- World Trade Organization (WTO)
Belize became a General Agreement on Tariffs and Trade (GATT) contracting party in 1983 and is an original Member of the World Trade Organization (WTO). The WTO was formed in 1994 by the Marrakesh Agreement that was negotiated in Marrakesh, Morocco (View Agreement). The WTO is a multilateral organization that replaced the GATT. More importantly, its agreements that Member States signed on to govern world trade among its members.
Belize is obligated to comply with the WTO agreements when trading and negotiating any trade agreement with other countries. Belize’s main external policy provides for special and differential treatment for developing countries and the recognition of the special status and needs of small, vulnerable, developing economies.
Belize grants Most Favored Nation (MFN) treatment to imports from all countries except those that qualify for preferential treatment under the Revised Treaty of Chaguaramas and those goods covered under the Partial Scope Agreement with Guatemala and the recently concluded Economic Partnership Agreement with the European Union. - CARICOM Single Market & Economy (CSME)
The Revised Treaty of Chaguaramas establishing the Caribbean Community and the CARICOM Single Market and Economy (CSME) signed in 2001, governs trade relations in CARICOM. CSME allows the free movement of SERVICES, GOODS, PEOPLE and CAPITAL across the Member States of the Caribbean Community, by removing all barriers to trade and impediments which could restrict one’s right to provide services. The agreement facilitates the following:- Removal of import duties, tariffs and quantitative restrictions for all goods of CARICOM origin.
- Access to land, building and other property related to the provision of services by nationals from other Member states without any limitations or discrimination.
- Travel of University Graduates, Media Workers, Sports Persons, Musicians, Artists, Managers, Supervisors and other service providers to Member States with only a travel permit, and in some cases an Inter-Caribbean Travel document. Workers in these categories can move freely to another Member State and enjoy the same benefits and rights regarding condition of work and employment and property access for either residential or business purposes.
- Equal rights of citizens of Member States to buy shares in any company of any Member State and to remove capital from one Member State to another.
- Right to transfer money form one member state to another country through bank notes, cheques, electronic transfers, etc., without having prior authorization.
- Removal of restrictions to encourage intra-regional investments.
CLICK HERE TO ACCESS THE TREATY OF CHAGUARAMAS - CARIFORUM-EU Economic Partnership Agreement
The Economic Partnership Agreement (EPA) is an establishment between CARIFORUM (Member states of CARICOM and the Dominican Republic) states and the 27 member states of the European Union for reciprocal (two-way) trade signed on the 16th day of December 2007. The objective of this agreement is to contribute to the reduction and eventual eradication of poverty, promote regional integration, economic cooperation and good governance.
This agreement was negotiated under four technical negotiating groups:- Market access
- Services and investment
- Trade related issues
- Legal and institutional issues
The EPA promotes the gradual integration of the CARIFORUM states into the world economy, improving the CARIFORUM states’ capacity in trade policy and trade related matters. It also supports the conditions for increasing investment, and strengthens the existing relations between the Parties on the basis of solidarity and mutual interest. EPA contains a strong development component with clear links to development aid for adjustment and modernization of CARIFORUM economies. It grants CARIFORUM States considerable concessions in market access for both good and services. Products originating in the CARIFORUM States shall be imported duty free into the European Community. In addition to expanding its exports of goods and service, the EPA also provides investment opportunities to private sector in CARIFORUM.
CLICK HERE TO ACCESS THE CARIFORUM-EU ECONOMIC PARTNERSHIP AGREEMENT - CARIFORUM-UK Economic Partnership Agreement
The UK has signed an economic partnership agreement (EPA) with the CARIFORUM trade bloc, which is in effect. The UK commits to providing immediate duty-free, quota-free access to goods exported from the CARIFORUM States. In exchange, the CARIFORUM States commit to gradual tariff liberalisation of goods. Some domestically sensitive products in the CARIFORUM States are excluded from tariff liberalisation. This EPA includes provisions on:- trade in goods - including provisions on preferential tariffs and rules of origin
- trade in services
- intellectual property
- government procurement
In certain areas, there have been some minor changes that may affect the way you trade. Tariff rates for bilateral trade in goods between the UK and the CARIFORUM States continue to apply as set out in the agreement. However, in some cases, the non-preferential applied rates may in fact be lower because of changes in the UK’s Most Favoured Nation tariff schedule.
CLICK HERE TO ACCESS THE CARIFORUM-UK ECONOMIC PARTNERSHIP AGREEMENT
- BELIZE – GUATEMALA PARTIAL SCOPE AGREEMENT
The Partial Scope Agreement (PSA) is an agreement between the Government of Belize and the Government of the Republic of Guatemala signed on the 26th day of June 2006. A PSA is a reciprocal (two way) trade on a small number of goods
The objective of this agreement is to strengthen the commercial and economic relations between the Parties through:- The facilitation, promotion, diversification and expansion of trade in originating goods from the parties
- Development of mechanisms for the promotion of investments
- The establishments of a legal framework
- Facilitation of the land transportation of goods
- The establishment of an efficient, transparent and effective system to resolve trade disputes
In this agreement the Parties agree to REDUCE or ELIMINATE customs duties in connection with importation of goods. Guatemala imports products that Belize can easily supply on a consistent basis. These include:- Orange juice (spirited, sweetened or frozen)
- Red kidney beans
- Fresh fish
- Livers and roes, frozen shrimps and prawns
- Meat
- Aquatic invertebrates
- Crustaceans
- Live poultry
- Live swine
- Maize (corn)
The PSA also provides for the promotion of investment between both countries, facilitating joint ventures and the issuance of necessary permits, licenses, and contracts for technical, commercial or administrative assistance relating to investments.
Reference- Partial Scope Agreement Between the Government of Belize and the Government of the Republic of Guatemala
Agreement: The Partial Scope Agreement: Belize – Guatemala - BELIZE – ROC TAIWAN (TAIWAN) ECONOMIC COOPERATION AGREEMENT (ECA)
Belize and Taiwan began discussions on the possibility of a trade agreement intended to deepen economic integration between the two economies back in 2014. Those initial discussions bore fruit in earnest in 2019 when the Prime Minister of Belize and the President of Taiwan agreed to pursue a formal trade agreement and committed their respective negotiating machineries to fulfilling this mandate. In August 2019, a trade mission to Taiwan laid the groundwork ahead of subsequent formal negotiations. The mission culminated with the signing of a Letter of Intent (LOI) that delineated the scope and principles for negotiations.
Formal negotiations began in Taiwan on 5 November and ended on 11 November 2019 with both sides reaching an agreement in principle in one round. Given Belize’s membership in CARICOM, the negotiated agreement had to be subjected to CARICOM’s review to ensure that it did not prejudice the rights of other Member States. On 28 September 2020, Belize received the formal approval from CARICOM to sign the agreement. The Agreement was signed by Belize and ratified on 30 September 2020.
The ECA provides for preferential treatment for Belize’s key agricultural and fisheries products, among other goods. Furthermore, given the need to expand Belize’s export supply capabilities, the ECA also provides for financial and technical assistance from Taiwan for the development of institutional and technical capacities involved in trade, including in areas of plant and animal health, standards and technical regulations (including consumer protection), and export and investment promotion. This is aimed at assisting the productive sector to capitalize on meaningful export opportunities in Taiwan and other export markets available under existing trade agreements and those to be negotiated in the future.
CLICK HERE TO ACCESS THE BELIZE-ROC (TAIWAN) ECA
- CARIBBEAN – CANADA (CARIBCAN)
Created in 1986, CARIBCAN is a nonreciprocal agreement, which allows all Commonwealth Caribbean countries to export goods duty free to Canada, with a few exceptions. Approximately 6 per cent of Jamaica’s exports to Canada now enter duty free under this arrangement. Like CBERA, as a non-reciprocal preferential trade arrangement, CARIBCAN is incompatible with the World Trade Organization’s (WTO) rules on non-discrimination and, therefore, requires a waiver from the Most Favoured Nation (non-discrimination) rule. The last waiver expired on 31st December 2013. It is anticipated that the CARIBCAN Agreement will ultimately be replaced by a reciprocal Free Trade Agreement between CARICOM Member States and Canada which is currently under negotiation. Canada has requested a new waiver for CARIBCAN up to 2023 at the WTO.
Goods coverage: All goods may be exported to Canada, excluding textiles and clothing, footwear, leather garments, luggage and handbags and lubricating oil.
Rules of Origin/cumulation: Goods will be deemed originating within CARICOM member countries if wholly produced from materials obtained in either of the Parties to the Agreement, or contain nonoriginating materials that do not amount to more than 40% of the exfactory price (F.O.B) of the final good. Products harvested, gathered, bred or born within the respective territories or their Exclusive Economic Zones (EEZs), or produced onboard factory ships registered in those territories, shall be deemed originating from within the relevant Parties.
CLICK HERE TO ACCESS THE CARIBBEAN - CANADA (CARIBCAN) UNILATERAL TRADE AGREEMENT - CARIBBEAN BASIN INITIATIVE (CBI)
The Caribbean Basin Initiative (CBI) was an independent program in the United States of America that was initiated by The Caribbean Basin Economic Recovery Act of 1983 (CBERA). CBERA provides duty free entry of textile goods and certain non-textile goods into the United States from designated beneficiary countries. However, CBERA was later expanded in 2000 to the U.S-Caribbean Basin Trade Partnership Act of 2000 (CBTPA), which also provides duty free entry of textile and certain non-textile goods into the United States. Collectively, these two acts are known as the Caribbean Basin Initiative which is a vital element in United States economic relations, intended to facilitate the economic development and export diversification with Central America and the Caribbean. It also aims to expand foreign and domestic investment in non-traditional sectors, thus expanding their exports. Central America and the Caribbean will continue to export under the CBI until September 30th, 2020.
There are twenty-four (24) beneficiary countries under the CBI, Belize included.
Products eligible for duty free entry into the United States and Caribbean Basin Companies under the CBI are as follows:- Electronic and electro- mechanical assembly
- Handicrafts, giftware, and decorative accessories
- Wood products, including furniture and building materials
- Recreational items such as, sporting goods and toys
- Fresh and frozen seafood
- Tropical fruit products and winter vegetables
- Ethnic and specialty foods, such as, sauces, spices, liqueurs, jams and confectionary items
- Ornamental horticulture
- Medical and surgical supplies
- The merchandise must be imported directly from a beneficiary country into the customs territory of the United States.
- The merchandise must have been produced in a beneficiary country. This requirement is satisfied when (a) goods are wholly the growth, product, or manufacture of a beneficiary country or (b) the goods have been substantially transformed into a new and different article of commerce in a beneficiary country, as determined by U.S. Customs.
- At least 35% of the appraised value of the article imported into the United States must consist of the cost or value of materials produced in one or more beneficial countries and/or the direct costs of processing operations performed in one or more beneficiary countries. The Commonwealth of Puerto Rico and the U.S. Virgin Islands are defined as beneficiary countries for purposes of this requirement; therefore, value attributed to Puerto Rico or the Virgin Islands may also be counted.
CLICK HERE TO ACCESS THE CARIBBEAN BASIN INITIATIVE (CBI)
The Caribbean Basin Initiative (CBI) was an independent program in the United States of America that was initiated by The Caribbean Basin Economic Recovery Act of 1983 (CBERA). CBERA provides duty free entry of textile goods and certain non-textile goods into the United States from designated beneficiary countries. However, CBERA was later expanded in 2000 to the U.S-Caribbean Basin Trade Partnership Act of 2000 (CBTPA), which also provides duty free entry of textile and certain non-textile goods into the United States. Collectively, these two acts are known as the Caribbean Basin Initiative which is a vital element in United States economic relations, intended to facilitate the economic development and export diversification with Central America and the Caribbean. It also aims to expand foreign and domestic investment in non-traditional sectors, thus expanding their exports. Central America and the Caribbean will continue to export under the CBI until September 30th, 2020.
There are twenty-four (24) beneficiary countries under the CBI, inclusive of:
Products eligible for duty free entry into the United States and Caribbean Basin Companies under the CBI are as follows:
Products are deemed eligible for CBI duty-free treatment if the following conditions are met:
In addition, the cost or value of materials produced in the customs territory of the United States (other than Puerto Rico) may be counted, but only to a maximum of 15% of the appraised value of the imported article. The cost or value of materials imported into a beneficiary country from a non-beneficiary country may be included in calculating the 35% value-added requirement for an eligible article, if the materials are first substantially transformed into new and different articles of commerce and are then used as constituent materials in the production of the eligible article.
There are twenty-four (24) beneficiary countries under the CBI, inclusive of:
- Antigua and Barbuda
- Aruba
- Bahamas
- Barbados
- Belize
- British Virgin Islands
- Costa Rica
- Curacao
- Dominica
- Dominican Republic
- El Salvador
- Grenada
- Guatemala
- Guyana
- Haiti
- Honduras
- Jamaica
- Montserrat
- Netherlands Antilles
- Panama
- St. Kitts and Nevis
- St. Lucia
- St. Vincent and the Grenadines
- Trinidad and Tobago
Products eligible for duty free entry into the United States and Caribbean Basin Companies under the CBI are as follows:
- Electronic and electro- mechanical assembly
- Handicrafts, giftware, and decorative accessories
- Wood products, including furniture and building materials
- Recreational items such as, sporting goods and toys
- Fresh and frozen seafood
- Tropical fruit products and winter vegetables
- Ethnic and specialty foods, such as, sauces, spices, liqueurs, jams and confectionary items
- Ornamental horticulture
- Medical and surgical supplies
Products are deemed eligible for CBI duty-free treatment if the following conditions are met:
- The merchandise must be imported directly from a beneficiary country into the customs territory of the United States.
- The merchandise must have been produced in a beneficiary country. This requirement is satisfied when (a) goods are wholly the growth, product, or manufacture of a beneficiary country or (b) the goods have been substantially transformed into a new and different article of commerce in a beneficiary country, as determined by U.S. Customs.
- At least 35% of the appraised value of the article imported into the United States must consist of the cost or value of materials produced in one or more beneficial countries and/or the direct costs of processing operations performed in one or more beneficiary countries. The Commonwealth of Puerto Rico and the U.S. Virgin Islands are defined as beneficiary countries for purposes of this requirement; therefore, value attributed to Puerto Rico or the Virgin Islands may also be counted.
In addition, the cost or value of materials produced in the customs territory of the United States (other than Puerto Rico) may be counted, but only to a maximum of 15% of the appraised value of the imported article. The cost or value of materials imported into a beneficiary country from a non-beneficiary country may be included in calculating the 35% value-added requirement for an eligible article, if the materials are first substantially transformed into new and different articles of commerce and are then used as constituent materials in the production of the eligible article.
