MARKET REPORT 2019 Market Research Mission to Belize BUSINESS SUPPORT SERVICES AUGUST 2019 MARKET REPORT 2019 Market Research Mission to Belize Generating foreign exchange is critical to Barbados’ economic recovery. Expanding exports in existing markets like Belize will assist in this effort. Belize offers potential opportunities given its membership of the Caribbean Community, proximity to the United States, English speaking population and ability to attract tourists. Except for the purposes of private study, research, criticism or review, no part may be reproduced or reused for any commercial purposes whatsoever. You may download, store in cache, display or print the data in an unaltered form only, for non-commercial purposes, provided that this notice appears with all copies. You may not re-transmit, distribute, or commercialise the data without prior permission of the Barbados Investment & Development Corporation. INTRODUCTION 6 METHODOLOGY 7 EXECUTIVE SUMMARY 8 PRODUCT FINDINGS 10 Paints 11 Trowel Plastics 12 Furniture - Wooden Aluminum 13 Contents Confectionary / Chocolates 15 Condiments 16 Snacks 17 Margarines 18 Processed Meats 18 Soya Bean Oil 19 Yoghurt 20 Juices - Rum 22 Non Traditional / indigenous 21 Wines 23 Ceramics / Glasswork 25 Pottery 24 Envelopes 25 Paper Labels 26 Printed Forms 27 Soaps 27 Lotions 28 Hair Products 29 Uniforms 30 Garments 31 Footwear 31 Advertising Building and Human Resource and Marketing Construction Consultancy Consultancy Services 32 Services 33 Services 31 ICT - Electronic Sugar 34 Solar Water Heaters 35 Services 34 BELIZE’S TRADE WITH 37 THE CARIBBEAN COMMUNITY SUMMARY OF FINDINGS 39 SUMMARY OF OPPORTUNITIES 41 MARKET PENETRATION STRATEGY 46 SUMMARY ACTIONS FOR PROPOSED 47 MARKET PENETRATION STRATEGY GUIDE TO DOING BUSINESS WITH BELIZE 48 Country Ease of Doing Challenges of Doing Overview 48 Business in Belize 49 Business in Belize 49 Contents Economic Free Trade CARICOM Prospects 49 Agreements 50 Bilateral Trade 50 Barbados and Distribution Market Entry Belize Trade 51 Channels 51 Considerations 53 Legal Standards Labeling Considerations 54 and Technical Regulation 55 Regulations 54 Importing into Other Import Points Belize: General Time- Requirements 56 of Entry 56 frames and Costs 55 Customs 57 Shipping Intellectual Information 57 Property Rights 57 Tax Designated Considerations 57 Banking 60 Processing Areas (DPA) 61 Commercial Free Fiscal Business Zone 61 Incentives 61 Customs 61 Business Travel Entry Hours 62 Advice 62 Requirements 62 APPENDIX 63 List of Article 164: Promotion Products 63 of Industrial Development 63 Festivals and Agriculture Prices at Holidays in Belize 65 a Glance – July 2019 66 Market Research Mission Report Belize The generation of foreign exchange is no doubt one of critical pillars of Barbados’ economic recovery programme. One principal way for the country to achieve this is to export more of its production by expanding in existing markets or penetrating new ones. Belize offers potential opportunities given its membership of the Caribbean Community, proximity to the United States, English speaking population and ability to attract tourists. Belize’s economic output has traditionally been based on agriculture, though there has been a prominent shift towards the services sector with emphasis on tourism and finance. Agriculture provides about 71% of the country’s total foreign exchange earnings, and employs approximately Introduction 29% of the total labour force. Belize’s top three agricultural exports are citrus, sugar, and bananas. Over 95% of the fresh fruit citrus is processed into concentrates and not-from-concentrates. Agro-processing is an area of high priority as Belize has an abundance of raw materials available to support the industry. The abundance of local exotic fruits has generated opportunities for production of fruit wines, jams, jellies, extracts and pastes. The development of the country’s furniture sector has also been aided by the abundance of forestry resources. This report is intended to serve a two-fold purpose Trade between Barbados and Belize has been on a limited scale despite Provide detailed product the fact that both countries are members of CARICOM. Barbados’ and market information for exports to Belize were valued at Bds$ 2.0 million at the end of 2018, BIDC and manufacturers/ service providers on the recording a fall of 39.8% compared with the previous year. The average opportunities which exist in the market export value over the ten years from 2009 to 2018 is approximately $2.9 million, fluctuating between Bds$ 3.4 million at its highest point and and Bds$ 2.0 million, its lowest point. The main category of items exported to Belize during 2018 was aluminium doors, windows & frames & thresholds Provide the basis for further market development and for doors, valued at Bds$ 0.8 million or 40.1% of total domestic exports. penetration with a Other principal exports were household aerosol insecticides, printed follow-up trade mission later in 2019 by the paper labels, non-electric lamps and light fittings, medicaments and Export & Business Development Division. plastic doors, windows and frames. 6 Barbados Investment & Development Corporation Market Research Mission Report Belize A consultant was contracted to arrange business meetings and to facilitate transportation in the market visit for two BIDC officers during the period July 14 - 20, 2019. Meetings were held with the Ministry of Trade, Investment and Commerce, Belize Coalition of Service Providers, Beltraide, Belize Chamber of Commerce and Industry, Economic Development Council and associations for engineers and architects. Visits to supermarkets and hardware stores also formed part of the mission. Information was collected from both primary and secondary sources on: Accessibility of Current size Potential Barbadian suppliers of market Customers’ Views to the market Market segmentation Customer needs, usage Policy initiatives designed and attitudes to promote trade Methodology Market trends and opportunities Do they see a need for the Regulations and Legislation product/service? Import policy/ Market Access Distribution channels How do they source new /Licensing Import Tariffs suppliers/selection criteria used? Agents or distributors used Customs procedures Is the product/service and practices How the market is best supplied acceptable in its current format? Terms of Trade (payments) Costs of distribution Economic and The specific mechanisms, financial statistics formal and informal for Pricing and general entering the market pricing structure Recently published trade statistics The general experiences Major products traded and of companies that have Competition major trading partners operated in the market Is existing competition Major industries more or less sophisticated? Non-Tariff barriers and new developments to market entry Presence of local Transport and /international competitors Foreign exchange controls communication facilities Marking/labeling/packaging Key players’ activity, General information requirements strategy and performance on the country Barbados Investment & Development Corporation 7 Market Research Mission Report Belize Executive Summary 2018 ECONOMY Belize offers several benefits for conducting business, among which are its proximity to USA and links with Central America; a stable political environment; a skilled 3.0% labour force with bilingual language skills; availability of connecting flights via Panama and US into Belize; In 2018, Belize’s economy membership of CARICOM and multiple trade and expanded by 3.0%, due to strong investment agreements; a stable currency; and an performances in higher secondary open economy. and tertiary sector production. Belize’s economic output has traditionally been based PRIMARY PRODUCTION on agriculture, though there has been a prominent shift towards the services sector with emphasis on tourism and finance. Agriculture provides about 71% of the 3.4% country’s total foreign exchange earnings, and employs approximately 29% of the total labour force. Belize’s top Primary production slowed to 3.4% in three agricultural exports are citrus, sugar, 2018, hampered by adverse weather and the damaging effects of citrus diseases. and bananas. Trade between Barbados and Belize is characterised TERTIARY SECTOR by a trade surplus in the favour of Belize. The major Barbadian companies currently exporting to Belize are Oran Ltd., McBride (Caribbean) Ltd., the West 3.6% India Biscuit Company Ltd., Carlisle Laboratories and Caribbean Label Craft. Barbados’ exports to Belize The Tertiary sector provided the largest contribution were valued at Bds$ 2.0 million at the end of 2018, to GDP growth, expanding by 3.6% with positive averaging Bds$ 2.9 million between 2009 and 2018. results recorded in all service-based industries, The main categories of items exported to Belize for except “Other Private Services”. Notably, growth in “Hotels and Restaurants” and “Transport and 2018 were aluminium doors, windows & frames & Communication” were supported by stellar increases thresholds for doors, household aerosol insecticides, in overnight arrivals and cruise ship disembarkations, printed paper labels, non-electric lamps and light while “Wholesale and Retail Trade” was boosted by fittings, medicaments and plastic doors, windows heightened commercial free zone (CFZ) sales. and frames. 8 Barbados Investment & Development Corporation Market Research Mission Report Belize Executive Summary Oran’s aluminium doors and windows sensitise businesses