VZCZCXYZ0000
RR RUEHWEB

DE RUEHBE #0650/01 3062042
ZNR UUUUU ZZH
R 022042Z NOV 07
FM AMEMBASSY BELMOPAN
TO SECSTATE WASHDC 0895

UNCLAS BELMOPAN 000650 
 
SIPDIS 
 
SIPDIS 
 
 
FOR WHA/CEN//ROIS BEAL 
PASS USTR FOR KENT SHIGETOMI 
E.O. 12958: N/A 
TAGS: PGOV ECON BH
SUBJECT: BELIZE INPUT TO CARIBBEAN BASIN RECOVERY ACT REPORT 
 
REF:  STATE 143212 
 
Following is the text requested by REFTEL. 
 
Belize 
 
Population: 311,480 
 
Per Capita GDP:  $4,070 
Source:  Statistical Institute of Belize 
 
Economic Review:  Belize's 2007 economic growth rate is projected to 
be 4.4 percent, with inflation at 5.1 percent.  The most significant 
economic issues currently facing Belize are: (1) foreign debt in 
excess of 100 percent of GDP, (2) pressures on the official exchange 
rate of 2 BZD to 1 USD, leading to shortages of U.S. dollars at the 
official rate, (3) the deteriorating balance of payments, and (4) 
growing public perception of the extent of political corruption and 
government mismanagement of public funds.  Several of these problems 
are attributable to heavy government spending that has continued in 
the run-up to general elections scheduled for 2008.  The spending 
has led to ballooning foreign debt and a widening trade deficit. 
 
Foreign Trade: 
Trade in Goods with U.S: 2006 
NOTE: All figures are in U.S. dollars. 
Source:  Statistical Institute of Belize 
 
Belize continues to rely heavily on foreign trade, with the United 
States as its number one trading partner.  Imports in 2006 totaled 
$255.39 million, while total exports were only $112.22 million. 
 
Commitment to WTO and FTAA:  Although Belize has been a WTO member 
since January 1, 1995, the country rarely participates in WTO 
deliberations.  Belize also faces difficulties in implementing WTO 
agreements effectively, due to limited staff in the government's 
lead trade negotiating agency.  Belize supports the FTAA and 
participates in other regional and international trade negotiations 
in close coordination with CARICOM's Regional Negotiating 
Machinery. 
 
Intellectual Property Laws:  Belize has enacted laws that provide 
for the protection of intellectual property rights consistent with 
the protection afforded under the TRIPS Agreement.  These IPR laws, 
all enacted in January 2001, include the Trade Marks Act, the 
Copyright Act, the Industrial Designs Act, the Patents Act, the 
Protection of Layout-Designs (Topographies) of Integrated Circuits 
Act, and the Protection of New Plant Varieties Act.  Along with the 
enactment of these measures, Belize acceded to the Paris Convention 
for the Protection of Industrial Property, the Berne Convention on 
Protection of Literary and Artistic Works and the Patent Copyright 
Treaty. 
 
Intellectual Property Infringement: 
Government-owned entities generally do not broadcast copyrighted 
material belonging to U.S. copyright-holders without consent. 
However, music and video stores in Belize continue to carry 
hand-copied CDs, DVDs, and tapes for sale or rent.  Local television 
stations and cable companies also continue to pirate American 
television networks and cable channels with impunity.  Local 
importers, particularly those operating in the commercial free zone 
in Northern Belize, continue to bring in counterfeit merchandise 
bearing U.S. trademarks.  To date there have been no successful 
prosecutions in the area of intellectual property protection. 
 
Provision of Internationally Recognized Worker Rights:  The 
Constitution of Belize provides for freedom of assembly and 
association.  The Trade Union and Employee's Organizations Act of 
2000 establishes procedures for the registration and status of trade 
unions and employers' organizations, promotes and protects the 
recognition of trade unions, and encourages orderly and effective 
collective bargaining. 
 
The Constitution of Belize prohibits slavery, and provides that no 
person shall be required to perform forced labor.  The Labor Act of 
Belize likewise states that "no person shall impose or permit the 
imposition of forced or compulsory labor as a (a) means of political 
coercion or as a punishment for holding or expressing political 
views or views ideologically opposed to the established political, 
social or economic system; (b) method of mobilizing and using labor 
for purposes of economic developments; (c) means of labor 
discipline; (d) punishment for having participated in strikes; and 
(e) means of racial, social, national or religious discrimination." 
 
Minimum wages are prescribed for three categories of workers, namely 
manual workers, shop assistants, and domestic workers.  Regarding 
work hours, the Labor Act of Belize also states that no worker shall 
be obliged to work more than 6 days in any week or for more than 9 
hours of actual work in any day, for 45 hours of actual work in any 
week.  The labor law of Belize also states that it is the duty of 
the employer to take reasonable care for the safety of his employees 
in the course of their employment.  Belize labor law further states 
that every employer who provides or arranges accommodation for 
workers to reside at or in the vicinity of a place of employment 
shall provide and maintain sufficient and hygienic housing 
accommodations, a sufficient supply of wholesome water, and 
sufficient and proper sanitary arrangements. 
 
Commitments to Eliminate the Worst Forms of Child Labor:  Belize has 
ratified International Labor Organization Conventions 29 (Forced 
Labor), 138 (Minimum Age), 105 (Abolition of Forced Labor), and 182 
(Abolition of the Worst Forms of Child Labor).  These Conventions 
are embedded in the Trade Unions and Employers' Organizations 
Registration, Recognition and Status Act of 2000.  Belize has also 
signed a Memorandum of Understanding with the ILO-IPEC.  In 2005, 
the Government of Belize began participating in a USDOL-funded 
regional project implemented by ILO-IPEC to combat the commercial 
sexual exploitation of children with some of the programming being 
implemented in 2007. 
 
The Labor Act of Belize is inconsistent in how it defines the 
minimum age of employment in Belize.  In some sections it is listed 
as 12 while in others it appears to be 14.  In one section the Act 
provides that "no child shall be employed so long as he is under the 
age of twelve years", while another provides that persons who have 
attained the age of 14 years but are under the age of 18 years may 
only be employed in an occupation that a labor officer has 
determined is "not injurious to the moral or physical development of 
non-adults," typically light work that is not harmful to life, 
health or education. 
 
Counter-Narcotics Cooperation:  The President has not identified 
Belize as a major drug transit or major illicit drug producing 
country under the provision of the FRAA.  In addition, the 
Government of Belize and the U.S. Government concluded a Stolen 
Vehicle Treaty, an Extradition Treaty, and a Mutual Legal Assistance 
Treaty, which were brought into force between 2001 and 2003. 
However, recent extradition requests and stolen car inquiries made 
to the government of Belize have been delayed or ignored. 
 
Implementation of the Inter-American Convention Against Corruption: 
Belize signed the IACAC at the Organization of American States 
General Assembly in San Jose, Costa Rica, on June 7, 2001.  Prior to 
this, Belize's first step to combat corruption in public life came 
with the enactment of the Prevention of Corruption in Public Life 
Act in 1994.  This act contains various provisions designed to 
reduce political corruption, including requirements for the public 
disclosure of the assets, income and liabilities of public 
officials, such as the Governor-General and members of the national 
assembly.  However, the penalties for noncompliance are so minimal 
that the rules are routinely ignored and to date there have been no 
enforcement actions to combat corruption.  The perception of 
corruption at high levels of the government continues to increase 
according to World Bank and Transparency International's corruption 
perception indices.  The government also appointed a parliamentary 
commissioner, known as the Ombudsman, to investigate administrative 
actions and allegations of official corruption and wrongdoing, but 
to date there have been no prosecutions for official corruption. 
 
Transparency in Government Procurement:  Standards ensuring 
transparent, nondiscriminatory and competitive procedures in 
government procurement are laid out in the Stores and Financial 
Orders under the Finance and Audit Act of the Laws of Belize. 
However, some questions exist regarding the extent to which certain 
government ministries, departments, and agencies adhere to these 
standards.  For instance, under the Orders, government purchases of 
over US$50,000 must be submitted for public bidding by both local 
and foreign companies, but it appears this is not done in many 
cases.  Bidders for tenders for externally-funded projects must 
comply with the procurement rules and regulations of the foreign 
funding organization.  The Contractor-General is perceived as 
ineffective in monitoring the award and implementation of public 
contracts or sale of public assets, as there have been several cases 
in which contracts have been awarded without apparent merit, and 
public assets have been sold under dubious circumstances. 
 
Several U.S. oil companies have complained about lack of 
transparency in the granting of oil contracts.  They complain that 
local Belizean companies are offered preferential terms.  The 
companies cite bribery and political handouts as reasons for the 
government's agreement to such terms. 
 
Nationalization/Expropriation:  Innovative Communication Cooperation 
(ICC) originally purchased Belize Telecommunications Limited (BTL) 
from the Government of Belize in April 2004.  In February 2005, the 
Government of Belize took control of BTL, alleging that ICC had 
failed after several extensions to make remaining payments for BTL 
shares.  ICC countered that the Government of Belize had failed to 
make certain regulatory changes as agreed.  Extensive litigation is 
ongoing. 
 
In addition, there have been several cases in which the government 
has exercised its right of eminent domain to expropriate property, 
including that of some foreign investors. 
 
Preferential Treatment - Developed Countries:  Belize does not 
afford preferential treatment to the products of a developed country 
other than the United States.  While Belize is a beneficiary of 
multilateral trade agreements that CARICOM has negotiated and signed 
on behalf of its member states, reciprocity of preferential 
treatment applies only to the five more developed countries within 
CARICOM, and not to Belize. 
 
Extradition:  Belize and the United States signed an extradition 
treaty in April 2000 and exchanged instruments of ratification in 
March 2001. 
 
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