22 wrzesień 2021
Honduras Us Free Trade Agreement
Autor: Anna Pilsniak. Kategorie: Bez kategorii .
The Republic of Honduras is a low-middle-income country that faces great challenges: more than two-thirds of the country`s population lives in poverty and about 46 per cent live in extreme poverty. Honduras ranks 78th out of 132 countries in the World Economic Forum`s (WEF) Trade Index (2012), which measures institutions, policies and services to facilitate trade within countries. The Honduran trade regime is very open. Worldwide, the country`s exports have very good access to foreign markets. In return, the country is open to imports; However, the weak business environment (especially cumbersome and tedious bureaucratic rules) and poor performance on important business infrastructure services significantly hamper business activities. It is believed that the implementation of many free trade agreements in recent years has led to some modernization and liberalization of the country`s trade and investment regimes. CAFTA-DR FTA Text The full text of the agreement is provided by the USTR (United States Trade Representative). The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR FTA) entered into force in 2006 for the United States, El Salvador, Guatemala, Honduras and Nicaragua, the Dominican Republic in 2007 and Costa Rica in 2009. As a result of the free trade agreement, 100% of U.S. exports of consumer and industrial goods to CAFTA-DR countries will no longer be subject to tariffs. Tariffs on almost all U.S.
agricultural products will expire by 2020. In order to benefit from duty-free treatment under the Free Trade Agreement, products must comply with the applicable rules of origin. The Honduran trade regime is relatively open, with an average tariff rate of about 6% in 2012 (relatively stable at this rate for more than 10 years), modest use of non-tariff barriers and without recourse to emergency measures. Average tariffs are 10.5% for agricultural products and 5.0% for non-agricultural products. Dairy products are subject to a relatively high average customs duty of 22.5% and some animal products are subject to a high maximum duty of 165%. Honduras not only has free trade agreements with Colombia, Mexico, Chile, Taiwan and Panama, but it also participates in the Central American Common Market (CACM), which includes Guatemala, El Salvador, Nicaragua and Costa Rica. As a member of the CACM, Honduras applies to most items, with a few exceptions, a common external customs duty (TEC) of up to 15%. The CACM 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. .