Belize And Guatemala Extend Bilateral Trade Talks

by Leroy Baker, Tax-News.com, New York

09 June 2005

Belize and Guatemala are to extend talks on a possible Partial Scope Trade Agreement (PSA) into an additional session later this month.

The decision to extend the talks into a fourth and final session was made during the previous round held in Antigua, Guatemala, at the end of last month, where it was decided by negotiators that outstanding issues warranted further attention.

The need for more time to consider proposals on market access has been cited as the primary reason for the decision to convene a fourth round of talks. These negotiations include the lowering existing tariff and non-tariff barriers, a move intended to enhance bilateral trade. However, a key issue is the list of goods to be covered by the PSA.

Provisions for the removal of non-tariff barriers have also been included in the agreement.

The trade pact is also expected to provide an investment promotion and protection framework. Guatemala has also proposed measures concerning financial services and tourism.

Under Article 80 (Paragraph 5) of the Revised Treaty of Chaguaramas, which establishes the Caribbean Community, or CARICOM, Belize has been granted a special dispensation to negotiate “arrangements with neighbouring economic groupings.”

The fourth round of talks between Belize and Guatemala is to take place from JUne 15 to June 18. It is then expected that the PSA will be tabled for consideration at the next meeting of COTED (CARICOM Council for Trade and Economic Development).

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