New U.S. trade bill will help Belize

It took five years to wind its way through congress but the United States has finally updated the Caribbean Basin Initiative. Under the new U.S-Caribbean Basin Trade Partnership Act preferential tariffs will be extended to include some textile and apparel products, made with U.S. fabrics, that had been previously excluded. The details of the bill are somewhat complicated but it is expected to encourage apparel manufacturing in Belize and the region. At present by far the largest garment exporter in Belize is U.S. owned Williamson Industries in Ladyville. Williamson already enjoys preferential benefits under the original CBI and it is not certain whether the new legislation will enhance the company’s competitive position. It may encourage new ventures, particularly from Asia, to locate manufacturing facilities here.