Photo: Cancillería Honduras.
According to an article from the magazine Hibueras, Honduras and the People's Republic of China are at a key moment in the negotiations for the signing of a Free Trade Agreement (FTA) between both nations.
According to the spokesperson of the Asian country's Embassy in Honduras, these negotiations are in the final phase, where only "a final push" is needed to conclude the process and have the treaty signed by both parties.
Negotiations between the two countries for the signing of the Free Trade Agreement date back to July 2023. Since then, six rounds of negotiations have been carried out, in which consensus has been reached regarding bilateral cooperation, trade in services and goods, and investment.
As a result of some of these agreements, the People's Republic of China has offered special conditions for key Honduran products, such as shrimp, tobacco, coffee, and cocoa.
Specifically, one of the most benefited Honduran products has been shrimp, which obtained an early harvest agreement that was signed in the previous year, 2024. This agreement established zero tariffs on shrimp from the Central American country.
As a result of this agreement, shrimp exports have increased, reaching over 1,200 tons and with the possibility of surpassing 12,000 tons in the following year.
Similarly, coffee, which is one of Honduras' most important products, has benefited from these negotiations, as the Chinese market has increased its imports of this product due to its quality. This has led to exports worth 14 million dollars in 2024, representing a 14-fold growth compared to 2023.
Honduran tobacco has also benefited from the FTA negotiation rounds, as, following an official visit in 2024, the State Tobacco Monopoly Administration of China showed interest in importing Honduran tobacco worth around 3 million dollars.
Regarding the most exported product from Honduras to the People's Republic of China, according to Trading Economics, it was copper, with an export value of 7.73 million dollars in 2023. It is expected that, with the signing of the FTA, exports of this product will increase.
On China's side, according to The Observatory of Economic Complexity (OEC), the most exported product to Honduras is flat-rolled iron with coating, which had a value of 252 million dollars in 2023. Likewise, it is expected that with the signing of the FTA, exports of this product will increase.
It is expected that, once the Free Trade Agreement is signed, a large part of the existing tariffs will be eliminated, which will contribute to bilateral development between both nations and facilitate Chinese investment in the Central American country, contributing to job creation in the country.
The announcement of this phase of the FTA negotiations takes place in a context where China and the countries of Latin America and the Caribbean are developing their cooperation processes, a fact that was evident in the China-CELAC Forum, where Chinese President Xi Jinping presented the roadmap for strategic collaboration with this region.
Original text in Spanish. Translated by Large Language Model technology (LLM)
Main Source:
China y Honduras afinan detalles para la firma del TLC – Revista Hibueras
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