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Belize (07/07)For the most current version of this Note, see Background Notes A-Z.
PROFILE OFFICIAL NAME: Geography People Government Economy PEOPLE 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 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 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 Senate’s 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 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 country’s foreign reserves. Belize’s 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 Belize’s 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 Ambassador to the United States--Nestor Mendez, Chargé d’Affaires, a.i. 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 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 Trade 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 FOREIGN RELATIONS 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 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 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 U.S. Department of Commerce |
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