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The Honduran shrimp sector is facing a growing concern following complications regarding the exporting of shrimp to China, despite having signed an agreement earlier this year precisely for the export of said product to the Chinese market.
Despite this agreement, the Central American country has still not been able to export a single pound of shrimp to China, according to the executive director of the National Shrimp Farming Association (Andah).
Javier Amador, expressed his concern about the lack of progress in opening new markets and highlighted the marked difference that has been noticed since the termination of the Free Trade Agreement with Taiwan in March 2023, which provided preferential benefits. Unlike Nicaragua, which took two years to send its first container to China, Honduras has no agreed terms of trade or buyers in the Chinese market.
Amador noted that although Taiwan and Mexico account for 70% of Honduran shrimp exports, not one pound of shrimp has yet been shipped to China. He compared the situation to the closure of the Mexican market in 2017 over sanitary reasons, which resulted in significant losses for the industry. He suggested resorting to the World Trade Organization to resolve the situation, as was done to reopen the Mexican market back then.
The FTA signed by both countries represents Honduras’ effort to diversify its markets and reduce its dependence on Mexico and Taiwan in the shrimp sector.
The signing was driven by the desire to expand Honduran markets and the strengthening of relations with China, after Honduras officially broke diplomatic ties with Taiwan in 2023 in favor of China.
The export agreement signed in January, known as the “Early Harvest Agreement”, seeks to strengthen commercial exchange and economic collaboration between the two nations. Fredis Cerrato, Minister of Economic Development of Honduras, revealed the achievement of a preliminary agreement with China to eliminate tariffs on the export of Honduran shrimp.
The absence of Chinese trade conditions and buyers leaves the Honduran shrimp sector in a precarious situation. Amador warned that the current closure, caused by alleged judicial irregularities, could have dramatic consequences, as 70% of the shrimp industry depends on Taiwan and Mexico. If these markets were to close, the Honduran shrimp industry could collapse.
Main source:
Honduras sigue sin exportar una sola libra de camarón a China, denuncian productores| Diario digital Paradigma (April 28, 2024).
Others related source:
Crisis de camarón: 250 fincas cerraron al no haber mercado en Taiwán y México / Diario El Heraldo (April 24, 2024).