RESTRICTED  
  
WT/TPR/G/443  
7 June 2023 
(23-3825) Page: 1/12 
Trade Policy Review Body  Original: Spanish  
 
  
TRADE POLICY REVIEW  
REPORT BY  
HONDURAS  
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by Honduras 
is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the 
first session of the meeting of the Trade Policy Review Body on Honduras.  WT/TPR/G/443 • Honduras  
 
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Contents  
1   INTRODUCTION  ................................ ................................ ................................ ..........  3 
2   ECONOMIC POLICY  ................................ ................................ ................................ ...... 3 
2.1   Economic developments in Honduras  ................................ ................................ ............  4 
2.2   Monetary and credit policies  ................................ ................................ ........................  4 
2.3   Fiscal policy  ................................ ................................ ................................ ..............  5 
3   GOVERNMENT PLAN TO REFOUND THE HOMELAND AND CONSTRUCT A SOCIALIST 
AND DEMOCRATIC STATE 2022 -26 ................................ ................................ ...................  5 
4   EXTERNAL TRADE POLICY  ................................ ................................ ...........................  6 
4.1   Multilateral trading system  ................................ ................................ ..........................  6 
4.2   Central American economic integration  ................................ ................................ .........  7 
4.2.1   Process of Deep Integration leading to the Free  Movement of Goods and Natural  
Persons between the Republics of Guatemala and Honduras  ................................ ....................  7 
4.2.2   Trade developments 2021 -22 ................................ ................................ ...................  8 
4.2.3   Central American Strategy for Trade Facilitation and Competitiveness  ............................  9 
4.3   Regional trade  agreements (RTAs)  ................................ ................................ ...............  9 
4.3.1   Alliance of countries of Latin America and the Caribbean against inflation  .......................  10 
4.4   Honduran trade  ................................ ................................ ................................ ........  10 
4.4.1   Exports  ................................ ................................ ................................ ................  10 
4.4.2   Imports ................................ ................................ ................................ ................  11 
5   FUTURE TRADE POLICY DIRECTIONS  ................................ ................................ ........  11 
  WT/TPR/G/443 • Honduras  
 
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  1  INTRODUCTION  
1.1.  Since its last Trade Policy Review (TPR) in 2016 Honduras has implemented  a raft of measures 
under  its national policies to maintain and strengthen its trade policy. The entry into force of the 
Agreement on Trade Facilitation (TFA) in 2017 led to the implementation at national and regional 
level of a series of initiatives and actions to improve the time and cost involved in customs clearance, 
and to simplify the administrative requirements of cross -border procedures.  
1.2.  Honduras continues to have an open trade policy. I ts network of preferential trade agreements  
has been supplemented by  agreements with Per u, South Korea and the United Kingdom. 
Approximately 93.46% of exports enjoy preferences.  
1.3.  Since the previous review, Honduras has continued to support the deepening of Central 
American Economic Integration. In 2017 the first stage in the Process of Deep In tegration leading 
to the Free  Movement of Goods and Natural Persons between the Republics of Guatemala and 
Honduras  was implemented, and a model  was drawn up for integrated border  posts and peripheral 
customs offices to control the transit  of goods.  
1.4.  The de ep integration process has facilitated trade in goods: advance declarations for trade 
between Guatemala and Honduras have been implemented, as has the electronic transmission of 
sanitary and phytosanitary certificates. Software developed for the transmissi on of  documents 
covering  trade within the single customs territory is in use , and includes  the Central American Invoice 
and Single Declaration (FYDUCA ), the Notification of Sanitary and Phytosanitary Measures (SPS), 
and the advance declaration and electronic transmission of sanitary and phytosanitary certificates.  
1.5.  President  Xiomara  Castro 's Government Plan to Refound the Homeland and Construct a 
Sociali st and Democratic State provides that the country's foreign policy is one of openness  to the 
peoples and nations of the world , subject to full reciprocity . It also states that the defence  of 
sovereignty and solidarity will be cross -cutting priorities  of its foreign policy, which is founded on 
the national interest and complementarity in the community of nations.  
1.6.  Against that background , the approach taken by Honduras to the creation of employment and 
new opportunities is focused  on (a) employment  generation  on a mass scale, including for young 
people and others in disadvantaged circumstances , (b) an economic stimul us plan for micro  
busine sses in the social sectors , guara nteeing  access to sustainable, decent employment, and 
(c) a guarantee of legal certainty in a stable socio -political environment conducive to building 
confidence, private investment and long -term economic growth.1 
1.7.  This report is part of efforts to provide  transparen cy and fulfil the obligations Honduras has 
assumed within the multilateral trading system, and describes the main elements  of Honduras ' trade 
and economic policy since its last review.  
2  ECONOMIC POLICY  
2.1.  During the review period, economic activity in Honduras was driven chiefly by domestic  
production of goods and services  – which continued to grow despite adverse global conditions, a rise 
in internal and external demand , the implementation of measures to supp ort economic activity and 
job creation (including the availability of financial resources, budget reformulation, fuel and energy 
subsidies) and the increase in family remittances, which contributed to the buoyancy of household 
consumption expenditure . 
2.2.  President Xiomara  Castro 's administration plans to undertake  structural reform  of the 
management  of the country's economy  and the economic order, as well as to address the need for 
inter-agency  coordination . Another priority is to promote the creation,  in rura l and urban areas , of 
employment that pays fair, decent wages sufficient  to cover the cost of the basic basket and make 
economic revival possible. Where the  rural component  is concerned, the objectives also include  
agricultural development and food sovereignty.  
 
1 Government Plan to Refound the Homeland and Construct a Socialist and Democratic State 2022-26, p.21  WT/TPR/G/443 • Honduras  
 
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2.1  Economic developments  in Honduras  
2.3.  The World Bank classifies Honduras as a lower -middle -income economy that experienced 
fluctuating fortunes  during the review period (2016 -22), especially in relation to the cr ises caused 
by the COVID -19 pandemic in 2020 and tropical storms Eta and Iota in that same year.  
2.4.  Honduran GDP grew at an average annual rate of 3.8% between 2016 and 2019, leading to a 
rise in  per capita income during the period. Growth was supported mainl y by personal  consumption 
expenditure, which in turn was largely driven by remittances from abroad that significant ly impact 
the country 's economy.  
2.5.  In 2020, the Honduran economy was hit hard by the economic effects of the COVID -19 
pandemic, with GDP contra cting by 9% and external demand also falling. All the components of 
aggregate demand contracted, but gross capital formation recorded the largest decline, 23.8% in 
real terms. All production sectors were similarly affected.  
2.6.  Despite this, macroeconomic cond itions improved in 2021 and 2022. Real GDP expanded by 
12.5% in 2021 at a year -on-year rate of 4.4% in the first three quarters of 2022, and an estimated 
rate for the full year of 4.0%. With the exception of construction and mining and quarrying, the 
sectors that grew most in the third quarter of 2022 were financial intermediation (14.0%), 
manufacturing (7.6%), commerce (3.2%), hotels and restaurants (23.3%), electricity and water 
distribution (1.3%) , and transport (6.6%).  
2.7.  In constant terms, overall supply increased by 5.6%, after rebounding by 21.4% in 2021, 
driven by a rise in both domestic supply and imports of goods and services (7.4%).  
2.2  Monetary  and credit policies  
2.8.  According to the Central Bank of Honduras (BCH) the country pursued a fairly tight, cautio us 
monetary policy between 2016  and 20 19, keeping the monetary policy rate (MPR) between 5.5% 
and 5.75%., In view of the national economic slowdown in growth in the pre -pandemic period, the 
BCH decided to reduce the MPR in December  2019 and February  2020, by 25  basis points (bp)  on 
each occasion , bringing it down to  5.25%.  
2.9.  Later in 2020 , the worsening COVID -19 pandemic ( extension  of measures to lock down the 
population and restrict the movement of goods and services) led to a decline in econo mic activity 
and employment, and to the BCH taking measures that included authorizing reduction s in the MPR 
on three further occasions, namely from 5.25% to 4.50% in March, to 3.75% in August and to 
3.00% in November, which remains in place to date.  
2.10.  During  the period preceding the pandemic, the focus of BCH monetary policy continued to be 
on maintaining low, stable inflation  and an adequate level of international reserves, periodically 
analysing the economic situation and the national and international outl ook and adjusting the 
conduct of monetary policy in order to maintain liquidity levels in the financial system that were 
consistent with the goal of price stability.  
2.11.  During the review period , inflation was generally contained within the established  toleran ce 
range , except in 2022 when it was affected by external shocks resulting from global supply chain 
difficulties and the conflict between Russia and Ukraine.  
2.12.  In 2022 rising global  inflationary pressures due to  higher  global costs affecting the prices of 
raw materials  – primarily energy and food  – led to an accelerat ion of  domestic inflation , which 
peaked at  10.86% in July  2022. The three items that contributed  most to the increase  in total 
inflation were food and non -alcoholic beverages ; transport ; and housing, water and electricity.2 Core 
 
2 According to the BCH, these three items  account for roughly  69.1% of year -on-year inflation. The 
greatest price rises for processed foods included those of ground coffee, vegetable fat, chicken meat and beef, 
classified rice, pasteurized powder milk, and soft drinks. The following agri -foodstuffs recorded price increases:  
red beans, maize, chicken  eggs, corn tortilla, potato, cabbage, dairy products, sweet  pepper, pear tomato and 
red onion. Central Bank of Honduras  (2022), Revisión de Programa Monetario 2022 -2023, August  2022. 
Viewed  at: WT/TPR/G/443 • Honduras  
 
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  inflation (which excludes agri -foodstuffs , fuels and electricity tariffs) behaved in a similar fashion to 
total inflation , standing at 9.16%  in July  2022 as a result of higher  raw material and fuel prices and 
inflatio nary pressures caused – albeit to a lesser extent - by aggregate demand and a process of 
adjustment in production costs.3 
2.3  Fiscal policy  
2.13.  The formulation and implementation of Honduran fiscal policy during the review period was 
geared  towards  achiev ing fiscal consolidation, reduced spending  and increased  tax revenues.  
2.14.  The Fiscal Responsibility Law (LRF) adopted in May 2016 established  macrofiscal targets 
mapp ing out the direction of strategic fiscal policy decisions for the  period  covered . 
2.15.  The Ministry of  Finance  in the current administration under President  Castro issued the 
Medium -Term Macrofiscal Framework (MMFMP) 2023 -26, a road  map to guide the country 's strategic 
economic and fiscal policy decisions with the aim of reducing the deficit, ac hieving fiscal 
consolidation, supporting macroeconomic stability and increasing inclusive economic growth.  
2.16.  During 2022 the fiscal situation improved significantly, thanks in part to the post -pandemic 
economic recovery. Central government achieved  a surplus  of HNL  14,000.9  million in the first 
nine months of 2022 , mainly  as a result of higher  tax revenue and lower capital expenditure. Total 
revenue amounted to HNL  112,247.4  million (HNL  16,053.9  million more than in the same period 
of 2021).  
3  GOVERNMENT PLAN TO REFOUND THE HOMELAND AND CONSTRUCT A SOCIALIST AND 
DEMOCRATIC STATE  2022 -26 
3.1.  The Government  Plan to Refound  the Homeland  and Construct  a Socialist  and Democratic State  
2022-26 outlines  the path towards  the construction  of a socialist  and democratic  state and a country  
that is as strong  as the resolve  of its citizens  and people . 
3.2.  The Medium -Term Macrofiscal  Framework  (MMFMP)  2023-26 provides  that the Bicentennial  
Strategic  Government  Plan (PEG)  2022-26 to Refound  the Homeland  and Construct  a Socialist  and 
Democratic State  4 is a planning  tool for the medium  term that sets out the measures  government  
should  take to progress  towards  achieving  long-term development  objectives.  It identifies  
five strateg ic development sectors, namely: (i)  governance , (ii) soci ety, (iii)  econom y, 
(iv) environment and (v)  security and justice, accompanied by  the following strategic objectives:  
a. To refound Honduras by constructi ng a socialist and democratic state  built on fai rness in 
order to ensure shared prosperity, and  on the protection of the rights  of individuals , 
communities ( indigenous peoples) and the natural world . 
b. To ensure equitable access for the people to social security and protection, the promotion 
of art, science, culture and sport, and to free, good -quality education, health -care and 
training services by way of  poverty -reduction mechanisms.  
c. To strengthen and enhance the State 's role in the economy by improving the provision of 
public services, the formulation and implementation of public policy, and the correction of 
market distortions in order to foster steady, sustainable human development.  
d. To ensure the pro tection of shared natural resources so that they are available to use and 
sustainably managed: ecosystem resources, water for human consumption, production, 
hydroelectric power generation, irrigation etc.  
 
https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Revisi%C3%B3n%20Programa%20Monet
ario%202022 -2023.pdf . 
3 Central Bank of Honduras (2022), Revisión de Programa Monetario 2022 -2023, August  2022. Viewed 
at: https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Revisi%C3%B3n%20  
Programa%20Monetario%202022 -2023.pdf . 
4 Medium -Term Macrofiscal Framework (MMFMP) 2023 -26, p.64.  WT/TPR/G/443 • Honduras  
 
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e. To ensure public safety and effective access to an integrated judicial system in order to 
promote  an investment -friendly  environment and ensure the well -being of the Honduran 
population.  
3.3.  In addition, the Strategic Plan supplements the strategic objectives with three cross -cutting 
lines of action : (i) defen ce of human rights, (ii)  gender: Nothing about us without us ; and 
(iii) territorial development.  
3.4.  In order to strengthen growth and diversification in agriculture, the Ministry of Agriculture and 
Livestock of Honduras is drawing up a new policy for the sect or with its own intervention strategies. 
The policy will be inclusive and provides for the use of innovative, sustainable technologies to 
diversify agricultural output  and increase productivity.  
3.5.  The policy is also expected to reduce vulnerability to climat e change.  
4  EXTERNAL TRADE POLICY  
4.1.  Honduras conducts a trade policy based on the following lines of action : (i) participation in the 
multilateral trading system under the auspices of the WTO, (ii)  deepening of Central American 
Integration, and (iii) expansion of its network of preferential trade agreements with strategic 
partners or parties with whom Honduras establishes the most cordial and friendly diplomatic 
relations . 
4.1  Multilateral trading system  
4.2.  As a found ing Member of the World Trade Organi zation (WTO) Honduras attaches  great 
importance to active participat ion in the multilateral trading system ; accordingly, in the context  of 
its involvement in the Doha Development Agenda (DDA), it has reiterated its commitment to a 
multilateral trading syst em based on clear and equitable rules , assign ing high priority to the defence  
and promotion of an inclusive, open and transparent Organization that functions effectively for its 
Members and addresses their developmental and welfare needs.  
4.3.  Furthermore, it s upports the implementation of special and differential treatment along with 
other flexibilities that help to protect the most sensitive sectors of developing economies , and 
therefore remains  committed to the successful conclusion of the negotiations  placing development 
at the core of the outcomes in accordance with the agreed mandates and the decisions adopted by  
the Members.  
4.4.  Honduras considers it necessary to address the concerns and priorities of developing countries, 
least-developed countries and net foo d-importing countries in matters such as the treatment of 
trade-distorting domestic support, the special safeguard mechanism and public stockholding, among 
other vital means of satisfying  needs in respect of  food security, livelihood, farmers ' welfare and 
poverty alleviation.  
4.5.  Honduras  favour s the consideration , within the WTO , of issues concerning the dynamic and 
ever-changing reality of international trade, which is why it is making best efforts to participate 
constructively in the joint initi atives on MSMEs, e -commerce, investment facilitation for development 
and women 's empowerment (as part of the Informal Working Group on Trade and Gender), as well 
as in the discussions on Plastics Pollution and Environmentally Sustainable Plastics Trade and  the 
initiative on trade and environmental sustainability.  
4.6.  In addition, it agrees with the  imperative need to update the multilateral trading rules : having  
a Dispute Settlement System  together with a functional and effective Appellate Body is a matter of 
the utmost urgency for our country, which is why it participated in the presentation of proposals to 
promote discussions  among Members on the functioning  of the Appellate Body, and those discussions 
influenced  the creation of the "Walker Process ". 
4.7.  All the e lements referred to above are consistent with the long -term strategic development 
objectives set out in the Government Plan to Refound the Homeland and Construct a Socialist and 
Democratic State 2022-26, in that their emphasis is on human rights, gender, the Government Plan WT/TPR/G/443 • Honduras  
 
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  to Refound the Homeland and Construct a Socialist and Democratic State 2022-26 and 
acknowledgement of countries ' relative development . 
4.2  Central American economic i ntegration  
4.8.  On 13 December  1960, Honduras became a founding member of the economic integration 
process by signing the General Treaty on Central American Economic Integration , which  establish ed 
the Central American Common Market (CACM) comprising Costa  Rica, El  Salvador, Guatemala, 
Hondur as and Nicaragua, for the further development  of a Central American free trade area and the 
adoption of a uniform Central American tariff. The Treaty also sets out the Parties ' commitment to 
establish a customs union between their territories . 
4.9.  The Protocol  to the General Treaty on Central American Economic Integration (Guatemala 
Protocol) signed on 29  October  1993 establishes and consolidates the Economic Integration  
Subsystem , adapting it to the new institutional framework of the Central American Integrati on 
System (SICA), and to the needs of the countries in the region. The subsystem covers  Costa  Rica, 
El Salvador, Guatemala, Honduras, Nicaragua and Panama ( the latter  having  joined on  6 May 2013).  
4.10.  As a basis for  establish ing the Central American Customs Union, the countries envisage the 
elimination of taxes or tariff barriers (taxes charged on the entry of merchandise , for example ) 
between the member countries of the Union and the adoption of a common external tariff for 
products coming from or destined for third countries or other trading blocs.  
4.11.  Its main benefits are:  
• Trade efficiency ; 
• Lower transport and administrative costs ; 
• Reinforcement and expansion of logistics infrastructure ; 
• Stronger intra-regional trade ; 
• Greater competitiveness in the region.  
4.12.  Honduras continues to participate actively in work to further develop  and deepen Central 
American economic integration, especially with regard to the necessary steps towards  establishing 
the Central American Customs U nion; and to harmonize the regulatory framework in the areas of 
tariffs, customs, rules of origin, sanitary and phytosanitary measures, competition policy, dispute 
settlement, technical requirements, and the procedures, guidelines and controls that apply i n the 
region for the purposes of facilitating trade and achieving mutual recognition of sanitary registration 
certificates, specifically  certificates for food and beverages, medic ines, cosmetics, hygiene products, 
veterinary drugs, fertilizers, animal feed , and pesticides  for household use and professional use.  
4.13.  Currently, in accordance  with the targets established  in the work plans approved by the 
Council of Ministers for Central American Economic Integration (COMIECO), progress has been made 
on tariffs, cu stoms, trade facilitation and technical regulations.  
4.2.1   Process of Deep Integration leading to the Free  Movement of Goods and Natural 
Persons between the Republics of Guatemala and Honduras  
4.14.  The first phase of the process of deep integration between Guatemala and Honduras was 
launched by the Presidential Declaration of 13  December  2014; in conformity with the legal 
instruments of Central American Economic Integration , progress is gradual and incremental and 
aims to accelerate the formation of a Customs Union an d the free movement of natural persons 
between the two countries.  WT/TPR/G/443 • Honduras  
 
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4.15.  On 26  June 2017 the first stage in the deep integration  process  began with the formation of 
the Single Customs Territory between Guatemala and Honduras, where trade is conducted  in respect 
of both community goods5, which enjoy free movement, and goods excluded from such treatment.  
4.16.  On the basis of the legal instrument s governing deep integration, the single customs territory 
between the two States Part ies was implemented and a model  drawn up for integrated border  posts 
and peripheral customs offices to control the movement of goods  and natural persons . 
4.17.  Trade in communi ty goods that enjoy free movement (goods obtained, collected , produced, 
worked or processed in the single customs territory) is conducted within the single customs territory , 
as is trade in community goods excluded from free movement . Also regarded as comm unity goods 
are movable goods from third countries that have been imported  into either State Party, in 
compliance with tax and non -tax obligations.  
4.18.  Guatemala and Honduras are signatories to the General Treaty on Central American Economic 
Integration and th e Protocol to the General Treaty on Central American Economic Integration 
(Guatemala Protocol), as amended on 27  February  2002, and as a result continue to be part of the 
Central American free trade area which provides for free trade in goods originating in the member 
states of the economic subsystem.  
4.19.  The integrated border  posts  of Agua  Caliente, El  Florido and Corinto operate in conformity 
with the procedures laid down in the Operational Regulations. Owing to the uptick  in trade  
operations , the competent authorities of each State Party increased the number of staff assigned to 
each integrated border post . The priority peripheral customs offices Tecún  Umán  II, in Guatemala, 
and Puerto  Cortés and Guasaule, in Honduras, have not record ed any im port or export operations 
under the deep integration process , despite being accredited  since 1  October  2020.  
4.20.  The deep integration process has facilitated trade in community goods: advance declarations 
for trade between Guatemala and Honduras, and between G uatemala and El  Salvador, have been 
implemented, as has the electronic transmission of sanitary and phytosanitary certificates. The 
software developed for the  transmission  of documents covering  trade within the single customs 
territory is in use, and inclu des the Central American Invoice and Single Declaration (FYDUCA), the 
SPS Notification, the advance declaration and electronic transmission of sanitary and phytosanitary 
certificates.  
4.21.  Currently , at the  stage  of further development,  work is in hand to impro ve administrative and 
operational procedures at trade facilitation centres and peripheral customs offices.  
4.2.2   Trade developments 2021 -22  
4.22.  Trade in community goods within the single customs territory grew by 4.1% in 2022 compared 
to 2021; the value of trade in  2022 was USD  1,508.3  million, while in 2021 it was 
USD 1,449.4  million. The level of t rade from Guatemala to Honduras was USD 1,204.2  million 
(equivalent to 79.8% of total trade) and from Honduras to Guatemala it stood at USD  304.1  million 
(equivalent to 20.2% of total trade).  
4.23.  In 2022 community goods trade within the single customs territory  using FYDUCA software 
amounted to  USD 650.6  million, and represent ed 43.1% of total trade, while trade using DUCA -F 
software amounted to USD  857.7  million, or 56.9% of total trade.  
4.24.  As regards  export operations using DUCA -F software and transfers using FYDUCA software , 
the trade performance in 2022 was similar to that of 2021.  
4.25.  El Salvador  initiated its accession to the deep integration process on 26  July 2017, and 
became a full member of the Ministerial Body in 2018. It is working to reach  the stage in the process 
already reached by Guatemala and Honduras. The Ministerial Body has yet to a dopt the  
 
5 Community good s are movable goods obtained, collected , produced, worked or processed in the single 
customs territory. Also regarded as community goods are movable  goods from third countries that have been 
imported into either State Party, in compliance with tax and non -tax obligations (Article  3 of the Operational 
Regulations on  the Process of  Deep Integration leading to the Free  Movement of Goods and Natural Persons 
between the Republics of Guatemala and Honduras ). WT/TPR/G/443 • Honduras  
 
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  administrative measure needed to incorporate El  Salvador into the process and thus enabl e it to 
form part of the single customs territory.  
4.26.  It should be noted that in 2022 the customs, migration and SPS authorities of Honduras and 
El Salvador worke d on flow s and procedures for conducting integrated operations at the El Amatillo 
border  post. 
4.2.3   Central American Strategy for Trade Facilitation and Competitiveness  
4.27.  The Central American digital trade platform (PDCC), of which Honduras is part, is one of the 
three cross -cutting lines of action  of the Central American Strategy for Trade Facilitation and 
Competitiveness (ECFCC). The strategy promotes the implementation by countries of a regional 
IT platform that contributes to trade facilitation and regional  economic integration by integrating 
information and processes involved in the management of customs, plant and animal health, 
migration and the single window.  
4.28.  The purpose of the platform is to achieve interconnection and interoperability between  the 
regional infrastructure and the customs, migration, health, agriculture and livestock, and security 
(police) systems  already in existence at national level , as well as  with certain regional initiatives  
already  well established or already initiated ; this will en able services to develop and innova te, 
increasing  their efficiency and effectiveness and improving trade transactions while increasing 
participation by public and private stakeholders and continuing to harmonize and modernize the 
services currently perform ed as part of foreign trade processes in the Central  American region.  
4.29.  The ECFCC, approved on 22  October  2015, is being develop ed on the basis of a coordinated 
border management  model and contains five short -term priority measures, eight medium - and 
long-term measures and three cross -cutting areas of action . The medium - and long -term measures 
are grouped under 8  pillars covering 112  activities that include  strategic actions, key projects, 
national milestones, regional milestones, common regional parameters  and additional information.  
4.30.  Honduras participates actively in the ECFCC in order to comply with the strategic guidelines 
on shortening  export and import times , the aim being to harness  the benefits of  the Central American 
market, stimulate trade flows and increase the competitiveness of businesses, especially MSMEs.  
4.31.   Under Executive Decree  PCM-039-2018 of 20  November  2018, Honduras established the 
National  Trade Facilitation Committee (CONFACO) in conformity with Article  23.2 of the WTO Trade 
Facilitation Agreement , which provides that each Member shall maintain a national committee on 
trade facilitation or designate an existing mechanism to facilitate both  domestic coordination and 
implementation of the provisions . The Committee , established on 28  January  2019 with public  – and 
private -sector  participation , has as its  objective to work in coordination  with all institutions involved 
in the implementation and  enforcement of trade facilitation initiatives and to manag e interagency 
cooperation mechanisms that contribute to trade facilitation.  
4.32.  The National Trade Facilitation Committee (CONFACO ) is a collegiate body attached to the 
State Secretariat in the Office of Economic Development as coordinator of implementation and 
delivery of national trade facilitation policy, which in turn provides  that the  committee's  technical 
secretariat is to be coordinated by the Ministry of Economic Development.  
4.33.  Three pillars form the committee's foundation al guidelines , and work on the pillars has been 
ongoing since its establishment.  
1. WTO Trade Facilitation Agreement  
2. Central American Trade Facilitation Strategy with Emphasis on Coordinated Border 
Management  
3. Process of deep integration (Customs Union)  
4.3  Regional trade agreements (RTA s) 
4.34.  During the review period, Honduras signed three new trade agreements , thus increasing its 
access to new markets under preferential conditions.  WT/TPR/G/443 • Honduras  
 
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4.35.  By signing  the agreements with Peru in 2017, Korea i n 2019 and Great  Britain (as a 
consequence of Brexit) in 2021, Honduras increased its access to more than 40  countries and around 
1.14 billion consumers.  
Table 4.1 New regional trade agreements  
Treaty/ Agreem ent Date of entry into force  
1 Free Trade Agreement – Peru – Honduras  1 January  2017 
2 Free Trade Agreement – Korea - Central America  1 October  2019 
3 Association Agreement between the United Kingdom of Great Britain and 
Northern Ireland and Central  America  1 January  2021 
4.36.  With the addition of the new agreements, Honduras now maintains and administers 
14 regional trade agreements, including the Central American Common Market (CACM).  
4.37.  It should be noted that the Association Agreement between Cen tral America and the 
United  Kingdom of Great Britain and Northern Ireland (AACRU -2021) ensures the continuity of 
market access conditions and other disciplines negotiated under the Association Agreement between 
Central America and the European Union (AACUE ). As a result, the tariff reduction schedule, tariff 
preferences and (regional and national) quotas agreed under the AACUE are retained under 
the AACRU.  
4.3.1   Alliance of countries of Latin America and the Caribbean against inflation  
4.38.  In order to promote an anti-inflationary plan to help curb the rising prices of basic foods and 
intermediate products in the region, Honduras participated in the Mexican -led initiative known as 
the Alliance of Countries of Latin America and the Caribbean against Inflation . The f irst meeting 
under the initiative at Heads of State level was held on 5  April 2023.  
4.39.  The aim of the summit was to establish an alliance to find joint solutions to price pressures 
and shortages in the basic basket of goods, and to strengthen regional integra tion and trade. As a 
result, the participating countries undertook to move forward with measures to facilitate trade, 
logistics, finance and other aspects so that trade in basic basket products  and intermediate goods 
could take place under better condition s, prioritizing  lower costs. 
4.40.  To that end a Technical Working Group was established with responsibility for drawing up an 
action plan on the adoption of trade facilitation measures to address  the high prices of basic 
consumer products and inputs, including development of a framework to remove barriers and 
harmonize sanitary and phytosanitary regulations and certificates.  
4.4  Hondura n trade  
4.41.  In 2022 the bulk of Honduran foreign trade took place under a preferential regime, based on  
the implementation of a  trade policy that has favoured  the negotiation of regional trade agreements.  
4.4.1   Exports  
4.42.  In 2022, 93.46% of all exports from Honduras were effected  under a preferential regime, and 
6.54% under a non -preferential regime. Table  4.2 shows the respective share s of preferential and 
non-preferential trade.  WT/TPR/G/443 • Honduras  
 
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  Table 4.2 Honduras: percentage ratio of preferential to non-preferential exports, 
2017 -22 
(USD million)  
Years  Preferential  % Non-preferential  % Total exports  
2017 4,267.17  93.94  275.13  6.06 4,542.30  
2018 4,035.22  93.12  298.13  6.88 4,333.35  
2019 3,943.27  93.16  289.69  6.84 4,232.96  
2020 4,004.95  94.04  253.91  5.96 4,258.86  
2021 4,890.92  94.00  311.93  6.00 5,202.85  
2022 5,703.00  93.46  399.07  6.54 6,102.07  
Source:  Central Bank of Honduras.  
4.43.  The main destination of all exports from Honduras in 2022 was the United  States  (32.95% ), 
followed by Guatemala and El  Salvador in the Central American region, and Germany and Italy in 
Europe.  
4.44.  It should be noted that , under preferential regimes, the United  States was the main 
destination in 2022 with 35.3%, followed by Central  America (26.4%) and the European Union 
(22.9%).  
4.45.  Under non-preferential regimes in 2022, Japan was the chief export destination with 22.8%.  
4.4.2   Imports  
4.46.  Imports are treated differently depending on their origin. In 2022, 72.68% of total imports 
entered  under preferential regimes and 27.32% under non -preferential regimes.  
Table 4.3 Honduras: percentage ratio of preferential to non-preferential imports, 
2017 -22 
(USD million)  
Years  Preferential  % Non-preferential  % Total imports  
2017 7,546.66  77.94  2,136.33  22.06  9,682.98  
2018 8,002.96  74.62  2,721.46  25.38  10,724.42  
2019 7,628.42  73.67  2,725.76  26.33  10,354.18  
2020 6,562.35  73.26  2,395.37  26.74  8,957.72  
2021 9,498.14  71.84  3,723.69  28.16  13,221.84  
2022 11,074.97  72.68  4,162.50  27.32  15,237.48  
Source:  Central Bank of Honduras.  
4.47.  In 2022, the United States was the main source of all imports at 34.09%, followed by the 
People 's Republic of China (13.78%) and Guatemala (10.47%). Again in 2022, under preferential 
regimes the United  States accounted for  46.9%, followed by Central  America (29.1%) and Mexico 
(8.6%).  
4.48.  Under non -preferential regimes, the People 's Republic of China was the main source of imports 
at 50.42%, followed by Brazil (7.6%) and India (7.2%).  
5  FUTURE TRADE POLICY DIRECTIONS  
5.1.  Hondura s will continue to honour  international commitments in its trade policy, while s eeking 
to reduce the trade gap faced by the country . 
5.2.  Modernizing the management and operation of the Honduran Customs Administration is key to 
optimizing automation and control processes. In this respect , it should be noted that specialized 
technologies wi ll be introduced to reduce tax fraud and increase the reliability of computer equipment 
used in the operational management of customs, without neglecting trade facilitation within national 
and regional strategies.  WT/TPR/G/443 • Honduras  
 
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5.3.  Honduras will continue to play an active, dynamic role in the administration of its existing 
preferential trade agreements. The agreements will be reviewed to identify elements  that can be 
used to salvage  any production structures adversely affected by open trade  practices , particularly 
where they have an impact on food sovereignty. Agriculture is key to attaining food sovereignty. 
Accordingly,  it is expected that President  Xiomara Castro 's new agriculture policy will have a positive 
impact and will enhance sustainable grow th and diversification in the sector. Honduras will continue 
to support and participate in initiatives to find solutions that reduce the cost of and access to food. 
5.4.  The country will play an active part in discussions within the WTO in support of the ongoin g 
reform  process  in which it is deeply engaged , paying special attention to the interests of small and 
vulnerable economies like that of Honduras.  
5.5.  Additionally, Honduras will promote trade relations with countries that express shared mutual 
interests. Trad e integration will be strengthened and Honduras will seek to become integrated  into 
global value chains. Similarly, it will continue to work in defence of  its trade interests.  
5.6.  Where fiscal policy is concerned,  tax administration as a whole will be improved  and tax reform 
will be implemented in a drive to achieve a progressive tax system that addresses abuses and tax 
evasion.  
5.7.  The vision of a State where natural resources are protected provides a basis for directly and 
indirectly promoting the  enjoyment of all human rights, including the right to life, housing, water 
and sanitation, food, health, development, personal safety and an acceptable standard of living. 
President  Xiomara  Castro 's Government Plan to Refound the Homeland and Construct a Socialist and 
Democratic State 2022-26 will ensure that human rights are protected through strict compliance 
with the international agreements to which Honduras is a signatory.  
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