Honduras News Archives: Free Trade Agreement

Manuel Zelaya Regretting Agreement

Manuel Zelaya stated today, that if Congress does not reinstate him into office next week, the Tegucigalpa/San Jose Accord “is a failure.” He then reminded MPs, judges, prosecutors and the military to not forget that they have pending trials in the International Criminal Court

Zelaya made the “comments” and “reminders” in a round table where, with his wife, Xiomara Castro, the Catholic priest Andres Tamayo, and his main political advisers, they reviewed the scope of the agreement signed by their representatives on Friday.

The hearing was broadcast from the Brazilian Embassy in Tegucigalpa at a radio station that has a member of its team of reporters inside the embassy. The explanation of Zelaya came a day after signing the agreement that he committed to in front of international witnesses that he would comply fully.

Zelaya noted that the timetable for implementation of the agreements provides that by Thursday, November 5th, there will be installed in the country a government of national unity and reconciliation.

In his view, Congress should have decided by that date on his reinstatement in office, because according to him, “this agreement, this dialogue, the resolutions of the OAS and the United Nations have only one purpose – to reverse the coup by placing the president in office who was illegally dismissed. ”

“If the National Congress decides, in its session, it is going to reaffirm that what they did was correct, gentlemen, then we have done absolutely nothing but deceive the international community and the Honduran people with this agreement,” he said.

The interim government negotiators and members of Congress have said, for their part, the agreement does not condition building the unity and reconciliation government on the decision of Congress.

Panama – Honduras FTA

The Free Trade Agreement (FTA) between Panama and Honduras took effect on Friday, which will facilitate the circulation of 80 percent of the goods between both countries, the Panamanian Ministry of Commerce and Industry (Mici) said, Xinhua reported.

According to Mici, the commercial agreement will allow the free circulation of goods, intensify the services sector and create opportunities for bilateral commercial exchanges, which totaled 165 million U.S. dollars.

The agreement was signed in June 2007 by Panamanian President Martin Torrijos and his Honduran counterpart Manuel Zelaya after one-year negotiations.

For the Panamanian production sector, the accord means preferential deals on the trade of 400 tons of bovine meat and 100 tons of pork meat in two years, as well as quotas on other products like milk and cheese.

Honduras is considered the third largest market of exports for the Panamanian products and one of the most important destinations of the re-exports in the Colon Free Zone, the main commercial center of the region.

Meanwhile, 17 percent of the Honduran exports are sent to Panama. Honduras’ main investments and credits also come from Panamanian banking institutions, with a credit portfolio of over 236 million U.S. dollars.

In addition, the Panamanian financial and insurance institutions will extend their operation to the Honduran market, where there is a growing maritime industry that needs those services.

Free Trade Agreement with Mexico

Mexico has begun negotiations with several Central American countries to merge its three individual Free Trade Agreements (FTA) with them into a single one, Mexican Economy Minister Eduardo Sojo said Friday.

Mexico will promote regional integration with Nicaragua, Costa Rica, Guatemala, Honduras and El Salvador, which is expected to facilitate trade by harmonizing rules and different procedures, and also reduce operation costs, said Sojo.

Mexico signed FTAs with Costa Rica, Nicaragua and the Northern Triangle nations (El Salvador, Guatemala and Honduras) in 1995, 1998 and 2001 respectively .

Speaking at a business forum titled “Opportunities for Investment and Challenges to Competitiveness in the Mesoamerican Region” Sojo said such integration will help these nations withstand the growing competence of other regions.

The proposed comprehensive FTA seeks to include Belize, Panama and the Dominican Republic as well, thereby completing the Mesoamerican bloc, he added.