RESTRICTED WT/TPR/S/353 20 March 2017 (17-1530) Page
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RESTRICTED WT/TPR/S/353 20 March 2017 (17-1530) Page: 1/117 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT BELIZE This report, prepared for the third Trade Policy Review of Belize, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Belize on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr. John Finn (tel.: 022 739 5081), Ms Martha Lara Fernandez (tel.: 022 739 6033), and Ms Zheng Wang (tel.: 022 739 5288). Document WT/TPR/G/353 contains the policy statement submitted by Belize. Note: This report is subject to restricted circulation and press embargo until the end of the first session of the meeting of the Trade Policy Review Body on Belize. This report was drafted in English. WT/TPR/S/353 • Belize - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 10 1.1 Main Features of the Economy .................................................................................... 10 1.2 Recent Economic Developments.................................................................................. 11 1.2.1 Introduction .......................................................................................................... 11 1.2.2 Fiscal policy .......................................................................................................... 12 1.2.3 Monetary policy ..................................................................................................... 14 1.2.4 Balance of payments .............................................................................................. 16 1.2.5 Structural policy .................................................................................................... 18 1.3 Trade Performance ................................................................................................... 19 1.3.1 Composition of merchandise trade ............................................................................ 19 1.3.2 Geographical distribution of merchandise trade .......................................................... 20 1.4 Foreign Direct Investment ......................................................................................... 22 2 TRADE AND INVESTMENT REGIME ............................................................................ 23 2.1 General Framework .................................................................................................. 23 2.2 Trade Policy: Institutional Framework and Objectives .................................................... 24 2.3 Trade Agreements and Arrangements .......................................................................... 27 2.3.1 WTO .................................................................................................................... 27 2.3.2 Regional and preferential agreements ....................................................................... 29 2.3.2.1 CARICOM ........................................................................................................... 29 2.3.2.2 EU–CARIFORUM Economic Partnership Agreement ................................................... 30 2.3.2.3 Trade relations with Central America ...................................................................... 31 2.3.2.4 Partial Scope Agreement with Guatemala ............................................................... 31 2.3.2.5 Other arrangements ............................................................................................ 32 2.3.2.6 Ongoing negotiations ........................................................................................... 32 2.4 Investment regime ................................................................................................... 32 2.4.1 Foreign investment regulations ................................................................................ 32 2.4.2 Setting up a business ............................................................................................. 35 2.4.3 Ease of doing business ........................................................................................... 36 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 38 3.1 Measures Directly Affecting Imports ............................................................................ 38 3.1.1 Customs procedures, valuation and rules of origin ...................................................... 38 3.1.2 Tariffs .................................................................................................................. 40 3.1.2.1 Applied tariffs ..................................................................................................... 41 3.1.2.2 Tariff bindings .................................................................................................... 43 3.1.2.3 Customs duty exemptions .................................................................................... 44 3.1.2.4 Preferential tariffs ............................................................................................... 45 3.1.3 Other duties and charges ........................................................................................ 45 3.1.4 Import prohibitions, restrictions, and licensing ........................................................... 47 WT/TPR/S/353 • Belize - 3 - 3.1.5 Contingency measures ........................................................................................... 52 3.1.6 Standards and other technical requirements .............................................................. 52 3.1.7 Sanitary and phytosanitary requirements .................................................................. 56 3.2 Measures Directly Affecting Exports ............................................................................. 58 3.2.1 Export procedures and requirements ........................................................................ 58 3.2.2 Export duties, charges, and levies ............................................................................ 58 3.2.3 Export prohibitions, restrictions, and licensing ............................................................ 58 3.2.4 Duty and tax concessions ........................................................................................ 59 3.2.4.1 Export Processing Zones Programme ..................................................................... 59 3.2.4.2 Free Zones Programme ........................................................................................ 60 3.2.4.3 Fiscal incentives .................................................................................................. 61 3.2.5 Export support and promotion ................................................................................. 61 3.3 Measures Affecting Production and Trade ..................................................................... 61 3.3.1 Tax and incentives ................................................................................................. 61 3.3.1.1 Tax ................................................................................................................... 61 3.3.1.1.1 General sales tax ............................................................................................. 61 3.3.1.1.2 Excise duties ................................................................................................... 63 3.3.1.1.3 Income tax, and others ..................................................................................... 63 3.3.1.2 Other incentives ................................................................................................. 64 3.3.2 Competition policy and price controls ........................................................................ 64 3.3.2.1 Competition policy .............................................................................................. 64 3.3.2.2 Price controls ..................................................................................................... 65 3.3.3 State trading, state-owned enterprises, privatization, and support to SMEs .................... 66 3.3.4 Government procurement ....................................................................................... 67 3.3.5 Intellectual property rights ...................................................................................... 69 4 TRADE POLICIES BY SECTOR ..................................................................................... 72 4.1 Agriculture .............................................................................................................. 72 4.1.1 Trade ................................................................................................................... 73 4.1.2 Agricultural policies ................................................................................................ 75 4.2 Fisheries ................................................................................................................. 78 4.3 Mining and minerals .................................................................................................. 81 4.4 Services