72539 v1 World Trade Indicators 2009/10 Belize Trade Brief Trade Policy External Environment As a member of the Caribbean Community and Belize has less favorable access to international Common Market (CARICOM), Belize applies the markets compared to its LAC and lower-middle- group’s Common External Tariff (CET). For the past income comparators. The weighted average rest of the few years, Belize’s average MFN applied tariff has world tariff (including preferences) faced by Belize’s remained constant at 11.4 percent, higher than that of exports is very high at 8.4 percent, compared to that an average Latin America and Caribbean (LAC) of the LAC and lower-middle-income countries (3.2 country but in line with that of an average lower- percent and 2.9 percent, respectively). Belize’s middle-income country (9.3 percent and 11.4 percent, agricultural exports face a high 20.1 percent tariff, respectively). Based on the average MFN applied while its manufactured exports enjoy a low 0.7 percent tariff, it ranks 119th out of 181 countries (where 1st is tariff. The Belize dollar appreciated slightly (by 0.5 least restrictive). Tariff protection for agricultural percent) in real trade-weighted terms in 2008, reducing products is very high at 25.4 percent, while protection the competitiveness of Belize’s exports. for non-agricultural products is 9.3 percent. The country’s maximum MFN applied tariff, excluding A comprehensive Economic Partnership Agreement alcohol and tobacco, is 50 percent and its trade policy (EPA) between the EU and Caribbean states in the space, as measured by the wedge between bound and CARIFORUM EPA group, including Belize, was applied tariffs (the overhang), is 47.3 percent. The signed in 2008. This replaced the expired preferences country scores very low on the GATS Commitments given under the Africa, Caribbean, and Pacific (ACP)- Index (146th out of 148) indicating substantial room EU Cotonou Agreement. The EU committed to for future multilateral commitments to services trade immediately removing all tariffs and quotas on liberalization. Caribbean exports with the exception of sugar and rice, which will get full duty-free and quota-free access In response to the food crisis in 2008, the government by the end of 2009. The Caribbean countries, on the provided import duty exemptions for agricultural other hand, committed to an asymmetric and gradual machinery and implements and also removed the opening of their economy to EU imports. duties for animal feed concentrate.2 Furthermore, in March 2008, CARICOM heads of state agreed to temporarily suspend the CET on 34 product lines for Behind the Border Constraints a period of two years up to March 2010 to enable Regarding its business environment in 2009, Belize’s member governments to drop duties as needed to Ease of Doing Business rank is a good 80th (out of counteract rising food prices. The CET was also 183), although this represents a fall from 75th position suspended on a range of infant juices for a period of 6 in 2008. With relatively high export and import per months up to September 2008. container costs, the country does not rank highly (117th out of 183) in the Trading Across Borders subcategory of the index, which looks at the extent of trade facilitation in the country. Unless otherwise indicated, all data are as of August 2009 and are drawn from the World Trade Indicators 2009/10 Trade Outcomes Database. The database, Country Trade Briefs and World Bank estimates show a 7.5 percent growth in Trade-at-a-Glance Tables, are available at real trade (in constant 2000 US dollars) in 2008, a http://www.worldbank.org/wti. recovery from the 3.6 percent contraction in 2007. If using information from this brief, please provide the However, real trade is expected to fall again by 1.8 following source citation: World Bank. 2010. “Belize percent in 2009. Imports increased by an estimated 7.6 Trade Brief.� World Trade Indicators 2009/10: Country Trade percent in 2008 after falling by 0.3 percent in 2007. Briefs. Washington, DC: World Bank. Available at Exports also registered estimated positive growth of http://www.worldbank.org/wti. 7.4 percent in 2008 compared to the 6.2 percent World Trade Indicators 2009/10 Belize Trade Brief contraction in 2007. However this positive growth is Notes not expected to be sustained in 2009 as imports and exports are projected to fall by 1.7 and 1.9 percent, 1. Statistical Institute of Belize 2009. respectively. 2. FAO, 2008. In nominal U.S. dollar terms, trade growth more than doubled to 10.8 percent in 2008 from 5.1 percent in References 2007. This was boosted by strong growth of 18.2 European Commission. 2009. Update: Economic Partnership percent in imports in 2008, compared to 6 percent the Agreements. European Commission. June 17, 2009. previous year. Exports grew at a slower pace of 3.6 . positive growth was a result of the 9.2 percent increase Food and Agriculture Organization of the United in goods exports in 2008, compared to the 0.4 percent Nations (FAO). 2008. Policy measures taken by decline the year before. Services exports (in particular governments to reduce the impact of soaring prices—Latin tourism, which accounts for a significant portion of America and the Caribbean. FAO. December 15, 2008. Belize’s exports) did not perform well, falling by 2.3 . percent in 2008 after registering positive growth of 9.7 Statistical Institute of Belize. 2009. Belize External Trade percent in 2007. However, services exports are expected to recover in 2009, growing by 4.8 percent, Bulletin—March 2009. Statistical Institute of Belize. whereas goods exports are expected to fall by 11 June 2, 2009. . already fallen by 18 percent in nominal U.S. dollar terms in the first quarter of 2009 compared to the corresponding period in 2008. FDI inflows into the country in 2008 were 13.1 percent of GDP.