Photo: Secretaría de Desarrollo Económico de la República.
According to a report by El Mundo, Honduras and China are in negotiations for the possible entry into force of a Free Trade Agreement between both nations.
According to the head of the Secretariat of Economic Development, Minister Fredis Cerrato, the discussions currently being held with representatives of the People's Republic of China fall within a stage of economic analysis regarding the potential impacts of the agreement.
Specifically, during this round of bilateral negotiations between the two nations, Minister Cerrato stated that his country needs “greater flexibility considering the weakness of its economy compared to China’s power.”
In addition, Cerrato highlighted that the governments of both countries maintain constant bilateral communication, in which both parties recognize the need and importance of technical studies on the potential impact of this FTA.
Likewise, the minister emphasized that the amount of exports Honduras currently sends to China is quite minimal, and one of the goals of this agreement would be to increase Chinese imports from the Central American country and secure preferential conditions for Honduran shipments to the Asian nation.
Along the same lines, the senior Honduran official noted that if the People's Republic of China introduces zero tariffs on products entering the Asian country from Honduras, it will not have a significant impact on the Chinese market, but it would be very positive for Honduran exports.
On another note, the minister also addressed the current global trade conflict taking place in the international arena due to the tariffs imposed by the United States. In this regard, Cerrato stated that these tariffs have created sensitivity among the negotiating parties.
He pointed out that “Honduras is not a leading actor in the tariff struggle, but it is a victim of the consequences that may arise,” given that this trade conflict could indirectly affect the Honduran people and the country’s economy.
Last but not least, it is worth noting that these negotiations for the possible entry into force of the Free Trade Agreement come after two years of diplomatic relations between Honduras and the People's Republic of China, following the Central American country's decision to end its relations with Taiwan in December 2023.
Main Source:
Negociaciones para TLC con China avanzan en medio de análisis económicos – Diario El Mundo
Related News:
Honduras and China engage in dialogue on potential cultural and tourism cooperation
Honduras will increase its trade relations with China
You may be interested in:
Honduras y China, dos años de promesas – Expediente Público
