WT/TPR/M/353 9 June 2017 (17-3015) Page: 1/31 Trade Policy Review Body 24 and 26 April 2017 TRADE POLICY REVIEW BELIZE MINUTES OF THE MEETING Chairperson: Ms Irene Young (Hong Kong, China) CONTENTS 1 INTRODUCTORY REMARKS BY THE CHAIRPERSON ....................................................... 2 2 OPENING STATEMENT BY THE REPRESENTATIVE OF BELIZE ........................................ 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. WT/TPR/M/353 • Belize - 2 - 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 Belmopan; 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: United States; Canada; and the European Union. The following delegations submitted written questions after the deadline: Dominican Republic; Guatemala; Mexico; Thailand; and Argentina. 1.6. At the last TPR in 2010, Members had recognized that Belize, being a small open economy, 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 agriculture and tourism 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. WT/TPR/M/353 • Belize - 3 - 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. WT/TPR/M/353 • Belize - 4 - 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 developing country. 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 Belizeans continues to be tested.