Honduras and China sign agreement for shrimp export

Photo: Wikimedia Commons

Honduras has signed an agreement with the People’s Republic of China as part of the Free Trade Agreement negotiations between the two countries, which aims to strengthen bilateral trade and economic cooperation. Honduran Minister of Economic Development, Fredis Cerrato, announced that they have reached a partial agreement with China to exempt Honduran shrimp exports from tariffs, while they continue to resolve similar issues with Mexico.

Cerrato highlighted the news amid tensions in the shrimp sector and anticipated signing the partial agreement with China’s trade minister next week. Despite the challenges with Mexico, he said Honduras is working hard to change the Mexican judge’s position and allow Honduran shrimp to enter the Mexican market.

The minister also addressed the economic outlook, noting that, despite estimates of 3.5% growth in 2024 by national and international agencies, they expect to exceed that average. He stressed the importance of improving the economic situation by reducing inflation, maintaining fuel prices, increasing production, attracting investments and improving exports.

Cerrato also expressed his desire to achieve sustained growth of 7% in order to overcome the ancestral economic crisis and stay afloat. In summary, the agreement with China represents a positive development for Honduran shrimp exports as the country continues to address similar challenges with Mexico and seeks significant economic growth.

This is the second important step that has been taken in terms of the relationship between China and Honduras. The first would be Honduras’ alignment with Beijing’s One China policy and its recent recognition of China in 2018.

Honduras decided to establish diplomatic relations with the People’s Republic of China, marking the end of decades of ties with Taiwan. This transition reflected the global trend of several countries opting to recognize China instead of Taiwan, aligning with the One China policy advocated by Beijing, which considers Taiwan a renegade province.

This diplomatic shift had not only political but also economic implications for Honduras. China, as one of the world’s leading economies, represented a new frontier for trade and investment cooperation. This strategy of diversifying international partnerships underscored Honduras’ interest in capitalizing on emerging opportunities on the global economic stage, with China exerting increasing influence.