Honduras Signs Free Trade Agreement

After three years and seven rounds of negotiations, Mexico has signed an FTA with Honduras and four other Central American countries: Guatemala, El Salvador, Nicaragua and Costa Rica. Most assessments of the pact say it will help to raise the economy of each nation involved in the Central America Trade Specialization Act.

El Salvador’s Ministry of Economic Affairs issued a communique announcing that the FTA will replace current three bilateral trade agreements among Mexico, Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica. The communique pointed out that the agreement is largely aimed at Mexican products and services, especially for that nation’s small and medium-sized enterprises.

Central America is a natural and developing market, and the signing of the FTA should prove to be good for firm trade relations between Honduras and the other nations in Central America and should make it easier for the six nations to exchange products and services.

The communique also claimed that the FTA will lead to economic growth. At present, Central America’s imports from Mexico stand at US$480 billion yearly, and the zone is obviously important to Mexico’s external trade.

You must be logged in to post a comment Login