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Belize Energy Sector Diagnostic PUC 58 obligation, while market access and national treatment barriers are dealt with in Articles XVI and XVII and by progressive negotiations for specific commitments. In the case of electricity, often regarded as natural monopolies, “Article VII would require members to ensure that (a) the incumbent (monopoly) in a given market does not act in a manner inconsistent with MFN and with the member’s specific commitments in that market and (b) that the incumbent (monopoly) does not abuse its position in services markets, which are the object of specific commitments under the GATS.”179 Thus as it relates to international trade in energy goods (including electricity), no changes in the current regime and framework is expected and Belize will continue to apply tariff measures (i.e. duties and taxes, except in the case of electricity) at the point of importation. In this regard, any effects to the energy sector would likely be structural market ones and derive from fluctuations in the world prices for oil and petroleum products. As it relates to international trade in energy services however a different picture emerges180. Even though Belize has not scheduled any commitments under Energy or Energy Related Services under the GATS, the country has undertaken progressive levels of autonomous liberalization in that sector. In this regard, if Belize decides to open core energy services such as transmission and distribution to independent operators or encourage active trade in energy services such as consulting in energy efficiency and renewable energies, construction, maintenance of the network, or distribution services such as metering and billing, which are services subject to the GATS, it may want to schedule commitments in these types of energy services. The principal GATS modes of supply for international trade in energy services appear to be cross-border supply (mode 1), commercial presence (mode 3), and movement of natural persons (mode 4). With the support of mode 3 commitments181, competitive suppliers (both local and foreign) could take advantage of the privatization, liberalization and unbundling of Belize’s national electricity market. Cross border supply (mode 1) of distribution services, where interconnections exists between different national networks (e.g. CFE and BEL) is also a consideration Belize currently engages in one out of the three principle modes of supply for trade in energy services under the GATS, specifically mode 4 or movement of natural persons (foreign consultants working in the industry in Belize). As the country continues to seek new investments and new actors in its quest for diversity and balance, understanding the multilateral trading architecture and how it may (or may not) contribute to Belize’s immediate and long term energy sector development is critical. The rules governing trade in energy services and in particular those relating to market access, national treatment, and restrictive business practices by incumbent operators will be a key consideration. In sum, policymakers cannot avoid the externalities. The gains and losses from regional trade in energy services (beyond electricity) should preoccupy policymakers. 179 Guide to the GATS, ibid, pg. 270 180 The discussion of trade in energy services is decidedly focused on electricity because trade and its requisite adjustments will impact this sector most. The other sub-sectors will be impacted only if Belize discovers oil in commercial quantities and decides to export. The market for exploration and extraction activities of crude oil, drilling, completing and equipping wells is open in Belize. 181 indicating on a multilateral level that Belize is committed to competition, does not discriminate against foreign competitors and has the required hospitable climate to attract investment.PDF Image | Energy for Sustainable Development Toward a National Energy Strategy for Belize Energy Sector Diagnostic
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