 
 WORLD TRADE ORGANIZATION  
ORGANISATION MONDIALE DU COMMERCE  
ORGANIZACIÓN MUNDIAL DEL COMERCIO  
WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 18 October 2004 
 
(04-4347) 
Trade Policy Review Body 12 and 14 July 2004 Original:   English/ 
 anglais/  inglés 
  
TRADE POLICY REVIEW 
BELIZE AND SURINAME 
Minutes of Meeting 
Addendum 
Chairperson:  H.E. Ms. Puangrat Asavapisit (Thailand) 
 This document contains the advance written questions, and replies provided by Belize and 
Suriname.1 
__________________________________________________________________________________  
Organe d'examen des politiques commerciales 
12 et 14 juillet 2004 
 
EXAMEN DES POLITIQUES COMMERCIALES 
BELIZE ET SURINAME 
Compte rendu de la réunion 
Addendum 
Présidente:  S.E.  Mme Puangrat Asavapisit ( Thaïlande ) 
 
 Le présent document contient les questions écrites communiquées à l'avance et les réponses fournies par Belize et Suriname.
1 
__________________________________________________________________________________ 
 
Órgano de Examen de la s Políticas Comerciales 
12 y 14 de julio de 2004  
EXAMEN DE LAS POLÍTICAS COMERCIALES 
BELICE Y SURINAME 
Acta de la reunión 
Addendum 
Presidenta:  Excma. Sra. Puangrat Asavapisit (Tailandia) 
 
 En el presente documento figuran las pr eguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por Belice y Suriname.1
                                                      
1 In English only./En anglais seulement./En inglés solamente. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 3 
 
 
  
   
 
 
CONTENTS 
 
 
   
 
    
Page 
 
ADVANCE WRITTEN QUESTIONS BY MEMBERS AND REPLIES 
PROVIDED BY BELIZE  5 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS AND REPLIES 
PROVIDED BY SURINAME 25WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 5 
 
 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS AND 
REPLIES PROVIDED BY BELIZE 
 United States 
 
Monetary and Exchange Rate Policy 
 
1. The United States believes that the existence of a fixed exchange rate can be dangerous to 
both a government’s trade balance and to the stability of  its currency.  Does the government of Belize 
intend to maintain the current fixed exchange  rate of the Belize dollar indefinitely? 
 
The Belizean economy is small, open and in the rela tively early stages of development (GDP is about 
0.01% of US output and the ratio of exports and imports to GDP is roughly 120%).  The country 
produces and exports a narrow range of goods (mainl y agricultural) for the export market and is 
heavily dependent on a wide range of imports fo r consumption and investment purposes.  Given its 
small size and narrow production base, the economy is  obviously vulnerable to natural disasters, trade 
related and other economic shocks that have the potential to cau se large movements in its exchange 
rate and price level if this is left entirely to mark et forces.  The authorities therefore believe the fixed 
exchange rate is the best way of providing the type  of stable environment that is necessary to attract 
investment and foster economic  growth and development. 
 
The decision to peg the value of the Belize dollar to the United States dollar 28 years ago rested on 
the fact that the United States was the country’s major trading partner.  In 2003 the United States 
received 55.6% of Belize’s exports and supplied 42.2 % of imports.  Maintaining the system requires 
occasional interventions by the authoriti es to foster internal and external balance.  All in all the fixed 
exchange rate has served Belize well providing th e foundation for low inflation and steady growth.  
Given the nature of the Belizean economy, the gove rnment intends to maintain the fixed exchange 
rate indefinitely. 
 
2. Does the Government of Belize believe the “C asas de Cambio” provide a long-term solution 
to the problem of incongruity be tween the official exchange rate and  the market rate, especially in 
light of the pressure that Belize’s large current account deficit places on its currency ? 
 Casas de Cambio are seen as an experiment by th e authorities and cannot be a long-term solution to 
the imbalance between dema nd and supply of foreign exchange in th e context of a fixed exchange rate 
system.  The solution lies in the implementation of fiscal and monetary policies geared toward 
restraining the growth in domestic demand while fo stering an attractive investment climate that will 
lead to increased output for the domestic and export markets.  
EU 
 Tourism 
 
Would Belize inform us on how many people wo rk in the tourism sector and what has been the 
evolution in the last years?  
Prior to 2002, the Central Statistical Office did not isolate the tourism sector in the employment data 
but lumped it under the ‘hotels/restaurant’ heading.  Direct employment in the tourism sector rose 
from 8,973 in 2002 to 9,400 in 2003.  Growth in this category averaged 21.4% over the five-year period from 1998 to 2002 (from 5,285 persons to 9, 810 persons).  The CSO is now attempting to 
collect data on a revised classification grouping the tourism sector as a whole.  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 6 
 
 
 We would like to know Belize’s assessment of th e effect of the tourism sector in overall economic 
growth and employment, and in particular in oth er economic sectors like construction, transport, 
computer services, education and professional training. 
 Belize does not have the statistical framework that would enable it to assess the impact of the tourism 
sector on the economy.  However, it is noted that the Central Statistical Office (CSO) is presently receiving the assistance of a consultant aimed at ach ieving the goal of a tourism satellite account as a 
component of Belize’s national accounts statistics.  The Central Bank and Belize Tourism Board also 
seek to further this project and discussions are underway to provide the terms of reference for a 
cooperative effort. 
 
Distribution Services 
 Would Belize inform us on how m any people work in the distribution sector and what has been the 
evolution in the last years? 
 
The CSO estimates that some 14,687 people were empl oyed in the ‘distribution and repair services’ 
sector in 2003, an increase of 4.6% over the 2002 level.  Using the older descriptive categories, the 
numbers show that employment in the ‘wholesale/re tail’ sector rose by an annual average of 4.2% 
between 1998 and 2002 (from 12,945 persons to 15,120 persons). 
 
Would Belize inform us on how much of the FDI attr acted by the country in the last years has been in 
the distribution sector? 
 
A comprehensive database does not exist that would en able foreign direct investment to be analyzed 
by sector.  Of the 117 foreign companies that notified the Central Bank of their intention to invest in 
2003, it is estimated that 30 would be involved in distribution.  Very rough estimates for 2002 and the 
first five months in 2004 are 16 out of 92 and 5 out of 29, respectively.  
We would like to know about Belize’s assessment of the effect of the distribution sector in overall 
economic growth, employment and social developmen t, and also in other economic sectors like 
construction, transport, computer servic es, education and professional training? 
 
As in the case of tourism, we are not in a positi on to analyze the detailed impact of the distribution 
sector on Belize’s economy given the statistical data  limitations that are currently experienced. 
 Would Belize inform us about existing le gislation applicable to retailing services? 
 
Belize does not have legislation that specifically targets retailing services.  
Canada 
 
8. What range of activities can fo reign bank branches and subsidiari es or representative offices 
engage in? 
 
Representative offices of foreign banks are not en couraged in Belize.  However, a foreign bank 
branch or subsidiary that is licensed to conduc t domestic banking business in Belize can offer exactly 
the same type of banking services that a licensed lo cally incorporated bank can offer.  The Banks and 
Financial Institutions Act, 1995 defines banking business as the business of receiving money from the 
public through the acceptance of deposits on current  account, deposit account or other similar account 
which may be withdrawn on demand, by cheque, draf t, order or notice by customers and using that 
money to make advances, loans, extensions of cred it, guarantees and investments authorized by law.  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 7 
 
 
 Other services can include sale of foreign exchange, wire transfers, issuing of credit cards, letters of 
credit, overdrafts and internet banking services.  
According to Report, local and foreign banks licensed  in Belize are required to maintain a minimum 
start-up capital of US$1.5 million.  Are minimum capital requirements similar for subsidiaries and 
branches? 
 
Yes, branches and subsidiaries of  foreign banks must have assigne d or paid-up capital and unimpaired 
reserves totalling US$1.5 million. 
 
What types of activities are permitted under the Un restricted International Banking License and the 
Restricted Banking License? 
 
An International Bank holding an unrestricted A clas s international banking license is authorized to 
transact international banking business through its bu siness office in Belize without restriction on that 
business.  An International Bank holding a restricted B class  international banking license is authorized to 
transact only such international banking business that is  specified in its license and is prohibited from 
soliciting or accepting any deposits of money or an y other valuable property from the general public; 
and issuing to any depositor a cheque book or providing any current deposit or chequing account 
facilities for the transaction of his international banking business.  
U.S.:  Intellectual Property Rights 
 
IPR  
23. Please comment on the development of legisl ation on undisclosed information and border 
measures and how the provisions of such legisl ation will enable Belize to  uphold its responsibilities 
under the TRIPS Agreement. 
 Belize is presently studying various legislative m odels relating to the protection of undisclosed 
information, with a view to enacting legislation on this subject.  Belize has enacted trademark and copyright legisla tion on border measures relating to imports.  The 
trademark owner or licensee may give a written notice to  the Comptroller of Customs that he or she is 
the proprietor or licensee of the registered trademark,  that at a time and place specified in the notice 
infringing goods, material or articles are expected to arrive in Belize, and that he or she requests the 
Comptroller to treat the goods as prohibited goods (section 74(1) of the Trade Marks Act).  As long as such a notice is in force, the commercial importa tion of the relevant goods  is prohibited and the 
importer is liable to the forfeiture of such goods (sec tion 74(2), ibid).  In making such a notice to the 
Comptroller, the trademark owner or licensee shall co mply with such conditions relating to the form 
of the notice, the furnishing of evidence, th e payment of fees, the giving of security, the 
indemnification of the Comptroller, and any other in cidental or supplementary matters (section 74(3), 
ibid).  These provisions provided le gislative cover for the recent seiz ure of $600,000 worth of clothing 
bearing counterfeit Levi’s, Dockers and Tommy Hilfiger trademarks by the Belize Customs 
Department.  The Belize Customs Department has also seized counterfeit cigarette consignments 
bearing trademarks owned by Phillip Morris International Inc. 
 Section 51 of the Copyright Act restricts the importation of infringing copies of copyright works, and this legislative provision is very identical to se ction 74 of the Trade Marks Act (outlined above).  
Further, the Customs Regulation (Prohibited a nd Restricted Goods)(Consolidation) Order, 1998, 
states that the export of “any infringing copy of a work, whether printed, audio, video or other, in WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 8 
 
 
 which copyright subsists, or plates or other de vices or means for making such infringing copies” is 
prohibited.  Nevertheless, the Government of Be lize is presently studying various legislative models with a view 
to enacting legislation that provides for effective bor der measures relating to ot her areas of intellectual 
property rights.  
What action is Belize taking, or planning to take, to improve its IPR enforcement? 
 As was indicated above, the Belize Customs Departme nt is now actively involved in the enforcement 
of the provisions relating to border measures in the IPR legislation of Belize.  A national seminar on 
IPR enforcement was held on April 1, 2004.  This seminar was targeted at enforcement authorities 
such as the Customs Department and the Police, a nd was organized by Levi Strauss & Co. and Phillip 
Morris International Inc.  The Belize Intellectua l Property Office (BELIPO) has published an IPR 
enforcement manual, and this manual was distributed  among the participants at the seminar.  This 
manual has already been sent to the Customs Depa rtment, the Police Department, the Director of 
Public Prosecutions, the Chief Justice and the memb ers of the Bar.  The enforcement manual is also 
available to members of the pub lic on www.belipo.bz/e_library. 
 The Government is also studying the following r ecommendations relating to the enforcement of IPRs. 
Firstly, that a comprehensive national enforcement st rategy on IPRs should be  developed.  Secondly, 
that IPR enforcement should be integrated into the curricula of the Police and Customs Training 
Schools. Thirdly, that assistance should be reque sted from intergovernmental organizations and 
foreign governments in order to the host national IPR enforcement seminars for members of the 
judiciary, prosecutors, police and customs officers. 
 
Canada 
 4. Canada understands that Belize is working hard to ensure compliance with WTO 
requirements, including in the area of intellectual property law, and we commend Belize on its efforts 
to date.  However, we would seek clarification on the i ssue of the protection that is currently afforded 
in Belize to any technical, undisclosed data that is submitted during the market  approval process.  It 
is Canada’s understanding that in the context of the TRIPS Council’s Review, authorities in Belize indicated that this type of information is accord ed the “normal protection afforded [to] all other 
information included in the application.”  Does this mean that any clinical test data that would be submitted to the Government of Belize post-patent grant  would still be afforded the same 20 year term 
of protection? If not, could Belize please provide mo re details on the nature of the protection that is 
provided to undisclosed information relating to pharmaceutical or agricu ltural chemical products 
within its jurisdiction ? 
 As was indicated in Belize’s submission (page 25-IP/Q/BLZ/1, IP/Q2/BLZ/1, IP/Q3/BLZ/1, and IP/Q4/BLZ/1) to the TRIPS Council’s review of Beli ze’s legislation, “any technical data disclosed in 
the abstract during patent application is accord ed the normal protection afforded to all other 
information included in the patent application, and pr otection of that information is for the life of the 
patent if granted, i.e. twenty years.”  The Beli ze Patent Act (CAP.253) makes provision for the filing 
of documents and, even amendments, relating to a patent that is in a post-grant phase.  The only 
caveat is that the additional information shall not include any matter that was not disclosed in the 
initial application as filed.  Thus, any clinical test  data that is submitted to the Intellectual Property 
Office post-patent grant does not qualify for the normal protection afforded to the patent, if it does not 
extend the scope of the patent.  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 9 
 
 
 United States 
 Customs Valuation and Other Noti fications/Customs Procedures 
 
3. Does Belize plan to notify its customs valua tion legislation to the WTO, and respond to the 
customs valuation checklist?  
No response provided. 
 6. Could Belize please provide an update on th e progress of this review?  Has CARICOM 
reached a firm decision as to wheth er to harmonize customs legislation?  If so, what is the timetable 
for implementation?  
Belize has participated in the harmonization of cust oms legislation for CARICOM.  The legislation is 
presently at the Solicitor General for review for fina l approval and implementati on in our legislation.  
The time tabled for implementation is the time it will take for the review to be completed. 
 
7. Why is the Customs Tariff Board non-operati onal?  Does Belize have any plans to bring into 
operation? 
 Due to resource constraints, the Tariff Board wa s non-operational.  Plans are being made for the 
Board to commence operations.  
8. For purposes of consistency and transparency, the U.S. recommends the development of clear 
procedures and timelines for the handling of classifica tion disputes.  Does Belize currently have plans 
to develop such regulations?  
 
The Customs Department is in the process of orga nizing a Tariff Structure whereby questions relating 
to classification will be addressed in a timely ma nner and responses will be issued in writing. 
 
9. Is Belize engaged in any efforts to strengthe n its abilities to combat contraband?  Has Belize 
sought external assistance in strengthening its ability  to combat contraband?  If so, please describe 
any assistance Belize has sought or is  currently seeking.  
Belize has established a Revenue Intelligence Unit to combat smuggling.  It is expected that as the 
Unit develops its competence and capacity, the leve l of contraband products entering Belize will be 
reduced. 
 
U.S.:  Tariffs  
 10. Is Belize actively seeking to diversify its sou rces of government revenue?  Please describe any 
such programs. 
 No response provided. 
 
11. Does Belize have a target date  for completion of this task? 
 Belize is making every effort to implement the Tariff based on the HS 2000 amendments on 
1 September 2004.  
12. Does Belize plan to reduce duties on any of  these lines to bound or lower-than-bound rates?  
 No response provided. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 10 
 
 
 Canada:  Domestic Insurance 
 11. Regarding establishment for th e insurance sector, are branches and subsidiaries allowed? 
 Branches and subsidiaries are allowed.  Foreign co mpanies are represented by either agencies or 
branches.  
12. What criteria does the Office of Supervisor In surance apply in order to approve management 
and directors of insurance companies? 
 
Fit and Proper Criteria as defined within the ne w insurance act are applied in order to approve 
management and directors of the insurance companie s.  Complete Biographical Affidavits including a 
current/valid Police Report and letters of referen ce on the person form part of the documentation 
required for approval. 
 
U.S.:  Foreign Trade 
 
5. Do the capacity building programmes include  specific measures to strengthen notification 
capacities? 
 The GOB has indicated through its National Action Plan (NAP) the need for technical assistance in 
the context of the hemispheric negotiations which therefore did not cover notification measures under 
the WTO.  Inherent financial and human constraints have hinde red Belize’s ability to fulfill its 
notification requirements under the WTO.  26. Are the WTO Agreements self-executing in Belize? 
 
Like virtually all common-law jurisdictions, intern ational treaties do not have direct effect but are 
incorporated through relevant dom estic implementing regulations/legi slation.  Courts of law will 
always attempt where possible to interpret the rules of law coinci dent with Belize’s international 
obligations.  Private individuals therefore enforce th eir rights through legislation and the provisions of 
the common law. 
 
21. Please comment on the status of these progr ammes in light of the December 31, 2004. 
 
Belize expects to have access to the extension fac ilities up to 2007.  The government is reviewing the 
entire investment regime with which the measures ar e connected and will be seeking further technical 
and financial assistance in an effort to modernize th e entire investment legislation and the investment 
environment including its tax structure.  
Canada 
 
1. Belize is to be commended for binding the vast majority of its tariffs.   Canada is concerned, 
however, that bound tariffs are far in excess of applie d rates, because this creates uncertainty for 
traders and investors.  Of particular concern is the Secretariat’s comment that, in a few cases, Belize 
has applied rates that actually exceed its bound co mmitments, and that some specific rates have the 
potential to exceed bindings, should prices fall?  As  you are aware, GATT Ar ticle II prohibits tariff 
treatment less favourable than bound commitments .  What action will Belize take to correct this 
situation? 
 
The Government of Belize is aware of irregulariti es in our tariff structure as regards imports of 
firearms and jewellery.  The Government is in pro cess of reviewing this situation; we are examining 
possible options that could be taken to rectify this.   WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 11 
 
 
  
21 
 EU 
 
Sugar has contributed to over 20% of export earnings.  What percentage of sugar production is used 
for generating energy?  What are the plans and prospects in this regard?  
2. The question is unclear.  However, a large percentage of the by-product from the processing 
of the sugar cane, is used for internal generati on of power for the sugar processing.  Belize Sugar 
Industries is advanced in its plans to expand its energy production and sell power to the national grid. 
 
Business Services 
 
Would Belize inform us about the legislation applic able to the following activities and the measures 
the government is taking to en sure non-discrimination of foreign services suppliers in the fields of 
management consulting and services rel ated to management consulting? 
 
Belize recognizes that its development needs are changing and that it must integrate into the 
multilateral trading system.  The Government’s stra tegic development plan forsees enhanced regional 
integration as an important stepping stone to su ccessful integration into the Multilateral Trading 
System.  Belize is party to the CARICOM Single Market and Economy (CSME) initiative.  The immediate challenge therefore is to liberalize servi ces through firstly opening completely the services 
sector to CARICOM Community Nationals. 
 
EU:  Foreign Trade  
Trade Strategy 
 
1. Regional trade is an important tool for improv ing and harvesting the benefits from trade.  In 
the view of the EC the CARICOM liberalization pl ans are important for fostering continued growth.  
How does Belize assess the possib ility of carrying out those liberaliz ation plans, establishing a free-
trade within the CARICOM within the deadline estab lished in the Revised Treaty of Chaguaramas in 
2001? Furthermore, what strategy do you have wi th regard to establishing national institutional 
mechanisms for enforcing CARICOM decisions and how  do you assess the feasibility and constraints 
in this respect ? 
 
The CSME is a much broader framework covering trade in goods, services and many other elements 
related to these two tradable products, including standards, dispute settlement, etc. and a 2005 
deadline was agreed upon for full implementation.  All existing restrictions were to be removed when 
the Treaty entered into force, and a Programme of Removal is being implemen ted and all restrictions 
are expected to be removed by 2005.  Belize h as already met its commitments scheduled for 2003 
under the Programme, and is now examining the feasib ility of fast tracking the liberalization process 
by implementation in 2004 some commi tments initially scheduled for 2005. 
 Work is proceeding well on all the other elements, including the Caribbean Court of Justice (CCJ) and 
the Caribbean Organization for Standards and Qua lity (CROSQ).  Much of what Belize achieves 
within this timeframe depends on what is actually achieved on a regional basis, led by the Community 
Secretariat and key community institutions.  At this point Belize is satisfied with the pace and 
progress in the CSME initiative.  Essentially, the CSME calls for both national and regional 
institutional arrangements and institutions, and assistance is required at both levels. 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 12 
 
 
 In terms of a strategy for establishing national me chanisms for implementation, Belize has already 
made important progress in this regard.  An in ter-ministerial body has been established with 
membership drawn from all ministries involved with  Community affairs, based on the assignment of 
individual portfolio responsibilities.  Efforts are now underway to establish a CSME Unit within the 
Ministry of Foreign Trade, to lead in all matters of  implementation.  In terms of participation in trade 
negotiations, Belize has established a National Trade Negotiating Commission (NTNC) to advise 
Government on positions to take on the various issues in all trade negotiations.  The NTNC is 
comprised of representatives of the government, the private sector, NGOs and civil society.  It is 
working well to ensure the meaningful participati on of all stakeholders, as required by the EU under 
the Cotonou Agreement. 
 WTO members, in particular the EU and USA on w hom Belize depends quite a lot, must understand 
clearly that meeting CSME requirements within the agreed timeframe will require substantial 
financial and human resources.  Belize will need assistance especially with upgrading and expanding 
its human resource base.  It will also need much  financial assistance in establishing the necessary 
institutions and institutional arrangements at the nati onal level.  This includes upgrading its Bureau of 
Standards, establishment of a national Competition Commission, upgrading the legal institutions for 
effective functioning of the CCJ, upgrading a nd maintaining its SPS institution (BAHA), 
establishment of a national accreditation mechanism,  and establishing and maintaining its own CSME 
Unit for effective management of CSME affairs.  Belize is further pressed by the reality of its 
geographic separation from the rest of the CARICO M, and the undeveloped state of transportation 
from Belize to the rest of member States is a prac tical problem.  Belize also must factor into its 
development agenda the necessary functional trade a nd economic relationships it must maintain with 
Mexico and Central America, in particular Guatemal a.  This is a very demanding and costly agenda, 
and Belize obviously must look forward to actual support from the EU and USA in this effort. 
 
2. The EC considers that the WTO and multilateral liberalization is the mo st certain way for 
small countries to promote their interests.  How do you judge the relative importance and weight of 
bilateral/FTA policies and further development of th e WTO system in terms of your own trade and 
development needs?  
 Belize believes that multilateral liberalization is i ndeed better for the world overall, but it might not 
necessarily be “the most certain way for small countri es to promote their interests”, largely due to the 
inequities of the multilateral system, and the paucit y of resources to compete effectively for trade 
benefits, which must of necessity begin on th e investment side.  With dependence on FDI, 
liberalization is in the best interest of those memb ers that can engage in FDI, and which are free to 
repatriate their profits.  
 CARICOM is comprised of small developing countri es like Belize, the majority being recognized as 
Small Island Developing States with  a dependence of preferential trade arrangements.  They are 
economically vulnerable, and it is important that th ey have the legal right to integrate economically 
and otherwise, and to speak with one voice.  We are fortunate that the EU places high priority on 
regional economic integration as a path to economic  and trade development.  The EU has committed 
to support this approach under any subsequent Economic Partnership Agreement to succeed the 
present Cotonou Agreement.  In this regard, the WTO ongoing negotiations on rules on regional trading arrangements is 
appreciated. However, the WTO system needs to evol ve in responding to the special needs of small 
countries like Belize in terms of the application of  S&D to individual members like Belize, and to 
groupings of small developing countri es like CARICOM, which is also comprised mostly of SIDS.  It 
is necessary to move the development of WTO policy and practice more positively in this direction so 
that real benefits can emerge for all members.  
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 13 
 
 
 3. As most LDCs the EC is truly aware of the needs that you may be facing with regard to 
further trade related assistance.  The EC shoul d like to ask to what extent trade has been 
mainstreamed in the PRSP poverty reduction strategy paper.  
 Belize is not categorized in the UN system as an LDC.  But because of its  vulnerabilities within the 
CARICOM category, it is recognized as an LDC.  Belize has recognized its technical assistance needs 
in its National Action Plan and is attempting to ma instream trade as an important component of its 
poverty reduction strategy.  Has the possibility of joint representation with ot her small countries in the region been considered? 
 
4. The Belize office to the WTO in Geneva had to be discontinued due to financial and other related constraints.  The subject of a common f acility in Geneva to facilitate a joint CARICOM 
interaction with the WTO has been under considerati on for some time, but financing remains the chief 
obstacle.  An initiative by developed countries to assist developing countries in their Geneva presence 
was understood as being limited to the LLDCs, and therefore CARICO M could not benefit.  The 
realization of this is important as the CSME matu res, and technical and financial assistance from the 
EU, USA and other developed countries.  This point raised by the EU is therefore quite appropriate 
and relevant to Belize and CARICOM as a whole. 
 
EU:  Finance/Contractor - General Office 
 Government Procurement  The EC should like to ask to receive statistics regar ding awards of contracts for year 2002 or 2003, 
detailed by type of contracts (works, supplies, services), adjudication type (public adjudication, 
private agreement), procedure (open, sel ective) and origin (international, local)? 
 
This office has not hitherto been  compiling data on type of contracts (works, supplies, services) 
adjudication type (public adjudication, private ag reement), procedure (open, selective) and origin 
(international, local).  While it would be possible to  research the matter with a view to extracting the 
required statistical data, such an exercise could certa inly not be completed in less than a month at best. 
 
Could you provide us with definition of the “exceptional” or “special” circumstances where 
contracting entities are authorized to purchase directly from a supplier without recourse to 
tendering? 
 The tendering procedure may be waived (on r ecommendation of the Tenders Committee) by the 
Ministry of Finance in cases when  there exists only one supplier of a certain good (which is the case 
in some countries like Belize), in cases of emerge ncies (hurricanes and other natural disasters), in 
cases of variations of contracts (as when a contr actor already has his machinery on site thereby 
lowering mobilization costs), cases of warranty, sp ecifications for certain high standard quality and 
sensitive items (national security). 
 
The WTO Secretariat report, paragraph 140, refers to  functioning of the Office of the Contractor-
General.  The EC should like to enquire if the Office of  the Contractor General is intending to develop 
and publish guidelines with respect to awards , execution and termination of contracts? 
 As has been stated before, the Office of the Co ntractor-General has issu ed guidelines by way of 
Circular Memoranda pending the completion of an on-going review of the Finance and Audit Act, 
1979.  This position was premised on the expectatio n that the revised Finance and Audit Act, 1979 
would be comprehensive covering all aspects of P ublic Procurement thus obviating any need for 
duplication by the Office of the Contractor-General. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 14 
 
 
 A transparent and well-working conduction of procurem ent is truly important for ensuring the best 
possible and most optimal procurement arrangeme nts, thereby increasing the utilization of public 
funds. According to the report of the Secretariat,  Belize does not have a central procurement office 
and each public entity conducts th eir procurements.  The EC should like to enquire what steps are 
and will be taken by Belize in order to ensure an effic ient procurement.  The EC should further like to 
enquire if Belize is considering to become a party  to the WTO agreement on public procurement, 
thereby benefiting from an already est ablishes outside legal framework?  
 
Belize does not have a Central Procurement Office.  However, all contracts for purchases of goods, services and works above $20,000 are routinely submitted to the Tenders Committee for open 
tendering.  Belize is not a member of the GPA and a decision to join would be taken in conjunction with a regional decision by CARICOM.  Belize has committ ed to enhance transparency and accountability in 
government procurement along w ith its CARICOM partners. 
 
EU - Trade in Goods – Finance  Doing away with unnecessary external as well as in ternal impediments to trade is vital for the 
promotion of trade and development itself.  To th is end, the EC should like to pose the following 
questions to the three countries under review. 
 Belize states that "the proliferation of different taxes and duties is an unfortunate result of the implementation of regional and multilateral comm itments taking into account the reality of our 
dependence on taxes on international trade. Trade ta xes represent over 40% of total tax receipts." 
During the 1990s, Belize implemented several tax refor ms; chief amongst them was the substitution of 
the value-added tax by a sales tax levied at the impor ter level in 1999.  What has been the direction of 
tax reform? Why was VAT replaced? How can Belize' s dependence on trade taxes be mitigated or 
reduced?  
Tax reform has been reducing the dependence on taxes on importation and moving towards taxes on 
consumption, strengthening of income and bu siness tax collection and the introduction of a 
speculation tax on undeveloped land for parcels of la nd greater than 300 acres as well as valuing land 
depending on locati on for tax purposes. 
 The Value Added Tax at  the rate of 15% was replaced with a one time Sales Tax of 8% for almost all 
goods, except basic foods items, and 12% for tobacco, alcoholic and fuel products (increased to 9% 
and 13% respectively) as the Value Added Tax was a cascading tax considered to be high and so a 
hindrance to economic development.  The Sales Ta x has a broader base limiting exceptions to basic 
food items.   As stated in the first paragraph some additional ta xes on land have been introduced and strengthening 
of income and business tax collection have been ma de.  Mitigation of trade taxes could be made by 
the imposition of taxes on other areas, for exampl e, introduction of toll fees for use of highways, 
introduction of minimal charges for health services (which are free) but there are no immediate plans for the introduction of these measures.  Other measures include increasing licences for operating motor vehicles, drivers licence and other official services. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 15 
 
 
 Canada 
 
III.  Trade Policies and Practices by Measure:  (2) Measures directly affecting imports:  
(iii) Tariffs:  (b) Bindings in the WTO:  paragraphs 34-35 
 
Belize is to be commended for binding the vast ma jority of its tariffs.  Canada is concerned, however, 
that bound tariffs are far in excess of applied rates,  because this creates unc ertainty for traders and 
investors. Of particular concern is the Secretariat’ s comment that, in a few cases, Belize has applied 
rates that actually exceed its bound commitments, and that some specific rates have the potential to 
exceed bindings, should prices fall.  As you are aw are, GATT Article II prohibits tariff treatment less 
favourable than bound commitments .  What action will Belize take to correct this situation? 
 
The lower applied rates are those committed under regional (CARICOM) arrangements that involve 
the application of the Common External Tariff with exceptions that are in Lists A, C and D.  The 
applied rates that are higher than the bound rates ar e only for jewellery and arms and ammunition.  As 
stated in the questions for the U.S., a sensitivity analysis will be carried out to determine the 
feasibility of reducing the rates to bound rates for jewellery and guns and ammunition.  In the event 
that specific rates are greater th an bound rates a sensitivity analysis will also be undertaken. 
 
III.  Trade Policies and Practices by Measure:  (2) Measures directly affecting imports:  (iv) 
Other charges affecting imports:  (c) Revenue  replacement duty (RRD):  paragraphs 43- 44 
 
Canada would appreciate receiving more information about the Revenue Replacement Duty.  The 
Secretariat reports that the Customs and Excise Duties Act requires that the RRD not discriminate between domestic and importe d goods but that, in practice, the RR D is levied on imported goods only. 
GATT Article III prohibits this type of discrimina tion, and Canada would like to know what steps 
Belize will take to correct the situation. 
 
U.S. 
 
17. Please provide the rationale for this discri mination between domestic and imported goods in 
its application of the RRD.  Please describe any  plans Belize may have to apply this duty more 
equitably. 
 
Local products like cigarettes, rum, whiskey, gin, brandy, beer attract Exci se Duties which are not 
applied to imported products.  Ot her products that attract RRD are not produced in Belize (Fuel, 
motor-vehicles, perfumes cameras, watches, storm shutters).  In the case of other domestically 
produced items import duty is applied to inputs an d the RRD is introduced to compensate for items 
imported duty free.  There are no immediate plans to lower or remove the RRD for other items but, in 
view of the concerns raised, a sensitivity analysis w ill be made to determine the loss to revenue loss of 
removing the RRD on those certain ite ms before a decision is taken. 
 III.  Trade Policies and Practices by Measure:  (2) Measures directly affecting imports:  (iv) Other charges affecting imports:  (d ) Environmental tax:  paragraph 45 
 
The Secretariat reports that Belize's environmental ta x is intended to mitigate the effects of imported 
products, for example their plastic packaging .  However, this tax seems to be applied 
indiscriminately, assuming that all imports have ad verse environmental effects and that all domestic 
products have no adverse environmental effects.  It woul d appear that the adminis tration of this tax is 
inconsistent with GATT Article III, and we would like to receive further clarification from Belize. 
 
The Environmental Tax Act was amended to remove  its application only or especially to plastic 
packaging.  The Tax was amended and applied acr oss the Board except for basic food items and the WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 16 
 
 
 proceeds are used to assist municipalities for garbag e collection and disposal, to develop a central 
garbage disposal site to finance the operations of  the Environmental Department.  The Environmental 
Tax is applied to inputs used in domestic produc tion and so is already included in the cost of 
domestically produced items. 
 
U.S. 
 
18. The United States understands and commends Belize's efforts to protect its natural 
environment.  However, the United States notes with  concern the application of an environmental tax 
applied to imports but not on domestic goods.  It appears that this tax may violate Article III.2 of the 
GATT.  Is Belize considering applying the envi ronmental tax in a non-discriminatory fashion to 
domestic as well as  imported goods. 
 
No response provided.  
U.S. – Belize Marketing Board/Agriculture 
 
22. BMDC appears to possess quasi-governmental  powers.  Why has Belize chosen not to 
classify  BMDC as a government enterprise?  In addition, please comment on the structure  of the 
BMDC and its ability to function free of government  influence, especially in the case of rice. 
 
The BMDC is a Corporation governed through an Ac t and led by a Board of Directors headed by a 
Chairman, who is appointed by the Minister of Agriculture & Fisheries from among the members of the board of  directors;  
i. One member  from the Chamber of  Commerce & Industry; 
ii. The Financial Secretary (ex-officio); 
iii. One member from the Ministry of  Agriculture; 
iv. One member from the Ministry of Industry; 
v. Two members from a producers or farmers Organizations; 
vi. One member from a financial development institution; 
vii. One member appointed by the Minister of Agriculture;  and 
viii. One member  from the Ministry responsible for Trade; 
 The day to day management of the Corporation is  conducted by a Managing Director who is the 
principal executive officer of the company and his staff. 
 
The BMDC operates without any government subs idy in its daily business transactions.  Funds 
necessary for operations are obtained from earnings in the trading of rice and other commodities.   Rice is currently 60% of the business of the BMDC;  it operates a rice mill in the Toledo District which purchases rice paddy from some 1,500 small farmers who otherwise would not have a market 
for their product because of their geographic loca tion.  The BMDC distributes rice for the Belize Rice 
Producers Association which comprises 7 mills (including the one from BMDC) and which by 
agreement contracts with the BMDC to distribute rice through the BMDC nation-wide distribution network.  In addition, the BMDC markets ot her non-traditional commodities produced by small 
farmers such as onions, peppers, ginger, and a few other products who otherw ise would have limited 
opportunity to market their products  due to limited  transportation and storage.  However, the BMDC 
does no monopolize the marketing of any commodity (including rice) since producers are free to sell any commodity to wholesalers or retailers or distri bute to the public themselves.  The BMDC does not 
fix prices but simply markets at prices which are a result of supply and demand.  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 17 
 
 
 Belize has not notified the WTO that BMDC is a state trading enterprise.  The Government is 
reviewing this in light of the Uruguay Round Unders tanding on the Interpretation of Article XVII of 
the GATT 1994.  U.S.:  Beltraide  Export Promotion  19. Does the Belize Trade and Investment Developm ent Service (BELTRAIDE) provide any type 
of financing to exporting companies ? 
 No. 
20. What qualifies as a “non-traditional” produc t within the meaning of Beltraide’s mandate? 
 
Anything that is not sugar, banana or citrus. 
 
U.S.:  Sales Tax 
 
Other Charges Affecting Imports 
 
Section 3.2(iv) on page 35 of the Secretariat Report no tes that, “Local purchases or imports of goods 
and services deemed “essential” for the production of final goods … are not subject to sales tax.” 
 15. What criteria does Belize use to determine wh ether goods and services are “essential” for the 
production of final goods.” 
 Goods that are absolutely required for the produc tion of the final goods and are therefore deemed 
essential.  
The Secretariat Report also notes on page 35, “no re gulations for the administration of the sales 
tax… appear to have been issued.” 
 
16. Does Belize plan to introduce any such regula tions?  If so, please describe them, and please 
indicate the timeframe for their implementation.    
Administrative procedures are all in place.  
U.S.:  Industry 
 
Import Prohibitions 
 
4. Does Belize plan to submit notifications on its im port licensing system to the import licensing  
committee?  
 13. Please tell us more about the use of import licensing in Belize.  What is the purpose of these licensing requirements?  What procedures are in place to ensure that import licensing is not 
employed as an arbitrary barrier to trade? 
 
14. Does the GoB intend to lift or reduce the scope of its import licensing system?  If so, for what 
products?  What is the timetable?  Canada: 5.  We seek clarification with respect to the compliance of Belize’s import licensing regime.  
Indeed, Belize has yet to fulfill its notification of obligations under the WTO Agreement on Import WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 18 
 
 
 Licensing Procedures, nor has it replied to the questionnaire on import licensing procedures.  We 
look forward t Belize’s fulfillment of its obligations  in the near future, with assistance from the 
Secretariat as necessary. We would welcome the opportunity to review Belize’s import licensing 
regulations to help us better understand how its import permit system works. 
 
6. We note from the Report by the Secretaria t that Belize subjects certain imports, mostly 
agricultural products, to non-automatic licensing re quirements, in some cases amounting to outright 
prohibitions.  Furthermore, the decision to grant non-automatic licences appears to be discretionary, 
as no published criteria exist for the evaluation of licence applications.  Could Belize clarify how this 
is compliant with its WTO obliga tions to ensure that import licences are not used for the purposes of 
restricting or distorting trade and are implemente d in a transparent and predictable manner?  In 
particular, we would like to know what the criteria are for the evaluation of licence applications.  Japan – 1.  The Secretariat Report states that as a matter of policy, licenses are not issued for wheat 
flour and citrus products. Such a measure seems to  be discretionary import licensing, the  kind of 
measure which has been required to be converted into ordinary customs duties, and is prohibited to 
maintain, according to Article 4-2 of the WTO Agreement on Agriculture. Although the reasons the 
Government of Belize maintains such a license re gime, are listed on page 69, para.16 of the 
Secretariat Report, we recognize that such political reasons do not compensate for not implementing 
of the legal obligation under the Agreement. 
 
Please explain how such a license regime is lega lly in compliance with the WTO Agreement on 
Agriculture.  
 
Government of Belize is reviewing the present im port licensing regime with a view to enhancing 
transparency and predictability in keeping with WT O rules, in a manner that promotes Government’s 
strategic development objectives and is supportive of WT O objectives, i.e. raising standards of living,  
full employment, growing real income, increa sed production/trade in goods and sustainable 
development.  The last review of the productive sector revealed th at Belize’s support for the sector was limited to  
market access – tariffs (0-40%) and an import lic ensing regime that provides a limited level of 
comfort/ stability to a vulnerable sector;  the sector is characterized as being a very insignificant 
producer in world markets which means that any prac tical or even exponential change in real output 
has no impact on   world markets but the reverse is not  true.  In other words an insignificant change in 
the world market or even among our main trading partners, may have structural destabilizing and 
permanent repercussion for our domestic producers. 
 Belize as a micro-state (defined in terms of popul ation, size of GDP and Government of Belize 
Annual budget), is faced with a number of challe nges that have traditionally defined our trade 
policies.  It is not technically nor financially a nd economically feasible to introduce WTO-compatible 
trade defence mechanisms such as  safeguards, dum ping & countervailing duty to protect against wide 
variations in  domestic prices linked to external import surges which could cause serious injury to 
vulnerable domestic enterprises.  The ongoing nego tiations, review of S&D treatment and work 
programme on small economies offer avenues for gr eater understanding and the adoption of new rules 
addressing the particular circumstances of small vulnerable developing economies such as Belize.  
Additionally, Government Support programs such as price support (aggregate measure of support), 
payments linked to acreage limitation, decoupled in come support, income insurance, disaster relief, 
retirement schemes, and safety net programmes that  could possibly be - designed to provide some 
level of comfort (income and stability) to our produc tive sector do not exist.  Many of the competing 
imports are beneficiaries of various support measures, including subsidies ( direct export subsidies, 
disposal of stock, producer-financed subsidies, co st reduction measures, internal transport subsidies 
and subsidies on agricultural products incorporated in exported products ) as declared by the 25 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 19 
 
 
 respective contracting parties/Members;  Belize does not retain the policy flexibility to utilize such 
measures.  Belize is reviewing its trade policies in an attempt to remain competitive in an imperfect 
global agriculture market.  
Other constraints to implementation of the tariffication process are linked to an assessment of the 
practical feasibility.  Smuggling continues to be  a major problem and is on the increase given the 
nature of our extensive contigu ous border with Mexico and Guatemala.  Existing practices were 
developed in view of our geographical circumstances in an attempt to stem increased informal imports, particularly, from  Mexico and Guatemala. 
 
Other factors which have been taken into account in  having an import licensing regime relate to the 
enforcement of sanitary and phytosan itary measures and food security .  Proposals that have been 
advanced in the context of the Government’s review  of the regime suggest that effective mechanisms 
be developed so as to ensure that imports meet cer tain standards and that the country’s food security 
interests are secured in the area of imported agriculture inputs and basic food items. 
 In summary, Belize is fully cognizan t of and committed to fulfilling its  legal obligations with respect 
to Import Licensing in accordance with WTO rules and it is in the process of fully reviewing the 
subject matter.  EU:  Tourism  Would Belize inform us on how much of the FDI attr acted by the country in the last years has been in 
the tourism sector? 
 Currently this data is not being compiled. 
 
Would Belize inform us about their existing plans to  promote the tourism sector, and what measures 
the government is taking to ensure non-di scrimination of foreign services suppliers? 
 
Currently Belize has a number of avenues in promo ting the tourism sector.  Increasing the awareness 
level is done through selected consum er and trade magazines that serv e its niche markets.  Television 
ad campaign, targeted educational presentations to  the trade and consumers, inclusive of airline 
reservation agents.  A strong internet presence strong relationship with the international press, family 
trips and attendance at selected trade shows.  Ther e are currently no discriminatory regulations in 
relation the provision of services by foreign suppliers.  Would Belize inform us about their plans for impr oving professional education and training related to 
the tourism sector? 
 
The Belize Tourism Board has a two prong appr oach in addressing professional education and 
training needs of the sector.  Firstly, with the assi stance of the IDB the BTB embarked on the Tourism 
Training Unit project to address the training needs of  the tourism industry.  Once this project is 
completed the TTU will become a new department w ithin the BTB and will continue to provide the 
required training the industry needs. Secondly, the University of Belize has recently started a Bachelor Degree program in Tourism & Hospita lity Management and tourism programs are now 
being offered in secondary schools.  What is the approach of Belize to the regulation of  tourism-related aspects of general interests such 
us environment, wildlife, urban planning, etc? 
 
Belize’s approach is to utilize the existing laws and regulations that relate to the environment, wildlife 
and urban planning etc. in any tourism related activ ity. Secondly, Belize is promoting a sustainable WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 20 
 
 
 tourism product.  The BTB provides support to the industry by lobbying Central  Government about 
certain environmental issues and we sit on several environmental committees. 
 
What is Belize’s viewpoint about the tourism sector  and promotion of local cultures, development of 
water supply and sanitation services, and public security?  
Belize recognizes that tourism and culture share im portant synergies and that is why the National 
Institute of Culture & History and the Belize Tourism Board are under the responsibility of one 
Minister.  Under the Product Development portfolio  the BTB has focused on key areas such as the 
Tourism Police Unit (Security), National Anti-litter program (sanitation) and the development of 
Community based tourism.  In short our mission is to ensure meaningful and sustainable development 
of our tourism industry.  Belize has invested in the improvement and expans ion of our water supplies 
to accommodate domestic and tourism growth.  Would Belize inform us about the existing legisl ation applicable to tour managers (professionals 
accompanying groups of tourists in their travel  through the country) and tourist guides?  Would 
Belize inform us about the plans that the gov ernment is considering to reduce or eliminate 
discrimination of foreign services suppliers in these fields? 
 
Currently, there are two legislations that govern the tour sector in the tourism industry:  the Tour 
Operators & the Tour Guide SI’s.  In both these legislations, an individual must be a born or 
naturalized Belizean to obtain a license.  If a foreigne r wants to become a tour operator he must work 
through a licensed Belizean operator or be in partnership with a Belizean.  
Canada:  Telecommunications 
 
7. Canada welcomes the efforts that Belize has und ertaken in the past several years to reform its 
financial sector regulatory regime.  Belize made only a few GATS commitments during the Uruguay 
Round, such that Belize’s GATS commitments cover only two sub-sectors, namely professional 
services and telecommunications, and no commitmen ts have been made in financial services. 
 
a. Does Belize intend to table an offer on financial services in the current round? 
b. Does Belize intend to seek further liberalization in the services sector? 
 
The proposed assessment of trade in services on overall terms and on a sectoral basis with reference to 
the objectives of GATS would have greatly assisted Belize in tabling an offer in the ongoing GATS 
negotiations.  However, such assess ment has not been undertaken.  Additionally, due to financial and 
other resource constraints Belize has not undertaken su fficient consultations with stakeholders and the 
private sector in order to identify specific sectors th at it would be in our interest to liberalize.  
Nevertheless, Belize has undertaken signifi cant autonomous liberalization measures. 
 With respect to telecommunications, the commitmen ts in Communications Sector made by Belize 
(GATS/SC/10/Supplement 1) in the Uruguay Round circa 1997 were pretty much across the board for 
all subsectors as follows:  Cross border Supply - reserved to existing exclusive operator;  
Consumption abroad - none; commercial presence unbound;  presence of natu ral persons - unbound 
except as indicated in the horizontal section.  Be lize has made great steps in going beyond these 
commitments.  In 2002 the telecommunications sector  was liberalized through the enactment of the 
Belize Telecommunications Act, 2002 following a policy framework document issued by the GOB 
earlier in the year.  The PUC the new regulator for telecoms subsequently issued three individual (all 
services) licenses to the incumbent BTL, Intelco, and Speednet along with the issuance of 13 class 
licenses for internet and radio trunking services. In telco is currently providing services and Speednet 
is expected to start providing service within the next three months. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 21 
 
 
 Canada/13,14,15/Telecommunications: 
 
13. Could Belize provide Canada with a copy of  the Belize Telecommunications Act Cap. 229, 
2003? 
 
A copy of the Telecommunications Act is available at  the offices of the PUC in Belize City or can be 
easily accessed on the website:  www.puc.bz.  
14. Canada notes that the tax on telecommunication ser vices is 19%, which is one of the highest 
rates.  Could Belize explain why it takes tel ecommunications services at such a high rate? 
 
The 19% Business Tax presently placed on the telecomm unications sector was done so at the time of 
the introduction of Business tax as the tax regime a pplied to businesses in Belize.  The rate of 19 % on 
gross receipts was set at that level to recover to  the government the level of tax revenue from BTL 
enjoyed under the previous tax regime.  With the introduction of competition and the desire to lower 
telecommunication rates to consumers the Government is presently reviewing this level of tax.  At 
present the tax applies to any telecommunication service provider and as such is non-discriminatory 
among the providers.  
15. Canada notes that Belize Telecommunications  Ltd. (BTL) has exclusive rights to provide 
telecommunications services through modes 1 and 3 unt il 2007, as stipulated in Belize’s services 
schedule in the GATS.  Could Belize provide an up date on the  liberalization of this market and the 
end of BTL’s exclusive rights? 
 
As mentioned above, the GATS commitments have been surpassed as there is presently no exclusive 
rights given to any service provider since December 30, 2002.  There are currently three individual 
licenses and thirteen class licenses is sued by the PUC.  Internet, cellular, and international long 
distance tariffs have decreased in the past tw o years following the enactment of the new Act. 
 
16. According to Belize's services schedule, it ha s not made any commitments for any of the 
computer and related services listed 1B(a)-(e) in th e Sectoral Classification List.  Does Belize 
anticipate being in a position to make commitments for this sector in the current negotiating round of 
the GATS? 
 
No response provided.  What are the reasons for having only two suppliers of telecom services (in effect only one additional 
to be incumbent?)  Do you consider that this may be linked to the number of conditions put on 
licenses?  In your opinion, how woul d a new entrant undermine competition in the market, as indicated in the 
PUC’s Telecom regulations in 2002? 
 
How is “universal service” defined when applied to the telecommunication sector?  How is it 
enforced where the two op erators are competing? 
 
EU/Telecommunications:  There are three individual (total service) licenses issued to BTL, Intelco, and Speednet.  Two are operational and the third Spee dnet, is expected to begin operations shortly.  
There are also twelve internet cl ass licenses and one radio trunking class license.  The conditions on 
the licenses have not been raised  in any instance with the PUc as being limiting.  The PUC's 
regulations states that if the number of licenses were to be restricted then the PUC would have to go through a transparent process with the public to explain the reasons for such restrictions.  However 
this mechanism was put in place as there are concerns  within the government and the PUC that given WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 22 
 
 
 the small market size, the wid espread and sparse population cent ers, the requirement for quality 
service, expansion requirements, etc. consideration will have to be given that competition may focus 
on urban an profitable areas reducing penetration a nd placing pressure on universal service objectives.  
At present universal service is a condition of any individual (total service) license issued.  There is 
also provisions made for the establishment of a Universal access Fund to which the licensees would 
contribute.  The specifics of the universal se rvice mechanisms are s till being worked out as 
liberalization is only two years old and regulatory capacity/institutional building of the PUC to deal with these issues is ongoing.  According to the report of the WTO Secretariat, el ectricity rates are high compared to other countries 
in the region.  Energy is an important ingredient  in most production-process.’ It seems that further 
liberalization in the energy field could yield great benefits to Belize and that such liberalization could 
be sought in the framework of the GATS.  Does Beliz e share this view?  Does Belize foresee entering 
into additional commitments in order to  achieve such lowering of energy prices? 
 
EU/Energy:  During the consultation phase of the WTO Secretariat report, the PUC on every occasion 
attempted to explain to the WTO consultants that comparison of electricity rates across the region was a very difficult and intricate process as many countr ies have subsidy programs that are not necessarily 
transparent in the rates published.  Notwithstanding that a general statement could be made that rates 
in Belize are low when compared to the Caribbean region and relativ ely higher when compared with 
the Central American region.  We consider our electricity sector to be more closely modelled with 
countries in the Caribbean and not Central America.  In fact recent increases in international oil prices 
have caused significant increases in el ectricity costs in several Central American countries.  Belize is 
presently focusing on the unbundling of generation from transmission and distribution.  In this regard, 
we are presently concluding an international biddi ng process that will see the introduction of two new 
players in the generation market.  Except for th e owning of peaking, emergency backup, and black 
start need the wholesale purchaser, BEL, will not be allowed to participate in any future generation 
needs.  Current supply is diverse in that en ergy is purchased from CFE in Mexico and BECOl 
(hydroelectricity).  The PUC is presently working to  issue a distribution license to a small supplier in 
a rural setting which would see the introduction of a second licensee in distribution.  Transmission is expected to stay a monopoly. Belize will seek to  introduce competition in the electricity sector 
wherever it is proved feasible to do so. However the special characteristics of  the Belize market will 
dictate the level of such liberalization.  There is no exclusivity provided in any licenses issued by the 
PUC.  
EU – Trade In Goods 
 
According to the WTO Secretariat's report, paragra phs 62-74, Belize has made efforts to implement 
its obligations under the WTO Technical Barriers to Trade Agreement, mainly strengthening its 
institutional capacity for the development of standa rds and technical regulations.  However, Belize 
has not, to the knowledge of the EC, submitted its statement on the implementation of the TBT 
Agreement nor notified the adoption of the Code of Good Practice for the development of standards 
or notified draft technical regulations or conform ity assessment procedures.   The procedures laid 
down in the TBT agreements are essential for ensuri ng transparency.  When  does Belize foresee to 
notify to the WTO its draft tec hnical regulations and conformity  assessment procedures?  What 
measures are envisaged in order to fu lfil the TBT obligations on transparency? 
 
Furthermore, the report of the WT O Secretariat stipulates that the Bureau of Standards is authorised 
to examine imported goods for which technical re gulations exist. Accordi ng to the TBT Agreement, 
Belize should ensure that imported products are “a ccorded treatment no less favourable than that 
accorded to domestically produced products” (A rts 2.1 TBT).  Does the requirement for market 
surveillance of imported products also apply to domestic products? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 23 
 
 
 Belize is committed to employing its best endeavours to  fulfill its notification obligations to the WTO.  
However, we are faced with significant resource constraints that have precluded timely implementation.  
Market surveillance applies to both imported and domestic products. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 24 
 
 
 ADVANCE WRITTEN QUESTIONS BY MEMBERS AND 
REPLIES PROVIDED BY SURINAME 
 
 United States of America 
 
The United States commends Suriname on the impro vements it has made to its trade and economic 
development policies in recent years.  The U.S. is  encouraged by Suriname’s progress in liberalizing 
its trade regime, including by reducing its aver age applied tariffs, and in making its customs and 
investment processes more transparent.  We believe  these steps are essential to encouraging greater 
trade, economic growth, and d evelopment, and we encourage Suriname to continue them. 
 
ECONOMIC ENVIRONMENT 
 
Monetary and Exchange Rate Policy 
 
The Secretariat Report notes that Suriname is reviewing the Central Bank's authority to limit 
financing to the Government.  The United States belie ves that a Central Bank independent of political 
influence and the curren cy stability that such a bank can enge nder are the building blocks of a strong 
trade regime. 
 
1. What is the status of the review of the Central Bank’s responsibilities?  
 Answer:  
The draft Amendment to the Bank Act contains prov isions to further stre ngthening the independence 
of the Central Bank of Suriname.    
The Secretariat Report notes that Suriname maintain s multiple foreign exchange rates.  “All exports 
are subject to fees amounting to 0.6% of their valu e, except in the case of bauxite, for which the fees 
are 2.1%.  Foreign exchange surrender requirements s till affect exports of mineral-related products, 
including petroleum and alumina.  These requirements are equivalent to an export tax, because they 
are applied using an exchange rate lower t han the rate used by commercial banks.” 
 2. What plans, if any, are underway to conso lidate the foreign exchange regime around a single, 
universal foreign exchange rate? 
 
Answer:  
The monetary policy of the Surinamese Government  aims to bring stability in the economy.  The 
official exchange rate in Suriname is being determined by market forces, however the Central Bank quotes general indicative exchange rates based on those market forces.  
 
In 2003, the monetary authorities announced that the Surinamese guilder would be replaced by a new 
currency, the Surinamese dollar.  The Surinamese dolla r (SRD) became the new legal tender as of 
1 January 2004.   
 
3. Please comment on Suriname’s experience with the new currency since its inception 
. Answer:  
The new currency was widely accepted with en thusiasm and the introduction was a success. 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 25 
 
 
 TRADE POLICY BY MEASURE 
 Customs Procedures 
 
The United States is encouraged by Suriname ’s preparation of a new customs code.  
 4. When does Suriname expect to adopt and implement the new code? 
 
Answer: 
 
The intention of Suriname is to im plement the new code in January 2005. 
 
Tariffs 
 
The Secretariat Report observes, on page 36, that “some 30% of applied tariff lines that are bound 
and that correspond exactly to the HS 92 classific ation exceed their bindings by between 1.5 and 
30 percentage points.”  5. Is Suriname actively planning to reduce the tariffs applied to these lines to bound rates?  
Please describe any such plans, includin g their timeframe for implementation. 
 
Answer: 
 
In preparation for the new national tariff, the bound ra tes will be taken into consideration.  Suriname 
has requested renegotiations of the bound rates according to Art XXVIII of the GATT. 
 
The Secretariat Report further notes, on pages 36-37, t hat “Suriname requested authorization to enter 
into negotiations to modify its binding concessions  in accordance with Article XXVIII of GATT 1994.  
Suriname stated that this responded to an overa ll objective of restructuring its economy for the 
purpose of increasing employment opportunities, reducing poverty and ensuring food and income 
security.  These negotiations are not yet completed.”  
 
6. Please describe Suriname’s progress in these ne gotiations.  In particular, please indicate: 
  a. The parties with whom Suriname is negotiating.  
Answer:  
 
Countries which have reacted are:  The Europ ean Community, Thailand, Australia and Canada. 
 
 b. The products for which Suri name is renegotiating concessions. 
 
Answer: 
 
See document No. G/SECRET/17. 
 c. The target date for co mpletion of these negotiations. 
 
Answer: 
 
Suriname is now in the process to prepare the rene gotiations.  As soon as possible we will enter into 
negotiations. 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 26 
 
 
 The Secretariat Report notes that, “Sur iname is working towards incor porating into its tariff schedule 
the changes made to the HS in 1996 and 2002.  They i ndicate that this work will be finalized by the 
end of 2004.”    
7. Please describe progress to date on inco rporation of updated HS nomenclature. 
 Answer: 
 
The HS nomenclature is now under review and comments of the customs authorities.  Afterwards it 
will be finalized by the working group, which is especially set up for this reason. 
 
a. Does Suriname intend to convert its entire tariff schedule to HS 2002 nomenclature?  
 
Answer:  
 
National tariff will be based on the C ET which is based on the H.S. 2002. 
 
Import Prohibitions, Restrictions, and Licensing 
 
With respect to business licenses, the Secretariat Report notes that “although the legal requirement 
on importers (and exporters) to obtain a business license to operate remains in effect, the authorities 
noted that in practice business licenses for importers and exporters are no longer required.” 
 8. In light of this practice, and in order to promote transparency and consistency in the 
application of government regulations, has Suriname considered eliminating the requirement from 
official statutes?    
Answer: 
 
Yes, Suriname will eliminate the requirement from official statutes. 
 The Secretariat Report notes that Surinamese law m andates pre-shipment inspection for imports, but 
that this requirement is no longer enforced.    9. Does Suriname intend to officially abol ish this legislation?  If so, when? 
 
Answer:  
 
Suriname does not intend to abolish th e pre-shipment inspection for imports. 
 
Secretariat Report describes a Negative List of goods that remain subject to import restrictions.   
 
10. Could Suriname please describe the procedures by  which this list is updated or modified?  Is 
the list reviewed and modified on a regular basis?  
 
Answer:  
 The procedure to modify the negative list is:  the Minister of Trade can, after having consulted the 
President, make immediate changes to  the list through a ministerial resolution.  Within 4 months, this 
ministerial resolution should be followed by a presi dential resolution with the same content.  The 
negative list is modified on a regular basis a nd updated in consultation with other ministers. 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 27 
 
 
 Intellectual Property Rights 
 
The United States notes and appreciates Suriname’s continued attention to intellectual property rights 
(IPRs) issues.  Suriname is a signatory to various  international IPR treaties and has been a member 
of the World Intellectual Property Organization (WIPO) since 1975.   
 According to Government authorities, Suriname ha s not yet implemented the WTO Agreement on 
Trade-Related Aspects of Intellectual Property Right s (TRIPS).  They indicated that, to remedy this 
situation, new legislation pertaining to IPRs has be en drafted with the assistance of the International 
Bureau of WIPO and is awaiting the approval of Suriname's National Assembly.
1   
 11. What is the status of this legislation?    Answer: 
 The Surinamese legislation pertaining to industrial  property rights, which would implement the WTO-
TRIPs Agreement, has yet to receive approval from the Surinamese Parliament.  At this time, it is 
difficult to indicate the actual time when this legisl ation will come into force.  What we can state 
however is, that every effort is being made to ha ve this legislation approved on time for it to come 
into force before January 2005.  
 
With regard to the issue of copyright protectio n in Suriname, we are in fact working on the 
modification of our Copyright Law and a Draft Law on Related Rights.  These regulations will be  
based on the model that was drafted by the WIPO, so we are confident that most of the obligations 
under the TRIPS Agreement have alre ady been considered.  Basically, we will make every effort to 
shortly have a TRIPS compliant draft ready for approval by Parliament. 
 
Sanitary and Phytosanitary Measures 
 
The Secretariat Report notes that Suriname is pre paring legislation to “allow Suriname to use the 
precautionary principle to adopt measures agains t risks associated with genetically modified 
organisms in the food chain.  They also informed th e Secretariat that controls are in place on imports 
of corn and soybeans.”  Answer:  
In the Secretariat Report there was a misunderstanding.  What the Surinamese authority mentioned 
to the WTO Secretariat was that Suriname is pr eparing policy in which precautionary measures are 
taken against GMO in the food chain, and not legisl ation.  So we cannot give an answer to the 
questions 12 and 13. 
 
12. Please indicate the scientific principles on wh ich the legislation under preparation is based. 
 
13. Please describe in further deta il the legislation under preparation.  If possible, please provide 
a copy of the draft legislation to the Secretariat.   What is the timetable for implementing the draft 
legislation?  
14. Please describe in furth er detail the controls in place on corn and soybean imports. 
 
                                                      
1 WTO document IP/C/W/283/Add.3, 8 January 2003. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 28 
 
 
 Answer: 
 
As mentioned in the Secretariat Report, the imports on corn and soybean meals are so far controlled 
on GMO on the basis of good practice. 
 
European Union 
 Trade in Goods  
Doing away with unnecessary external as well as in ternal impediments to trade is vital for the 
promotion of trade and development itself.  To th is end, the EC should like to pose the following 
questions to the three countries under review.   According to the WTO Secretariat's report Suriname has made efforts to im plement its obligations 
under the WTO Technical Barriers to Trade Agreem ent, mainly strengthening its institutional 
capacity for the development of standards and techni cal regulations.  However, Suriname has not, to 
the knowledge of the EC, submitted its statemen t on the implementation of the TBT Agreement nor 
notified the adoption of the Code of Good Practice fo r the development of standards or notified draft 
technical regulations or conformity assessment pro cedures.  The procedures laid down in the TBT 
agreements are essential for ensu ring transparency.  When does Suriname expect to notify to the 
WTO its draft technical regulations and conformi ty assessment procedures?   What measures are 
envisaged in order to fulfil the TBT obligations on transparency? 
 
Answer: 
 
In the process of strengthening its institutional capacity for the development of standards and 
technical regulations, Suriname reaches its final st age by setting up a National Bureau of Standards.  
Legislation for the establishment of the Bureau ha s already been approved by the National Assembly 
of Suriname.   
Trade in Services 
 
The EC notes that the services sections of the Govern ment’s report generally focus on services which 
have a key role in development such as financia l services, transport services and tourism services.  
The EC supports the view that th ese sectors are important.  In the view of the EC these and other 
sectors are important for improving development.  
 
Tourism  Would Suriname inform us on how many people wo rk in the tourism sector and what has been the 
evolution in the last years?  
 
Answer:  
Direct employment in the tourism sector is 6,000.  Indirect employed in the tourism sector is also 
6,000.  The sector experienced a growth in rece nt years in investment in new companies and 
accompanied by this a growth in employment.  Because of the spin-off effects the indirect 
employment also increases.  Compared to the employment in 2000 the increase in 2003 was 25%.  
 
Would Suriname inform us on how much of the FDI a ttracted by the country in the last years has been 
in the tourism sector? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 29 
 
 
 Answer: 
 
Investment in the tourism sector is mostly done by do mestic investors.  Foreign participation is mostly  
limited to the gambling sector, more specifically C asinos, river cruises, lodges in the interior, tour 
operators etc.  These foreigners operate in a join t venture with the local entrepreneurs or through 
companies established by domestic law.  We ar e unable to provide exact figures, but with the 
introduction of the Management Information System  for Tourism (MIST) it will be possible to 
provide this information soon.  The ITDP in cooperation with STS (the foundation for tourism in 
Suriname) has with the support of the CTO implem ented the MITS (Management Information System 
for Tourism).  This system has made it possible fo r STS to produce reliable statistics since June 2003 
with the introduction of embark ation and disembarkation forms. 
 
Would Suriname inform us about their existing plans to promote the tourism sector, and what 
measures the government is taking to ensure non-discrimination of foreign services suppliers? 
 
Answer:  
The plans are:  setting up the Suriname Tourism Au thority with the specific task of marketing and 
promotion of Suriname as a tourist destination;  developing and implementing an integral marketing 
strategy containing the following activities;  developing an official tourism website (www.suriname-
tourism.org) which will be launc hed in August 2004;  participa tion in international promotion 
activities as tourism fairs, seminars, conferences a nd other activities in the identified markets;  
strengthen cooperation with other or ganizations in the field of promotion;  regular production and 
distribution of sufficient tourism brochures, maps a nd other information;  ample time will be spent on 
the product development and divers ification before implementing the market strategy.  There are no 
restrictions in foreign participation.  The Governme nt is in the process of drafting legislation in the 
tourism sector, which will regulate the sector and provide for transparency. 
 
Would Suriname inform us about  their plans for improving pr ofessional education and training 
related to the tourism sector? 
 
Answer:  
Preparations have already been made for the est ablishment and exploitation of a tourism and hotel 
trainings centre (THTC) for offering training for personnel in the sector.  The curricula and the necessary training manuals have, for the most part, already been developed.  The trainers for the 
different courses are ready.  The housing of this instit ute is an activity that needs to be taken care of.  
The last preparations are made for construction/reno vation of the building.  The ministries that are 
jointly responsible for this institute have alr eady signed an MOU for cooperation.  These are the 
ministries of transport communication and tourism,  labour, environment and technology, education 
and community development and the ministry  of planning and development cooperation. 
 
Tourism training will also be provided through fo rmal education.  By introducing the catering 
industry in the secondary education, a pre-voca tional certificate programme will implemented by 
2004/2005.  Provisions are also made for a pre-employment diploma course of a three years duration in the area of 
tour and travel operations, hotel front office operations, and hospitality industry services.  
 The Minister of education has also installed a tourism education commission to advice him on the 
necessary steps for the introduc tion of tourism education. 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 30 
 
 
 Cooperation with regional and international or ganisations and traini ng institutions for the 
development of expertise in the tourism sector.  
What is the approach of Suriname to  the regulation of tourism-related aspects of general interests 
such us environment, wildlife, urban planning, etc? 
 Answer:  
Suriname is in the process of developing an effec tive system for the protection of the environment and 
the preservation of the eco-system.  The institutiona l framework consists of local institutions as well 
as international organisations.  The NIMOS is an authority that has been established for 
environmental protection.  STINASU, C.I. and the de partments of the different ministries take special 
interest in the wildlife preservation and the preventio n of environmental damage.  The legal system is 
not sufficient yet but is taken into account.  
 
What is Suriname’s viewpoint about the tourism sector and promotion of local cultures, development 
of water supply and sanitation services, and public security? 
 
Answer: 
 
For the development of the tourism sector the de velopment and preservation of local cultures, de 
availability of healthy potable water, and water for recreational purposes, hygiene sanitary provisions 
and security are essential.  These b asic necessities are also important for the local population.  In the 
promotion of tourism the government is keen on pr eventing damage to the culture and the customs of 
the local population.  
 
We would like to know about Suriname’s assessment of the effect of the tourism sector in overall 
economic growth and employment, and in particular in other ec onomic sectors like construction, 
transport, computer services, e ducation and professional training. 
Answer:  
The STS statistics (CTO-MIST) indicate that during the period June 2003 to Febr uary 2004 a total of 
more than 90,000 international tourists arrived in Su riname.  Extrapolating this figure brings us to a 
year total of 130,000.    Two types of tourists visit Suriname.  Tourists vi siting family members and the tourists that just 
comes for the attractions of the count ry (the tourists).  The number of real tourists visiting Suriname is 
not very high.  20% fall in the category real tourists.   As already mentioned, direct employment in the tourist sector is 6,000.  Indirect employed in the 
tourist sector is also 6,000.  Because of the spin-o ff effects the indirect employment also increased.  
Compared to the employment in 2000 the increase in 2003 was 25%.  
 
The annual income is US$60 million. This figure is the result of an exit-survey done in 1999-2000 
that was executed together with the CTO.  The calculations are as follows; 
 Tourists expenditure:  the amount of  tourists x the average expenditu re on each visit (average stay x 
average expenditure for a day). 
 For the year 2003 the estimate is:  130,000 x US$1,000 (25 days x US$40) = US$130 million.  In the expenditure the ticket expenses are not included.  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 31 
 
 
 The assessment of the effects of the sector on the total economy has not been made yet.  The effects 
will not be that evident because the sector is stil l in an infancy stage and is just now being 
transformed, with the help of the EU, in to a sector with great growth potential. 
 Would Suriname inform us about the existing legi slation applicable to tour managers (professionals 
accompanying groups of tourists in their travel  through the country) and tourist guides?  Would 
Suriname inform us about the plans that the go vernment is considering to reduce or eliminate 
discrimination of foreign services suppliers in these fields?  
Answer: 
 
The tour operator service is a licensed service.  To apply for a license certain licensing conditions 
need to be satisfied as:    
- credit worthiness;   
- skill and commercial practice etc.  
 The tour operator employs the tourist guide.  Th ere is no licensing requirement for this service 
provider.  The operator has the obligation to recr uit an experienced guide though.  There are no 
restrictions to foreign tour operators. 
 
Distribution services 
 
Would Suriname inform us on how many people work in the distribution sector and what has been the 
evolution in the last years? 
 
Answer:  
There’s no exact figure available on how many people  are working in this sector.  According to the 
companies registered at the Trade Register of K.K.F. we can say that nowadays there are about 20,000 people working in the distribution sector. 
 
For example:  transport sector 6,200;  computer ser vice 1,000;  construction sector 3,500;  education 
and professional training 6,500;  security services 2,500.  
Would Suriname inform us on how much of the FDI a ttracted by the country in the last years has been 
in the distribution sector?  
Answer: 
 
There are no figures available. 
 We would like to know about Suriname’s assessment of the effect of the distribution sector in overall 
economic growth, employment and social developmen t, and also in other economic sectors like 
construction, transport, computer servic es, education and professional training. 
 Answer: 
 Although we do not have statistics to base our statement,  we believe that the overall effect this sector 
has on the other sectors is positive.  
Would Suriname inform us about existing le gislation applicable to retailing services? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 32 
 
 
 Answer: 
 
The applicable rules on services is the Law Licen ses Businesses and Professions S.B 1981 no. 145, 
which prescribes the licensing procedure. 
 
The Resolution Licensing Requirement Businesses a nd Professions S.B. 1998 no. 147 and S.B. 1985 
no. 40 prescribe which kind of businesses need a license. 
 There is also a law regarding opening hours for stores, as amended by S.B 2002 no. 99. 
 
To establish a company in Suriname, one w ill have to wait two years for approval. 
 One also needs to apply for a distribution license at the Ministry of Trade an d Industry if such is 
required. 
 
A service company also needs to take the relevant  labor laws into account, such as for laying off 
employees E-39 S.B. 1983 no. 10  and S.B. 1984 no. 102.  
 
Business services 
 
Would Suriname inform us about the legislati on applicable to the following activities and the 
measures the government is taking to ensure non- discrimination of foreign services suppliers in the 
areas of management consulting and servi ces related to management consulting? 
Answer:  
The applicable rules on services is the Law Licen ses Businesses and Professions S.B 1981 no. 145, 
which prescribes the licensing procedure.  The Resolution Licensing Requirement Business es and Professions S.B. 1998 no 147 and S.B. 1985 
no. 40 prescribe which kind of businesses need a license. 
 Telecommunications 
 
What are the objectives that the government is intending when limit foreign ownership in 
telecommunications?   
Answer: 
 
We would like to stress that the limitation on foreign participation is  only for setting up and 
maintaining basic infrastructure.  Provision of services through the existing infrastructure is open for 100% foreign participation.   
Regarding the setting up of basic infrastructure, th e Government believes that opening up the market 
straightaway to foreign participation can limit oppor tunities for domestic potential operators in the 
sector.  The Government has as one of its first r esponsibilities offering broad investment opportunities 
to its domestic producers/suppliers, and creating th e conditions that domestic  consumers are offered 
the best services available.  Because of this gradua l liberalization strategy the best way to go is 
opening up foreign participation for 40% as a start a nd than in the future b ased on evidence, surveys 
of the market, increase the percentage for forei gn participation.  Telecommunication is a sector 
controlled by providers mostly from the devel oped countries.  Because the high importance of 
physical infrastructure, technology and the ability to  reinvest in technological development, smaller 
suppliers have difficulties surviving.  The financial im plications for investments are also considerable.  
Opening up for 100% foreign participation would cr eate the situation where the domestic potential WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 33 
 
 
 suppliers would not get a fair change of competing with the big players (ec onomies of scale) already 
on the international market.   
What are the reasons for not fixing the conditions on interconnection with Telesur?  
 
Answer:  
The interconnection will not be a problem in the future because in the new telecommunication law 
this aspect is duly taken care of.  The operators  are obliged to fix the interconnection between 
providers.  The TAS has the task of examining the contracts that are signed between parties and if 
they are in conformity with the licensing obl igations.  The articles 11 and 12 address the 
interconnection issues.   
Article 11 
 1. Every concession holder is, in the interest of  efficient supply of telecommunication, obliged 
to supply interconnection if another concession holder or license holder makes a request to that end. 
 2. Every concession holder is obliged to fix an interconnection offer assisted by a model 
agreement indicated by TAS, which must  be published and submitted by TAS.  
 
3. The interconnection agreement forms the basis for the granting of interconnection.  
 
4. With the granting of interconnection ever y concession holder shall see to the following: 
 
 a. The conditions for linking are non-discriminatory 
 b. The conditions for linking are transparent and the rates for linking are not bundled  c. Remunerations for linking as part of the conditions are cost-oriented. 
 5. By or in virtue of government resolution, further rules can be set concerning obligations with regard to bringing into effect the interconnec tion and the supervision of TAS of the same. 
 
Article 12 
 
Interconnection agreement  
 1. Every concession holder is obliged to start nego tiations with applicants of interconnections to 
come to agreements on the basis of which the inte rconnection comes into being;  TAS can, in case an 
agreement is not realized, set a term in which this can be realized.  2. By or in virtue of government resolution fu rther rules can be set concerning the creation of 
interconnection. 
 
3. The costs for establishing an interconnection sha ll be to the account of the one that submits a 
request to that end.  4. Copies of agreements as referred to in sub section 1 shall be sent to TAS as soon as possible; 
the agreements referred to shall be made in acco rdance with the government resolution as referred to 
in subsection 2 of Article 12.  5. In case TAS holds the view that an agreement is contrary to what has been stipulated by or by 
virtue of this Act, the parties shall be informed  by the same, thereby stating the provisions of the 
agreement which in his opinion need amendment;  as long as these amendments have not been WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 34 
 
 
 brought about, the concession holders concerned will not have met the obligations with regard to 
interconnection.  6. If the parties that are obliged to conclude an  interconnection agreement are not able to do so, 
TAS at the request of one or more of them shall set rules which will be valid among them. 
 
Article 19 and Resolution for concession holders 
 
TAS can set rules with regard to tariffs and th e amendments of the same by a concession holder. 
 
What is the rationale for limiting the number of alternative operators to two?  
 Answer:  
Because the study done by PriceWaterhouse Coopers has indicated that the market can only take two 
to three additional suppliers, the Government has de cided to issue initially two more concessions for 
setting up basic infrastructure. In this regard, the Go vernment is gradually liberalising the sector.  The 
government believes that this is for the benefit of the suppliers as well as the consumers.  By 
gradually liberalizing the sector th e market gets the change to transform on its own pace into a free 
market situation.       
 
Financial services 
 
Ensuring a strong financial sector is of grea t importance in terms of anchoring economic 
development and laying a foundation for continued gr owth.  The report of the WTO Secretariat seems 
to indicate that the Surinamese banking system has a great level of concentration with a significant 
element of state-participation.  Considering the be nefits that could be derived by greater external 
participation in this sector, the EC should like e nquire if Suriname foresees to use commitments in the 
framework of the GATS, thereby using external par ticipation in this sector to strengthen local 
competitiveness, laying an even stronger financial foundation? 
 
Answer: 
 
On February 19, 2004 Suriname has notified an in itial offer list to the WTO with regard to the 
financial sector only.   
(A) Insurance and Insurance related services 
(C) Reinsurance and retrocession (CPC 81299*)  With regard to the banking sector there ar e no commitments in the foreseeable future. 
 
Government Procurement 
 
Ensuring the best possible procurement is an important part of the strengthening of markets as well 
as producers and for optimising the utilisation of public funds.  Furthermore tough and transparent 
procurement policies and regulations will assist in  reducing corruption and mismanagement.  In this 
light the EC should like to ask Suriname the following questions.  
 
The EC should like to ask to receive statistics regar ding awards of contracts for year 2003 or 2002, 
detailed by type of contracts (works, supplies, services), adjudication type (public adjudication, 
private agreement), procedure (open, sel ective) and origin (international, local)? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 35 
 
 
 Answer:  
 
Types of Contracts 2002 2003 2004 
Public Works 190 82 44 
Delivery 3 3 5 
Service 3 5 2 
Total 196 91 51 
 55 % of total contracts are awarded through a public tender.  The majority of contracts are done by national companies.  The following two contracts were awarded to fore ign companies:  a street rehabilitation project, 
namely Dalian from China and the delivery of pumps by the Indian Kirloskar Brothers. 
 
The report from the WTO Secretariat, paragraph 1 26, examines the developments in the field of 
public procurement. Further to the information pr ovided by the Secretariat, the EC should like to 
enquire if there are there plan for having other mini stries like the Ministry of Public Works adopting 
specific regulatory provisions on procurement? Has the Ministry of Public Works new regulations on 
procurement of works, services and execution of  works entered into force (paragraph 126)? 
 Answer:  
The Government is preparing new guidelines for the following two areas:  
Guide for public works and deliver y conditions for public works. 
 
A transparent and well-working conduction of procurem ent is truly important for ensuring the best 
possible and most optimal procurement arrangeme nts, thereby increasing the utilisation of public 
funds.  According to the report of the Secretariat,  Suriname has a vast public sector.  The EC should 
like to enquire:  what steps are and will be taken by  Belize in order to ensure efficient procurement?  
The EC should further like to enquire if Suriname suppor ts the EC view that the use of a multilateral 
framework, especially in this area, can play an im portant role for increasing procurement efficiency?  
 
Answer:   
 
Suriname takes the same position as CARICOM rega rding government procurement, being one of the 
Singapore issues.  We will limit the discussion about government procurement to transparency issues.  
As such, we do not see at this time that a mu ltilateral approach will increase efficiency.   
 
Trade Strategy  
Trade relations with neighbourin g French Guyana appear limited at  present.  Would Suriname be 
interested in developing this relationship in th e context of the Economic Partnership Agreement 
currently negotiated between the EU and CARIFO RUM countries?  Would Suriname have any views 
on the prospects for mutually beneficial trade and cooperation in goods, services and trade-related 
areas with regard to French Guyana? 
 
Answer: 
 
Suriname is very interested in developing trad e in services with French Guyana.  As mentioned, 
before transport is one of the main sectors for impr oving development.  In this regard, Suriname is 
interested in signing road and maritime transport ag reements with French Guyana to facilitate trade WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 36 
 
 
 and tourism development between Brazil, French Guyana  and Suriname.  It is important to note that 
the IIRSA (Integration of Regional Infrastructure in South America) developments of integration of 
physical infrastructure are very important to Suriname, as trade with the countries on the South-American continent is very marginal. Suriname issu ed a request to the IIRSA secretariat to invite 
France to take the observer states  in this integration movement.  This will greatly facilitate the 
infrastructure development on the continent a nd will simplify the negotiations.  The CARICOM 
Single Market and Economy is also integration development is essential.  The free movement of 
services between the CARICOM countries must be sufficiently facilitated with “border crossing agreements” between French Guyana, Suriname and Guyana.   
 
Suriname is also very much interested in furthe r developing economic relations with its neighbours.  
In this respect, taking into consideration the ge ographic reality, it is expected that the Economic 
partnership agreement will contain special provision s in order to facilitate the European OCT’s and 
Dom’s to develop closer economic ties with the countries in their vicinity. In this regard, both 
Suriname and French Guyana should seek to unl ock the potential that close economic cooperation 
holds.  It is desirable to undertake a study aime d at identifying those areas suitable for immediate 
cooperation.  
The EC considers that the WTO and multilateral lib eralization is the most certain way for small 
countries to promote their interests. How do you judge the relative importance and weight of 
bilateral/FTA policies and further development of th e WTO system in terms of your own trade and 
development needs? 
 
Answer: 
 
Suriname is yet to ratify the following CARI COM Bilateral Agreements: CARICOM-Costa Rica, 
CARICOM-Cuba, CARICOM-Dominican Replub lic and CARICOM-Venezuela and CARICOM-
Colombia.  Negotiation for a possible CARICOM-Canada are now on the way.  
As most MDC’s the EC is truly aware of the need s that you may be facing with regard to further 
trade-related assistance.  The EC should like to as k to what extent trade has been mainstreamed in 
the PRSP and national development policy?  Furtherm ore, the need for trade related assistance has 
been further assessed such as to provide an overview and a plan of areas are to be further boosted by 
Technical Assistance and how much TA is  required in each of these areas? 
 
Answer: 
 Trade is one of the main focal areas of the sectoral production policy (see chapter 8 Multi Annual 
Development Plan 2000-2005).   Technical assistance is necessary in the following areas:  
- Industrial Restructuring; Master plan Industry 
- Development of the legal framework for Export Processing Zones - Institutional capacity building for planning,  policy development and implementation: 
management, monitoring and evaluation of tr ade policy and sub sector policies and cross-
cutting issues such as transport policy and environment 
- Regional Integration 
- Trade negotiations - WTO compatibility requirements - Bureau of Standards - Businesses Development 
- Trade Promotion WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 37 
 
 
 - Quality, Procurement and regulations  
- Investment Law and facilities 
 Also reference is made to: 
 
Joint Annual Review 2004 (Calendar y ear 2003) and policy interventions. 
In support of the trade sector development a tran sport sector study was executed and will be discussed 
in the Council of Ministers for approval and implementation soon.  TA is needed for the 
implementation of the transport-sector policy among  others the moderniza tion and upgrading of the 
harbour. 
 TA is also needed for the privatization of th e state owned enterprises in the transport sector. 
 
The Government indicates that it has no adequate representation in Geneva.  Has the possibility of 
joint representation with other small count ries in the region been considered?  
 
Answer: 
 
Because of financial constraint at this moment in  time Suriname is not in the possibility to have a 
Mission in Geneva.  CARICOM is exploring the possibilities for a representation by the Regional 
Negotiating Machinery. 
 
Canada  
 
II. Trade Policy Regime – Framework and Obj ectives:  (4) International Relations:  
(ii) Preferential agreements:  paragraph 71 
 
1. The Report notes that Surinam e has not yet completed the administrative procedures required 
to implement the Costa Rica-CARICOM Free Tr ade Agreement.  Does Suriname have an estimated 
date for implementation?   
 
Answer: 
 
The CARICOM – Costa Rica Free Trade Agreement was just signed in March 2004.  Suriname has 
just begun the ratification process.  An estimat ed time for ratification cannot be given. 
 II. Trade Policy Regime – Framework and Obj ectives:  (4) International Relations:   
(iii) Other arrangements:  paragraph 75 
 
2. The Report states that Suriname has not applied for preferences offered by the United States 
under the Caribbean Basin Initiative and the Caribbe an Basin Trade Preferences Act.  Is Suriname 
planning on applying for these preferences and if not, why not? 
 
Answer: 
 
The Government of Suriname still has to decide on applying for these preferences. 
 III. Trade Policies and Practices by Measure:  (2) Measures directly affecting imports:   
(vi) Intellectual Property Rights:  paragraph 157 
 
3. Canada commends Suriname on its efforts to  ensure compliance w ith WTO requirements, 
including in the area of intellectual property la w.  It is our understanding that the Surinamese 
legislation pertaining to intellectual property rights which would implement the WTO-TRIPS WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 38 
 
 
 Agreement has yet to receive approval from Sur iname’s National Assembly.  When will this 
legislation come into force?   Answer:  
 The Surinamese legislation pertaining to industrial  property rights, which would implement the WTO-
TRIPS Agreement has yet to receive approval from th e Surinamese Parliament.  At this time, it is 
difficult to indicate the actual time when this legisl ation will come into force.  What we can state 
however is, that every effort is being made to ha ve this legislation approved on time for it to come 
into force before January 2005.   
 
4. Canada understands that implementing this legislation does not speak to the issue of 
copyright protection in Suriname, but that changes to the existing laws on copyright are envisaged by 
the Government.  When will these changes be tabled?  What will these changes entail? 
 
Answer:   
 
With regard to the issue of copyright protecti on in Suriname, we are in fact working on a new Law  on 
Copyright and Related Rights.  This Draft will be based on the model that was drafted by the WIPO, 
so we are confident that most of the obligatio ns under the TRIPS Agreement have already been 
considered.  Basically, we will make every effort to shortly have a TRIPS compliant draft ready for 
approval by Parliament. 
 
IV. Trade Policies by Sector:  (4) Mining  and Mineral Processing:  (i) Regulatory 
Framework:     paragraph 77 
 
5. The Government of Suriname proposes to transform the existing Geological and Mineral 
Service (GMS) so that it has “far-reaching pow ers to grant, renew, and withdraw mining rights.”  
 a. Under what circumstances will the Govern ment of Suriname consider it appropriate to
 withdraw mining rights? 
 
Answer:  
The draft mining law states the following about withdraw of mining rights: 
 Article 15 
 
Suspension and revocation 
 
l. The Minister can suspend or revoke a mining right if the holder of that right:    
 a. barring force majeure does not comply w ith legal provisions and conditions imposed 
or agreed upon which pertains to the right;   
 b. has failed to pay any amount payable to the State within three months after having               been in default;    c. has been sentenced after found guilty of offences;   
 d. has refused to implement an  arbitral judgment issued;   
 e. has not fulfilled his obligation to contribute.  2. Suspension or revocation referred to in paragra ph 1 of this article shall not take place before 
the Minister has placed the holder of the mining ri ght in default, notifying what is specifically 
required from him and of a term, not exceeding th irty days, to remedy the breach specified. WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 39 
 
 
 With the exception of the case mentioned in paragr aph 1 under c above, the Minister shall before 
revoking, decide to suspend the mining right for a period not longer than 6 months depending on the 
seriousness of the breach. If after the term of susp ension, the reasons for suspension still exist, the 
Minister shall revoke the mining right permanently.  
 
3. On revocation the right terminates, with the understanding that any obligations arising out of 
the    mining right concerned prior to termination shall remain.  
b. To what level of government will the authoriza tion to withdraw mining rights be delegated?  
 
Answer:  
The authorization to revoke mining rights is dele gated to the Minister responsible for Natural 
Resources. 
 
IV. Trade Policies by Sector:  (4) Mining and Mineral Processing:  (ii) Main Products:   
(a) Bauxite:  paragraph 81 
 
6. A statistical fee of 2% is levied on the free on board (f.o.b.) value of bauxite exports and also 
on the cost-insurance-freight (c.i.f.) value of bauxite  companies’ imports.  Why is this fee, in both 
instances, 1.5% higher than the rate which is  normally applied to ot her exports and imports? 
 Answer:  
 
The 2 % is an agreed upon amount between the Government and the bauxite companies.  The 
agreement stems from 1919 and parties see no reason to change things. 
 
The law of 4 July, 1994 reduced the statistics a nd consentright for all sectors except the bauxite 
sector. The reason for this is the Bauxite Agreem ent of 15 January 1993 between the Republic of 
Suriname and the bauxite companies.  This is a special agreement for an unlimited time about 
exchange rates as a result of which the Government of Suriname lost large amounts of revenues.  The 
contribution of the bauxite sector to the state reve nues and the foreign exchange transfers was reduced 
by more than 25 % in 1993 compared to 1992.  Th e size of the bauxite transfers today do not differ 
much from those of 1993.  The Surinamese economy depends for a large degree on revenues from the 
bauxite sector.  IV. Trade Policies by Sector:  (4) Mining and Mineral Processing:  (ii) Main Products:   
(c) Gold:  paragraph 94 
 
7. As stated, a key objective of the Suriname Government is to bring about a more orderly 
regulation of the informal small-scale mining sector.  
a. What institutional, regulatory or legislative pr ovisions is the Governm ent going to implement 
specifically with respect to formalizing this sector?  Answer:   
The Government will implement the following regulato ry and legislative provisions with respect to 
formalizing the informal small-scale mining sector.  The following rules will be implemented to formalize the sector:  WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 40 
 
 
 Article 51 
 
The application 
 1. The application for a right of small-scale mini ng shall be done in the Dutch language and sent 
to the Minister in three copies.  The application shall contain all necessary  data of the applicant, in any case: 
 
 a. For a natural person:  name and first name(s), date and place of birth, nationality, 
residency of Suriname and address;  for legal person: corporate name, type of 
company, applicable law, place of establishment and seat as well as name and address of the director;   
 
 a. the form of the area for which the appli cation is made as further indicated on a map 
drawn by a surveyor in Suriname on a scale of 1:50,000, derived from the topographic map of the CBL scale 1:50,000, if available of the region where the area is situated and showing the borders in ge ographic coordinates of the corners in the 
SURTM system and/or bearing in relation to th e true north and/or natural or artificial 
boundaries;  this map shall be submitted in three copies.  If maps on the scale of 
1:50,000 of that area are not available, use can be made of a map derived from a CBL 
map on scale 1:40,000.   In that case the coordinates must also be given in the SURTM system;  if the land for  which the app lication is done, is subject to a real or 
personal property right as referred to in ar ticle 50 paragraph 3, a property map drawn 
by a surveyor in Suriname in three copies is acceptable; 
 b. the mineral for which the application is made; 
 c. a work program, including the mining method, the level of production and number of 
workers to be employed and if contemplated, also an exploration program. 
 3. The following shall be added to the application:  
 a. for a natural person, an excerpt of th e Civil Registry or a document establishing his 
identity, nationality and residency as well as three recent photos taken not longer than 
a year ago; 
 b. for a legal person an excerpt from the Chamber of Commerce;  c. a receipt of the payment of the application fee referred to in article 82 paragraph 8. 
 
Article 52 
 
Award of the right 
 
l. If all conditions of the application, the Mi nster shall grant the right of small-scale mining 
within sixty days after submission of the application. 
2. During the term of the right of small-scale mining, no mining right for the same mineral and area shall be granted to third parties except in case of co-existence pursuant. 
 3. The ministerial order granting the right shall state the following: 
 
 a. the identification of the grantee;  b. the delineation and the size of the area;  c. the mineral for which the right is granted;  d. the term and c onditions for granting; 
 e. the royalty; WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 41 
 
 
  f. the rental charges; 
 g. the format for reporting;  h. the mining method.  
4. By Government order further regulations can be  given to protect public health and safety, the 
interest of third parties as well as the preservation of the environment.   
Article 53 
 
Term 
 
The right of small-scale mining is granted for a peri od up to three years.  Prolongation of the right for 
another period up to three years can each time be done sixty days prior to termin ation of the right.  To 
the application for prolongation sh all be appended the receipt of payment of the application fee.  
Prolongation shall be granted within sixty days after submission of the application, if the applicant has 
fulfilled all obligations.  
Article 54 
 
Size of the area 
 
The right of small-scale mining is granted for an area not larger than 100 hectares.  
Article 55 
 
Rights 
 
1. The right of small-scale mining confers on the hol der thereof an exclusive right to carry out in 
or on the area subject to the right, exploration for and exploitation of the mineral to which his right 
relates.  
2. The holder is further entitled to: 
  a. to erect works and buildings in or on the area for his activities;  b. to use mineral masses and timber which occur in the exploitation area to construct 
and maintain the works referred to in th is paragraph under a, taking into account 
existing timber concessions, licenses for temporary wood cutting and timber 
exploration permits, if the exploitation area is State land.  The Minister may set conditions; 
  c. to grow vegetables and fruit for personnel if the exploitation area  is State land;  
Commercial farming on the exploitation area is forbidden without approval of the 
Minster and without regard to  existing conditions and cond itions as may be set by the 
Minister. 
 
Article 56 
 
Obligations 
 
1. The holder of the right of small-scale mining is obliged:   a. to submit semi annually reports to the Minister stating: 
- the invested amount of capital; WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 42 
 
 
 - the operating costs; 
- the number of persons working in his area, their nationality and residency and 
wages paid; 
- the tonnage of earth moved and mineral mined; 
 
 a. the amount of royalty paid;  b. to keep weekly records of tonna ge of earth moved and mineral mined; 
 c. to pay the royalty;  d. to pay the rental charges; 
 e. to strictly abide by the envir onmental rules given by the Minister. 
 Regarding the Institutional provisions the Minister  of Natural Resources signed an agreement with 
WWF-Guianas in October 2003 for a project that is being carried out by the GMD in collaboration 
with WWF-Guianas, the goal of this project is to contribute to the improved management of the small 
to the medium scale gold mining sector in order to  reduce pressure exerted on priority ecosystems in 
Suriname.  The overall objectives of this agreemen t are the strengthening of the Mines Inspection 
Department of the GMD to monitor the impact on the environment after introduction of improved 
mining techniques and education of the relevant  stakeholders groups, and contribute to the 
development, adoption and enforcement of new e nvironmental regulations and policy for the gold 
mining industry.  This project is being carried as an introduction of the transformation of the GMD 
into a Minerals Institute. 
 
7.b. How and by whom will these prov isions be monitored and enforced? 
 
Answer:  
 
These provisions will be monitored and enforced by  the G.M.D. (Ministry of Natural Resources). 
 
7.c. Will the proposed provisions include a co mponent of capacity building for small-scale 
miners, or the formation of cooperatives? 
 
Answer:  
 
Yes, the proposed provisions will include a component of capacity building for small-scale gold miners and the formation of cooperatives.  8. One measure of reducing the activity of the informal mining sector proposed by the 
Government of Suriname is to prohibit the importa tion of mercury.  Does the Mining Decree currently 
prohibit the use of mercury?  If not, is the Government going to introduce legislation that would prohibit the use of mercury?  
 
Answer: 
 No, the Mining Decree currently does not prohibit the use of mercury.  To our knowledge, the 
Government is not going to introduce legislation th at would prohibit the use of mercury.  However, 
environmental concerns could change po licy reforming the use of mercury.  
 IV. Trade Policies by Sector:  (5) Services:  (i) Features:  paragraph 106 
 
9. The Report notes that Suriname has underta ken few international services commitments 
which, under the GATS, are limited to tourism and travel services, transportation services, and telecommunications services.  Could the Governme nt of Suriname please comment on whether it 
intends to seek further liberalizati on in the services sector as part of on-going GATS negotiations? WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 43 
 
 
  
Answer:  
 
The Government of Suriname needs to formulate a specific services trade policy in order to identify 
which services sectors could gain comparative advantage.  Capacity constraints and the lack of a 
services data base system are more or less hurdles to seek further liberalization as part of on-going GATS negotiations.  With regard to the transport, communication and t ourism sector the Government of Suriname will 
only make further commitments if the benefits of  liberalization for the specific sectors and for the 
country as a whole are proven, based on surveys of the market and sector studies.  The transport sector policy study that has been executed recently wi ll be followed up by further study in the specific 
transport (road, maritime and air) sectors.  If the results of these studies indicate that liberalization 
will prove to be beneficial to the development of the sector and will have a spin-off effect on other 
sectors than further liberalization, in confor mity with our CARICOM Single Market & Economy 
obligations will be taken into account.    
IV. Trade Policies by Sector:  (7) Services:   (iii) Financial services:  (a) GATS:  
paragraph 111 
 
10. Suriname has not made GATS commitments in  financial services.  Does Suriname intend to 
table an offer on financial services in the current round?  Answer:  
On February 19, 2004 Suriname has notified an in itial offer list to the WTO with regard to the 
financial sector only.   (A) Insurance and Insurance related services (C) Reinsurance and retrocession ( CPC 81299*)  IV. Trade Policies by Sector:  (7) Services:  ( iii) Financial Services:  (a) Banking services:  
paragraphs 118-124 
 
11. The Report notes that a draft law on supervision of the financial sector has been prepared but 
not yet adopted.  Would Suriname please indicate wh ether it has a timeline for passage of this law, 
and if so what is the target date?   
Answer: 
 
The new financial institutional law regarding Pe nsion funds and Insurance companies will be 
discussed in the Parliament this y ear.  The target date of adoption depends on the approval by the 
Parliament. 
 
12. In terms of establishment for the banking sector, can foreign firms establish subsidiaries, 
branches or representative offices?  Does the regulat ory framework provide for the establishment of 
bank holding companies?  What is the range  of activities these entities can engage in? 
 
Answer: 
 
A foreign bank can establish subsidiaries, branches and representative offices in Suriname.  There are 
no requirements or restrictions on the establishm ent of bank holding companies.  Notwithstanding no WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 44 
 
 
 structure will be allowed that hinders effective s upervision.  Banks are allowed to do regular banking 
business like deposit taking business and lo ans/ credit and related activities.  
 
13. What criteria does the Ministry of Trade and Industry apply to renew banking licenses after 
three years? 
 Answer: 
 
Renewal of a Banking license requires a Letter of no  Objection from the Central Bank of Suriname 
which has supervisory authority.  As such, issues like solvability and  liquidity are checked.  Once the 
Letter of No Objection is issued, the Ministry of Trade checks some administrative matters.   
 
14. What criteria does the Foreign Exchange Commission apply to grant permission to Suriname 
resident persons or firms to perform cross-border operations?  
 
Answer:  
At this moment there are no specific criteria fro m the Foreign Exchange Commission with regards to 
Surinamese residents or companies to perform cros s border operations.  Residents are free to open 
foreign currency accounts at the local banks and al so in foreign countries.  Funding accounts in a 
foreign country is possible through transactions  from the local banks, which banks are under 
supervision of the Central Bank of Suriname.  Futhermore, residents are free to travel with  amounts not exceeding US$10,000.  Amounts exceeding 
US$10,000 need to registered before departure.  A sp ecial form from the F.E. Board is available at the 
Military Police at the Airport. 
 
15. According to the Report, banks and other credit institutions licensed to operate in Suriname 
are prohibited from “having a lasti ng participation in other credit institutions or credit unions, unless 
they obtain a certificate of no objection for this pur pose from the Central Bank.”  Would Suriname 
please explain what is meant by “a lasting participation”? 
 
Answer: 
 
A lasting participation in this regard means partic ipation through equity in other credit institutions 
which might disturb the structural balance in the particular sector.  
 
16. According to the Report, foreign banks are allowed to establish in Suriname if they have a 
legal form that is acceptable to the Central Bank .  Would Suriname please explain what is meant by 
“a legal form that is acceptable to the Central Bank?”  Answer:  
 
The Central Bank of Suriname prefers the legal fo rm of a limited liability company.  However we 
realize that a bank can have a different legal form in  the country of origin.  A branch of such a bank 
can be allowed, provided that the structur e does not hinder effective supervision.   
 17. According to the Report, non-residents wishing to incorporate a bank in Suriname must also 
obtain a permit from the Foreign Exchange Commission.    a. Would Suriname please indicate what fact ors the Foreign Exchange Commission considers in 
granting a permit?  Is the review based  solely on prudential considerations? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 45 
 
 
 Answer: 
 
To operate as a bank in Suriname, a permit is requ ired from the Ministry of Trade and Industry. 
Furthermore, the bank needs to comply with the ru les applied by the Central bank of Suriname.  But 
to operate as a bank with foreign currency transactions  a permit is required from the F.E. Board.  This 
permit will be approved after a positive judgment from th e Central bank of Suriname.  To operate as a 
foreign exchange bank, a permit is  required from the Foreign Excha nge Commission.  This permit 
will be approved after a letter of no obj ection from the Central Bank of Suriname. 
 
b. What is the timeline for a foreign bank to obt ain all the certificates and licences in order to 
operate in Suriname?  
 
Answer: 
 
The timeline for a foreign bank to obtain all th e certificates and licenses in order to operate in 
Suriname, depends on the approval procedures from the Central Bank of Suriname, Foreign Exchange 
Commission and the Ministry of Trade and Industry.  
IV. Trade Policies by Sector:  (7) Services:  (iii)  Financial Services:  (a) Insurance services:  
paragraph 134 
 
18. The Report indicates that foreign life insur ance companies are allowed to establish branches 
if the legal form of the parent company fits th e Surinamese legal system.  Would Suriname please 
describe the factors it will take into considerati on to allow foreign life insurance companies to 
establish branches?  Are branches of foreign insu rance companies allowed in the case of general 
insurance? 
Answer:  
 
The Central Bank of Suriname takes into consid eration amongst other factors the company’s legal 
structure, operation plan, know how of the manageme nt, structure of the supervision practice of the 
mother company to allow foreign insurance co mpanies to establish branches in Suriname.  
 
In connection with the third party liability, the insurance company should be structured as a public 
limited company (incorporated).   The existing guidelines regarding the assessment of statutes and the declaration of no objection are 
being reviewed to be incorpor ated in a new insurance act. 
 
IV. Trade Policies by Sector:  (7) Services:  (iv) Telecommunications:  paragraph 140-141 
 
19. The Report notes that Telesur is currently  the only telecommunications services provider in 
Suriname. Canada understands that the license of the other telecommunications provider, 
International Communication and Management Services (ICMS), was revoked in October of 2002 due 
to interconnection problems.  Canada also notes, how ever, that Suriname’s GATS schedule states that 
there will be a duopoly in the Suriname telecommuni cations market.  Does Suriname intend to rectify 
this difference between its services schedule and ma rket conditions?  Would it, for example, license 
another supplier? 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 46 
 
 
 Answer: 
 
The new telecommunication act provides for the issu ing of licenses for the supply of services in the 
telecommunication sector and for the issuing of conc essions for setting up basic infrastructure.  This 
new law also addresses the legal basis for the Telecommunication Authority Suriname. 
 There was a duopoly in the past but when the new act comes in to effect there will be a more or less 
open market situation because:  
- The provision of telecommunication services will be open to all (foreigners as well as 
domestic companies) as long as they are in compliance with the licensing requirements; 
- The issuing of concessions for the setting up of  basic telecommunication infrastructure will be 
open to foreigners with the limitation that 60% of the equity interest of the legal entity is 
beneficially owned by Su rinamese natural persons. 
 
The study done by PriceWaterhouse Coopers cons ultants for the government of Suriname has 
indicated that the Surinamese market (450,000 inha bitants) cannot take more than two additional 
suppliers.  The Government has decided that on the b asis of the results of this study, under the new 
act, no more then two additional concessions will be issued.  Based on studies by the TAS the 
Government will decide to issue more concessions in  the future.  The sector and the market will be 
frequently studied.  When study shows that for the benefit of the service pr oviders, service consumers 
and the total economy more concessions can be i ssued the market will be opened for additional 
players.   
20. Canada notes that an independent regulatory body was established on a provisional basis in 
2002.  Could Suriname provide an update on the work of Telecommunication Authority Suriname?  Is 
TAS encountering any particular challenges with resp ect to the regulation of the telecommunications 
market in Suriname?  Answer:  
This depends on the approval of th e act.  TAS has not as yet been able to function properly as a 
regulator. 
 The problem the TAS is encountering at this time is a lack of staff (technical, legal), a lack of finances 
to recruit the necessary expertise needed to start the regulatory work.  Assistance is offered by the 
IDB but the availability of this financial assistance is dependent on approval of the new act by 
Parliament.   
 
21. Canada is pleased to see that Suriname is  developing a new Telecommunications Act along 
the lines described in the WTO Secretariat Report.  Could Sur iname provide and update on the 
drafting process?  When does Suriname expect  this new act to come into force? 
 
Answer: 
 
The act has already been drafted.  It has also been submitted to the national assemble.  We are now 
awaiting approval of this act.  Attached is the act (in Dutch).  The national assembly hopes to have the 
act approved before the end of 2004.  
 
Suriname’s Services Schedule  
 
22. According to Suriname’s services schedule, it ha s not made any commitments for any of the 
computer and related services listed 1B (a)-(e) in th e Sectoral Classification List.  Does Suriname WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 47 
 
 
 intend to offer any commitments fo r these services in th e current negotiating round of the GATS?  If 
not, what prevents Suriname from making such commitments?  Answer: 
 Suriname will only able to make any commitments for the computer and related services listed 1B (a) 
– (e), when the legislative and regulatory framework  are in place and the local service providers are in 
the position to compete multilaterally.  Japan  II. TRADE POLICY REGIME:  FRAMEWORK AND OBJECTIVES 
(2) TRADE POLICY FORMULATION AND IMPLEMENTATION  
(ii) Trade policy objectives and implementation (WT/TPR/S/135, page 17, para. 21)  
 According to the Secretariat Report, the Go vernment of Suriname adopted the Multi-annual 
Development Plan (MOP 2001 – 2005).  We a re interested in how Suriname can realize the 
development of its trade and economy concretely under the MOP. 
 Answer:  
As contained in the MOP the Republic of Suriname is in the process of undertaking trade measures: 
 
- Simplifying licensing policy 
- The evaluation of transit trade in order to gain better insight into the structure of this type of 
trade 
- More effective involvement of Suriname’s  Embassies in the promotion of exports and 
obtaining market information for the business community 
- The stimulation of trade agreements and agre ements on scientific and technical co-operation 
- Effective control of markets and nationa l and international economy through trade 
liberalization, export promotion, improveme nt of investment climate, good market 
information with regard to opportunities for the business community abroad, adequate 
contribution to international treaties, etc. 
 
Institutionalized partnership between the Governme nt and the private sector requires the following: 
 
- An institutionalized platform for dialogue on ways to arrive at a national policy on the 
development of the private sector 
- A central Government body that is to both fine- tune policies by the various Ministries and 
serve as a catalyst for continuous dialogue between the Government and the private sector 
- A central medium of contact, that would enab le dialogue among the sect or’s various interest 
groups with the aim of formulating a common de velopment vision for the private sector and 
the  organization and development of the sector, which in turn may result in a re-
positioning of the entire sector 
- In order to guarantee a successful development of both sectors, the measures mentioned 
should be implemented simultaneously with an  awareness program aimed at bringing the 
entire society into the right frame of mind. 
 Material facilitating and support for the private sector  by the Government are to materialize through: 
 
- The creation of structures for dialogue, enabli ng a continuous exchange  of ideas between the 
public and private sector on the execution of policies aimed at stimulating production WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 Page 48 
 
 
 - The identification of potential markets, with the Ministry of Foreign Affairs playing a key 
role through its physical presence at export markets 
- The development of local and foreign strategi c alliances, that would improve both the export 
sector and competitive potentials 
- The adjustment of physical and institutiona l infrastructure in acco rdance with the ever 
changing international environment 
- The realization of permanent correlation betw een education and the labor market, enabling 
interaction between the market and export production 
- The improvement of air and water ways as well as ports 
- The development of export production funds 
- The provision of fiscal and non-fiscal fac ilities and incentives through the adjustment of 
investment legalization, which may also enc ourage the repatriation of Foreign exchange 
- The development of zoning plans, with a focus on the identification and creation of industrial 
zones, which would also serve efficient environmental planning. 
 
Please indicate the specific plans to utilize aids  from foreign countries in order to develop the 
economy and to promote its industries under the MOP.  
 Answer:  
Information about these plans are mentioned in the executive summary MOP by National Planning 
Office, par 3.3.3.t/m 3.3.8 from the Joint Annual Review 2004.  Additional information regards: 
 Following the MOP Suriname can realize the development of its trade and economy by: 
 
- Government support to the private sector; development of an enabling environment;  
development of a sound positive enabling environment 
- Determining the selection of potential sectors for long term strategic production - Promoting foreign investments - Public sector reform: management of state budget + civil sector reform + realization of public 
enterprises 
 
The MOP takes into account the several areas in which liberalization, modifications, removal of 
barriers, and implementation of requirements is to take place.   
Please indicate the specific prospects for Surinam e’s economic relationship to CARICOM, the EU 
and other areas under the MOP . 
 
Answer:  European Union  
 Within the context of the ACP-EU Partnership Agreement as contained in the Cotonou Agreement, 
Suriname as ACP country would receive special pref erences, aid, technical assistance from the EU.  
The Economic Partnership Agreements  were just launched and will l ast until the end of 2007.  The 
purpose of these negotiations is to secure ma rkets for products in de EU after 2008. 
 
The MOP takes into account the development of thes e potential products destined for the EU market 
after 3 years.   Non-focal sector area: capacity building of state and none state actors (total EUR 41,849,000: (6th
, 9th 
EDF). 
 WT/TPR/M/134/Add.1 
WT/TPR/M/135/Add.1 
Page 49 
 
 
 Suriname Business Forum:  Support to the privat e/public partnership:  EUR 2.4 mio (Financing 
Proposal is in discussion by the EC).  Trade and regional Integration Program:  EUR 300,000 (see also ad 3.3.3 t/m 3.3.8 from Joint Annual 
Review 2004). 
 Technical Cooperation Facility EUR 1,129,000.  
Development Aid from Dutch:  
 
Investment Fund (IFONS):  EUR 75 million;  Techni cal Assistance Fund:  EUR 4 million:  (Fund for 
Technical Assistance for private sector development).  
CARICOM:  
 
In 1989 the Caribbean Community determined that it needed a new global development strategy of 
deepening, widening and coordinate d engagement in negotiations for effective participation in the 
multilateral trading system.  The first and pivotal element to deepen the regional integration was 
through the establishment and the opera tion of a Single Market and Economy. 
 
For this transformation to succeed the Treaty of Chaquaramas establishing the Caribbean Community 
and the Common Market needed to be amended.  Th e revision was conducted in two stages;  the first 
was through the drafting and negotiating of nine protocols.  Secondly the nine protocols were then integrat ed into a single undertaking agreement which now 
constitute the “Revised Treaty, establishing th e Caribbean Community, including the CARICOM 
Single Market and Economy.” Suriname became a full member of the Community in 1995. At that time the preparations for the 
establishing of the Caribbean Single Market and Ec onomy were on their way.  Suriname signed the 
Revised Treaty in July 2001 and ratified it in February 2003.  
Suriname has committed itself to ensure impl ementation of the obligations, commitments, 
responsibilities, policies, rules and disciplines cont ained in the Revised Treaty generally and the 
CSME in particular. Suriname has not only agr eed these but had participated in negotiating the 
revision of the Treaty.  Suriname has committed itsel f particularly in the decision of the Thirteenth 
Special Meeting of the Conference of Heads of Government to implement critical obligations and 
commitments relating to establishment, provision of services, movement of capital and certain 
categories of skills by the year 2005.  Suriname had successfully notified its  non confirming measures 
under Chapter Three of the Revised Treaty in 20 01 and had negotiated its  schedule of specific 
commitments which then were included in the deci sion of the Thirteenth Inter Sessional Meeting of 
the Conference.  
The effect of what Suriname committed itself to is the removal of all restrictions against CARICOM 
nationals starting 1 March 2002.  The process of removing the restrictive measures must be completed on 31 December 2005 in three trenches, short term: 31 December 2003, mid-long term:  31 December 
2004 and long term:  31 December 2005.   
This inter alia means revision of national  policies, legislation, regulations and administratively 
enforced restrictions. 
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