GIVE BELIZE BUSINESSES A CHANCE

Belize’s trade and investment policy over the years has been grounded in a legal framework that hinges on her participation in fostering regional integration within the Caribbean Community (CARICOM).  Since becoming a contracting part to the General Agreement on Trade and Tariffs (GATT) and subsequently the World Trade Organization (WTO), Belize has continued to progress on a path of continued insertion into the global economy.  However, its participation over the most recent years has reflected the lack of cohesion in policy formulation and implementation in respect to trade and investment policy.  Consequently, Belize’s competitiveness maybe severely compromised due to the lack of meaningful government intervention in sustaining an enabling policy environment.

In 2004 the WTO as part of its mandate and as a requirement of member countries undertook to review Belize’s trade policy regime.  Their observations noted the significant steps Belize had made in liberalizing various aspects of its trade regime whilst also seeking to protect selected domestic industries.  Belize as a small middle income developing country has an open economy that is characterized by an export mix that consist of both tourism services along with a few basket of commodities and other goods.  Trade plays an important role in the economy as trade to GDP ratio has consistently increased to above 120% of GDP.  This therefore, means that most of what the economy produces is for an export market.  This would therefore, expect one to conclude that because trade is so vital to the economy’s existence, that trade policy supported by an investment policy would also be deemed important by the government.  However, the level of attention and public information coming from the Ministry of Foreign Trade and the Belize Trade and Investment Development Service (BELTRAIDE) has been rather dismal.   There is the need for systematic emphasis on the development of quality and standards of products and a phased approach to protectionism that will enable quality product to be provided to both the domestic and international market.

Belize as a member of CARICOM ought to be actively engaging in bilateral and regional trade negotiations with Canada and the USA under the US-Caribbean Basin Trade Partnership Act (CBTPA).  Full implementation and market access arrangements under the Economic Partnership Agreement (EPA) between Caribbean Forum countries (CARIFORUM) and the European Union (EU) ought to be made available to the business community so that firms are made well aware of the market access arrangements that they can avail themselves of and any accompanying assistances. As a member of the WTO Belize can continue to take steps to liberalize its trade in services and increase the benefits to be derived from such engagement.   Various service sectors are already engaged in international trade, outlining and creating a road map is not the paramount required at this point, but rather the supporting policies included alongside capacity development and training so that the engagement in developing meaningful roadmaps would be assured so that service providers benefit from the market access already negotiated.  The WTO noted in its recent assessment of trade development globally, that in keeping trade open has been and remains crucial in providing opportunities for countries to emerge from the global crisis, in particular at times when public deficits are growing for many.  The Government of Belize seems to not have realized the importance of trade policy and a complimentary investment regime that would allow for Belize to strengthen its competitiveness as she continues to engage in the global economy.  As we enter the second half of 2010 the WTO is once again scheduled to undertaken their second Trade Policy Review, it would be interesting to note the progress made to date.  Over the past two years, the reactionary response by Government to domestic issues and no meaningful policy response to the global recession have left the Belizean economy just hanging by a tread.   The business of a political party winning an election could never be an end to itself.  The responsibility of governance is a whole other level and it certainly involves giving Belizean citizens, private and corporate a fighting chance to compete to survive in a globalized world.

Gwyneth Sydney Nah

Comments welcomed at GwynethNah@gmail.com

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