We've been hearing the term Export Processing Zone in Belize since the 90's - and indeed, it has become a standard part of the economic landscape.
But, thanks to World Trade Organization rules, that will have to change. The WTO says Belize's EPZ regulations violate its rules on subsidies. So now, EPZ's will be replace with Designated Processing Areas, or DPA's.
It's a slow, very slow process of transition that's been going for 9 years - and the switch was to have been made three years ago. But it never happened - and now the Ministry of Trade is rushing to finalize consultations with the private sector before the bill is taken to the House of Representatives by the end of this year.
Today at the Biltmore a consultation with representations from a cross section of sectors was held and we found out more about the urgency of the switch:...
Lincoln Blake, Director
"There will be a transition from the EPZ program into the DPA which according within Belize, we are trying t make sure that we are compliant with all the specific requirements by the World Trade Organization. On the ground what you will see after this bill is passed is basically a set of criteria's which are a little more specific and cohere to the WTO."
Reporter
"Are these WTO regulations sort of straight-jacketing our incentive program and making it less appealing for those investors who are maybe attracted to it or who are currently operating in it?"
Lincoln Blake, Director
"It's a challenge. But the reality is that the world around us is changing and we have to adjust and comply with the new trade rules."
Nikita Usher, President - BCCI
"What has happened now is that the world place have now said that our tax regime, our incentive programs that we offer to business is not cosher for other nations and they want us to make the change. There is a need for us to be compliant, but in being compliant we must also never forget that there has to be strike balance. We can't go from one end of the pendulum to the other end. We have to take this in strides. We must also ensure that we have economic growth in the whole of this being done. You don't want to lose predictability. You're attracted a number of investors into Belize, you're now changing the rules of the game on them. How do we do that in such a manner that would not affect their day to day, but also not affect the perception of Belize, that we are this big bad wolf that would want to make changes as we so see it fit."
Reporter
"Certainly those who are operating in the EPZ environment right now have an expectation of certain concessions, particularly with tax etc. How much change will actually be experience as we transition to DPA's?"
Nikita Usher, President - BCCI
"The first one that became very obvious to us is the fact that remember that EPZs does not pay business tax on exports. Currently there is a proposal to have business tax introduced. Another one that is coming to light is that you had a 20 years arrangement with your EPZ. Now you are talking about moving it to ten. I labored the point just a few minutes ago to extend to colleagues on the table that there is no way that I have seen with the WTO requiring 20 years and therefore that would want to seem as if though its government trying to move to a 10 year rather than 20 years and that's one example I am trying to explain that the business community is very alert to ensure that we look at these things and keep them intact."
There are 60 EPZ's in Belize and in 2017 they reported export sales in services and goods up to 104 million dollars.
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