Honduras and China sign $11 million agreements to boost bilateral trade

Photo: X account of the Ministry of Foreign Affairs of Honduras.

Honduras and China signed new commercial agreements for the purchase of coffee and palm oil worth a total of US$11 million.  This agreement was penned in the Honduran capital of Tegucigalpa and is the result of a business meeting aimed at strengthening trade relations between the two countries. 

The signing ceremony was presided over by the Honduran Minister of Economic Development, Fredis Cerrato, together with Li Xinqiang, Director General of the Department of Foreign Trade of the Ministry of Industry and Commerce of China, and Yu Bo, the Chinese Ambassador in Tegucigalpa. 

Cerrato anticipated that the seventh round of negotiations for a Free Trade Agreement (FTA) between the two countries will take place in Tegucigalpa in the coming weeks.

Honduran exports to China reached US$24.9 million this past June, a significant increase compared to the US$4.2 million recorded in the same period of 2023. The Chinese ambassador to Honduras emphasized that this business meeting is an excellent opportunity for entrepreneurs from both countries to expand their businesses and explore new commercial opportunities.

Ambassador Yu Bo also claimed that the establishment of diplomatic relations between China and Honduras not only represents long-term opportunities, but is already generating immediate benefits.  He said the recent agreements will bring multiple economic benefits, including increased employment opportunities and improved living conditions in both nations.

Diplomatic relations between Honduras and China were formalized on 26 March 2023, following the severance of Honduras’ diplomatic ties with Taiwan, which had existed since 1941. Li Xinqiang stressed in his speech that bilateral relations between the two countries are off to a good start and that trade exchange is showing a positive trend.

However, despite the positivity expressed by the Chinese authorities, the countries have faced certain obstacles and differences in negotiating the FTA over the last few months.

The conditions proposed by China, especially on tariffs and market access, are worrying certain sectors of the Honduran government, which fear that the Chinese conditions could harm important sectors of the economy.

In February, the two countries signed an Early Harvest Agreement, which will come into effect on 1 September and is designed to speed up FTA negotiations.  This type of agreement usually includes tariff exemptions for certain products exported to China. As part of this agreement, in July, Honduras shipped its first two containers of 36 tonnes of shrimp to China duty-free.

Main source:

Honduras y China firman acuerdos por US$11 millones en encuentro de empresarios – Revista E&N.