Trade in services- Belize's Priority Sectors

TRADE IN SERVICES BELIZE'S PRIORITY SECTORS 2018

HERE'S THE TRADE SCOOP

THE BELIZE COALITION OF SERVICES PROVIDERS

1

FUNCTIONS OF THE BCSP

2

TRADE IN SERVICES IN BELIZE 2016

3

DE-RISKING

4

04

MUSIC

14 ITC

6 INTELLECTUAL PROPERTY

SPA & WELLNESS

Music

BUSINESS PROCESS OUTSOURCING

8

10

19

22 REAL ESTATE

CONTENTS

THE VOICE OF THE SERVICES SECTOR The BCSP is an alliance of service sector organizations and associations that functions as a lobby and channel for addressing economic development issues and trade-in-services issues that impact the services sector. The BCSP was established in 2009 and registered in 2010Â to help the services sector stakeholders advocate

OUR MISSION The Mission of the BCSP is to foster the development of a vibrant services sector that can compete internationally, diversify the export basket, drive the creation of value added jobs and spur economic growth.

To accomplish this, the BCSP has set out the following core objectives:

for the creation of an enabling environment which will allow the Belizean services sector to survive in the competitive, global marketplace and meet the challenges encountered in exporting their services.

Serve as a forum for collating and debating the views of its members and representing their interests to Government; Improving services standards and adherence thereto by service providers; Reviewing the existing regulatory

Services in Belize account for 63% of GDP and 55% of employment. Based on the fact that the services sector is the fastest growing component of world trade and recognizing that the Belizean

environment and encouraging the government to adopt new regulations and laws to promote services trade and protect the Belizean consumer; Educating members about current laws and

economy is export driven; initiatives promoting

regulations and how these could affect

the growth and competitiveness of the service

business prospects.

sector are critical to Belize’s development.

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FUNCTIONS Organizational Capabilities Improving members' organizational capabilities through assisting with their incorporation and serve as an interim Secretariat for nacent associations.

Grant Funding Assisting member associations, through donor funding, to build capacity through technical cooperation arrangements and project implementation.

Forum for Views Serving as a forum for collating and debating the views of its members and representing their interests to Government.

Standards Improving services standards and adherence thereto by service providers.

Regulatory Environment Reviewing existing regulatory environment and advocating for government to adopt new laws and regulations to promote trade in services and protection of Belizean consumer

Education and Research Educating members about current laws and regulations and how these could affect business prospects.

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TRADE IN SERVICES IN BELIZE 2016

Source: Central Bank of BelizeÂ

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DERISKING AND BELIZE Globally, the banking industry has traditionally

According to the The Financial Action Task

been a catalyst for economic development.

Force “de-risking refers to the phenomenon of

Developments in information and

financial institutions terminating or restricting

communication technology (ICT) over the 21st

business relationships with clients or categories

century have led to the global integration of

of clients to avoid, rather than manage, risk.” [1]

the banking system, with the ease of currency

The decision of international regulators and

exchange and electronic transactions being the

policy makers to designate correspondent

defining feature of the modern system.

banking services as a high-risk activity for AntiMoney Laundering/Counter Financing Terrorism

With the success of commercial banking being

purposes, precipitated a sharp withdrawal of

largely dependent on reputation, regulators

participating banks that were trying to avoid

have sought to strengthen the image of the

the potential for huge regulatory fines in the

sector by enforcing strict regulations on the

early part of 2015.

types of transactions that would be acceptable for business. The development and enforcement

The recent de-risking phenomenon hit Belize in

of regulations is done mainly to mitigate

2015, with Belize Bank losing correspondent

financial malpractices and transactions that

banking relationship with Bank of America in

would weaken the integrity of the financial

the United States. Since then, other banks such

system, which is built on trust and not backed

as Heritage Bank and Atlantic International

by any precious metal or natural resource.

Bank have suffered a similar fate.

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FINANCE

TRADE IN SERVICES

Banks in Belize were forced to move swiftly to

During the last week of June 2017, the

secure relationships with

Economic Commission for Latin America and

other banks externally,

the Caribbean (ECLAC) visited Belize to

since correspondent

commence work on a study to conduct an

banking relationship is

economic analysis of the impact of the loss of

necessary for conducting

correspondent banking services to the financial services sector and other key areas in

international trade and cross-

four Caribbean countries: Antigua and

border transactions in foreign

Barbuda, Saint Kitts and Nevis, Belize and the

currency. A resolution of this

British Virgin Islands.

problem, which affects the needs of small jurisdictions like

Currently, all banks in Belize now have a

Belize, is fundamental to

correspondent banking relationship, whether

economic, financial and social

through a bank or a payment service provider.

stability. Given the serious implications of these developments, the Government of Belize, through the Financial Intelligence Unit (FIU) and the Central Bank of Belize,

Nonetheless, the Central Bank is very proactive and is closely monitoring these internationally regulated institutions due to the fragility of this aspect of Belize’s banking operations.

has given the correspondent banking relationship issue its highest priority and

[1] The Financial Action Task Force (FATF) "FATF clarifies

has called on CARICOM to adopt a

risking." Available at http://www.fatf-

regional approach to addressing the matter.

risk-based approach: case-by-case, not wholesale degafi.org/documents/news/rba-and-de-risking.html.

Accessed on the 19th June, 2018.

At the multilateral level, the World Trade Organization (WTO) has established a Working Group on Trade, Debt and Financing and has begun discussing efforts towards Improving the trade finance gaps which have negatively impacted Small and Medium Enterprises (SMEs), where 58% of SMEs experience rejection of trade finance requests.

This is relevant because de-risking has negative effects on access to finance.

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B P rocess O utsourcing usiness

At the World Trade Organization (WTO), the General Agreement on Trade in Services (GATS) is the first set of multilateral rules governing international trade in services. Negotiation of this agreement concluded in the early 90s in response to the growth in the services economy propelled by advances in technology. According to the WTO, services account for two thirds of global output, one third of global employment and nearly 20% of global trade. The World Bank has stated that the growth in the services sector, has contributed more to poverty reduction than the contribution of agriculture, and manufacturing.

The services sector provides critical support for

It could include three elements: (i) BPO:

production and trade in goods in areas

inbound customer service, chat/email support,

including research and design, accounting,

financial services/credit, educational

transportation and logistics and is essential to

transcription among others, (ii) Information

improving a country’s balance of payment

Technology Outsourcing (ITO): data

position. Services contribute more than 60% of

processing, social media management, IT tech

GDP in Belize. Between January and June of

chat support, programming and web design

2017, the Central Bank of Belize recorded a

among others, and (iii) Knowledge Process

services trade balance of BZ$374.2m with

Outsourcing (KPO): Business consulting,

inflows at BZ$575.9m and outflows at

management of accounts, virtual management

BZ$201.7m.[1] Travel, communication,

and others. According to the 2016 A.T Kearney

computer and information services other

Global Services Location Index, the top

business services; and government services

contenders in the outsourcing market are

represents the top four revenue generating

India, China and Malaysia. Within the region,

services. Noteworthy, is that communication,

Brazil, Mexico, Chile, Costa Rica and

computer and information services ranks as

Columbia rank in the top 20. [2] Central Bank

the second highest generating sector, after

of Belize’s statistics in 2016, reflect inflows

travel. Within this sector is Outsourcing,

from BPOs services at BZ$28.7m and from

particularly Business Process Outsourcing

January to June 2017, inflows were at

(BPO) which generates most of the revenue in

BZ$13.1m. BPO services is one of the fastest

this sector. Outsourcing is the transferring of a

growing service sector in Belize.

portion of an organization’s processes to

external entities.

[1] Central Bank of Belize Balance of Payments 2017 available at https://www.centralbank.org.bz/rates-statistics/balanceof-payments. Accessed on the 19th June, 2018.

[2] A.T Kearney Global Services Location Index 2016 https://www.atkearney.com/digitaltransformation/article?/a/2016-global-services-locationindex-. Accessed on 19th June, 2018

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During the global economic crisis of 2007 –

In December 2016, a total of 2,768 persons

2008 more companies began signing

were employed in the BPO sector; employment

contracts to outsource their service operations including marketing and sales, customer/technical services, human resources, accounting and collections, operated in off-shore jurisdictions by another party. Belize, as the only English speaking

proximity to North America, is a prime source

2017. Based on the last industry assessment conducted by BELTRAIDE in 2016, there are a total of 21 active BPO companies in Belize with 11 in Belize City, 3 in Ladyville, 2 in the City of Belmopan, 3 in San Ignacio Town, 1 in Independence Village and 1 in Orange Walk Town. In 2016, three new BPOs companies

OPB

country in Central America with close

is projected to increase to 4,734 by the end of

were established.

market for outsourcing jobs and makes it an attractive investment destination for

Although BPO service is new to Belize and has

outsourcing services. BPOs in Belize offer a

grown recently due to globalisation and ICT

range of services including voice/non-voice

advancement induced by service consumption

customer support, sales, data processing, and

demand, it has been recognized as one of the

documentation services.

competitive sectors that has generated substantial revenue benefits to the Belizean

In 2013, Compete Caribbean and the

economy. The long-term objective is to

International Development Bank (IDB) assisted

continue to promote this service sector with an

Belize Trade and Investment Development

expansion on BPO value-added services.

Service (BELTRAIDE) under the project "Strengthening the Institutional Architecture for Investment Attraction in Belize" to complete a BPO Sector Strategy entitled Analysing the Potential of Developing the Business Process Outsourcing Sector in Belize to further promote services based investments and to gain more visibility in the regional BPO market.

Employment opportunities in Belize has grown significantly as a result of the BPO sector.

Photo Credit: BELTRAIDE

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HEALTH AND WELLNESS

TRADE IN SERVICES

S&W SPA AND WELLNESS The International Spa Association (ISPA) defines Spas as “places devoted to overall well-being through a variety of professional services that encourage the renewal of mind, body and spirit”.

The Spa and Wellness (S&W) sector refers to a

According to the S&W Regional Sector Strategy

specific subset of activities within the wider

2014-2018, the estimated global market size of the

health sector which includes: (1) Non-surgical

health and wellness industry is said to be nearly

cosmetic procedures; (2) Manufacture and

USD $2 trillion, with contribution from the following

distribution of cosmetic products; (3)

sub-sectors:

Manufacture and distribution of healthpromoting products; and (4) Health-promoting

o Beauty and Anti-Aging - USD $679B

procedures and treatment conducted in Day

o Fitness and Mind-Body - USD $390B

and Resort Spas.

o Healthy Eating/Nutrition/Weight Loss - USD $277B

The S&W sector has an important link to

o Preventative/Personalized Health - USD $243B

medical tourism, as highlighted in the 2012

o Complementary and Alternative Medicine - USD

Belize Medical Tourism Strategy. Medical spas

$113B

offer invasive and non-invasive aesthetic

o Wellness Tourism - USD $106B

procedures under the supervision of a licensed

o Spa - USD $60B

health care professionals in areas such as

o Medical Tourism - USD $50B

chemical peels, laser hair removal, varicose

o Workplace Wellness - USD $31B

vein removal, and collagen replacement therapy, among others in a spa-like setting;

Canada, Europe and the USA are the main

while day spas typically offer traditional non-

international consumer markets for Spa and

invasive beauty treatments such as facials,

Wellness (S&W) tourism, with the leading

body massages, reflexology, aromatherapy

destinations being Thailand, Germany, France and

and others which is already happening in

the USA.

Belize.

In the Caribbean, the S&W services sector is in its embryonic stage with vast potential for rapid growth. Between January and June of 2017, the Central Bank of Belize recorded a services net trade balance of BZ$374.2m; inflows totaled BZ$576.9m and outflows of BZ$201.7m. The Travel sector recorded a net balance of BZ$403.5m stemming from inflows of BZ$448.1m and outflows of BZ$44.7m.

The travel industry is benefiting from the global Health and Wellness (H&W) phenomenon. Health and Wellness programs respond to growing consumer demands for: healthy lifestyle and fitness education; nutrition counselling;

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preventative and healing medicine; relieving stress or depression; and, for alternative approaches such as natural and eastern medicinal practices/therapies.

Caribbean governments have recognized that developing specialized tourism markets could contribute to diversifying their economies. The European Union under the 10th European Development Fund (EDF) provided funding for the Regional Private Sector Development Programme for the S&W sector, one of the priority areas for export development.

Initial funding for the sector became available

CARIFORUM countries generally offer: hydrotherapy; facials; massage; sauna; jacuzzi; manicure; pedicure; nails; waxing; dietary; and specialized treatments at selected spa resorts.

when the Caribbean Export Development Agency (CEDA) signed an agreement with the Caribbean

[2] generally offer a limited

Development Bank (CDB), the administrator for the

CARIFORUM countries

Caribbean Aid for Trade and the Regional

range of spa treatments. These typically centre

Integration Trust Fund (CARTFund)

around: hydrotherapy; facials; massage; sauna;

major components of the Project were: (a) Market

jacuzzi; manicure; pedicure; nails; waxing; dietary;

Research and Strategy Development; (b)

and specialized treatments at selected spa resorts.

Marketing and Promotion and (c) Standards

Expansion is anticipated.

[1]. The three

Development. This project in its first phase developed a Caribbean brand for the S&W

In 2014, the Belize Coalition of Service Providers

Sector.

(BCSP) received funding administered by the Caribbean Development Bank (CDB) to engage

[3] to train

Then in 2014, CEDA prepared a Caribbean Spa

ITEC Certified Therapist/Consultant

and Wellness Sector Strategy 2014-2018 which

and provide international certification to the first

outlined five strategic pillars for action to realize

five participants of the Belize Spa & Wellness

the Caribbean’s vision as a global leader in Spa

Association (BS&WA). Each participant received

and Wellness industries. These five strategic pillars

accreditation after travelling to Barbados for their

are: Policy and Regulatory Framework;

final exam which they successfully completed and

Organization Development & Strengthening;

were issued ITEC certifications.

Marketing; Product and Services Development and Capacity Building; Resource Mobilization. This sector is expected to continue to benefit from funding under the 11th EDF.

[1] CARTFund is a Trust Fund, financed by the United Kingdom Government’s Department for International Development (DFID).

[2] Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and Suriname and Dominican Republic.

{3} ITEC is a leading international specialist examination board, providing quality qualifications in Beauty & Spa Therapy, Hairdressing, Complementary Therapies, Sports & Fitness Training and Customer Service available at https://www.itecworld.co.uk/ . Accessed on 19th June, 2018

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INTELLECTUAL PROPERTY IDEAS MATTER The Trade Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which came into effect on 1 January 1995, is to date the most comprehensive World Trade Organization multilateral agreement on intellectual property.

Intellectual property (IP) refers to creations of the mind. It covers copyright and related rights (i.e. the rights of performers, producers of sound recordings and broadcasting organizations or any creators of literary and artistic works); trademarks including distinguishing service marks, geographical indications including appellations of origin,

Belize deposited its instrument of acceptance for the 2005 protocol amending the WTO's TRIPS Agreement on 15 September 2016.

This Agreement enables developing and leastdeveloped countries (LDCs) to access much

industrial designs, that is, ornamental or aesthetic

needed medicine on a more affordable basis.

qualities of a product; patents including the

The protocol is intended to formalize a decision

protection of new varieties of plants, the layout-

to give poorer WTO Members access to

designs of integrated circuits, and undisclosed information including trade secrets and test data.

The three main features of the Agreement are: standards; enforcement and dispute settlement.

affordable medicines. The protocol also allows exporting countries to grant compulsory licences to their generic suppliers to manufacture and export medicines to countries that cannot manufacture the needed

WTO Members are left free to determine the

medicines themselves. These licences were

appropriate method of implementing the provisions

originally limited to predominantly supplying the

of the Agreement within their own legal system

domestic market [1]

.

and practice.

[1] WTO online information. Viewed at: https://www.wto.org/english/news_e/news16_e/trip_15sep16_e .htm [18/01/2017]. www.belipo.bz/e_library.html

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INTELLECTUAL PROPERTY

TRADE IN SERVICES

The Caribbean Basin Initiative (CBI) of the United States (US) is given effect through several US laws [2], one of which is the Caribbean Basin Trade Partnership Act (CBTPA).

Seven CARICOM States are currently beneficiaries under CBTPA [3].

The CBTPA expires on 30 September 2020.

Eligibility for beneficiary treatment under the CBI is contingent on whether the beneficiary State is in compliance with required criteria. Enforcement of intellectual property rights, with special reference to broadcast licensing and copyright, is essential to enjoy the Belize Intellectual Property Office (BELIPO) is the national agency responsible for the protection of

benefits of the CBTPA. Belize has prioritized the implementation of a

copyrights, industrial designs, patents,

national cultural policy, focusing on the

trademarks, new plant varieties, and layout

audiovisual, music, entertainment, and the arts

designs (topographies) of integrated circuits.

and craft industry, all heavily reliant on an

Belize’s intellectual property legislation became

effective Intellectual Property Rights regime.

WTO/TRIPS compliant in June 2000. Details of applications, renewals, assignments and mergers for trademarks, patents, and industrial designs are published in BELIPO's Intellectual Property Journal (http://www.belipo.bz/ip-journal/).

Intellectual Property rights are linked closely with trade.

[2] The Caribbean Basin Economic Recovery Act (CBERA) that brought the CBI into effect in 1983, the Caribbean Basin Trade Partnership Act (CBTPA) that expanded it in 2000, the Trade Act of 2002, the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE Act), the HOPE II Act of 2008, and the Haitian Economic Lift Program Act of 2010 (HELP Act)

[3] Barbados, Belize, Guyana, Haiti, Jamaica, St. Lucia, and Trinidad and Tobago

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In October 2017, WIPO in partnership with

The NIPS strategy will guide the national action plan

BELIPO, University of Belize and

for implementation with a focus on copyright,

the Citrus Research and Education institute

broadcasting licensing and updating of legislation

organized a workshop on intellectual property and innovation. The objectives of the workshop were to (i) bring awareness to the relevant stakeholders on the development of the intellectual property framework in Belize;

among others. IPR legislation in Belize contains provisions for enforcement, civil procedures and criminal procedures. Remedies available in civil procedures include the seizure and destruction of

(ii) create partnerships and (iii) evoke mindset

the infringing products and the equipment used to

changes towards commercializing intellectual

manufacture them, as well as payment of

property and innovation in order to develop

damages. Remedies in criminal procedures include

the export potential in the agro-industry; to

fines and imprisonment.

use distinctive signs as a tool for competitive advantage in business strategies of small and medium-sized enterprises (SMES); and to promote plant variety protection as a business.

In December 2017, BELTRAIDE facilitated a consultancy for the development of a case study on ‘Marie Sharp’ on the importance of the protection of a business intellectual property commissioned by

Furthermore, the National IP Strategy (NIPS)

the Caribbean Export Development Agency

was developed in 2016 with support from

2017. The objective was to highlight the importance

WIPO and currently awaiting endorsement by

of IP and its relevance to the private sector. In the

the Attorney General’s Ministry for

Caribbean Region, use of IPRs by businesses for

implementation. The NIPS will assist greatly towards achieving economic growth and development through the creation of an eco-

competitive advantages has been low despite ratification of many of the key international treaties.

system supporting the protection, income potential, and enforcement of intellectual property assets. Specifically, the NIPS will assist to (i) strengthen partnership and increase country involvement in WIPO activities; (ii) strengthen partnerships with relevant entities to increase information sharing and access; (iii) develop sectorspecific IP action plans with stakeholders; and (iv) pursue full automation of search, application and payment processes.

Photo Credit: BELTRAIDE

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Other departments have also been promoting the importance of IP. The Belize Customs and Excise Department hosted a regional workshop on IP rights and border management in November, 2017. The workshop focused on combating piracy, counterfeiting and general infringement of IP rights.

Using a collaborative approach, Government of Belize (Ministries of Culture, Trade, Solicitor General’s Office and other stakeholders) has established a Cultural Working Group and an IP Task Force working with key partners to review on and initiate a mechanism to address enforcement issues. Work continues into 2018 for the development of a comprehensive communication and public awareness agenda and strategy for copyright and building respect for IP. Intellectual Property is at the heart of trade with the potential

BREAKDOWN OF INTELLECTUAL PROTECTION AND RELATED LEGISLATION

to exponentially propel industries forward.

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Photo Credit: Peter Rakossy

MUSIC

in Belize

To ensure Member States comparability and

One of the services sectors of growing interest

consistency in commitments undertaken at the

for the Belizean economy is entertainment, in

World Trade Organization (WTO), in July 1991, the

particular music, which is classified under

WTO Secretariat compiled a services sectoral

Recreational, Cultural and Sporting Services of

classification list (W/120). This is a comprehensive

the W/120 list and the CPC. Belizean musicians

list of services sectors and sub-sectors covered

participate in trade when they provide music

under the General Agreement on Trade in

online, when tourists attend live performances in

Services.[1] The 160 sub-sectors are less detailed

Belize, when they establish a music business in a

than the categories contained in the United

foreign market, and when artists travel abroad to

Nations Provisional Central Product Classification

perform.

(CPC). One of the services sectors of growing interest for the Belizean economy is

[1] World Trade Organization W/120 sectoral classification: Business

entertainment, in particular music, which is

Services; Distribution services; Educational Services; Environmental

classified under Recreational, Cultural and Sporting Services of the W/120 list and the CPC.

Services; Communication Services; Construction and related Engineering Services; Financial services; Health related and Social services; Tourism and Travel Related Services; Recreational, Cultural and Sporting Services; Transport Services; other services not included elsewhere.

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*Japan, Australia, Norway and Russia

MUSIC

Rest* 15%

TRADE IN SERVICES

Top Importers of Personal, Cultural, and Recreational

Qatar 5%

Services 2016

Source: International Trade Services: World Trade Organization

USA 5% Canada 5%

Chart 1

European 70%

The primary consumers of cultural services and potentially key export markets for Belizean musicians are the European Union (EU), Canada and the United States (US).

The EU is not only a consumer but also a large exporter of cultural services, followed

by Asia as shown in Chart 1 and Table I.

Market entry regulatory requirements for the music industry is low compared to other services industries. The music industry market requirements vary based on the provision of service online, when opening an office overseas, or providing services temporarily abroad. As the music industry expands, other non-traditional markets like Asia, the Pacific and South America become viable new destinations for exporting music from Belize and open the door for more opportunities for musicians and artists globally.

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MUSIC

TRADE IN SERVICES

Table I: Top Exporters of Personal, Cultural and Recreational Services

Top Exporters

OF PERSONAL, CULTURAL AND RECREATIONAL SERVICES TABLE 1:

Source:Â World Trade Organization: Completed from Time Series on International Trade database.

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MUSIC

THE MUSIC INDUSTRY IN BELIZE PROVIDES MULTIPLE INCOME SOURCES WITH IMPORTANT LINKS IN THE MANUFACTURING, ICT, AND TOURISM SECTORS.

TRADE IN SERVICES

In 2016, with the collaboration of Caribbean Network of Service Coalitions (CNSC) and Caribbean Export Development Agency (CEDA), EU funding was utilized under the 10th European Development Fund (EDF) for product development of 50 Belizean musicians and industry stakeholders who participated in the New Orleans Jazz and Heritage Festival where Belize was the featured country. Also, EXPORT Belize BELTRAIDE offered support by assisting with the development of

In July 2015, a report entitled

Electronic Press Kits for some of these musicians.

‘Development of a Regional Export Strategy for the Creative Industries

Nationally, initiatives are underway to build the

Services - Value Chain Analysis Report

industry. In March 2015, the National Institute of

highlighted the fact that CARIFORUM

Culture and History (NICH) through the Institute of

artists are more involved in live music as

Creative Arts (ICA) embarked on a new project

compared to recorded music. Most are

entitled “Belize Music and Entertainment Industry

involved in the creation stage. This is

Development Initiative.” The aim of the project is

followed by activities in the production

to raise the profile and level of awareness of

and distribution stages as well as in the

Belizean music and entertainment; set standards

value chain support activities such as

and address challenges faced by industry

booking, promotion and merchandizing.

practitioners; and to increase the participation by Belizeans in the regional and global markets.

CARIFORUM countries [1] are ideally suited for the development and staging

In the Developing a Sustainable Export-Focused

of festivals and similar events, due to

Strategy for the Music Industry in the Caribbean

their diverse musical genres and its

2014, one of the key strategic directions and

draw as a major tourist attraction. The

interventions recommended, is to build the industry

Caribbean Festival of Creative Arts

regionally, and put in place systems to protect the

(CARIFESTA), a forum for artists,

intellectual property rights of musicians and

performers and audiences across a

performers, which is essential to stimulate growth

range of disciplines, is a major tool

and investment.

used to promote the regional creative arts industry on an annual basis.

[1] Antigua and Barbuda, Bahamas, Barbados, Belize,

Both regions recognized the importance and value of developing the cultural sector and negotiated provisions on cultural cooperation to facilitate cultural exchange of goods and services.

Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago, Suriname and the Dominican Republic.

[2] Encalada, N, and J Morris. Belize National Culture Policy 2016-2026. The Government of Belize, April 2016.

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The Belize Society of Composers, Authors and Publishers (BSCAP) has been at the forefront of this campaign. It is a nonprofit, non-governmental, collective management organization, which ensures its members (songwriters, publishers, performers and producers) are compensated for their creative talents.

The importance of music in the economic and social framework of Belize’s development has taken on much national significance. In 2015, the General Sales Tax Department of Belize collected BZ$1,328,724m in taxes from live performances and in 2016 BZ$732,939m. To further highlight the importance of this sector, music week has been a key feature of the industry since April 2005 when the first annual music week was launched by the National Institute of Culture and History in partnership with the Music Industry Association of Belize (MIAB). Since 2016, NICH has partnered with the Office of the Music Ambassador to underscore the importance of music to Belize’s development and educate the general public on the disservice to artists whose intellectual property rights are continuously violated.

In August, 2017, through the assistance of BELTRAIDE and NICH, a delegation of Belizean music performers: Denise Castillo and Cocono Bwai and dancers from the Belize Dance Company participated in Expo Astana 2017 in Kazakhstan. Also, this year, with support from NICH, members from the Verge of Umbra Band were able to participate in the Wacken Music Festival in Germany.

To further assist this industry, an initiative spearheaded

by EXPORT Belize, BELTRAIDE in partnership with BCSP, NICH, MIAB and the Office of the Music Ambassador, is the development of an online artist platform that will promote Belizean music nationally, regionally and internationally. In 2017, EXPORT Belize BELTRAIDE developed Press Kits for the following musicians: Ernestine Carballo, Denise Castillo, Cocono Bwai, Larubeya Band, Sam Harris and the World Culture Band, and C-Wills.

The value and contribution of Belize music industry to the economy cannot be underestimated. With the support of local and other key players in the international community, the music industry will very soon become a lucrative industry for aspiring artists.

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ICT

INFORMATION AND COMMUNICATION TECHNOLOGY As e-commerce expands, countries need to explore how to create an enabling trade policy environment, enhance transparency and information exchange as well as improve the einfrastructure for cross-border e-commerce. In 2017, business to customer e-commerce sale transactions totaled US $2.4 trillion; and business to business e-commerce sale transactions surpasses business to customer sale transactions.[1] The World Trade Organization (WTO), which facilitates a regulatory and competitive trade environment, defines electronic commerce (ecommerce) as the production, distribution, marketing, sale or delivery of goods and services by electronic means.[2] On the 25th September 1998, the WTO adopted a work programme on ecommerce which was reaffirmed by subsequent Ministerial Declarations and Decisions. The work programme of the WTO General Council will cover trade-related issues that arise from global ecommerce in the areas of economic, financial and development needs of developing countries. The critical importance of this sector has led members to continue the practice of not imposing customs duties on electronic transmissions.[3] Â [1] Global B2C Ecommerce Sales to Hit $1.5 Trillion This Year Driven by Growth in Emerging Markets https://www.emarketer.com/Article/Global-B2C-Ecommerce-Sales-Hit-15-Trillion-This-Year-Driven-by-Growth-Emerging-Markets/1010575 [2] World Trade Organization document WT/L/274, 30 September 1998; [3]Â World Trade Organization https://www.wto.org/english/tratop_e/dda_e/status_e/ecom_e.htm

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INFORMATION AND COMMUNICATION TECHNOLOGY

ICT SERVICES RANK AS THE SECOND HIGHEST REVENUE GENERATING SECTOR, AFTER TRAVEL SERVICES, WITH A TRADE SURPLUS OF BZ $20.4M WITH INFLOWS AT BZ$28.7M AND OUTFLOWS AT BZ$7.5M.

TRADE IN SERVICES

Travel, communication, computer and information services, other business services, and government services represent the top four revenue generating services. Noteworthy, is that communication, computer and information services rank as the second highest revenue generating sector, after travel services with a trade surplus of BZ $20.4m with inflows at BZ$28.7m and outflows at BZ$7.5m. To benefit from regional and international initiatives, the ICT sector organized itself with the help of the Belize Coalition of Service Providers (BCSP) and formed the Belize Association of ICT Professionals (BAICTP) which was incorporated in September of 2014.

E-Commerce contributes to economic growth through access to information and cost reductions for consumers and government entities and can be used to deliver an array of services; one of particular importance for Belize is electronic government (e-government). The National E-Government Policy will guide the

The Caribbean has seen the importance of

development of a comprehensive e-government

ICT and has prioritized it as a rapidly

ecosystem for Belize. [5] The Central Information

expanding sector. For instance, Caribbean

Technology Office (CITO) embarked on several

Export, a regional trade development and

initiatives to develop foundational systems for e-

export promotion agency, has identified ICT

government and e-governance implementation

training for firm-level capacity-building

which include the development of a National

initiatives to be pursued under the 11th

Citizen Registry (NCR) and Identification System,

European Development Fund (EDF), Regional

Government Payment Gateway, Data Exchange

Private Sector Development Programme

Platform and a one-stop portal for over 150

(RPSDP). The training will assist owners,

government services. The pillars of the citizen-

managers and operators of Micro, Small and

centric digital transformation will be threefold: (1)

Medium Enterprises (MSMEs) to improve their

the NCR and Identification System will create a

ability to make strategic and operational

single data source for all citizen data which will

decisions which allow them to take greater

be interconnected to all the agencies that

advantage of e-commerce and ICT in order

manage citizen data throughout the individual’s

to improve their competitiveness and

life cycle; (ii) the new Government Payment

productivity. A CARICOM Regional Digital

Gateway, built upon the Central Bank’s

Development Strategy 2016 supports cross-

Automated Payment System will provide for real-

sectoral linkages among Member States [4]

time seamless automated payment for

and a CARICOM led regional e-commerce

Government Services, online or in person;

policy is currently under development financed under the 10th EDF.

[5] National E-Government Policy 2015-2018 Central InformationTechnology Office available at http://cito.gov.bz/egovernment/. Accessed on the 19th June 2018.

Between January and June, 2017, the Central Bank of Belize recorded a services trade balance of BZ$374.2m with inflows at BZ$575.9m and outflows at BZ$201.7m

[4] "A Five-Year Regional Information and Communication Technology (ICT) For Development Strategy", 2010. Available at http://www.caribbeanelections.com/eDocs/strategy/caricom_strateg y/CARICOM_Regional_ICT_Strategy.pdf. Accessed on 19th June, 2018.

20

INFORMATION AND COMMUNICATION TECHNOLOGY

TRADE IN SERVICES

(iii) the Digital Exchange Platform (DXP) will

Developments in e-commerce in the areas

automatically allow for interconnection among

of infrastructure such as the increase in

government agencies databases allowing for

broadband speed and better mobile

continuous data sharing.

services to new developments in business models that use the cloud for storage,

Several initiatives are ongoing to further the

processing and delivery of data; manage

development of e-government. In July 2016, the

and interpret large volume of data using

Government of Belize and the Ambassador of

the Big Data Analytics, connect physical

the Republic of China (Taiwan) signed a

objects that will collect and exchange

Memorandum of Understanding for the e-

information [6] and print 3D physical

government initiative “Belize Motor Vehicle

objects will transform the way

Registration and License System” (BMVRALS)

government, citizens and business entities

valued at US$2.8m. This 4 year-project will

do business.

create a uniform, efficient and cohesive process for acquiring a driver’s licence or vehicle registration which will be completed by 2019.

Additionally, The Belize Electronic Licenses and Permits System Project (BELAPS) was launched in April 2016. It is an online application process for licenses and permits for the Fisheries and Forestry Department. By early 2018, all other government agencies requiring licenses and permits will be connected to the system to ensure seamless implementation.

Other services programmed for automation this year include the Police and Immigration Departments application and scheduling process. The Police Department is also working to develop an online application system for citizens to apply for their police/criminal record; and the Immigration and Nationality Department application and scheduling systems will very shortly be available online.

It is envisaged that digital government interconnectivity as well as nationwide digital citizen connectivity will create more efficient, cost-saving, accountable, secure, accurate and transparent service delivery to the public.

Online government services will be delivered through various channels, including PC, mobile,

[6] Internet of things is the network of physical objects or "things" embedded with electronics, software, sensors, and network connectivity, which enables these objects to collect and exchange data.

kiosks, and assisted kiosks in convenient locations throughout Belize.

21

Photo Credit: Julie Kee

REAL ESTATE INDUSTRY IN BELIZE

REAL ESTATE INDUSTRY

Photo credit: Julie Kee

IN BELIZE

Real Estate is property in buildings and land. The global state/dynamics in real estate have been predominantly sharped and driven by specific markets in China and the United States. Seventy percent of global commercial and residential property value is found in the top ten countries, which accounts for US$141.5 trillion of the approximately US$200 trillion in value. Together, China and the United States account for 42% of global commercial and residential value, with China’s real estate market assets valuing US $42.7 trillion ahead of the United States (US) at US $42.1 trillion. The remaining top eight countries, Japan, the UK, India, Germany, France, Brazil, Italy and Russia, account for 28% of the global commercial and residential real estate asset total.[3] The London-based real estate advisor, company Savills PLC [1], has tallied up the value of all global property, which includes commercial and residential property as well as forestry and agricultural land. The total value was estimated at US$217 trillion, with residential property accounting for 75% of the total value. Yolande Barnes, head of Savills world research, comments: “To give this figure context, the total value of all the gold ever mined is approximately US$6 trillion, which pales in comparison to the total value of developed property by a factor of 36 to 1.”[2]

[1] Savills plc is a global real estate services provider listed on the London Stock Exchange. Available at http://www.savills.com/_news/article/105347/198559-0/1/2016/world-real-estate-accounts-for-60--of-all-mainstream-assets.

Accessed on 19th June, 2018.

[2] Savills, "World real estate accounts for 60% of all mainstream assets." Available at http://www.savills.com/_news/article/105347/198559-0/1/2016/world-real-estate-accounts-for-60--of-all-mainstream-assets.

Accessed on the 19th June, 2018.

[3] Savills, "The 10 most valuable real estate markets in the world". Available at http://www.savills.com/blog/article/219340/international-property/the-10-most-valuable-real-estate-markets-in-the-world.aspx.

Accessed at on 19th June, 2018.

22

REAL ESTATE

“TO GIVE THIS FIGURE CONTEXT, THE TOTAL VALUE OF ALL THE GOLD EVER MINED IS APPROXIMATELY US$6 TRILLION, WHICH PALES IN COMPARISON TO THE TOTAL VALUE OF DEVELOPED PROPERTY BY A FACTOR OF 36 TO 1.”

TRADE IN SERVICES

To develop a collective voice, the Association of Real Estate Brokers of Belize (AREBB) was established in 2006. The association is made up of real estate brokers and agents, bankers, lawyers, developers, architects, and other relevant professionals. The objective of the Association is to create sustainable real estate businesses in Belize and raise the standards of the business in Belize. The

Domestically, the real estate industry has

Association started with 25 members and has

also been a key sector for the Belizean

now grown to 85 members. The real estate

economy, being a major earner of foreign

industry is estimated to generate on average

direct investment (FDI) and a driving force

between BZ $200 million to BZ $250 million a

in construction and development across

year with an estimated 150 to 200 practicing

Belize. During the early 1990s, land sales

real estate agents and brokers. The

soared in Belize with purchases from

Association’s membership has been able to

Taiwanese buyers. This did not displace the

grow due to the following: lobbying efforts

purchasing power of American buyers, who

with the Government of Belize with the

have always been involved in Belize’s real

assistance of the Belize Coalition of Service

estate. By the mid-1990s, US buyers were

Providers (BCSP), educating members on the

the largest group of foreign investors

regulatory environment, networking with top

purchasing land, homes, and eventually

national and international companies, and

condos on Ambergris Caye. By the late

now accessing training, certification and

1990’s, the sale of condos started taking off

other resources for professionals in the

with new development plans on Northern

industry. The next step is getting the long

Ambergris Caye. Island sales continued to

awaited Real Estate Bill enacted, allowing for

increase up to 2005, but by 2007 overall

licensing and a commission governing real

sales began declining and sunk to lows

estate practitioners in Belize.

seen in the early nineties. By 2010, sales began rising again as Belize’s real estate

In 2008, AREBB signed a cooperation

rebounded relatively quickly in tandem with

agreement with the National Association of

the stabilization of the US economy. One

Realtors (NAR) - the real estate association in

factor that kept the industry afloat during

the United States and the largest of its kind in

the recession of 2008-2009 was the ability

the world. This cooperation agreement, which

of the Canadian economy to weather the

was renewed in February 2018, will allow for

recession and attain a higher value for its

more opportunities for members of AREBB,

currency. Canadian buyers became the

training and advice on regulatory matters.

largest market and source of FDI during

From the 14th -19th May 2018, the President of

that low period of 2008 - 2010, keeping

the Real Estate Association will attend the

local projects and sales afloat. The

REALTORS Legislative & Trade Expo meeting

Canadian market has remained strong and

in Washington D.C. This meeting is an

is growing with newly established direct

opportunity to reconnect and meet other

flights from Canada to Belize. New buyers

leaders in the industry and share global

and investors from Mexico and Central

perspectives. Houston has recently been

America have also been investing in

nominated as Belize’s sister city which will

Belize’s real estate over the last few years

work closely with AREBB in Belize to further

and growing.

provide technical assistance.

23

REAL ESTATE

TRADE IN SERVICES

AREBB is actively involved with the Government of

Currently, the lands department assesses

Belize in the development of the Real Estate Bill,

the sale of property to ensure that the

with the last review cycle coming as recent as

buyer is stating a fair market value for the

2016. The association is actively pursuing the

property. An objective process is vital to

enactment of this bill as it will provide for a

justify an increase in the market value, and

regulatory body; strengthen partnerships between

a fair appeals process, when additional

the department of Immigration and Labour to

stamp duty is required.

determine eligibility of persons operating real estate businesses in Belize, and develop

Other policy issues include the sale of land

mechanisms to better work with legislative bodies

between residents and non-residents.

and policy makers in creating and fostering better

Since November, 2016, the lands

systems allowing for better revenue streams in the

department has been requiring Central

country and also penalize malpractice.

Bank’s approval for the sale of property between residents and non-residents. The

The industry had some success over the years and

Exchange Control Regulations, Revised

national policies have influenced its growth. In

Edition 2003 [4], stipulates that Central

2006, the membership was instrumental in

Bank’s permission must be obtained where

negotiating the lowering of stamp duty on the

a non-resident is involved in any

transfer of land from 15% to 5%. Government went

transaction relating to the transfer by way

further and only charged 5% on the value of the

of sale, exchange, gift or mortgage of any

land above BZ $20,000. This had a positive effect

land, buildings or other hereditaments

on the sale of land with rapid growth seen across

situated in Belize.

the country and new destinations such as Placencia began to flourish. In June 2017, the

More collaboration is needed between the

House of Representatives introduced a bill to

industry and Government to address

increase the stamp duty transfer tax from 5% to

bottlenecks in the system. Real Estate plays

8% on all foreign purchased properties in Belize,

a pivotal role in the global economy which

with an exemption on the first BZ$20,000. The

is impacted by global monetary conditions

impact of this increase in stamp duty has not yet

and investment activity. With Belize’s

been fully been assessed, but the industry

history, location, and all its natural assets

continues to lobby with the Government to

and growing international fame, future

improve the regulatory environment for the real

growth is on the horizon. Working as a

estate industry.

team with a truly collaborative approach can meet many needs and requirements for

The Real Estate association continues to work with

all sides, private and public sector, while

government on policy issues, in particular, the

fostering a healthy investment climate.

current policy of assessing transfers of property for additional stamp duty. Of particular importance is implementing an objective criterion at the lands department for assessing the value of land that

[4] Central Bank of Belize Exchange Control Regulation 2003 Section 40 (1).

will make the transfer of titles a more timely and efficient process.

24

A series of articles produced in 2017 which reflects progress made in the Belize Services Sector. July, 2018

TRADE IN SERVICES

MINISTRY OF ECONOMIC DEVELOPMENT, PETROLEUM, INVESTMENT, TRADE AND COMMERCE 3RD FLOOR, GARDEN CITY BUILDING 3894 MOUNTAIN VIEW BOULEVARD WATER RESERVOIR AREA BELMOPAN, BELIZE C.A TEL: (501) 822-3263/2832/2833 FAX: (501) 822-2837 EMAIL: FOREIGNTRADE@BTL.NET WEBSITE: WWW.DGFT.GOV.BZ WEBSITE: WWW.BCSP.ORG.BZ