Background Notes - Belize

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PROFILE

OFFICIAL NAME:
Belize

Geography
Area: 22,966 sq. km. (8,867 sq. mi.); slightly larger than Massachusetts.
Cities: Capital--Belmopan (2005 pop. est. 13,500) Other cities and towns--Belize City (60,800), Corozal (8,800), Orange Walk (15,300), San Ignacio & Santa Elena (16,800), Dangriga (10,800), Punta Gorda (5,000), and San Pedro (8,400).
Terrain: Flat and swampy coastline, low mountains in interior.
Climate: Subtropical (dry and wet seasons). Hot and humid. Rainfall ranges from 60 inches in the north to 200 inches in the south annually.

People
Nationality: Noun and adjective--Belizean(s).
Population (2006 est.): 299,766.
Annual growth rate (2006): 3.4%.
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. (2005 est.): Attendance--60%. Literacy--76.5%.
Health: (2003): Infant mortality rate--14.8/1,000. Life expectancy--67.4 years.
Work force (April 2006, 112,806): Services--60%. Agriculture, hunting, forestry, and fishing--22%. Industry and commerce--16%.

Government
Type: Parliamentary democracy
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). National Reform Party (NRP), Vision Inspired By the People (VIP), PeopleÌs National Party (PNP), We the People (WTP).
Suffrage: Universal adult.

Economy
GDP (2005): $1.79 billion.
Annual growth rate (2005): 5.1%; (2004): 9.2%.
Per capita income (2005): $3,650.
Avg. inflation rate (2006): 4.3%.
Natural resources: Arable land, timber, seafood, minerals.
Primary sectors (13.1% of GDP, 2005): Agriculture, forestry, fishing, and mining.
Secondary sectors (14.7% of GDP, 2005): Manufacturing, electricity and water supply, and construction.
Tertiary sectors (63.2% of GDP, 2005): Hotels and restaurants, financial intermediation, and transport and communication.
Trade: Exports (2005)--$212.83 million: cane sugar, clothing, citrus concentrate, lobster, fish, banana, and farmed shrimp. Major markets--U.S. (52.2%), U.K., CARICOM. Imports (2005)--$518.83 million: food, consumer goods, machinery, mineral fuels and lubricants. Major suppliers--U.S. (39%), Mexico, U.K.
Official 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=U.S. $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 population lives 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 48.7% of the population is of mixed Mayan and European descent (Mestizo); 24.9% are of African and Afro-European (Creole) ancestry; about 10.6% are Mayan; and about 6.1% are Afro-Amerindian (Garifuna). The remainder, about 9.7%, includes European, East Indian, Chinese, Middle Eastern, and North American groups.

English, the official language, is spoken by virtually all except the refugees who arrived during the past decade. 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 indigenous languages, and an English Creole dialect similar to the Creole dialects of the English-speaking Caribbean Islands is spoken by most. The rate of functional literacy is 76%. About 50% of the population is Roman Catholic; the Anglican Church and other Protestant Christian groups account for most of the remaining 50%. Mennonite settlers number about 8,500.

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 Christopher Columbus sailed along the coast. The first recorded European settlement was established by shipwrecked English seamen in 1638. Over the next 150 years, more English settlements were established. This period also was 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
Belize is a parliamentary democracy based 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.

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. The governor general appoints the SenateÌs 12 members. Six are appointed in accordance with the advice of the prime minister, 3 with the advice of the leader of the opposition. The Belize Council of Churches and the Evangelical Association of Churches, the Belize Chamber of Commerce and Industry and the Belize Business Bureau, and the National Trade Union Congress and the Civil Society Steering Committee each advise the Governor General on the appointment of one senator each. The Senate is headed by a president, who is a nonvoting member appointed by the governing party.

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. However, in 2001 Belize joined with most members of the Caribbean Common Market (CARICOM) to establish a "Caribbean Court of Justice," which was inaugurated on April 16, 2005. The country is divided into six districts: Corozal, Orange Walk, Belize, Cayo, Stann Creek, and Toledo.

POLITICAL CONDITIONS
Currently, the Belize Government is controlled by the People's United Party (PUP), which was elected to a second consecutive term in office on March 5, 2003. The PUP won 22 of the 29 seats in the House of Representatives, while the United Democratic Party (UDP) won the other seven seats. However, the PUP lost one seat in Parliament during a by-election held after the death of a minister in October 2003, but still maintains a comfortable majority. Dean Barrow is the leader of the opposition. The PUP has governed Belize from 1998 to the present; the UDP from 1993-98; the PUP from 1989-1993; and the UDP from 1984-89. Before 1984, the PUP had dominated the electoral scene for more than 30 years and was the party in power when Belize became independent in 1981.

The government continues to implement an economic adjustment program, with the aim of (1) increasing revenues, (2) decreasing public sector expenditures, (3) narrowing the fiscal deficit to 1% of GDP, (4) improving the balance of payments, and (5) increasing the countryÌs foreign reserves. BelizeÌs outstanding public debt at the end of 2006 was U.S. $1.10 billion, an amount that is equivalent to approximately 100% of GDP. However, on January 31, 2007 the Government of Belize officially announced that the holders of BelizeÌs public external commercial indebtedness have agreed to exchange their existing claims against the country for new bonds to be issued by Belize maturing in 2029. Belize traditionally maintains 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. A longstanding territorial dispute with Guatemala continues, although cooperation between the two countries has increased in recent years across a wide spectrum of common interests, including trade and environment. Seeing itself as a bridge, Belize is actively involved with the Caribbean nations of CARICOM, and also has taken steps to work more closely with its Central American neighbors as a member of SICA (Central American Integration System).

Principal Government Officials
Head of State--Queen Elizabeth II
Governor General--Sir Colville N. Young, Sr.
Prime Minister, Minister of Finance, and the Public Service--Said Musa
Deputy Prime Minister and Minister of Agriculture and Fisheries--Vildo Marin
Minister of Home Affairs, Public Utilities and Housing--Ralph Fonseca
Attorney General and Minister of Labor, Education and Culture--Francis Fonseca
Minister of Foreign Affairs and Foreign Trade--Lisa Shoman

Ambassador to the United States--Nestor Mendez, Charg» dÌAffaires, a.i.
Ambassador to the OAS--Lisa Shoman
Ambassador to the United Nations--Janine Coye Felson

Belize maintains an embassy in the United States at 2535 Massachusetts Avenue NW, Washington, DC 20008 (tel: 202-332-9636; fax: 202-332-6888) and a consulate in Los Angeles. 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. Exports have recently 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. Some 185 U.S. companies have operations in Belize, including Archer Daniels Midland, Texaco, and Esso. Tourism attracts the most foreign direct investment, although significant U.S. investment also is found in the 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 one of its major development priorities. In 2006, tourist arrivals totaled 900,000 (more than 90% from the United States).

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 U.S. Embassy's Economic/Commercial section and on the Web at: http://belize.usembassy.gov/investing_in_belize2.html

Infrastructure
A major constraint on the economic development of Belize continues to be the scarcity of infrastructure investments. As part of its financial austerity measures started in late 2004, the government froze expenditures on several capital projects. 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 United States and the United Kingdom, although draft is limited to a maximum of 10 feet in Belize City and 15 feet in southern ports. American Airlines, Continental Airlines, U.S. Air, Delta Airlines, and TACA provide international air service to gateways in Dallas, Houston, Miami, Charlotte, Atlanta, and San Salvador.

Trade
Belize's economic performance is highly susceptible to external market changes. Although the economy recorded a growth rate of 4.0% in 2006, this achievement is vulnerable to world commodity price fluctuations and continuation of preferential trading agreements, especially with the United States and the European Union (cane sugar) and the United Kingdom (bananas).

Belize continues to rely heavily on foreign trade, with the United States as its number-one trading partner. Imports in 2005 totaled $518.83 million, while total exports were only $212.83 million. In 2005, the United States provided 39% of all Belizean imports and accounted for 52.2% of Belize's total exports. Other major trading partners include the United Kingdom, European Union, Canada, Mexico, and Caribbean Common Market (CARICOM) member states.

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) program, which forms part of the U.S.-Caribbean Basin Trade Partnership Act--signed into law by President Clinton on May 8, 2000--a comprehensive U.S. Government program designed 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. European Union (EU) and U.K. preferences also have been vital for the expansion and prosperity of the sugar and banana industries. However, these two markets face considerable World Trade Organization (WTO) challenges.

NATIONAL SECURITY
The Belize Defense Force (BDF), established in January 1973, is comprised 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 Lloyd Gillett, 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.

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 have been underway 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 continued contentions. 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.

Eventually, on November 8, 2000, the two parties agreed to respect an "adjacency zone" extending one kilometer east and west from the border. Around this time, the Government of Guatemala insisted that the territorial claim was a legal one and that the only possibility for a resolution was to submit the case to the International Court of Justice (ICJ). However, the Government of Belize felt that taking the case to the ICJ or to arbitration represented an unnecessary expense of time and money. So the Belizean Government proposed an alternate process, one under the auspices of the OAS.

Since then, despite efforts by the OAS to jumpstart the process, movement has been limited to confidence-building measures between the parties. Both countries now seem receptive to referring the dispute to the International Court of Justice for a binding decision.

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. For instance, Belize has joined the other Central American countries in signing the Conjunta Centroamerica-USA (CONCAUSA) agreement on regional sustainable development, and on January 1, 2007 assumed the presidency of SICA (Central American Integration System) for a 6-month period. Belize is a member of CARICOM, which was founded in 1973. It became a member of the OAS in 1990.

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. It 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, Belize benefits from the U.S. Caribbean Basin Initiative.

International crime issues dominate the agenda of bilateral relations between the United States and Belize. The United States is working closely with the Government of Belize to fight illicit narcotics trafficking, and both governments seek to control the flow of illegal migrants to the United States through Belize. Belize and the United States brought into force a Stolen Vehicle Treaty, an Extradition Treaty, and a Mutual Legal Assistance Treaty between 2001 and 2003.

The United States is the largest provider of economic assistance to Belize, contributing $2.5 million in various bilateral economic and military aid programs to Belize in FY 2006. Of this amount, nearly half a million dollars was provided by the U.S. Military Liaison Office. 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. Belize still benefits from USAID regional programs. In addition, during the past 42 years, almost 2,000 Peace Corps volunteers have served in Belize. As of April 2007, the Peace Corps had 58 volunteers working in Belize. Until the end of 2002, Voice of America operated a medium-wave radio relay station in Punta Gorda that broadcast to the neighboring countries of Honduras, Guatemala, and El Salvador. The U.S. military has a diverse and growing assistance program in Belize that included the construction and renovation of several schools and youth hostels, medical assistance programs, and drug reduction programs. Private North American investors continue to play a key role in Belize's economy, particularly in the tourism sector.

Principal U.S. Officials
Ambassador--Robert J. Dieter
Deputy Chief of Mission--Leonard A. Hill
Economic/Political Officer--Thomas Wise
Consul--Kimberly Valdes-Dapena, Acting
Management Officer--vacant
Military Liaison Officer--LTC Tammy McNamara

The U.S. Embassy is located in the City of Belmopan on Floral Park Street. The mailing address is P.O. Box 497, Belmopan, Cayo District, Belize, Central America: tel: 011-501- 822-4011 from the United States or 822-4011 locally; fax: 011-501-822-4012 Main number; 822-4053 Administrative Office; 822-4050 Consular Section. E-mail address: embbelize@state.gov, Web site address: http://belize.usembassy.gov/.

Other useful contacts
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 American 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 advises Americans traveling and residing abroad through Consular Information Sheets, Public Announcements, and Travel Warnings. Consular Information Sheets exist for all countries and include information on entry and exit requirements, currency regulations, health conditions, safety and security, crime, political disturbances, and the addresses of the U.S. embassies and consulates abroad. Public Announcements are issued to disseminate information quickly about terrorist threats and other relatively short-term conditions overseas that pose significant risks to the security of American travelers. Travel Warnings are issued when the State Department recommends that Americans avoid travel to a certain country because the situation is dangerous or unstable.

For the latest security information, Americans living and traveling abroad should regularly monitor the Department's Bureau of Consular Affairs Internet web site at http://www.travel.state.gov, where the current Worldwide Caution, Public Announcements, and Travel Warnings can be found. Consular Affairs Publications, which contain information on obtaining passports and planning a safe trip abroad, are also available at http://www.travel.state.gov. For additional information on international travel, see http://www.usa.gov/Citizen/Topics/Travel/International.shtml.

The Department of State encourages all U.S citizens traveling or residing abroad to register via the State Department's travel registration website or at the nearest U.S. embassy or consulate abroad. Registration will make your presence and whereabouts known in case it is necessary to contact you in an emergency and will enable you to receive up-to-date information on security conditions.

Emergency information concerning Americans traveling abroad may be obtained by calling 1-888-407-4747 toll free in the U.S. and Canada or the regular toll line 1-202-501-4444 for callers outside the U.S. and Canada.

The National Passport Information Center (NPIC) is the U.S. Department of State's single, centralized public contact center for U.S. passport information. Telephone: 1-877-4USA-PPT (1-877-487-2778). Customer service representatives and operators for TDD/TTY are available Monday-Friday, 7:00 a.m. to 12:00 midnight, Eastern Time, excluding federal holidays.

Travelers can check the latest health information with the U.S. Centers for Disease Control and Prevention in Atlanta, Georgia. A hotline at 877-FYI-TRIP (877-394-8747) and a web site at http://www.cdc.gov/travel/index.htm give 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.

Further Electronic Information
Department of State Web Site. Available on the Internet at http://www.state.gov, the Department of State web site provides timely, global access to official U.S. foreign policy information, including Background Notes and daily press briefings along with the directory of key officers of Foreign Service posts and more. The Overseas Security Advisory Council (OSAC) provides security information and regional news that impact U.S. companies working abroad through its website http://www.osac.gov

Export.gov provides a portal to all export-related assistance and market information offered by the federal government and provides trade leads, free export counseling, help with the export process, and more.
STAT-USA/Internet, a service of the U.S. Department of Commerce, provides authoritative economic, business, and international trade information from the Federal government. The site includes current and historical trade-related releases, international market research, trade opportunities, and country analysis and provides access to the National Trade Data Bank.