Home The Classroom The Library The Caribbean Mexico & Central America South America International Treaties

Belize


click for full size map


Backgound Notes Geography History

Government Business Law Commercial Guide

Treaties Labor Law Environmental Law

Banking & Finance Visas & Immigration Foreign Investment

Intellectual Property Taxes General Economic Info

Tourism Legal System General Information

Importing & Exporting Marketing


Background Notes For Belize

U.S. Department of State

Background Notes: Belize, March 1998

Released by the Bureau of Inter-American Affairs.

Official Name: Belize

PROFILE

Geography

Area: 22,923 sq. km. (8,867 sq. mi.); slightly larger than Massachusetts.
Cities: Capital--Belmopan (pop. 5,845). Other cities and towns--Belize City (52,500), Corozal (7,795), Orange Walk (13,425), San Ignacio & Santa Elena (11,690), Dangriga (6,930), Punta Gorda (3,680), and San Pedro (3,250).
Terrain: Flat and swampy coastline, low mountains in interior.
Climate: Sub-tropical (dry and wet seasons); hot and humid. Rainfall ranges from 60 inches in the north to 200 inches in the south annually.

click for full size map (678KB, 1024x1276) .gif

People

Nationality: Noun and adjective--Belizean(s).
Population (1995 est.): 216,000.
Annual growth rate: About 3%.
Ethnic groups: Creole, Garifuna, Mestizo, Mayan.
Religions: Roman Catholic, Anglican, Methodist, other Protestant, Muslim, Hindu, and Buddhist.
Languages: English (official), Creole, Spanish, Garifuna, Mayan.
Education: Years compulsory--9. Attendance--60%. Literacy--75%.
Health (1995): Infant mortality rate--27/1,000. Life expectancy--71 years.
Work force (71,000): Services--50.8%. Agriculture, hunting, forestry, fishing--27.2%. Industry and commerce--17.8%. Other--4.2%.

Government

Type: Parliamentary.
Independence: September 21, 1981.
Constitution: September 21, 1981.
Branches: Executive--British monarch (head of state), represented by a governor general; prime minister (head of government, 5-year term). Legislative--bicameral National Assembly. Judicial--Supreme Court, Court of Appeal, district magistrates.
Subdivisions: Six districts.
Political parties: People's United Party (PUP), United Democratic Party (UDP), National Alliance for Belizean Rights (NABR).
Suffrage: Universal adult.

Economy

GDP (1997 est): $532 million.
Annual growth rate (1997): 2.9%.
Per capita income: $2,316.
Avg. inflation rate (1997): 1%.
Natural resources: Arable land, timber, seafood, minerals.
Agriculture (17% of GDP): Products--sugar, citrus concentrate, bananas, papayas, honey, corn, beans, rice, cattle.
Industry (18% of GDP): Types--clothing, fruit processing, beverages.
Tourism (18% of GDP): Tourist arrivals (1997)--160,000 (60% from the U.S.).
Trade : Exports--$167.6 million (1996); $140.5 million (Jan.-Sep. 1997): cane sugar, clothing, citrus concentrate, banana, and marine products. Major markets--U.S.(1996, 42%; Jan.-Sep. 1997, 49%), U.K., CARICOM. Imports (1996)--$255.6 million; $241.6 million Jan.-Sep. 1997: food, consumer goods, building materials, vehicles, machinery, petroleum products. Major suppliers--U.S. (55% 1996; 50% Jan.-Sep. 1997), Mexico, U.K.
Exchange rate: Since 1976 Belizean banks have bought U.S. dollars at the rate of 2.0175 and sold them at 1.9825, making for an effective fixed rate of Belize $2=US$1.

PEOPLE

Belize is the most sparsely populated nation in Central America; it is larger than El Salvador and compares in size to the state of Massachusetts. Slightly more than half of the people live in rural areas. About one-fourth live in Belize City, the principal port, commercial center, and former capital.

Most Belizeans are of multiracial descent. About 44.1% of the population is of mixed Mayan and European descent (mestizo); 31% are of African and Afro-European (Creole) ancestry; about 9.2% are Mayan; and about 6.2% are Afro-Amerindian (Garifuna). The remainder, about 9.2%, includes European, East Indian, Chinese, Middle Eastern, and North American groups.

English, the official language, is spoken by virtually all except the most recently arrived refugees. Spanish is the native tongue of about 50% of the people and is spoken as a second language by another 20%. The various Mayan groups still speak their original languages, and an English Creole dialect (or Kriol in the new orthography), similar to the Creole dialects of the English-speaking Caribbean Islands, is spoken by most. The rate of functional literacy is a little over 75%. About 60% of the population is Roman Catholic; the Anglican Church and Protestant Christian groups account for most of the remaining 40%. Mennonite settlers number about 7,160.

HISTORY

The Mayan civilization spread into the area of Belize between 1500 BC and AD 300 and flourished until about AD 1200. Several major archeological sites, notably Caracol, Lamanai, Lubaantun, Altun Ha, and Xunantunich, reflect the advanced civilization and much denser population of that period. European contact began in 1502 when Columbus sailed along the coast. The first recorded European settlement was begun by shipwrecked English seamen in 1638. Over the next 150 years, more English settlements were established. This period was also marked by piracy, indiscriminate logging, and sporadic attacks by Indians and neighboring Spanish settlements.

Great Britain first sent an official representative to the area in the late 18th century, but Belize was not formally termed the Colony of British Honduras until 1840. It became a crown colony in 1862. Subsequently, several constitutional changes were enacted to expand representative government. Full internal self-government under a ministerial system was granted in January 1964. The official name of the territory was changed from British Honduras to Belize in June 1973, and full independence was granted on September 21, 1981.

GOVERNMENT AND POLITICAL CONDITIONS

Belize is a parliamentary democracy on the Westminster model and is a member of the Commonwealth. Queen Elizabeth II is head of state and is represented in the country by Governor General Dr. Colville N. Young, Sr., a Belizean and Belize's second governor general. The primary executive organ of government is the cabinet, led by a prime minister (head of government). Cabinet ministers are members of the majority political party in parliament and usually hold elected seats in the National Assembly concurrently with their cabinet positions. Currently, every member of the governing party in the National Assembly holds one or more ministry portfolios.

The National Assembly consists of a House of Representatives and a Senate. The 29 members of the House are popularly elected to a maximum 5-year term. Of the Senate's eight members, five are selected by the prime minister, two by the leader of the opposition, and one by the governor general.

Currently, the Belize Government is controlled by a coalition of the United Democratic Party (UDP) and the National Alliance for Belizean Rights (NABR), which won 16 of the 29 seats in the House of Representatives on June 30, 1993, despite having gained only 49% of the total popular vote. The People's United Party (PUP) won the other 13 seats. The PUP had governed Belize from September 1989 until June 1993, and the UDP from December 1984 until September 1989. Before 1984, the PUP had dominated the electoral scene for over 30 years and was the party in power when Belize became independent in 1981. National elections are consitutionally mandated prior to October 15, 1998.

Prime Minister Manuel Esquivel and his coalition encourage economic growth which is balanced by a deep interest in the environment and sustainable development. A lack of government resources seriously hampers these goals. On other fronts, the government is working to improve its law enforcement capabilities and to resolve a long running border dispute with Guatemala. Seeing itself as a bridge, Belize is actively involved with the Caribbean nations of CARICOM, and has also taken steps to work more closely with its Central American neighbors.

Members of the independent judiciary are appointed. The judicial system includes local magistrates, the Supreme Court, and the Court of Appeal. Cases may, under certain circumstances, be appealed to the Privy Council in London. The country is divided into six districts: Corozal, Orange Walk, Cayo, Belize, Stann Creek, and Toledo.

National Security

The Belize Defence Force (BDF), established in January 1973, consists of a light infantry force of regulars and reservists along with small air and maritime wings. The BDF, currently under the command of Brigadier General Earl Arthurs, assumed total defense responsibility from British Forces Belize (BFB) on January 1, 1994. The United Kingdom continues to maintain the British Army Training Support Unit Belize (BATSUB) to assist in the administration of the Belize Jungle School. The BDF receives military assistance from the United States and the United Kingdom.

Principal Government Officials

Head of State--Queen Elizabeth II
Governor General--Dr. Colville N. Young, Sr.
Prime Minister, Minister of Finance and Economic Development--Manuel E. Esquivel
Deputy Prime Minister, Minister of Foreign Affairs, Minister of National Security, and Attorney General--Dean O. Barrow
Ambassador to the United States and the OAS--James Murphy
Ambassador to the United Nations--Vacant

Belize maintains an embassy in the United States at 2535 Massachusetts Avenue NW, Washington, DC 20008 (tel: 202-332-9636; fax: 202-332-6888). Belize travel information office in New York City: 800-624-0686.

ECONOMY

Forestry was the only economic activity of any consequence in Belize until well into the 20th century when the supply of accessible timber began to dwindle. Cane sugar then became the principal export and recently has been augmented by expanded production of citrus, bananas, seafood, and apparel. The country has about 809,000 hectares of arable land, only a small fraction of which is under cultivation. To curb land speculation, the government enacted legislation in 1973 that requires non-Belizeans to complete a development plan on land they purchase before obtaining title to plots of more than 10 acres of rural land or more than one-half acre of urban land.

Domestic industry is limited, constrained by relatively high-cost labor and energy and a small domestic market. The embassy knows of 185 U.S. companies which have operations in Belize, including Dominion Resources, Texaco, and Esso. Tourism attracts the most foreign direct investment, although significant U.S. investment is also found in the energy, telecommunications, and agriculture sectors.

A combination of natural factors--climate, the longest barrier reef in the Western Hemisphere, numerous islands, excellent fishing, safe waters for boating, jungle wildlife, and Mayan ruins--support the thriving tourist industry. Development costs are high, but the Government of Belize has designated tourism as its second development priority after agriculture. In 1996, tourist arrivals totaled 160,000 (more than 60% from the U.S.) and tourist receipts amounted to $75.5 million.

Belize's investment policy is codified in the Belize Investment Guide, which sets out the development priorities for the country. A Country Commercial Guide for Belize is available from the Embassy's Economic/Commercial section.

Infrastructure

A major constraint on the economic development of Belize continues to be the scarcity of infrastructure investments. Although electricity, telephone, and water utilities are all relatively good, Belize has the most expensive electricity in the region. Large tracts of land which would be suitable for development are inaccessible due to lack of roads. Some roads, including sections of major highways, are subject to damage or closure during the rainy season. Ports in Belize City, Dangriga, and Big Creek handle regularly scheduled shipping from the U.S. and the U.K., although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports. International air service is provided by American Airlines, Continental Airlines, and Taca to gateways in Houston, Miami, New Orleans, and San Salvador.

Several capital projects are currently underway. The largest of these is a $53.5 million project to rehabilitate the Southern Highway. In addition, two public hospitals in the Orange Walk and Stann Creek districts are being rehabilitated, and major improvements at the Philip Goldson International Airport and at the San Pedro Airstrip began in late 1996.

Trade

Belize's economic performance is highly susceptible to external market changes. Although moderate growth has been achieved in recent years, the achievements are vulnerable to world commodity price fluctuations and continuation of preferential trading agreements, especially with the U.S. and U.K.

Belize continues to rely heavily on foreign trade, with the United States as its number one trading partner. Total imports in 1996 totaled $255.6 million, while total exports were only $167.6 million. In 1996, the U.S. accounted for 42% of Belize's total exports and provided 55% of all Belizean imports. Other major trading partners include the U.K., European Union, Canada, Mexico, and Caribbean Common Market (CARICOM) members.

Belize aims to stimulate the growth of commercial agriculture through CARICOM. However, Belizean trade with the rest of the Caribbean is small compared to that with the United States and Europe. The country is a beneficiary of the Caribbean Basin Initiative (CBI), a U.S. Government program to stimulate investment in Caribbean nations by providing duty-free access to the U.S. market for most Caribbean products. Significant U.S. private investments in citrus and shrimp farms have been made in Belize under CBI. U.S. trade preferences allowing for duty-free re-import of finished apparel cut from U.S. textiles have significantly expanded the apparel industry. EU and U.K. preferences also have been vital for the expansion and prosperity of the sugar and banana industries.

FOREIGN RELATIONS

Belize's principal external concern has been the dispute involving the Guatemalan claim to Belizean territory. This dispute originated in imperial Spain's claim to all New World territories west of the line established in the Treaty of Tordesillas in 1494. Nineteenth century efforts to resolve the problems led to later differences over interpretation and implementation of an 1859 treaty intended to establish the boundaries between Guatemala and Belize, then named British Honduras. Guatemala contends that the 1859 treaty is void because the British failed to comply with all its economic assistance clauses. Neither Spain nor Guatemala ever exercised effective sovereignty over the area.

Negotiations proceeded for many years, including one period in the 1960s in which the U.S. Government sought unsuccessfully to mediate. A 1981 trilateral (Belize, Guatemala, and the United Kingdom) Heads of Agreement was not implemented due to disagreements. Thus, Belize became independent on September 21, 1981, with the territorial dispute unresolved. Significant negotiations between Belize and Guatemala, with the United Kingdom as an observer, resumed in 1988. Guatemala recognized Belize's independence in 1991, and diplomatic relations were established. The Guatemalan claim remains unresolved, however.

In order to strengthen its potential for economic and political development, Belize has sought to build closer ties with the Spanish-speaking countries of Central America to complement its historical ties to the English-speaking Caribbean states. Recent foreign policy initiatives include joining with the other Central American countries in signing the CONCAUSA agreement on regional sustainable development.

Belize is a member of CARICOM, which was founded in 1973. In 1990, it became a member of the Organization of American States (OAS). As a member of CARICOM, Belize strongly backed efforts by the United States to implement UN Security Council Resolution 940, designed to facilitate the departure of Haiti's de facto authorities from power. The country agreed to contribute military personnel to the Multinational Task Force, which restored the democratically elected Government of Haiti in October 1994, and to the United Nations Mission in Haiti (UNMIH).

U.S.-BELIZEAN RELATIONS

The United States and Belize traditionally have had close and cordial relations. The United States is Belize's principal trading partner and major source of investment funds, and is also home to the largest Belizean community outside Belize, estimated to be 70,000 strong. Because Belize's economic growth and accompanying democratic political stability are important U.S. objectives in a region successfully emerging from a prolonged period of civil strife, Belize benefits from the U.S.-Caribbean Basin Initiative.

In May 1997, Prime Minister Esquivel joined President Clinton and his counterparts from Central America and the Dominican Republic in Costa Rica to celebrate the remarkable democratic transformation in the region and reaffirm support for strengthening democracy, good governance, and promoting prosperity through economic integration, free trade, and investment. The leaders also expressed their commitment to the continued development of just and equitable societies and responsible environmental policies as integral elements of sustainable development.

International crime issues dominate the agenda of bilateral relations between the U.S. and Belize. President Clinton designated Belize a major transit nation for cocaine in April 1996; the U.S. is working closely with the Government of Belize to fight illicit narcotic trafficking. In October 1996, the U.S. and Belize signed a Stolen Vehicle Treaty, and both governments seek to control the flow of illegal immigrants to the U.S. through Belize.

The United States is the largest provider of economic assistance to Belize, contributing $13.3 million in various bilateral economic and military aid programs to Belize in 1995. The U.S. Agency for International Development (USAID) closed its Belize office in August 1996 after a 13-year program during which USAID provided $110 million worth of development assistance to Belize. In addition, during the past 34 years, almost 2,000 Peace Corps volunteers have served in Belize. The Peace Corps currently has 56 volunteers working in Belize. In Punta Gorda, Voice of America operates a medium-wave radio relay station which broadcasts to the neighboring countries of Honduras, Guatemala, and El Salvador. The U.S. military has a diverse assistance program in Belize, which included the construction of three schools in 1996 with six more school construction projects planned for 1997. Private American investors, responsible for some $250 million total investment in Belize, continue to play a key role in Belize's economy, particularly in the tourism sector.

Principal U.S. Officials

Ambassador--Carolyn Curiel
Deputy Chief of Mission--Frank Parker
Economic/Commercial/Political/Public Affairs Officer--Valerie Belon
Consul--Ann Gordon
Administrative Officer--Jesse Coronado

The U.S. Embassy is located in Belize City at the corner of Gabourel Lane and Hutson Street. The mailing address is: P. O. Box 286, Belize City, Belize, Central America. (tel: 011-501-2-77161 from the United States, or 77161 locally; fax: 011-501-2-30802/35321.) Internet address: consul.embelizedos.us-state.gov

OTHER CONTACT INFORMATION

Caribbean/Latin American Action
1818 N Street, NW
Washington, DC 20036
Tel: 202-466-7464
Fax: 202-822-0075

U.S. Department of Commerce
International Trade Administration
Office of Latin America and the Caribbean
14th & Constitution, NW
Washington, DC 20230
Tel.: 202-482-1658; 202-USA-TRADE
Fax: 202-482-0464

TRAVEL AND BUSINESS INFORMATION

The U.S. Department of State's Consular Information Program provides Travel Warnings and Consular Information Sheets. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country. Consular Information Sheets exist for all countries and include information on immigration practices, currency regulations, health conditions, areas of instability, crime and security, political disturbances, and the addresses of the U.S. posts in the country.

Public Announcements are issued as a means to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas which pose significant risks to the security of American travelers. Free copies of this information are available by calling the Bureau of Consular Affairs at 202-647-5225 or via the fax-on-demand system: 202-647-3000. Travel Warnings and Consular Information Sheets also are available on the Consular Affairs Internet home page: http://travel.state.gov and the Consular Affairs Bulletin Board (CABB). To access CABB, dial the modem number: (301-946-4400 (it will accommodate up to 33,600 bps), set terminal communications program to N-8-1 (no parity, 8 bits, 1 stop bit); and terminal emulation to VT100. The login is travel and the password is info (Note: Lower case is required). The CABB also carries international security information from the Overseas Security Advisory Council and Department's Bureau of Diplomatic Security. Consular Affairs Trips for Travelers publication series, which contain information on obtaining passports and planning a safe trip abroad, can be purchased from the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954; telephone: 202-512-1800; fax 202-512-2250.

Emergency information concerning Americans traveling abroad may be obtained from the Office of Overseas Citizens Services at (202) 647-5225. For after-hours emergencies, Sundays and holidays, call 202-647-4000.

Passport Services information can be obtained by calling the 24-hour, 7-day a week automated system ($.35 per minute) or live operators 8 a.m. to 8 p.m. (EST) Monday-Friday ($1.05 per minute). The number is 1-900-225-5674 (TDD: 1-900-225-7778). Major credit card users (for a flat rate of $4.95) may call 1-888-362-8668 (TDD: 1-888-498-3648).

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at (404) 332-4559 gives the most recent health advisories, immunization recommendations or requirements, and advice on food and drinking water safety for regions and countries. A booklet entitled Health Information for International Travel (HHS publication number CDC-95-8280) is available from the U.S. Government Printing Office, Washington, DC 20402, tel. (202) 512-1800.

Information on travel conditions, visa requirements, currency and customs regulations, legal holidays, and other items of interest to travelers also may be obtained before your departure from a country's embassy and/or consulates in the U.S. (for this country, see "Principal Government Officials" listing in this publication).

U.S. citizens who are long-term visitors or traveling in dangerous areas are encouraged to register at the U.S. embassy upon arrival in a country (see "Principal U.S. Embassy Officials" listing in this publication). Registering with the embassy may help you to replace lost identity documents or help family members contact you in case of an emergency.

Further Electronic Information:

Department of State Foreign Affairs Network. Available on the Internet, DOSFAN provides timely, global access to official U.S. foreign policy information. Updated daily, DOSFAN includes Background Notes; Dispatch, the official magazine of U.S. foreign policy; daily press briefings; Country Commercial Guides; directories of key officers of foreign service posts; etc. DOSFAN's World Wide Web site is at http://www.state.gov.

U.S. Foreign Affairs on CD-ROM (USFAC). Published on an annual basis by the U.S. Department of State, USFAC archives information on the Department of State Foreign Affairs Network, and includes an array of official foreign policy information from 1990 to the present. Contact the Superintendent of Documents, U.S. Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. To order, call (202) 512-1800 or fax (202) 512-2250.

National Trade Data Bank (NTDB). Operated by the U.S. Department of Commerce, the NTDB contains a wealth of trade-related information, including Country Commercial Guides. It is available on the Internet (www.stat-usa.gov) and on CD-ROM. Call the NTDB Help-Line at (202) 482-1986 for more information.

[end of document]


Belize History

During most of the colonial period, Spain claimed sovereignty over Belize. However, from the mid-17th century, British freebooters settled in the area, using it as a base for privateer operations in the West Indies. It was not recognized as a British colony until 1862.

Meanwhile, Guatemala had assumed Spain's traditional claim to sovereignty over Belize. Although in 1859 it had agreed with Britain to cede sovereignty in return for the construction of a road from Guatemala City to Belize, that road was never constructed, and in 1940, Guatemala resumed its claims. As self-government was established and independence approached, there were lengthy negotiations between Guatemala and Britain involving possible cession of part of Belize to Guatemala. At one point the United States offered its "good offices" to try to bring about a settlement. In the meantime the British stationed a battalion of troops and a detachment of fighter aircraft to guarantee Belizean sovereignty. In the early 1990s a 1500-man British garrison remained in the country, costing Belize 15% of its GDP.

No formal agreement among Guatemala, Britain, and Belize was ever signed. However, the 1985 Guatemalan constitution gave up that country's unconditional claim to Belize. The government of Marcos Vinici Cerezo Arevalo, the first civilian government in Guatemala in many years, finally officially recognized the independence of Belize in 1991, in return for a limitation of Belize's Caribbean offshore boundaries and a grant to Guatemala of access to the sea through its territory.

The drive for Belize to emerge from colonial status began soon after World War II, as part of a general movement in the British colonies in and around the Caribbean Sea. The lead was taken by the People's United Party (PUP), led by George Price, which was established in 1951. Some limited self-government was granted in 1954, and the PUP won eight of the nine elective seats in the Legislative Assembly in that year. Three years later it won all nine.

Under a new constitution that raised to 18 the number of elective seats, the PUP won all 18 in 1961 elections, and George Price became first minister. The year after the British granted Belize full internal self-government in 1964, Price assumed the title of premier.

The problem of Guatemala's claims on the country held up the achievement of full independence by Belize. In 1981, however, the British and the government of Belize decided not to await the resolution of the Guatemalan question before Belize would become independent. With the proclamation of independence in September 1981, George Price became prime minister.

In the first post-independence election, in 1984, the People's United Party lost for the first time. The victor was the United Democratic Party (UDP), headed by Manuel Esquivel, who became prime minister. However, the Esquivel government's development policies, which the opposition claimed favored mainly foreigners and involved the selling of citizenship to Hong Kong Chinese, lost the UDP government some popularity. As a consequence, in the September 1989 election the United Democratic Party got only 49% of the votes. George Price became prime minister again. Following close elections in 1993, the UDP, with Esquivel still at its head, returned to power.

  • Belize: Historical Setting


    Belize Government

  • GOVERNMENT INSTITUTIONS


    Belize Business Law

    No Information In File


    Commercial Guide of Belize

    Belize Commercial Guide


    Treaties to which Belize is a Member

    GATT General Agreement on Tarrifs and Trade, 1947

    Summary of the WTO

    WTOThe official site

    The Organization of American States

    SELA - The Latin American Economic System

    Economic Commission for Latin America and the Caribbean (a commission of the United Nations)

    The United Nations

    CARICOM The Caribbean Common Market

    CARICOM - Colombia Agreement on Trade, Economic, Technological Cooperation

    CARICOM - Venezuela Agreement on Trade, Economic, Technological Cooperation

    Association of Caribbean States/a>

    Summary of CARICOM


    Belize Labor Law

    No Information In File


    Belize Environmental Law

    No Information In File


    Belize's Banking and Finance System

    No Information In File


    Belize Visas and Immigration

    No Information In File


    Belize's Foreign Investment Law

    Belize offers exciting opportunities for profitable development ventures. Its talented people, enduring stability, democratic traditions, natural resources and attractive investment climate all combine to enhance possibilities for meaningful partnerships between investors and Belize.

    The country is poised for a new era of economic development. A variety of development programs and projects are well advanced to minimize constraints and improve the infrastructure necessary to support development. In addition Government is placing great emphasis on development of Belizean human resources in order to ensure the fullest participation of Belizeans in the economic growth and the achievement of growth with equity.

    Our government believes that private investment is absolutely critical in providing capital, technology and expertise in our ongoing attempts to expand production and generate new economic activity. We shall therefore continue streamlining our policies and operations to attract, encourage and assist all feasible development activities in our search for sustainable national development.

    We hope that this booklet will help to provide some of the answers to your questions and at the same time sensitize you to the uniquely Belizean opportunities and hospitality that await the investor.

    Be a part of the rich Belizean experience. I. Government Policy on Private Investments

    The Government of Belize fully realizes the importance of ensuring a healthy investment climate in order to attract investments by both local and foreign investors. Investments are welcomed which result in an increase in production, domestic income, employment, foreign exchange earnings or savings, a diversification of the economic base, and the transfer of technology and skills.

    The Government believes that a dynamic and harmonious partnership between the public and private sectors will provide an era with great economic opportunities. Government recognizes the absolute need for the private sector and is committed to supporting a socially just market economy that stimulates and rewards initiative, efficiency, competitiveness, productivity and innovation. A positive role for the public sector is essential. Its involvement is enlightened, fair and sustained, and will continue to create and maintain a stable environment for enterprises. The public sector will coordinate and stimulate development, reduce bureaucratic delays and provide the requisite physical and social infrastructure. Foreign investment should involve job creation, transfer of appropriate technology and skills, infusion of foreign financial resources and adequate managerial skills into Belize. Foreign investment is particularly welcome when it:

    i. contributes to employment expansion and improvement of Belizean talent and skills;
    ii. produces for export markets and penetrates new markets;
    iii. saves and earns foreign exchange and engages in import substitution;
    iv. utilizes indigenous raw materials;
    v. engages in environmentally sound projects which make technological advances and increase the capital stock of the nation.

    The government welcomes foreign capital in the domestic economy and supports joint venture and partnership investments whenever possible as the preferred mechanism for the employment of such capital. This is in keeping with Government’s declared policy of promoting Belizean involvement in the national economy. However, one hundred percent foreign ownership of an enterprise is allowed and there are no regulations restricting takeovers or mergers. Belizean laws allow for these business ownerships:

    i. Private Companies
    ii. Joint Ventures and Cooperatives
    iii. Partnerships
    iv. Sole Proprietor
    v. Public Investment Companies
    vi. International Business Companies

    The need to accelerate the creation of productive employment is fully recognized. Government will permit the bringing in of highly skilled personnel to complement the Belizean labour force provided that appropriate training programs for nationals are established. It will also emphasise that a national counterpart be assigned to every foreign skilled personnel employed by the company. II. Economic Policy & Development Priorities

    The Government of Belize maintains that the economic growth and development of Belize can best be achieved by working the creative partnership between the public and private sectors. It relies on the efficient management of our resources in order to make more available to the private sector for investment in productive enterprises and thus increase the level of economic activity and opportunities. The Government continues to welcome genuine investors from abroad who with their capital, technology and access to new markets can join Belizeans in expanding trade.

    The Government proposes to achieve sustained economic growth, real social progress and diversification of the Belizean economy in several ways:

    (1) Increase public investment in economic and social infrastructure, maintenance of assets and the satisfaction of the basic human needs;

    (2) Diversification of agriculture;

    (3) Legislation that encourages capital formation and industrial activities;

    (4) Development of our human resources and skills;

    (5) Building of a sound physical and social infrastructure;

    (6) Revitalizing a dynamic partnership between the public and private sectors.

    The priorities for development are:
    . Agriculture, agro-industries, food processing and livestock
    . Tourism and tourism-related industries
    . Aquaculture and horticulture
    . Light-manufacturing industries and offshore assembly plants (export oriented)
    . Deep-sea fishing and processing
    . Forestry and forestry-based industries
    . See Appendix IV (Investment Opportunities) for more detail. Certain areas of investment are reserved for Belizeans. See Appendix V (Limitations on Foreign Investment) for more details.


    Intellectual Property Rights In Belize

    No Information In File


    Belize Taxes

    No Information In File


    General Economic Information of Belize

    Socio-Economic Data March 1998 from the Inter-American Development Bank. The source for all the hard economic data.


    Belize Tourism

    Belize offers some of the most beautiful coral reefs in the Western Hemisphere, as well as more than 175 sandy cay (see Glossary) islands, various archeological sites, about 240 varieties of wild orchids, and about 500 species of birds. Naturally, Belize would appear to be a prime objective for United States tourists. However, a lack of infrastructure has kept the tourism industry relatively underdeveloped.

    Apart from making infrastructural improvements such as enlargement of Belize International Airport in 1989 and offering fiscal incentives, the public sector has done little to promote tourism. The unhappy experience of the Colonial Development Corporation (CDC) in the early 1950s may have contributed to the government's hesitancy. In 1953 the CDC opened the Fort George Hotel, realizing that the lack of hotel accommodations in the colony had been an obstacle to investment. The costs of this project were excessive, however, and the architectural difficulties were overwhelming because of the swampy ground on which the hotel was built. The hotel's operations proved to be difficult as well. As a result, CDC's capital in the project had to be written off.

    During the 1980s and early 1990s, the tourism sector developed into the second most important source of foreign exchange for the Belizean economy. In 1980 tourism receipts had been about a tenth of sugar-export receipts. By 1990 the two sectors were almost equal in size. In 1991 hotel receipts were estimated to have grown by an additional 15 percent. Tourist arrivals almost tripled between 1985 and 1990. In 1990 the Fort George Hotel joined the Radisson chain and doubled its capacity to seventy-six rooms. In 1991 the Ramada Royal Reef Hotel opened with a capacity of 120 rooms. The total number of rooms had increased from 1,176 in 1980 to 2,763 in 1990.

    The Belizean Ministry of Tourism has encouraged controlled development of tourism without endangering the country's ecological balance. Although tourism had great potential for growth, the sector was still constrained by poor infrastructure, unsophisticated services, and a shortage of qualified labor.


    Belize's Legal System

  • CONSTITUTIONAL BACKGROUND

    The U.S. House of Representatives Internet Law Library Laws of other nations Belize


    General Information

    Belize - Consular Info Sheet

    Belize Country Study Page from Library of Congress

    Living languages of Belize So, you think that English and Spanish are the only language spoken in Belize? Well, check this out!


    Importing and Exporting

    TradePort's online tutorial on importing and exporting.

    Reducing the Risk of Trade Disputes for Exporters

    U.S. Harmonized Tarrif Schedule


    Marketing

    International Trade Association (U.S. Dept. of Commercededicated to helping U.S. businesses compete in the global marketplace.


  • Backgound Notes Geography History

    Government Business Law Commercial Guide

    Treaties Labor Law Environmental Law

    Banking & Finance Visas & Immigration Foreign Investment

    Intellectual Property Taxes General Economic Info

    Tourism Legal System General Information

    Importing & Exporting Marketing
    
    
    
    Home
    The Classroom
    The Library
    The Caribbean
    Mexico & Central America
    South America
    International Treaties
    
    
    


    Doing Business in Latin America
    No claims to original works.
    Web Page written, created, and designed by Douglas Smurr, smurfer@guate.net
    Last Update: September 28, 1998.
    © 1998, all rights reserved.