Guatemala congress approves Partial Scope Agreement with Belize
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| Published on Tuesday, October 20, 2009 | Email To Friend Print Version
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BELMOPAN, Belize -- The government of Belize has welcomed the news over the weekend that the Guatemala Congress has approved the Partial Scope Agreement (PSA) that was signed between Belize and Guatemala on 26 June 2006.
The Belize government said in a press release, that this is an important development for bilateral relations between Belize and Guatemala and especially for the productive and commercial sectors of the two countries, which will have new doors opened to them to stimulate private enterprise. The Ministry of Foreign Affairs and Foreign Trade encouraged Belizean entrepreneurs to familiarize themselves with the contents of the Belize-Guatemala PSA so that they can take advantage of opportunities that become available.
The full content of the Agreement can the found on the government of Belize website: www.belizegov.bz.
The government of Belize said it will continue working with the government of Guatemala to ensure the full implementation of this agreement.
On November 22, 2004, Belize and Guatemala launched negotiations for a PSA with the objective of enhancing trade and commercial linkages to the benefit of both countries. This was the first bilateral trade agreement negotiated by Belize. Negotiations were completed in August of 2005, signed on 26 June 2006 and Belize obtained CARICOM’s approval of the Agreement that same year so that it does not in anyway conflict with Belize’s obligations under the CARICOM Single Market and Economy (CSME).
The PSA is expected to provide new and preferential market access for Belize’s productive sector. Earlier estimates of the gains from such a trading relationship with Guatemala had formal annual exports increasing in the range of BZ$5 – BZ$14 million by year five of implementation of the Agreement. The main products benefiting from the agreement are: citrus, tilapia, cattle, yellow corn, black beans, red beans, poultry and pepper sauce and this market is expected to offer premium prices relative to world prices.
Another area for potential benefit arising from this agreement is in the area of investment. As a small country Belize is structurally constrained when it comes to achieving economies of scale. Therefore, with the protection of investment guaranteed, Belizean investors can do their processing and value-added in Guatemala and qualify for preferential treatment into Central America. In turn, Guatemalan investors can through joint ventures or otherwise, operate in Belize and tap into the preferential markets of CARICOM and the EU.
The Ministry of Foreign Affairs and Foreign Trade said is very pleased with this latest development and urged the private sector, in particular, the productive sector to note this important development. | | | | Reads : 1044 | | | |
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