and the stimulation and growth of Belize's domestic and international trade as its main objectives.

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4.89. We strongly believe that it is crucial to allow for the provision of the necessary policy space which would enable small economics to formulate and implement trade and national development policies. It is also critical that in our deliberations in this House, we incorporate the requisite flexibilities and special and differential treatment which would enable these economies to successfully pursue their trade and sustainable developmental objectives and become more fully integrated into the multilateral trading system.

HAÏTI

4.90. Belize and maintain relations at regional level as Caribbean Community members. As a result, they face a number of common regional challenges, such as natural disasters.

4.91. The Haitian delegation welcomes the reforms undertaken by Belize at all levels to promote its development and honour its WTO commitments. We note the progress made in the services sector, which is an important part of Belize's economy.

4.92. Generally speaking, the progress made since Belize's second trade policy review is encouraging. Haiti encourages Belize to continue along this path.

4.93. Lastly, Haiti congratulates Belize on its trade policy review and wishes it every success in this exercise.

GUYANA

4.94. is pleased to be here, now with the representation in Geneva since last October and we hope that Belize will consider joining us with a Mission in Geneva in the near future.

4.95. We would like to congratulate Belize, our special CARICOM sister country, on its considerable efforts to increase its capacity to perform effectively as a WTO Member. We point especially to the trade policy framework developed and the new unit for WTO matters established in 2016. We recognize Belize's commitment to the CSME and to its implementation of the Trade Facilitation Agreement.

4.96. As a fellow CARICOM State, situated in one of the most vulnerable zones in terms of natural disasters and as a small economy, we support Belize's call for increased development cooperation and aid for trade to advance diversification and to increasingly liberalize its trade regime.

4.97. We understand the challenges Belize faces in terms of its capacity to comply with WTO expectations, especially with regard to some of its bound rates. Guyana faces the same challenges. We appreciate all the efforts Belize continues to make in this regard.

4.98. In closing, we thank Belize for its report and we wish Belize success in this trade policy review and that this review results in contributing to Belize's economic and social development.

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5 REPLIES BY THE REPRESENTATIVE OF BELIZE AND ADDITIONAL COMMENTS

5.1. Madam Chairperson, Permanent Representative Irene Young; Discussant Ambassador Peter Matt; Director-Trade Policy Review Division Mr. Willy Alfaro; and distinguished representatives.

5.2. On behalf of the Government of Belize and my delegation, I wish to state at the onset that we have carefully noted both the acknowledgments of the progress Belize has made since the last review, as well as the positive and constructive advice provided by the Representatives who intervened in Monday's session. We have also noted the offers of technical assistance and will be following up on those. Before concluding, allow me to clarify some of the issues raised and to outline the key policy actions that Belize will endeavor to implement moving forward. Where necessary, we will provide other clarifications, in writing, within the next month.

Economic Environment

5.3. Having taken into account the review process thus far, the issues extensively discussed therein, and the current economic processes underway in Belize, I wish to assure Members that Belize will continue the economic reform process already underway. Key structural reforms include the modernization of the legal and institutional frameworks in various sectors of governance. For example, the Central Bank of Belize through technical assistance from the World Bank has developed a modern national payments infrastructure that aims at addressing issues such as liquidity, credit, operations and legal risk in accordance with international standards.

5.4. Additionally, the Central Bank, with assistance from the International Finance Corporation (IFC) is developing a National Credit Bureau System in Belize. The Bureau should help to reduce credit risk, processing times and costs associated with credit access, resulting in a more effective and efficient distribution of credit in the domestic system. Further, as a component of the national payments system, the Central Bank launched the Automated Payment and Securities Settlement System (APSSS) in 2016, interconnecting domestic financial institutions so as to further facilitate large and small value payments and allow for electronic auction and registration of government securities.

5.5. One other clarification I seek to make here is that in relation to the question of bond payments on the external public debt, my Government, in fact, succeeded in renegotiation of its bond payment obligations, resulting in a 25% reduction in the value of the bonds and significant savings to the economy. Belize is fully compliant with its external debt obligations.

Trade and Investment Regimes

5.6. Belize wishes to again underscore its intention to strengthen its trade and investment regime. We have taken proactive steps towards a modernized trade policy rooted in the multilateral rules-based system of the WTO. This is evident not only in our cabinet approved National Trade Policy Framework, but also in the institutional strengthening of the Directorate General for Foreign Trade and the guidance being provided by the National Trade Adviser who has made available to Belize by the Commonwealth Secretariat under its Hubs and Spokes II Programme, and who is specifically tasked with guiding the formulation of our national trade policy. In addition, our national trade policy will be the guiding document for achieving greater integration into the multilateral trading system by enhancing the productive sector through improved production structures and quality controls, resulting in greater competitiveness.

5.7. We agree that our efforts in pursing our multilateral trading agenda have been hampered by the absence of a permanent mission in Geneva, as noted by the Members during the discussions. I am pleased to report that Belize will be exploring all possible avenues to make this a reality. Our intent, after having commenced with the trade policy reform and with representation in Geneva, is fundamentally to ensure adequate participation in the WTO process to improve linkages and networking with the Secretariat and other Members, and, of course, to effectively address our compliance and notification shortfalls.

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Trade Policies and Practices by Measure

5.8. Belize has taken careful note of the concerns raised by Members regarding customs procedures and trade facilitation, and especially the notification of Categories B and C measures under the TFA. It is our intention to work hard towards fulfilling this obligation before the end of the third quarter of 2017. Furthermore, trade facilitation is a key pillar in our National Trade Policy Framework, primarily because we intend to improve our "ease of doing business" ranking in the various indices for trade facilitation. This will include decreasing the time required for border clearances and overall customs clearance of goods.

5.9. With respect to tariffs, Belize fully intends to abide by its commitments on tariff bindings within the multilateral trading system and is taking measures to align applied rates to bound rates by the third quarter of 2017.

5.10. With respect to Belize's outstanding notification obligations, we intend to submit to the WTO pending notifications, including on state trading enterprises, agriculture, standards and technical regulations, and SPS measures by the end of 2017.

5.11. In the context of its trade policy framework and the strengthened institutional structure of the DGFT, Belize intends to address the concerns raised by Members during the course of this review.

Sectoral Policies

5.12. Belize recognizes the significant contribution of the tourism sector to its economy and has prioritized, through the National Sustainable Tourism Master Plan, and policy actions aimed at growing the sector despite the shortcomings and challenges faced. Key among these include: air connectivity, including from Europe; development of new internal tourism destinations; important port infrastructure development; and the expansion of hotel and other accommodation facilities.

5.13. With regard to the issue of security, we are fully cognizant of the various citizen security threats facing nations like Belize in the sub-regions of Central America and the Caribbean, and the adverse effects that this can have on tourism. At the national level, we are committed to serious policy reforms and action. Belize's Growth and Sustainable Development Strategy has, as its fourth critical success factor, the improvement of Governance and Citizen Security. The key objectives under this area include: improvement of technical and political governance systems; amelioration of social issues that fuel crime; effective policing; better administration of justice; and maintaining the integrity of our national borders. There is also now a new National Security and Defense Strategy that lays out a vision, objectives and plans for 2017-2020. Belize looks forward to effective cooperation and experience sharing with Members to ensure that the crime situation is controlled not only for the general safety of its citizens but also for visitors alike. Several national and regional initiatives are underway in this regard, some with the support of States here represented and we will pursue further assistance.

5.14. It is a well-known fact that small and vulnerable economies are especially affected by low levels of diversification due to their sector concentrated economies, such as our reliance on agriculture. Belize, of course, is not an exception, and in this regard we intend to continue to pursue economic diversification through a sustainable balance in domestic investments and Foreign Direct Investments in line with our National Export Strategy and our Growth and Sustainable Development Strategy. Belize has made progress towards diversification to services over the past period under review, especially in the area of tourism. We will also continue to seek technical and financial assistance in areas where this will add value.

Conclusion

5.15. Finally, as we come to the conclusion of this important review meeting, I wish to express my Government's sincere thanks and appreciation to the WTO Secretariat and all Members present who have contributed to this fruitful session and its successful conclusion. Also thanks to our discussant, Ambassador Peter Matt. In the period leading to its fourth TPR in 2024, Belize intends to move forward with the implementation of the WTO Agreement, including any new decisions reached by this Organization. We intend to address the shortcoming that we mutually agree on. In

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- 25 - particular, we will act to strengthen our relations and our interactions with other Members and in particular with those with whom we conduct significant trade.

5.16. Once again, we wish to underscore our sincere appreciation for the feedback and the positive advice we have received from all Members and the Secretariat during this third TPR. I thank you.

DISCUSSANT

5.17. Thank you, Madam Chair. I'd like to thank H.E. Ambassador Dylan Vernon and his delegation for the hard work they put into this third Trade Policy Review of Belize. We had a very interesting session last Monday with 16 delegations taking the floor and highlighting efforts accomplished as well as challenges lying ahead.

5.18. A TPR is always a good opportunity for the reviewed country to stake stock of its own overall economic situation and to assess its own policy in the light of this important peer review mechanism. Belize's open and constructive approach throughout the TPR has allowed for a fruitful and enriching dialogue within this Body. I would like to commend Belize for its commitment to the TPR and for the positive approach it has taken. Let me in the following highlight a few topics raised by Members during our discussion this Monday.

5.19. The positive role Belize is playing as an open economy in the region was acknowledged by Members. Members also noted Belize's vulnerability and its dependence on services and agro-products sectors for foreign exchange earnings. Tourism was recognized as a key economic driver for growth.

5.20. Members also acknowledged Belize's exposure to natural disaster and its impact on the economic development. They commended Belize's achievement despite these difficult circumstances. Members however also noted the lack of institutional resources and the slow pace of domestic reforms. The importance of close cooperation with development partners was generally recognized by Members and Belize.

5.21. Members welcomed the adoption of the Growth and Sustainable Development Strategy (GSDS) and of a National Trade Policy Framework as a key step for national development. They underlined the importance of diversification of the Belizean economy, but also noted the progress that Belize has already achieved in this regard.

5.22. Increasing insecurity, like high homicide rates, in Belize and its adverse effect on the economic development and growth was a concern to some Members. Belize was also encouraged to enact legislation and implement policies that prevent expropriation of foreign owned companies and to re-assure potential foreign investors.

5.23. Members also raised concerns with regard to Belize's fiscal environment as impediment to trade and underlined the importance to improve this environment. Members also welcomed the implementation of anti-money laundering and counter terrorism legislation and encouraged Belize to further strengthen these efforts and international cooperation in this regard.

5.24. Belize was rightly praised for being one of the first countries to deposit its instrument of ratification to the Trade Facilitation Agreement. Members also commended Belize for its national implementation policy and encouraged the country to submit its Category B and C notifications as soon as possible. On customs procedure, Members also welcomed the implementation of Asycuda World.

5.25. With regard to the import license requirement, Members commended Belize for reducing the number of required licenses and encouraged the country to continue reducing the number of products requiring such a license.

5.26. Members also stressed the importance to align Belizean applied tariffs and its legislation on investment with its WTO commitment and commended the efforts undertaken so far by the Government of Belize. Some Members encouraged Belize to improve its compliance with regard to notification requirements under WTO law.

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5.27. The importance of establishing a diplomatic Mission in Geneva was also highlighted by Members.

5.28. Furthermore, Members praised Belize for developing legislation on government procurement and on competition and underlined the importance to continue these efforts. They underlined the importance of these projects to foster Belize's further integration into the multilateral system.

5.29. Members also stressed the importance of intellectual property protection and encouraged Belize to join WIPO internet treaties.

5.30. To conclude, it is fair to praise Belize for its open economy and for the achievements realized during the reporting period in rather challenging circumstances. Belize is clearly on the right track. We all should encourage and support the Government of Belize to continue this path. I would also particularly commend Belize for its clear commitment to the WTO.

5.31. I wish Belize every success in its strive for economic, sustainable development for the good of its people. Thank you.

EUROPEAN UNION

5.32. Let me first thank the delegation of Belize for the comprehensive overview presented on Monday and also this morning that provided a good opportunity to gain a better understanding of the main developments that have occurred during the period under review.

5.33. The EU has appreciated the presentation given by Belize on its recently launched first Trade Policy Framework and the Growth and Sustainable Development Strategy. The EU sees it as a very positive step in the right direction that should help the country in diversifying its economy. This is also a key objective of the Economic Partnership Agreement between the EU and the Caribbean Forum of ACP States (CARIFORUM).

5.34. The EU also welcomes Belize's initiative to establish a new unit devoted to WTO matters, which will, among other things, work on the notifications and we are confident that Belize will catch up on the delay and will start submitting its due notifications.

5.35. Concluding, the EU was happy to hear that Belize will use this Trade Policy Review as a "spring board" for effective trade policy development and stands ready to support the country as needed.

5.36. The EU has no follow-up questions and we thank Belize for participating in this exercise.

THE SEPARATE CUSTOMS TERRITORY OF TAIWAN, PENGHU, KINMEN AND MATSU

5.37. From the last two days' discussions, we have known that, traditionally, Belize has good quality of agricultural and fishery product, and in the modern time, Belize has become a very important services provider. We would like to encourage Belize to take its geographic and language advantages to improve the tourism, offshore finance, ICT services and ship flag registration business, then I believe Belize's economy will grow faster.

5.38. Moreover, on behalf of my country, I would like to reassure our cooperation with Belize will be last forever. Our technical teams will make customers design projects for Belize's Government and people. Finally, I would like to wish Ambassador Vernon and his team a safe trip back home.

5.39. Madam Chair, since this is your last meeting today, I would just like to take this opportunity to thank you for your leadership and the guidance for the last 23 TPR meetings and we appreciate your hard work and wish you all the best to your next Chairpersonship.

UNITED STATES

5.40. We would like to take this opportunity to thank you for your work on the TPR. We have always appreciated your very cheerful and effective presence up at the podium. We would also like

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- 27 - to thank Ambassador Vernon and the entire delegation of Belize for the opportunity to be with you today.

5.41. We know how much work and coordination goes into these trade policy review preparations and we very sincerely appreciate your active and constructive engagement. We also value very much Ambassador Matt's insights and perspectives as discussant. And, as always, we appreciate the expert work of the Secretariat.

5.42. Thank you for the summary on day one and for the detailed responses to two questions from the United States. I'm pleased to report from the capital that we have no follow-up questions at this time. We have noted very well various issues of importance raised on Monday by both the U.S. and other Members, in particular implementation of the trade policy framework.

5.43. We would respectfully encourage Belize to complete proactively addressing economic reform and modernization of frameworks and customs procedures, also to promote sustainable development and tourism and to strengthen its trade and investment regime.

5.44. We congratulate your team on this successful TPR and wish safe travels to you all and look forward to continued friendly trade and a cooperative partnership in Geneva and elsewhere.

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6 CONCLUDING REMARKS BY THE CHAIRPERSON

6.1. This third Trade Policy Review of Belize has provided us with the opportunity to better understand Belize's trade and investment policies, as well as the changes introduced to them since the last Review in 2010. I would like to thank H.E. Ambassador Dylan Vernon and the rest of the Belizean delegation for their constructive engagement throughout this exercise. I would also like to thank our discussant, H.E. Ambassador Peter Matt, Permanent Representative of Liechtenstein, for his comprehensive and insightful remarks, as well as the 16 delegations which have taken the floor, for their active participation.

6.2. During the period under review, Belize's small and open economy remained vulnerable to internal and external shocks, including natural hazards, resulting in a highly volatile GDP growth and a significant widening of the trade deficit. Developments that had affected the economy during this review period included: the decline in oil production and international oil prices; disease outbreaks affecting agriculture and aquaculture; and problems caused by global banks' de-risking measures and the loss of correspondent banking relations. Fortunately, as Members learnt from Ambassador Vernon's opening statement, operational banking relationships have now been restored.

6.3. On the bright side, capitalizing on Belize's natural endowments and archaeological heritage, and guided by the National Sustainable Tourism Master Plan, the tourist industry has consolidated itself as the main driver of economic growth and a significant source of foreign exchange and employment, which was particularly useful in diversifying the economy. Members welcomed Belize's efforts in this regard, and encouraged it to address supply capacity constraints by further improving the country's infrastructure and international connectivity.

6.4. Another milestone of this period was the adoption of the country's first National Trade Policy Framework, which should lead to the formulation of a comprehensive Trade Policy by the end of 2018, to guide future reforms and action plans.

6.5. Members welcomed Belize's participation in the WTO, and some encouraged it to consider establishing a permanent Mission in Geneva. Belize was commended specifically for being among the first Members to ratify the Trade Facilitation Agreement and for having notified its Category A commitments. We were informed that the Category B and C commitments would also be notified to the WTO by the third quarter of 2017. With these, and the recent establishment of a National Committee on Trade Facilitation, Belize is getting itself ready for the full implementation of the Agreement.

6.6. Members, however, were concerned that Belize had not submitted notifications in a number of areas, and urged for compliance with the WTO requirements. The Belize delegation recognized the urgent need to address this issue, and seeing it as a problem of the lack of technical capacity on the administration's part, it believed that the recent establishment of a new government unit devoted to WTO matters should contribute to improving Belize's notifications record. At the same time, implementation of the National Trade Policy Framework should also help enhance the administration's trade-related institutional capacity.

6.7. Outside of the WTO, Belize also participates in the CARICOM integration process, and plans to explore further economic integration with its Central American trading partners. Members encouraged Belize to continue engagement in regional integration and trade liberalization schemes.

6.8. Regarding specific trade policies, Members welcomed Belize's efforts to modernize its trade regime and customs procedures. They commended Belize for having implemented Asycuda World, and for setting up a Voluntary Compliance Programme for importers, and trying out a virtual license application system.

6.9. Members also appreciated that the authorities had reduced by half the number of products subject to import licensing. However, some Members noted that this was followed by tariffication, resulting in some applied MFN tariffs exceeding their bound rates. We understood from the Belize delegation that the Government was exploring the possibility of further reducing import licensing

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- 29 - requirements, and that breaches of bound rates were expected to be corrected by June 2017 with the introduction of a revised Tariff Schedule.

6.10. Several Members highlighted Belize's three incentive programmes granting export subsidies, which – according to WTO rules - should have been eliminated by 31 December 2015. They acknowledged Belize's ongoing efforts to amend the relevant legislation and urged Belize to complete the amendment process. In his statement, the representative of Belize announced that the amendments to the Fiscal Incentives Act and the Free Zones Act, as well as the replacement of the Export Processing Zones Act, were expected to be finalized by the end of 2017.

6.11. Some Members noted that Belize was developing a competition bill and, together with other CARICOM members, new legislation on government procurement. They encouraged Belize to finalize these legal instruments. Separately, Belize was commended for its acceptance of the Protocol amending the TRIPS Agreement; while some Members encouraged Belize to join the WIPO treaties.

6.12. Commenting on Belize's sectoral trade policies, Members recognized the importance of the services sector to Belize's economy, and acknowledged the recent reforms to its financial services regulatory framework. Regarding telecommunications, the establishment of Belize's first Internet Exchange Point was considered as a positive step to reduce the costs of local internet traffic. Members also noted that ICT services were fast becoming more popular in the country. In the area of transport, some Members welcomed Belize's efforts to improve its air transport infrastructure and air links, and encouraged Belize to replicate such efforts to enhance land and maritime transport.

6.13. Belize has provided answers to all advance written questions raised by Members, as well as to all additional written questions that came after the deadline. In its responding remarks just now, Belize has provided further clarifications. I thank the delegation for its prompt and helpful responses.

6.14. At the beginning of Monday's meeting, Ambassador Vernon said that it was Belize's intention to use this trade policy review as a springboard for effective trade policy development and deeper integration into the global economy. I hope our discussion over the past two days has indeed served its purpose, and I congratulate Belize on the successful conclusion of this TPR.

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7 ELECTION OF A NEW TPRB CHAIRPERSON

7.1. I said in my introductory remarks on Day One that we would have a special agenda item today, which is the election of a new Chairperson. This is to formalize the consensus reached at the General Council meeting of 7 April, that the Permanent Representative of , H.E. Ambassador Juan Carlos Gonzalez, will be chairing the Trade Policy Review Body in 2017.

7.2. In accordance with the Rules of Procedure of this body, I now invite Members to elect Ambassador Gonzalez as the Chairperson for 2017. You may wish to confirm your agreement by acclamation. It is so agreed [gavel]. Thank you.

7.3. Unfortunately, Ambassador Gonzalez is unable to attend today's meeting. His appointment will therefore take effect from the next meeting, which is Mozambique's Trade Policy Review, on 3 May 2017.

COLOMBIA

7.4. Thank you very much, Madam Chair. On behalf of Ambassador González, who apologises for not being here today due to some last-minute business out of town, we would like to thank you for the support given to him, and the trust invested in him, as he leads the work of this Body.

7.5. We would also like to highlight your leadership and excellent work, Madam Chair, and hope to have your support and guidance during the work that is to be carried out by Ambassador González this year. Thank you very much.

CHAIRPERSON

7.6. Thank you very much. I would not be able to guide the work of Ambassador Gonzalez but I will be very happy to help him in whatever way I can.

7.7. As I handover the gavel and wish Ambassador Gonzalez every success in the year ahead, I would like to take this opportunity also to thank everyone who had contributed to the work of the TPRB over the past year. Together we have been through 54 formal and informal meetings, covering 23 TPRs, a full Appraisal of the TPRM, as well as the Director-General's regular reports on trade policy developments. The smooth conduct of all these meetings, and their successful conclusion, would not have been possible without your active participation and strong support.

7.8. I am immensely grateful to the Secretariat team, for giving me all the help that I need to do the job properly. Thanks to your professionalism and dedication, we have Reports of superb quality, capital visits which really make a difference, and at all times your expert advice to count on. Willy, and your team members: you have been my counsellors, partners, and will remain my friends.

7.9. Special thanks to the 22 Ambassadors and Permanent Representatives who had kindly accepted my invitation to serve as Discussants at the TPRs. Some of them have already left Geneva, but I would like to put on record my sincere appreciation for the extra work that they had done for the TPRB, amidst their own very busy schedule. Their serious efforts and useful input deserve our highest regard.

7.10. Finally, I wish to thank Members for entrusting me with the work of the TPRB and allowing me to serve you in this capacity. Our founding fathers had had the wisdom of putting the TPR mechanism in place, and it falls on all of us, the successive generations of WTO delegates, to make the best use of this mechanism. I have had the honour and privilege, not only to learn from the TPRM, but also to contribute to its maintenance and improvement.

7.11. The biggest reward, to me, is knowing that the work of the TPRB has an impact on Members' trade policies, guiding their development and catalyzing their reforms. Every time I hear senior capital officials say that their policy changes were inspired by the frank exchanges at previous TPRs, I know that our hard work is bearing fruit.

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7.12. At the WTO, we seek to create a more open and level playing field for international trade, thereby contributing to the economic growth and development for all. Through its tireless, persistent and solid work, the TPRB is quietly but steadily contributing to this vision. As Members of the TPRB, we should be proud of having been part of this process. As your chair for the past year, I certainly am.

7.13. With these words, I declare the meeting closed.

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