Honduras Trade Agreements

Honduras Trade Agreements

In February 2015, Honduras and Guatemala signed a customs union agreement to reduce trade barriers, reduce costs and speed up the movement of goods throughout the region. This unique customs territory has created border posts from a single source to ensure the speed of trade in goods and cross-border control of goods that are not subject to free movement. El Salvador has also negotiated membership of the customs union in 2018. In June 2019, Nicaragua expressed interest in joining the customs union. CAFTA-DR supplanted the old Caribbean Basin initiative and later Caribbean Basin Economic Recovery Act commercial benefits. CAFTA-DR has liberalized bilateral trade between the United States and the region and has also encouraged integration efforts between Central American countries by removing trade barriers and barriers to investment in the region by U.S. companies. CAFTA-DR requires countries to implement the reforms needed to mitigate systemic problems in areas such as customs administration; Protecting intellectual property rights services, investments and financial services market access and market access protection; Public procurement plant health and hygienic barriers (SPS); and other non-tariff barriers. Honduras` trading system is relatively open, with an average tariff rate of about 6% in 2012 (relatively stable at this rate for more than 10 years), a modest application of non-tariff barriers and without recourse to emergency measures. Agricultural products are subject to an average tariff of 10.5%, while the average tariff for non-agricultural products was 5.0%. Dairy products are covered by a relatively high average tariff of 22.5%, and some animal products are subject to a high maximum tariff of 165%.

Honduras not only has free trade agreements with Colombia, Mexico, Chile, Taiwan and Panama, but also participates in the Common Market of the Americas (CACM), which includes Guatemala, El Salvador, Nicaragua and Costa Rica. As a member of the CMAC, Honduras applies a common external tariff (CET) for most items with a maximum rate of 15%, with a few exceptions. The CMAC also concluded free trade agreements with the United States and the Dominican Republic (CAFTA-DR) in 2004 and concluded a free trade agreement with the EU in 2011. The implementation of these free trade agreements has led to the modernization and liberalization of the country`s trade and investment systems. (WTO, 2012). The Canada-Honduras Free Trade Agreement is a free trade agreement between Canada and Honduras that came into force on October 1, 2014. [1] From 2000 to 2010, Canada was in multilateral talks with Honduras, Guatemala, El Salvador and Nicaragua (together the Four or CA4s of Central America) for a free trade agreement between Canada and Central America. In the absence of an agreement between Canada and CA4 after twelve rounds of negotiations, Canada and Honduras began separate bilateral negotiations in 2010.

It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements. The final agreement was signed on 5 November 2013 by the trade ministers of both countries, as well as by cooperation agreements on environmental protection and workers` rights. [1] The Republic of Honduras is a low-income middle-income country facing major challenges, with more than two-thirds of the country`s population living in poverty and about 46% in extreme poverty. Honduras ranked 78th out of 132 countries that measure institutions, policies and services to facilitate trade in countries as part of the Enabling Trade Index (WEF) (WEF) (2012). The Honduran trade regime is very open.

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