Trade Agreement Us Honduras

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 United States is Honduras` largest trading partner. Bilateral trade between the two nations was estimated at $12.3 billion in 2018. In 2018, the value of U.S. exports to Honduras was $6.9 billion, with Honduras exporting $5.4 billion to the United States.

The U.S. trade surplus with Honduras was $889 million in 2018. The trade part of the Association Agreement will replace unilateral preferential access to its central American market under the EU`s system of generalised preferences. Today, Donald Trump is the scapegoat for the economic insecurity faced by many Americans, for whom he is scapegoating with his racist attacks and xenophobic obsession with building a wall along our southern border. But it is the same U.S. trade policy that harms workers in the United States, which many in Central America have left no choice but migration, as they struggle to feed and support their families. The CACU granted free access to the entire region for 99.9% of Central American products (excluding sugar and unroasted coffee for the region).