WT/TPR/S/443 /Rev.1  
9 August  2023 
(23-5403) Page: 1/122 
Trade Policy Review Body   
 
TRADE POLICY REVIEW  
REPORT BY THE SECRETARIAT  
HONDURAS  
Revisi on 
This report, prepared for the fourth Trade Policy Review of Honduras, has been drawn up by the 
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement 
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing 
the World Trade Organization), sought clarification from Honduras on its trade policies and practices.  
 
Any technical questions arisin g from this report may be addressed to Mr Angelo Silvy 
(Tel.:  022 739 5249), Ms Eugenia Lizano (Tel.: 022 739 6578) and Ms St éphanie Dorange -Patoret 
(Tel.: 022 739 5497).  
 
Document WT/TPR/G/443 contains the policy statement submitted by Honduras.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report was drafted in  Spanish.  
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  CONTENTS  
SUMMARY  ................................ ................................ ................................ ........................  7 
1   ECONOMIC ENVIRONMENT  ................................ ................................ ........................  11 
1.1   Main features of the economy  ................................ ................................ ...................... 11 
1.2   Recent economic developments  ................................ ................................ .................... 16 
1.2.1    Production and employment  ................................ ................................ ...................... 16 
1.2.2    Fiscal policy  ................................ ................................ ................................ ............ 18 
1.2.3    Monetary and exchange -rate policy a nd prices  ................................ ............................ 21 
1.2.4    Balance of payments  ................................ ................................ ................................ 24 
1.3   Developments in trade and investment  ................................ ................................ ......... 26 
1.3.1    Trends and patterns in merchandise and services trade  ................................ ................ 26 
1.3.1.1    Composition of merchandise trade  ................................ ................................ .......... 26 
1.3.1.2    Direction of merchandise trade  ................................ ................................ ............... 26 
1.3.1.3    Trade in services  ................................ ................................ ................................ ...28 
1.3.2    Trends and patterns in FDI  ................................ ................................ ....................... 30 
2   TRADE AND INVESTMENT REGIME  ................................ ................................ ............  32 
2.1   General framework  ................................ ................................ ................................ .....32 
2.2   Trade Policy formulation and objectives  ................................ ................................ ......... 33 
2.3   Trade agreements and arrangements  ................................ ................................ ............ 34 
2.3.1    WTO ................................ ................................ ................................ ...................... 34 
2.3.2    Regional and preferential agreements  ................................ ................................ ........ 35 
2.3.2.1    Process of deep integration with Guatemala  ................................ ............................. 36 
2.3.3    Other agreements and arrangements  ................................ ................................ ......... 37 
2.4   Investment regime  ................................ ................................ ................................ .....37 
3   TRADE POLICIES AND PRACTICES BY MEASURE  ................................ ........................  41 
3.1   Measures directly affecting imports  ................................ ................................ ............... 41 
3.1.1    Customs procedu res, valuation, and requirements  ................................ ....................... 41 
3.1.1.1    Customs procedures and requirements  ................................ ................................ ....41 
3.1.1.2    Customs valuation  ................................ ................................ ................................ 44 
3.1.2    Rules of origin  ................................ ................................ ................................ ......... 45 
3.1.3    Tariffs  ................................ ................................ ................................ .................... 45 
3.1.3.1    Structure and levels  ................................ ................................ .............................. 45 
3.1.3.2    Price band system  ................................ ................................ ................................ .47 
3.1.3.3    Preferential tariffs  ................................ ................................ ................................ .48 
3.1.3.4    Tariff quotas  ................................ ................................ ................................ ......... 48 
3.1.3.5    Tariff concessions  ................................ ................................ ................................ .49 
3.1.4    Other charges affecting imports  ................................ ................................ ................. 49 
3.1.5    Import prohibitions, restrictions, and licensing  ................................ ............................ 51 
3.1.6    Anti-dumping, countervailing, and safeguard measures  ................................ ................ 53 
3.2   Measures directly affecting exports  ................................ ................................ ............... 55 WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.2.1    Customs procedures and requirements  ................................ ................................ .......55 
3.2.2    Taxes, charges, and levies  ................................ ................................ ........................ 57 
3.2.3    Export prohibitions, restrictions, and licensing  ................................ ............................. 58 
3.2.4    Export support and promotion  ................................ ................................ ................... 59 
3.2.4.1    Export support  ................................ ................................ ................................ ......59 
3.2.4.2    3.2.4.2 Export promotion  ................................ ................................ ....................... 61 
3.2.5    Export finance, insurance, and guarantees  ................................ ................................ ..61 
3.3   Measures affecting production and trade  ................................ ................................ .......61 
3.3.1    Incentives  ................................ ................................ ................................ ............... 61 
3.3.1.1    Micro, small and medium -sized enter prises (MSMEs)  ................................ ................. 62 
3.3.1.2    Finance and guarantees  ................................ ................................ ......................... 63 
3.3.1.3    Sectoral incentives  ................................ ................................ ................................ 64 
3.3.2    Standards and other technical requirements  ................................ ............................... 65 
3.3.3    Sanitary and phytosanitary requirements  ................................ ................................ ....67 
3.3.4    Competition policy and price controls  ................................ ................................ ......... 69 
3.3.4.1    Competition policy  ................................ ................................ ................................ 69 
3.3.4.2    Price controls ................................ ................................ ................................ ........ 72 
3.3.5    State trading, state -owned enterprises, and privatization  ................................ ............. 73 
3.3.6    Government procurement  ................................ ................................ ......................... 74 
3.3.7  Intellectual property rights  ................................ ................................ .......................... 77 
4   TRADE POLICIES BY SECTOR  ................................ ................................ .....................  83 
4.1   Agriculture, forestry, and fisheries  ................................ ................................ ................ 83 
4.1.1    Measures affecting imports  ................................ ................................ ....................... 85 
4.1.2    Domestic support ................................ ................................ ................................ .....87 
4.2   Mining and energy  ................................ ................................ ................................ ......88 
4.2.1    Electricity  ................................ ................................ ................................ ............... 88 
4.3   Manufacturing  ................................ ................................ ................................ ............ 91 
4.4   Services  ................................ ................................ ................................ .................... 92 
4.4.1    Financial services  ................................ ................................ ................................ .....92 
4.4.1.1    Banking services  ................................ ................................ ................................ ...95 
4.4.1.2    Insurance  ................................ ................................ ................................ ..........  101 
4.4.2    Telecommunications  ................................ ................................ ...............................  105 
4.4.3    Transport  ................................ ................................ ................................ ..............  107 
4.4.3.1    Air transport  ................................ ................................ ................................ ....... 108 
4.4.3.2    Maritime transport  ................................ ................................ ..............................  109 
4.4.4    Tourism  ................................ ................................ ................................ ................  111 
5   APPENDIX TABLES  ................................ ................................ ................................ .. 114  
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  CHARTS  
 
Chart 1.1 Merchandise trade by main products, 2016 and 2022  ................................ ............... 27 
Chart 1.2 Merchandise trade by trading partner, 2016 and 2022  ................................ .............. 28 
Chart 2.1 Honduras' s trade agreements in force in 2022  ................................ ......................... 35 
Chart 2.2 Central American Invoice and Single Declaration (FYDUCA)  ................................ .......37 
Chart 3.1 Central American Single Declaration (DUCA)  ................................ ........................... 43 
Chart 3.2 Processing channels, 2016 -2022 ................................ ................................ ............ 44 
Chart 3.3 Frequency distribution of tariffs, 2015 and 2022  ................................ ...................... 46 
Chart 3.4 Procedure in respect of dumping and subsidization ................................ ................... 54 
Chart 3.5 Procedure in respect of safeguards  ................................ ................................ ......... 54 
Chart 3.6 Loans granted by BANHPROVI, according to loan type, operator  and sector,   
2016-2022 ................................ ................................ ................................ ........................ 63 
Chart 3.7 Preparation of Honduran Technical Regulations  ................................ ........................ 66 
Chart 3.8 Procedure for preparing OHN standards  ................................ ................................ ..67 
Chart 3.9 Government procurement by method, 2016 -2022 ................................ .................... 77 
Chart 3.10 Industrial property data, 2016 -2022 ................................ ................................ .....79 
Chart 4.1 Electricity generation by type of technology, 2016 –2022 ................................ .......... 91 
Chart 4.2 Premiums ceded -in and ceded -out, by branch, 2018, 2021, 2022Q3  ........................  102 
Chart 4.3 Share in the telecommunications market, 2016 and 2022  ................................ ....... 107 
 
TABLES  
 
Table 1.1 Structure of the economy, 2016 -2022 ................................ ................................ ....11 
Table 1.2 Financial accounts of the central government, 2016 -2022 ................................ ......... 18 
Table 1.3 Balance of payments, 2016 -2022 ................................ ................................ ........... 25 
Table 1.4 Services balance, 2016 -2022 ................................ ................................ ................. 29 
Table 1.5 Foreign direct investment flows by economic activity, 2016 -2022 .............................. 30 
Table 1.6 Foreign direct investment flows by origin, 2016 -2022 ................................ ............... 30 
Table 2.1 Tariff reduction, 2016 -2022 ................................ ................................ ................... 36 
Table 2.2 Activities subject to caps on FDI, 2016 -2022 ................................ ........................... 39 
Table 3.1 Main institutions involved in import procedures, 2022  ................................ ............... 41 
Table 3.2 Registration of importers, 2022  ................................ ................................ ............. 42 
Table 3.3 MFN tariff structure, 2015 and 2022  ................................ ................................ .......46 
Table 3.4 Products with applied tariffs higher than the bound rates, 2022  ................................ .47 
Table 3.5 Tariff lines subject to the price band system, 2015 and 2022 ................................ .....48 
Table 3.6 Summary analysis of preferential tariffs, 2022  ................................ ......................... 48 
Table 3.7 Products subject to several domestic taxes, 2016 -2022 ................................ ............ 50 
Table 3.8 ACPV, 2016 -2022 ................................ ................................ ................................ 51 
Table 3.9 Products subject to import licensing and other restrictions, 2016 -2022 ....................... 52 
Table 3.10 Tariff lines subject to the Central American safeguard clause, 2016 -2023 .................. 55 
Table 3.11 Registration of exporters  ................................ ................................ ..................... 56 WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.12 Main institutions involved in export procedures, 2022  ................................ ............. 57 
Table 3.13 Export tax  ................................ ................................ ................................ ......... 57 
Table 3.14 Exports subject to export licensing or other requirements, 2016 -2022 ...................... 58 
Table 3.15 Production cycle for goods imported under the RIT  ................................ ................. 60 
Table 3.16 Statistics on special export support regimes, 2016 and 2022  ................................ ...61 
Table 3.17 BANHPROVI guarantee funds, 2020 -2022................................ .............................. 64 
Table 3.18 Conformity assessment bodies (CABs), 2022  ................................ ......................... 67 
Table 3.19 SPS regulations adopted, 2016 -22 ................................ ................................ .......68 
Table 3.20 Criteria and thresholds for examining economic mergers, 2016 -2023 ....................... 71 
Table 3.21 Competition data, 2016 -2022 ................................ ................................ .............. 71 
Table 3.22 Price controls, 2016 -2022 ................................ ................................ ................... 73 
Table 3.23 State -owned enterprises, 2016 -2022 ................................ ................................ ....73 
Table 3.24 Procurement methods by type and threshold in 2023 ................................ .............. 76 
Table 3.25 Implementation of the National Intellectual Property Strategy, 2016 -2022 ................ 78 
Table 3.26 Protection of intellectual property rights  ................................ ................................ 80 
Table 4.1 Main agricultural sector indicators, 2016 –2022 ................................ ........................ 83 
Table 4.2 Institutions attached to the SAG, 2022  ................................ ................................ ...84 
Table 4.3 Domestic support programmes, 2016  ................................ ................................ .....87 
Table 4.4 Main manufacturing sector indicators, 2016 –2022 ................................ .................... 91 
Table 4.5 Main amendments to the Law on the Financial System introduced by  
Decree  No. 160-2016 ................................ ................................ ................................ ......... 93 
Table 4.6 Assets of major banks and non -banking institutions  ................................ ................. 95 
Table 4.7 Main insurance indicators, 2017 -2022 ................................ ................................ .. 102 
Table 4.8 Minimum fixed capital for the establishment of insurance companies, 2015 and  2022 . 103 
Table 4.9 Telecommunications sector indicators, 2016 -2022 ................................ .................  106 
Table 4.10 Port cargo, 2016 -2022 ................................ ................................ ......................  111 
Table 4.11 International tourism indicators, 2016 -2022 ................................ ........................  111 
Table 4.12 Tourism incentives, 2016 -2022 ................................ ................................ ..........  113 
 
BOXES  
 
Box 1.1 Government Plan to Refound Honduras 2022 –2026 ................................ .................... 14 
Box 4.1 SAG programmes, 2022  ................................ ................................ .......................... 85 
Box 4.2 Main developments in the implementation of the Basel principles, 2016 -2022 ................ 99 
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  APPENDIX TABLES  
 
Table A1.1 Merchandise exports by HS section, 2016 -2022 ................................ ...................  114 
Table A1.2 Merchandise imports by HS section, 2016 -2022 ................................ ...................  116 
Table A1.3 Merchandise exports by trading partner, 2016 -2022 ................................ .............  118 
Table A1.4 Merchandise imports by trading partner, 2016 -2022 ................................ ............  119 
Table A2.1 Notifications to the WTO, 2016 to 2022 (March) ................................ ...................  120 
Table A3.1 Summary analysis of the MFN tariff, 2022  ................................ ...........................  122 
 
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  SUMMARY  
1. During the first part of the review period, the Honduran economy saw rapid growth. Honduran 
GDP grew at an average annual rate of 3.8% between 2016 and 2019, which means that per capita 
income rose. Growth was spurred mainly by private consumption expenditure, which in turn was 
driven up in large part by remittances from abroad , an important source of financing  for 
consumption . In 2020, the Honduran economy was hit very hard by the economic effects of the 
COVID -19 pandemic, with GDP contracting by 9%. All the components of aggregate demand 
contracted, but gross capital formation recorded the largest decline. All  productive sectors were 
similarly affected . However, m acroeconomic conditions improved rapidly in 2021 and 2022. Real 
GDP expanded by 12.5% in 2021 and by 4.0% in 2022. With the exception of agriculture and fishing, 
and mining and quarrying, all sectors r ecorded growth in 2022 , particularly  hotels and restaurants; 
financial intermediation; manufacturing ; and construction . 
2. The agricultural sector (including fishing) remains  relative ly importan t for the Honduran 
economy , accounting for 12.6% of GDP in 2022  and is a major employer. The sector 's share of GDP 
varied during the review period, mainly due to the impact of natural phenomena and the pandemic . 
Continuing the trend observed in the previous review period, the GDP share of the manufacturing 
sector, inclu ding the maquila  industry, declined in this review period, from 17.1% in 2016 to 16.0% 
in 2022. Services accounted for 51.3% of GDP in 2022 ; those  that contributed the most to GDP were 
trade, hotels and restaurants , financial intermediation and real estate  services . 
3. For most of the period under review, fiscal policy was geared towards fiscal consolidation, 
reducing spending and increasing revenue. The Fiscal Responsibility Law (LRF) of 2016 established 
targets for reducing the deficit and achieving fiscal c onsolidation.  Limits were set for the increase in 
nominal current expenditure and in public debt. The targets set out in the LRF for the non -financial 
public sector (NFPS) deficit could not be met. The central government deficit widened in 2020 to 7% 
of GD P as a result of higher public spending on support programmes to address the effects of the 
pandemic, as well as  the shortfall in revenue collection caused by the slowdown in economic activity. 
In this regard, the National Congress agreed to suspend  compli ance with the targets set out in the 
LRF for two years ; instead, it authorized  an annual ceiling for the NFPS deficit of 5.4% of GDP  in 
2021, between 2.3% and 2.9% in 2022 and no more than 1.0% in 2023 . Public finances improved 
with uptick in economic growth, as evidenced by the reduction in the central government deficit of 
1.3% of GDP in 2022.  
4. Between 2016 and 2019, the aim of monetary policy was to keep inflation low and stable and 
maintain an adequa te level of international reserves, by ensuring that levels of liquidity in the 
financial system would guarantee price stability . During the period under review, inflation generally 
remained within the established tolerance range, with the exception of 202 2, when price levels  were 
affected by the higher international price for raw materials, mainly energy and food, causing inflation 
to accelerate, reaching 9.1% . The Central Bank of Honduras (BCH) implements the exchange rate 
policy through the exchange  rate banding system, using  a margin of 1% above or below the  centre 
of the  exchange rate  band.  
5. The current account of the balance of payments continued to post large deficits during the 
review period, with the exception of 2020. The deficit peaked at USD 1,582  million in 2018, 
equivalent to 6.6% of GDP. In 2020, as a result of the pandemic, imports contracted considerably, 
leading to  a current account surplus of USD 666 million, equivalent to 2.8% of GDP. However, when  
economic activity recovered in 2021 and 20 22, imports of goods and services increased 
substantially, again leading to a deficit, which reached USD 1,487 million in 2021 and 
USD 1,080  million in 2022, accounting for 5.3% and 3.4% of GDP respectively.  
6. Honduras 's overall exp orts in 2022 (including maquila) totalled USD 12,135 million, compared 
to USD 7,926 million in 2016, an increase of 53%. The main export products were textiles and textile 
articles (40.5% of the total), coffee (11.7% of the total), machinery and appliances, electrical 
equipment and  parts thereof (9.7%) and bananas and other fruits (6.5%) . Honduras 's c.i.f. imports 
totalled USD 19,544 million in 2022, compared to USD 12,407 million in 2016, an increase of 57.5%. 
In 2022, imports consisted primarily of manufactured products, particula rly textile fibres (19.9% of 
the total), fuels (15.2%), machinery and equipment (13.5%) and chemicals (11.4%) . The main 
market for Honduran exports continues to be the United States, which absorbed 50.6% of the total 
in 2022, down from the 57.0% recorded i n 2016. It is followed by the European Union (11.4% ), 
Nicaragua (8.7%), El Salvador (8.5%) and Guatemala (5.5%). The United States is also the main WT/TPR/S/443 /Rev.1  • Honduras  
 
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  source of imports, corresponding to 36.9% of total imports in 2022 (42.4% in 2016) , followed by  
China (11.5% ), Guatemala (9.4%) and El Salvador (7.7%) . 
7. The Honduran services balance shows a structural deficit, which increased substantially during 
the review period (from USD 578.3 million in 2016 to USD 2,121.6 million in 2022). This increase 
was largely attributable to the impact of the COVID -19 pandemic, which significantly reduced travel  
sector  credit , which usually records  a surplus, while all other sectors were i n deficit. The sectors 
posting the largest deficit are transport, particularly maritime transport, royalties and insurance . 
8. The main objective of Honduran trade policy is to integrate into world trade by consolidating 
and diversifying the range of products  and markets . To promote export s, Honduras continues to  use 
special regimes, in particular  free trade zo nes and taking advantage of preferential market access . 
Despite these policies, Honduras 's trade remains highly concentrated in a few products (coffee a nd 
textiles) and just one market. Honduras  faces a number of  challenges  that affect the competitiveness 
of its exports and the resilience of its economy . 
9. Honduras is an original Member of the WTO and accords at least most -favoured nation (MFN) 
treatment to  all its trading partners. For Honduras, as a small and vulnerable economy, the 
multilateral system based on clear and stable rules is essential to advancing growth and well -being. 
In WTO negotiations, Honduras is part of two groups that promote flexibilit ies in agricultural trade 
in line with development needs . Honduras is of the view that the new trade -related topics are key, 
and therefore participates in joint initiatives to promote e -commerce, the integration of MSMEs into 
trade, investment facilitation  for development, as well as in structured discussions and working 
groups to promote environmental sustainability and women 's participation in trade. Honduras is not 
party to the plurilateral agreements, nor is it an observer to the respective committees. Since  2016 
Honduras has not made use of the dispute settlement mechanism, although  it has been a third party 
in a number of cases.  
10. Honduras 's strategy for trade openness and integration into value chains also includes 
participation in preferential agreemen ts, mainly in the region, such as the Central American Common 
Market (CACM) and CAFTA -DR. Since  2016, in the framework of CACM , Honduras has made progress 
in the gradual and progressive process of deep integration with Guatemala, with a view to creating 
a customs union. During the review period, trade agreements that Honduras negotiated with Peru, 
the Republic of Korea and the United Kingdom entered into force. Most of Honduras 's trade is 
conducted under preferential agreements.  
11. Honduras pursues an investment regime  relatively open to private investment, including 
foreign investment, although some activities are still reserved to the State, on the grounds of public 
order or social  interest; for certain activities, mainly services, caps on foreign direct investment 
(FDI) are still imposed . On the other hand, despite a sector or activity being liberalized, the State 
still has natural monopolies (this is the case for electricity trans mission and distribution). Foreign -
owned stakes in small -scale industry and trade are also governed by reciprocity. In sectors where 
foreign capital investment is permitted, Honduras guarantees national treatment. Honduras does 
not impose preconditions on foreign investment nor  restrictions on the repatriation of capital or 
profits ; these are subject to the Honduran tax regime . Sectoral and horizontal incentives are 
provided to attract investment. With regard to incentive programmes, the  Employment and 
Economic Development Zones (ZEDE ) regime was abolished in 2020.  
12. There have been no major changes to the customs legal framework of Honduras since 2016. 
At the institutional level, the Customs Administration  of Honduras (AAH) replaced the Customs 
Revenue Direct orate in 2020, becoming the new customs authority . Meanwhile, since the previous 
Review in 2016, Honduras has implemented trade facilitation procedures, in accordance with its 
commitments arising from the WTO Trade Facilitation Agreement; to date, Honduras  has 
implemented 70.6% of its commitments . The measures introduced include the adoption of a single 
customs declaration at the Central American level; the implementation of the a uthorized economic 
operator programme ; the creation of a digital portal provid ing information on customs procedures 
for imports and exports, by product and market; and the implementation of a paperless customs 
pilot project . Honduras  mainly uses the transaction method to set the value of imports . Between  
2021 and 2022 , to mitigate the impact of the increase in maritime transport costs, "one-off" 
reduction of 75% in the freight cost used to calculate the customs value  was authorized. Price guides 
are still used to determine the value of certain goods, particularly used vehicles . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  13. In 2022, Honduras 's tariff contained 7,531 lines at the HS 2022 10 -digit level (6,974 lines at 
the HS 2012 10 -digit level). In most cases, Honduras applies ad valorem  tariffs . Honduras 's tariff 
structure has not changed substantially. The average  MFN applied rate was kept at 5.9% . The 
protection given to agricultural products (WTO definition) remains higher than that given to 
non-agricultural products  (WTO definition) ; the gap between the average applied tariff  applied  to 
agricultural products (10 .7% in 2015  and 10.8% in 2022 ) and to  non-agricultural products  (5.1% 
in 2015 and 2022)  remained practically unchanged.  Of Honduras 's tariff lines, 48.1% had a rate of 
0% in both 2015 and 2022. The price band system , which affects six tariff lines,  is stil l in force in , 
although, according to the authorities, it is not used. Honduras did not negotiate tariff quotas within 
the framework of the WTO ; however,  it did negotiate preferential tariff quotas under certain regional 
agreements. Honduras  mainly uses qu otas negotiated under the CAFTA -DR. For certain agricultural 
products, shortage quotas may also be triggered should domestic supply fall short . 
14. Honduras us es non -tariff measures to protect human health, public safety and the 
environment. In certain cases, however, these measures may be used to protect domestic 
production and food security . During the review period, a seasonal ban was imposed on imports of 
onions to protect domestic production, while a ban on exports of red beans , lifted in 2020, was 
introduced to guarantee food security. Foreign trade in certain products, including onions and red 
beans, was regulated through import and export licences and other types of permits . Honduras has 
not used any trade defence measures si nce 2016. There are no state trading enterprises in Honduras. 
Honduras applies the same taxes and levies to both imports and domestic production ; however, the 
so-called eco -tax is levied only on imports of used vehicles. Exports of green coffee 
(HS 0901.11 .30.00) and certain minerals remain subject to a levy used to finance support measures. 
Exporters are required to deposit and sell foreign currency within a specified period; this requirement 
does not apply to exporters operating under the free zone (ZOLI)  regime . 
15. Honduras has notified two subsidy programmes to the WTO: the Temporary Import Regime 
(RIT) and the ZOLI regime, from which a considerable number of exporting companies benefit . In 
2020, substantial changes were made to the ZOLI regime with a view to improving it and providing 
greater certainty for users and investors ; Honduras has also streamlined the procedure for setting 
up companies in free zones, facilitated the entry of goods and increased the period of validity for 
related tax benefits . 
16. Durin g the review period, there were no significant changes regarding the formulation, 
application and objectives of technical regulations and sanitary and phytosanitary measures . These 
regulations and measures are based on international guidelines, standards a nd recommendations . 
Since  2016, Honduras has submitted to the WTO 13 regular notifications concerning technical 
regulations and 12 on sanitary and phytosanitary measures . There have been no emergency 
notifications . A specific trade concern was raised again st Honduras regarding sanitary and 
phytosanitary measures . 
17. The Honduran competition regime has not undergone any substantial changes since 2016 . 
The Commission for the Defence and Promotion of Competition  is, in principle , the governing 
authority, although  sectoral laws may grant regulatory bodies the same powers as those held by the 
Commission . This is the case in the telecommunications sector. Between 2020 and 2021, Honduras 
regulated the sales price of several goods, including ethyl alcohol and mats, owi ng to the pandemic 
and the hurricanes that had ravaged the country . At present, only fuel and electricity prices are 
regulated . 
18. Regarding government procurement, the main development during the review period was the 
creation of the position of certified pu blic buyer  (CPC)  to enhance procedural efficiency and 
transparency . Since 2018, each procuring entity has been required to have a CPC , yet this is not 
always the case in practice. Furthermore, annual procurement plans are not published systematically 
and procurement cannot be conducted via the digital platform . Honduras continues to apply 
preferences in favour of Honduran suppliers . Honduras is not party to the WTO Agreement on 
Government Procurement and does not participate as an observer in the Committee . 
19. In terms of intellectual property , the most significant development was the 2018 repeal of the  
Law on the Protection of New Varieties  of Plants  of 2012 . Certificates granted under this Law are, 
however, still valid . Marks are the type of industrial property protection  most widely used by 
residents; the  use of patents is rare, although initiatives have been introduced to foster a culture  of WT/TPR/S/443 /Rev.1  • Honduras  
 
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  innovation . Honduras has successfully strengthened its intellectual property regime in some areas, 
although there is room for improvement as regards protecting rights in the digital sphere . 
20. While the agricultural sector has retained its relative import ance for the Honduran economy , 
its share of GDP fell during the 2016 -21 period, before recovering in 2022. During the review period , 
the sector experienced erratic growth due to adverse weather events and a lack of dynamism owing 
to a shortage of funding a nd, therefore, investment. Other factors to negatively impact the sector 
include migration and an ageing rural population . Honduras has several domestic support 
programmes that seek to benefit producers with limited resources by providing inputs , access to  
capital and technical assistance, thereby  contributing to the economic recovery and food security of 
small farmers . Agricultural production  is still relative ly concentrated : products such as coffee and 
bananas exceeded 40% of total agricultural output (in 2021). High-quality Honduran coffee and 
organic coffee surpass ed bananas as the main agricultural export products . However, aside from 
traditional agricultural products, Honduras is a lso promoting the cultivation of non -traditional 
products . During the  2016-21 period , the share of agricultural products  (as defined by the WTO ) in 
total exports averaged over 30% . Honduras notified the WTO that it did not subsidize any agricultural 
export s between 2016 and 2020 . Honduras provides preferential credit  and has guarantee funds  to 
support loans to the agricultural sector . 
21. In 2022, Honduras launched an energy reform to increase state involvement in the sector . 
The National Electricity Company (ENEE)  - a state enterprise - and several private operators 
participate in this market . In principle , private operators were able to participate in all activities until 
2022, when the ENEE became the only entity entitled to mar ket electricity.  The ENEE also has a 
natural monopoly on transmission and distribution . As a result, private operators only participate in 
the generation market, which they dominate . The energy reform also covers the renegotiation of 
ENEE agreements conclu ded with generators , which could lead to uncertainty and affect future 
decisions to invest in the generation sector  at what is a particularly critical time for the diversification 
of the country 's energy matrix, as the security of the electricity supply re lies on hydroelectric plants, 
a source that has been affected by climate change . 
22. The telecommunications market has seen no substantial changes during the review period . 
HONDUTEL, the state operator, continues to hold significant market power in terms of fi xed services , 
while the mobile service market remains dominated by two operators . Honduras ha s attempted to 
narrow the digital divide , and since 2016 the broadband penetration rate has increased. In 2022, 
however, 18% of the country 's population still had no Internet access , and 28% of those with access 
did not make use of it . 
23. The main development in the transport services sector since 20 16 has been the opening of 
Palmerola International Airport , a new airport  which, unlike the old one, can handle larger aircraft . 
It is therefore hoped that, as well as serving the capital city and facilitating air connectivity , the new 
airport will, in the  future, promote tourism by allowing for more passenger arrivals and being closer  
to areas with tourism potential . Since 2016, the country has also attracted new airlines, including 
some low -cost operators , even though the level of air connectivity remains  low. Puerto Cortés is 
Honduras 's main port and one of the most important ports in Central America . For this reason, it 
was chosen for the implementation of a paperless customs pilot project, which has optimized 
clearance times and brought about  environmen tal benefits thanks to the reduced use of paper . 
24. The tourism sector 's share of GDP is still modest ; however, the sectors ' synergies with the 
rest of the economy make it a priority sector for promoting economic development , particularly in 
areas away from t he main production hubs . The sector is also a key source of foreign exchange and, 
as such, the largest component in service exports . Honduras has therefore reaffirmed its 
commitment to the sector by providing incentives, supporting financing and implementi ng marketing 
programmes, all with a view to reviving tourism following the health and climate crises . 
Nevertheless, the sector faces serious challenges that could affect recovery, such as a lack of air 
connectivity , a low level of diversification in terms of tourism offerings, and the country 's image and 
its vulnerability to climate change . 
 WT/TPR/S/443 /Rev.1  • Honduras  
 
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  1  ECONOMIC  ENVIRONMENT  
1.1  Main features  of the economy  
1.1.  Honduran nominal GDP amounted to more than USD 30 billion in 2022. The country 's 
population was around 9.6 million in 2022 and continues to grow at a rapid annual rate. The 
Honduran economy was hit very hard by the COVID -19 pandemic, with GDP per capita declining in 
2020. However, growth picked up in 2021 and GDP rebounded; G DP per capita increased from 
USD 2,563 in 2020 to USD 3,010 in 2021 and USD 3,303 in 2022, driven in part by faster growth in 
income from remittances, which continue to provide a major boost to aggregate demand. Despite 
this, and although growth exceeded 1 2% in 2021 and 4% in 2022, GDP per capita continues to be 
among the lowest in Latin America.  
1.2.  The World Bank classifies Honduras as a lower -middle -income economy, and the country 's 
score on the World Bank 's Human Capital Index was 0.48 in 2021 (the index ra nges from 0 to 1). 
Development and poverty indicators improved in the period up to 2019. The poverty rate fell from 
17% in 2012 to  12.7% in 2019 (in terms of the percentage of the population with a daily income 
below USD 2.17 in 2017 purchasing power parit y) and from 57% to 50% (in terms of the percentage 
of the population with a daily income below USD 6.85 in 2017 purchasing power parity). The 
reduction in poverty came hand in hand with a slight improvement in income distribution; the 
country 's Gini coeffi cient went from 53.4 in 2012 to 48.2 in 2019, reflecting in part the impact of 
remittances on people 's income.1 According to data from the United Nations Development 
Programme (UNDP), in 2019, 12% of the country 's population lived in multidimensional pove rty (the 
index covers health, education and living standards), 3% lived in severe multidimensional poverty 
and 14.8% were vulnerable to multidimensional poverty. In addition, 14.8% of the population 
earned a daily income of less than USD 1.90 and 48% lived  below the national poverty line defined 
by the Government.2 
1.3.  The agricultural sector (including fishing) has retained its relative importance for the Honduran 
economy. After feeling the impact of the pandemic, the sector recovered in 2022, when it accounted 
for 12.6% of the country 's GDP, an increase of 1.6 percentage points compared with 2021. The 
sector 's share of GDP varied during the review period, mainly due to the impact of natural 
phenomena and the pandemic (Table 1.1). The agricultural secto r continues to play a major role as 
a source of employment in Honduras.  
1.4.  Continuing the trend observed in the previous review period, the GDP share of the 
manufacturing sector, including the maquila  industry, declined in this review period, from 17.1% in 
2016 to 16.0% in 2022. Services accounted for 51.3% of GDP in 2022. The services that contributed 
the most to GDP were trade (14.9%), education services, financial intermediation and real estate 
services (Table 1.1).  
Table 1.1 Structure of the economy, 2016 -2022 
 2016  2017  2018  2019a 2020a 2021a 2022a 
Gross domestic product (GDP)  
GDP at current prices (market prices, HNL 
million)  495,922  543,403  575,285  614,918  585,734  684,204  776,636  
GDP at current prices (market prices, USD 
million)  21,567  22,975  23,900  24,916  23,662  28,291  31,523  
GDP at constant prices (HNL million in 2000)  197,497  207,061  215,023  220,728  200,940  226,126  235,166  
Real GDP (annual percentage change)  3.9 4.8 3.8 2.7 -9.0 12.5 4.0 
GDP per capita (USD)  2,488  2,614  2,669  2,743  2,563  3,010  3,303  
GDP by activity (% of GDP at current prices)  
Crop farming, livestock breeding, hunting, 
forestry and fishing  12.0 12.7 11.6 10.8 12.1 11.0 12.6 
Mining and quarrying  0.5 0.7 0.7 0.6 0.6 0.8 0.7 
Manufacturing  17.1 17.1 16.9 16.4 16.0 16.4 16.0 
Electricity and water supply  2.7 2.9 3.0 4.0 3.8 3.7 3.9 
Construction  5.5 5.8 6.0 6.1 5.4 5.8 5.6 
 
1 Information from the World Bank. Viewed at: 
https://data.worldbank.org/indicator/SI.POV.DDAY?locations=HN . 
2 UNDP (2022). Multidimensional Pover ty Index: developing countries, Table 1. Viewed at: 
https://hdr.undp.org/sites/default/files/publications/additiona l-files/2022 -
10/2022_mpi_statistical_data_table_1_and_2_en.pdf.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019a 2020a 2021a 2022a 
Services  52.8 51.5 52.2 52.6 53.2 52.1 51.3 
 Trade, repair of motor vehicles, motorcycles, 
and  personal and household goods  13.7 13.6 14.1 13.9 14.1 14.2 14.9 
 Hotels and restaurants  3.1 3.1 3.1 3.2 2.0 2.7 3.0 
 Transport, storage  4.0 3.7 3.5 3.8 3.3 3.3 3.1 
 Communications  3.3 3.2 3.3 3.2 3.6 3.0 2.6 
 Financial intermediation  6.6 6.3 6.1 6.1 6.2 5.9 6.2 
 Housing  4.9 4.8 4.7 4.7 5.2 4.7 4.4 
 Real estate and business activities  4.6 4.6 4.6 4.7 4.6 4.6 4.6 
 Public administration and defence; compulsory 
 social security  5.6 5.4 5.4 5.4 5.8 5.5 5.4 
 Education services  6.7 6.4 6.7 6.9 7.5 6.9 6.5 
 Social and health services  3.2 3.1 3.1 3.1 3.6 3.5 3.2 
 Community, social and personal services  2.7 2.7 2.6 2.7 2.5 2.6 2.5 
  Less: financial intermediation services  
  indirectly measured  5.6 5.3 5.1 5.0 5.2 4.9 5.0 
Gross value added at basic prices  90.7 90.8 90.4 90.4 91.2 89.7 90.2 
Plus: taxes net of production and import 
subsidies  9.3 9.2 9.6 9.6 8.8 10.3 9.8 
Real growth rates (% at constant prices)  
Crop farming, livestock breeding, hunting, 
forestry and fishing  4.8 10.3 2.6 -1.0 -6.3 0.4 -0.7 
Mining and quarrying  5.4 14.1 12.7 1.9 -23.5 17.3 3.9 
Manufacturing  3.0 3.9 3.9 2.0 -14.0 19.4 6.0 
Electricity and water supply  6.5 3.8 7.2 2.4 -3.9 26.6 0.8 
Construction  6.2 8.5 1.7 0.3 -25.4 17.2 6.0 
Services  3.7 3.8 3.9 3.8 -6.5 10.6 4.5 
 Trade, repair of motor vehicles, motorcycles, 
and  personal and household goods  3.3 4.0 4.2 2.3 -11.5 14.6 4.3 
 Hotels and restaurants  3.0 1.9 5.0 5.4 -46.3 56.1 21.2 
 Transport, storage  3.5 3.4 5.2 3.2 -24.4 18.4 6.3 
 Communications  3.7 3.3 3.0 3.1 3.3 2.4 1.9 
 Financial intermediation  6.2 5.7 5.4 8.4 -0.9 16.7 12.2 
 Housing  2.1 2.0 2.1 2.6 2.1 2.5 3.0 
 Real estate and business activities  3.0 4.2 3.1 5.0 -11.7 13.9 3.4 
 Public administration and defence; compulsory 
 social security  1.0 2.4 1.8 1.3 1.1 2.4 1.1 
 Education services  3.3 2.6 3.0 1.8 -2.4 1.8 1.7 
 Social and health services  4.1 2.5 4.0 3.3 9.5 8.2 2.0 
 Community, social and personal services  3.0 3.7 2.1 5.4 -14.7 13.9 1.4 
 Less: financial intermediation services 
 indirectly measured  4.5 3.9 4.0 6.9 -0.1 13.1 11.5 
Gross value added at basic prices  3.9 5.0 3.7 2.5 -8.6 11.5 4.0 
Plus: taxes net of production and import 
subsidies  4.3 3.4 5.1 4.2 -13.0 24.3 3.8 
GDP by expenditure category (real growth rate)  
Final consumption expenditure  4.1 4.6 4.9 4.2 -5.0 14.1 4.4 
 Private sector  4.0 5.2 5.5 4.7 -6.2 15.1 5.0 
 Public sector  4.4 1.4 1.0 1.7 2.9 8.5 0.8 
Gross fixed capital formation  -7.4 11.2 7.3 -5.2 -23.8 33.3 -0.7 
 Private sector  -11.0 6.0 11.1 -4.8 -24.4 35.8 0.4 
 Public sector  28.7 46.6 -12.0 -7.7 -20.1 17.8 -8.6 
Variation in inventories  21.6 25.5 12.7 -104.3  211.4  -625.4  15.8 
Exports of goods and services, f.o.b.  0.9 4.9 1.4 2.4 -20.8 21.5 5.8 
Imports of goods and services, c.i.f.  -1.6 7.2 4.5 -2.4 -18.5 33.0 4.8 
Monetary indicators  
Consumer price index (annual average, 
1999=100)b 292.5  304.0  317.2  331.1  342.6  357.9  390.4  
Consumer price index (end of period, 
1999=100)b 296.1  310.1  323.2  336.4  349.9  368.5  404.6  
Annual inflation rate (%, annual average)b 2.7 3.9 4.4 4.4 3.5 4.5 9.1 
Exchange rate (HNL to USD, annual average)  23.0 23.7 24.1 24.7 24.8 24.2 24.6 
Real effective exchange rate, index (2009=100, 
end of period)  100.6  100.0  101.1  101.6  105.3  105.9  108.5  
Real effective exchange rate, annual change (end 
of period)  -0.7 -0.6 1.1 0.5 3.6 0.6 2.5 
Interest rate on loans in national currency (end 
of period)  18.8 18.2 17.4 17.4 16.7 15.1 14.3 
Interest rate on loans in national currency 
(annual average)  19.3 19.3 17.8 17.3 17.0 16.0 14.6 
Interest rate on deposits in national currency 
(end of period)  8.2 8.0 8.3 8.5 7.5 4.6 4.6 
Interest rate on deposits in national currency 
(annual average)  8.6 8.3 8.3 8.4 8.1 5.8 4.3 
Monetary base, broad definition (HNL million)  111,458  131,863  129,474  142,997  201,936  208,117  209,745  
Monetary base, narrow definition (HNL million)  64,645  68,005  73,154  84,067  133,666  131,563  114,128  
Employment  
Employed labour force ( '000 persons)  3,945  4,093  4,336  4,220  4,103  4,071  .. WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019a 2020a 2021a 2022a 
Open unemployment rate (%)  7.4 6.7 5.6 5.7 10.9 8.7 .. 
Other economic indicators  
Current account balance (% of GDP)  -3.2 -1.3 -6.6 -2.6 2.8 -5.3 -3.4 
Total external debt (end of period, USD million)c 7,503  8,576  9,030  9,521  10,856  11,371  11,804  
 Public - and private -sector debt  6,112  7,149  7,389  7,704  9,096  9,257  9,548  
 Non-guaranteed private -sector debt  1,391  1,428  1,641  1,817  1,760  2,115  2,256  
Total external debt (% of GDP)  34.8 37.3 37.8 38.2 45.9 40.2 37.4 
Net international reserves of the BCH 
(USD  million)b 3,888  4,786  4,853  5,809  8,149  8,678  8,421  
Population ( '000)b 8,721  8,860  9,024  9,152  9,304  9,451  9,598  
..  Not available.  
a  Preliminary figures.  
b  Data for the full year 2022.  
c Includes external public -sector debt, external private -sector debt with a public guarantee and 
non-guaranteed external private -sector debt.  
Source:  Central Bank of Honduras (BCH), National Institute of Statistics (INE), International Monetary 
Fund (IMF) and the International Financial Statistics (IFS) database.  
1.5.  Since 2010, Honduras has been  drawing up and implementing a series of strategic development  
plans. The Government 's 2014 –18 Strategic Plan, the second in the series, focused on improving 
well-being and social inclusion levels, modernizing and simplifying the State, and fostering 
competitiveness and sustainable use of the country 's human and mate rial resources. The Plan aimed 
to reduce extreme poverty through conditional monetary transfers, and improvements to basic 
housing conditions and the quality of education and health services. One of its objectives was to 
increase employment and reduce pove rty by promoting investment and competitiveness, stimulating 
foreign trade and supporting the development of small urban and rural enterprises. The Plan also 
sought to consolidate the country 's public finances, boost economic growth and invest in 
programme s to reduce and alleviate poverty.3 
1.6.  The Government 's 2018 –22 Strategic Plan, the third in the series, focused on the strategic 
objective of improving the living standards of the poorest members of the population by expanding 
and better allocating social i nvestment, and ensuring inclusive and sustainable economic growth.  
The 2018 -22 Plan sought to boost economic growth by improving the competitiveness and 
productivity of the sectors with the highest development potential in order to attract investment, 
and increase job opportunities and productive enterprises. It also aimed to strengthen and upgrade 
Honduras 's productive infrastructure to position the country as a regional logistics hub. From a 
macrofiscal standpoint, the 2018 -22 Plan sought to continue the process of fiscal consolidation to 
ensure public debt sustainability and macroeconomic stability in the medium term, paving the way 
to reducing poverty, improving external indicators and creating the fiscal space needed to carry out 
structural reforms, imp rove the perception of sovereign risk and attract foreign direct investment 
(FDI).4 
1.7.  The macroeconomic objectives of the 2018 –22 Plan were: (a) to achieve macroeconomic 
stability through implementation of the Fiscal Responsibility Law (LRF), in order to en sure fiscal 
consolidation and debt sustainability, bolster the medium -term macrofiscal environment, and 
develop a policy to optimize and rationalize tax exemptions; (b) to improve the business 
environment and competitiveness in order to attract investment through the implementation of a 
national competitiveness strategy focused on innovation, enhanced productive capacity and jobs in 
key sectors, as well as through the development of a foreign investment promotion policy; (c) to 
create high -quality jobs by e xpanding work -related capacity -building and training programmes, 
managing public initiatives to create jobs and opportunities, and improving platforms that link labour 
supply and demand; (d) to enhance production potential by further boosting productivity,  
competitiveness and diversification in high -potential productive sectors; (e)  to increase high -
potential sectors ' supply and exports by fostering a more diverse production of crops with greater 
commercial value, promoting production chains that are geared towards export markets, and 
 
3 Office of the President of the Republic of Honduras, Ministry of  General Government Coordination, Plan 
Estratégico de Gobierno 2014 -18. Document updated i n December 2015. Viewed at: 
https://www.sefin.gob.hn/wp -content/uploads/2016/01/Plan_Estrategico_Gobierno_Diciembre_2015.pdf . 
4 Government of the Republic of Honduras, Ministry of General Government Coordination , Plan 
Estratégico de Gobierno 2018 -22. Viewed at: 
https://observatorioplanificacion.cepal.org/sites/default/files/plan/files/Plan%20Estrate%CC%81gico%20de%2
0Gobierno%202018 -2022%20%28PR4%29_0.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  implementing a national plan for scientific and technological development and innovat ion; and (f) to 
enhance the competitiveness and productivity of micro, small and medium -sized enterprises 
(MSMEs) by drawing up and implementing a comprehensive MSME development strategy and a 
regulatory framework that provides flexible borrowing condition s for MSMEs.5 
1.8.  The current Government, which was elected in 2021, is now implementing the Government 
Plan to Refound Honduras 2022 –26. Its main objectives  include  developing  an industrial  policy  based  
on innovation  and greater  productivity,  fostering  the development  of MSMEs  and restructuring  fiscal 
policy  (Box 1.1).6 
Box 1.1 Government Plan to Ref ound Honduras 2022 –2026 
The Government  Plan to Refound  Honduras  2022–26 was adopted  in September  2021 and covers  a broad 
range  of sectors,  including  health,  education,  human  rights,  industrial  development,  fiscal and monetary  
policy,  agricultural  development  and tourism.  
With regard  to industrial  policy,  the Plan seeks  to: 
• boost industrial development in high-potential and high -tech sectors;  
• set up an incentives regime for the development of industrial clusters;  
• promote FDI through structural reforms;  
• develop regional and sector -specific policies, and technical capacity -building and training 
programm es; 
• promote  the creation  of industrial  and technological  parks , and agro-parks;  
• create productivity and innovation hubs , and invest in innovation;  
• establish  a digital  economy  agenda;  
• provide incentives to integrate maquila  firms into other domestic  companies;  
• create a regulatory framework for technical certification and standardization, and establish an 
accreditation entity.  
In terms  of the policy  to promote  MSME s, the Plan seeks  to: 
• foster the integration of MSMEs into industry, basic services, financial services, construction and 
trade;  
• effectively  incorporate  MSMEs  into the country 's productive  structure , and foster  private  investment;   
• promote  the diversification  of, and productive  linkages  with, MSMEs  in export -related  value  chains;  
• implement special mechanisms to ensure access to financing.  
In terms  of fiscal policy,  the Plan seeks  to: 
• promote tax reform with a view to making taxation more progressive;  
• apply a single tax for high net -worth individuals;  
• reduce  tax exemptions;  
• tackle tax evasion;  
• improve tax administration;  
• rebuild the health and education systems;  
• increase social security coverage;  
• introduce a universal single income for vulnerable and older people;  
• refocus assistance  programmes on lower -income families;  
• improve public spending efficiency by monitoring and assessing outcome s; 
• readjust debt in order to reduce its weighting within the national budget;  
• develop a public investment programme to support infrastructure, roads and high ways;  
• set up electricity subsidies for low -income sectors, the unemployed and persons with disabilities.  
In terms  of monetary  and lending  policy,  the aim is to: 
• lower interest rates on personal loans and credit cards;  
• reduce reserve requirements  in both foreign and local currency to facilitate lending;  
• set up a Central Bank of Honduras (BCH) fund to rescue MSMEs;  
• authorize the BCH to provide resources to the National Treasury to support emergency programmes . 
With regard  to energy  and telecommunications,  the Plan seeks  to: 
• ensure a constant electricity supply and access to telecommunications;   
• rescue the National Electricity Company (ENEE);  
 
5 Government of the Republic of Honduras, Ministry of General Government Coordination , Plan 
Estratégico de Gobierno 2018 -22. Viewed at: 
https://observatorioplanificacion.cepal.org/sites/default/files/plan/files/Plan%20Estrate%CC%81gico%20de%2
0Gobierno%202018 -2022%20%28PR4%29_0.pdf . 
6 Government of the Republic of Hon duras, Plan de Gobierno para Refundar Honduras 2022 -26. Viewed 
at: https://observatorioplanificacion.cepal.org/es/planes/plan -de-gobierno -para-refundar -honduras -2022-
2026-de-honduras . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  • implement environmentally -friendly and economically -sustainable energy and telecommunications 
reforms;  
• restructure  the Honduran  Telecommunications  Company  (HONDUTEL);  
• develop financial sustainability plans for ENEE and HONDUTEL;  
• increase national electricity and telecommunications coverage;  
• maximize installed capacity efficiency and upgrade infrastructure;   
• diversify power generation sources;  
• achieve  an energy  mix that includes  70% renewable  energy;  
• reduce reliance on fossil fuel imports;  
• recover  the state frequency  band;  
• amend the power purchase agre ements;  
• increase the transparency of electricity procurement processes;  
• review the contracts and concessions awarded;  
• update the national energy security and telecommunications strategy;  
• update the calculation for determining the prices of fuels so ld to end consumers;  
• reduce  spending  on oil imports;  
• guarantee the quality of fuel through the National Quality Control Laboratory;  
• promote renewable electricity generation;  
• cut energy tariffs for consumers and businesses;  
• promote research on, an d the production and use of, biofuels.  
Source:  Plan de Gobierno para Refundar Honduras 2022 -26. Viewed at: 
https://observatorioplanificacion.cepal.org/sites/default/files/plan/files/PLAN -DE-GOBIERNO -
XIOMARA -CASTRO_0.pdf.  
1.9.  The Government 's 2014 –18 Strategic Plan served as the basis for the 2014 –17 economic 
programme, which was geared towards maintaining macroeconomic stability by bolstering the 
country 's fiscal and external positions. This was to be achieved by reducing the fiscal deficit and 
providing the conditions necessary to deliver inclusive and sustainable growth.  In December  2014, 
the Executive Board of the IMF approved a Stand -By Arrangement (SBA) for Honduras of 
USD 113.2  million, and a USD  74.4 million arrangement under the Stand -By Credit Facility (SCF).7 
These arrangements were considered precautionary.  
1.10.   In July 2019, the Executive Board of the IMF approved an SBA for Honduras of 
USD 207.5  million (XDR  149.88  million), and an arrangement u nder the SCF amounting to 
USD 103.8  million (XDR  74.94  million). The total amounted to USD 311 million, or 90% of the 
country 's quota.8 The Honduran authorities initially treated the arrangement as precautionary, but 
in 2020 they began making use of the funds. These arrangements provided support to the economic 
and institutional reform programme, the main aims of which were to secure the country 's fiscal 
position through the application of the Fiscal Responsibility Law (see below) and to protect social 
investment and expenditure. This was coupled with reforms to address structural challenges in the 
electricity sector9 and further revenue mobilization efforts, including through the revision of tax 
exemptions. The reforms were expected to narrow the infrastructure gap and increase social 
spending, while simultaneously ensuring fiscal sustainability. Under the programme, monetary policy 
would  continue to focus on controlling inflation, with a view to transitioning towards inflation 
targeting. The programme also included initiatives to tackle poverty and bolster gender equality.10 
1.11.   The fiscal situation in Honduras worsened in the wake of the two  hurricanes that swept the 
country and the economic impact of the COVID -19 pandemic. In response, in April 2020, Honduras 
decided to set aside its precautionary view of the arrangement and request the disbursement of 
USD 143 million (XDR 104.92 million). I n June 2020, Honduras requested and obtained an 
 
7 IMF (2014 ), Press Release No.  14/545, 4  December  2014. Viewed at: 
https://www.imf. org/external/spanish/np/sec/pr/2014/pr14545s.htm . 
8 IMF (2019), El Directorio Ejecutivo del FMI aprueba un Acuerdo Stand -By por USD 207,5 millones y un 
acuerdo en el marco del Servicio de Crédito Stand -By por USD 103,8 mi llones a favor de Honduras , Press 
Release No.  19/284, 16 July 2019. Viewed at: https://www.imf.org/ es/News/Articles/2019/07/16/pr19284 -
honduras -imf-executive -board -approves -stand -by-arrangement -and-standby -credit -facility . 
9 The aim of the proposed reforms to the energy sector is to enhance efficiency in the provision of 
electricity, boost investment and strengthen ENEE's financial position. Measures include changes to the 
institutional framework, measures to set electricity tariffs through an independent regulatory body, and 
governance and operational reforms within EN EE. 
10 IMF (2019), El Directorio Ejecutivo del FMI aprueba un Acuerdo Stand -By por USD 207,5 millones y 
un acuerdo en el marco del Servicio de Crédito Stand -By por USD 103,8 millones a favor de Honduras , Press 
Release No.  19/284, 16 July 2019. Viewed at: https://www.imf.org/es/News/Articles/2019/07/1 6/pr19284 -
honduras -imf-executive -board -approves -stand -by-arrangement -and-standby -credit -facility . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  augmentation of the funds under the SBA and SCF arrangements. The Executive Board of the IMF 
approved augmentations of access under both arrangements by about USD 223 million 
(XDR 162.37  million), bringing co mbined total access under the SBA and SCF arrangement to about 
USD 531 million (XDR 387.19 million, or 155% of the country 's quota). The additional funds were 
used to help Honduras meet urgent balance of payments and fiscal financing needs stemming from 
the pandemic. Following its discussion on the augmentations, the Executive Board highlighted the 
Honduran authorities ' commitment to the IMF -supported economic programme, despite the 
challenging environment, underscoring the progress made on electricity sect or reforms, and the 
efforts to strengthen the monetary policy framework, support the transition to a more flexible 
exchange rate, and strengthen public procurement.11 
1.12.   In September 2021, upon the completion of the fourth review of Honduras 's performance 
under its economic programme supported by the SBA and SCF, an augmentation of access by 
USD 215.8  million (XDR 149.9 million) was approved and the duration of the SBA and SCF was 
extended by two months until 14 January 2022.12 Following the augmentations, the  two-year 
arrangement provided access to about USD 773 million (XDR 537.1 million). The completion of the 
review allowed for immediate disbursements of USD 125.8 million (XDR 87.4 million) to help 
Honduras meet its balance of payments and fiscal financing needs, which had been exacerbated by 
the pandemic and tropical storms Eta and  Iota. 
1.13.   During a visit to Honduras in April 2022, IMF staff indicated that the Honduran economy had 
recovered strongly in 2021, exceeding pre -pandemic levels, supported by strong r emittances and 
robust external demand. The Honduran authorities stressed their commitment to protecting the 
vulnerable and combating poverty, improving public financial management and investment, and 
enhancing institutions and transparency.13 Another visit  was carried out in October 2022.14 
1.14.   Honduras is among the 39 countries officially included by the World  Bank and the IMF in the 
Heavily Indebted Poor Countries (HIPC) Initiative.  It is one of the 35 countries to have reached the 
completion point and is now  eligible for debt reduction through the Multilateral Debt Relief Initiative 
(MDRI).15 
1.2  Recent economic developments  
1.2.1   Production and employment  
1.15.   Honduran GDP grew at an average annual rate of 3.8% between 2016 and 2019, which means 
that per capita income rose  during the period. Growth was spurred mainly by private consumption 
expenditure, which in turn was driven up in large part by remittances from abroad.  
1.16.   In 2020, the Honduran economy was hit very hard by the economic effects of the COVID -19 
pandemic, with G DP contracting by 9% and external demand also falling. All the components of 
 
11 IMF (2020), El Directorio Ejecutivo del FMI Concluye las Segundas Revisiones del Programa en el 
Marco de los Acuerdos Sta nd-By y Facilidad de Crédito Standby, y Aprueba los Aumentos de Acceso para 
Apoyar las Medidas de Honduras contra la Pandemia COVID -19, Press Release No. 20/230, 1 June 2020. 
Viewed at: https://www.imf.org/es/News/Articles/2020/06/01/pr20230 -honduras -imf-execboard -completes -
2nd-rev-under -sba-scf-arrange -approves -support -covid19 . 
12 IMF (2021), El Directorio Ejecutivo del FMI Concluye la Cuarta Revisión del Programa en el Marco de 
los Acuerdos Stand -By y Facilidad de Crédito Stand -By a favor de Honduras , Press Release No.  21/262, 
13 September  2021. Viewed at: https://www.imf.org/es/News/Articles/2021/09/13/pr21262 -honduras -imf-
execboard -completes -4threv -under -imfs-sba-and-arrange -under -sbc-facility . 
13 IMF staff stated that economic growth in Honduras reached 12.5% in 2021, led by strong 
remittances, which supported private consumption, and robust external demand boosted by the recove ry in the 
United States. After remaining within the central bank's reference range of 3 -5% for most of 2021, inflation 
breached the upper band in December and neared 7% year on year at end -March, largely reflecting supply side 
factors, together with some d emand pressures from strong remittances and higher government spending. IMF 
(2022), El personal técnico del FMI concluye su visita a Honduras , Press Release No.  22/137, 29 April 2022. 
Viewed at: https://www.imf.org/es/News/Articles/2022/04/30/pr22137 -honduras -imf-staff-concludes -visit. 
14 IMF (2022), El personal técnico del FMI concluye su visita a Honduras , Press Releas e No.  22/338, 
5 October  2022. Viewed at: https://www.imf.org/es/News/Articles/2022/04/30/pr22137 -honduras -imf-staff-
concludes -visit. 
15 Under HIPC rules, debt reduction is assigned as a proportion of annual debt service over a period of 
8-15 years, depending on t he creditor. The resources made available each year by this reduction in debt 
service must be used to finance programmes and projects included in the Poverty Reduction Strategy.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  aggregate demand contracted, but gross capital formation recorded the largest decline, of 23.8% in 
real terms. All productive sectors were similarly affected: the crop farming, li vestock breeding, 
hunting, forestry and fishing sector contracted by 6.3%; mining and quarrying by 23.5%; 
manufacturing by 14%; construction by 25.4%; and services by 6.5%. Within the services sector, 
the hotels and restaurants, and transport subsectors we re hit particularly hard. 
1.17.   Macroeconomic conditions improved in 2021 and 2022. Real GDP expanded by 12.5% in 2021 
and by 4.0% in 2022. With the exception of agriculture and fishing, and mining and quarrying, all 
sectors recorded growth in 2022. The areas th at saw the highest growth rates were hotels and 
restaurants (+21.1%); financial intermediation (+12.2%); manufacturing (+6.0%); construction 
(+6.0%); transport (+6.3%); and trade (+4.3%). In constant terms, overall supply increased by 
4.3%, after reboundin g by 20.0% in 2021, driven by a rise in both domestic supply (+4.0%) and 
imports of goods and services (+4.8%).16 Supply increased as a result of the solid performance of 
financial intermediation activities. Growth in the manufacturing industry was spurred  primarily by 
the rise in orders for apparel and textile products, the manufacture of machinery and equipment 
(electrical harnesses), and an increase in the production of foodstuffs, beverages and tobacco 
(mainly sugar production and poultry slaughtering).  
1.18.   In terms of GDP by type of expenditure, domestic demand increased by 3.7% in 2022 
(+19.3% in  2021), thanks primarily to private -sector final consumption expenditure, which rose by 
5.0% (+15.1% in 2021). This rise was due to growth in household income resu lting from higher 
salaries, greater availability of consumer loans and the increase in family remittances from abroad 
(Table 1.1).17 Public -sector consumption expenditure increased by 0.8% (+8.5% in 2021) due to a 
rise in purchases of goods and services, a nd higher salary payments. Growth in gross fixed capital 
formation declined sharply, coming in at just 0.7% (+49.1% in 2021). This was mainly due to lower 
public -sector investment levels, which fell by 8.6%. Private -sector gross fixed capital formation, 
however, increased, primarily as a result of the rise in imported capital goods, mainly for 
private -sector construction. External demand (i.e. exports of goods and services) rose by 5.8% 
(+21.5% in 2021) thanks to an uptick in exports of apparel products, machinery, electrical 
appliances and parts thereof (electrical harnesses), bananas, lobsters, and plastics and articles 
thereof. In 2022, imports of goods and services were up by 4.8% in real terms (+33.0% in  2021). 
Gross domestic savings account ed for 20.6% of GDP, a rise of 1.6 percentage points on the  2021 
level. This was mainly due to the increase in salary payments, the rebound in producers ' profits and 
the rise in family remittances. Family remittances accounted for 26.7% of GDP in 2022, up 
1.5 percentage points compared with 2021, and for 31.0% of private -sector final consumption 
expenditure.18 
1.19.   The expenditure composition of Honduran GDP reveals a relatively high level of private 
consumption, financed in large part by remittances from abroad  (Table 1.1). In constant terms, 
private -sector final consumption expenditure accounted for 81.9% of GDP in 2022, with total 
consumption expenditure equivalent to 95.1%. Also in constant terms, gross fixed capital formation 
amounted to  18.9% of GDP, which is lower than the 19.8% reported in the previous review. Exports 
of goods and services accounted for 51.8% of current GDP in 2022, while imports were equivalent 
to 67.8%. Net exports thus made a negative contribution to GDP, offsetting the very high share of 
GDP contributed by private -sector consumption. Total trade flows of goods and services (exports 
plus imports) were equivalent to 118.6% of GDP, demonstrating that Honduras has a very open 
economy.  
1.20.   According to the National Institute of Statistics (INE),  the employed labour force increased 
from 3.94 million in 2016 to 4.22 million in 2019, before dropping to 4.07 million in 2021, as a result 
of the pandemic 's adverse effects on economic activity. The open unemployment rate fell from 7.4% 
in 2016 to  5.7% i n 2019 but then rose to 8.7% in 2021 as a consequence of the pandemic. Levels 
of visible and invisible underemployment are persistently high, with rates estimated to be between 
 
16 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . 
17 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . 
18 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  30% and 40%. The informal economy remains very large in Honduras, affecting emp loyment 
considerably.  
1.2.2   Fiscal policy  
1.21.   The Ministry of  Finance (SEFIN) is responsible for formulating and implementing fiscal policy. 
For most of the period under review, Honduran fiscal policy was geared towards fiscal consolidation, 
reducing spending and increasing revenue. The Fiscal Responsibility Law (LRF), Decree No. 25 -2016 
of 4 May 2016, established macrofiscal targets.19 The Law states that reducing the fiscal deficit and 
achieving fiscal consolidation is a government priority. To this end, an annual ceiling was set for the 
non-financial public sector  (NFPS)  deficit at 1% of current GDP, to be implemented gradually. The 
deficit fell from 1.6% of GDP in 2016 to 1.5% in 2017, 1.2% in 2018 and 1% in 2019. A limit was 
also set for the increa se in nominal current expenditure, which cannot exceed the average real GDP 
growth rate over the past 10 years plus the expected inflation rate for the next year. In addition, a 
paragraph was included stating that the increase in public debt in a given yea r may not exceed 0.5% 
of current GDP.  
1.22.   The LRF allows exceptions in the event of natural disasters that affect GDP by more than 1%, 
in which case any of the rules contained in the Law may be suspended for up to two years. In such 
cases, Congress sets the li mit for the fiscal deficit. It also allows macrofiscal targets to be missed 
and the deficit to reach up to 2.5% of GDP for a maximum of two years in the event of an economic 
recession, understood as a contraction of real GDP for two consecutive quarters. I n this scenario, 
the fiscal deficit should be reduced by 0.5% per year until the target for the year in question is 
reached. The LRF also defines a Medium -Term Macrofiscal Framework  (MMFMP) , understood as the 
projection of the main macroeconomic variables over a four -year time frame within which fiscal 
targets must be met, prepared by SEFIN  with input from the Central Bank of Honduras (BCH), and 
which must be published annually.  
1.23.   In this regard, the National Congress, through Legislative Decree No. 27 -2021, agreed to 
suspend, for a maximum of two years, the Multi -year Fiscal Performance Rules for the NFPS set out 
in the LRF. During this suspension period, the annual ceiling for the overall deficit in the NFPS balance 
sheet is set at no more than 5.4% of GDP i n 2021, between 2.3% and 2.9% in 2022 and no more 
than 1.0% in 2023.20 
1.24.   Despite the Government 's efforts, the central government accounts continued to be in deficit 
during the review period, with deficits ranging from 2% to 3% of GDP between 2016 and 2019 
(Table 1.2). The targets set out in the LRF for the NFPS deficit could not be met. The Government 
continued to implement a fiscal consolidation programme with the support of the IMF for most of 
the period. The remainder of the public sector continued to pos t a surplus, fuelled above all by the 
earnings of the social security institutes. The central government deficit widened in 2020 to 7% of 
GDP as a result of the pandemic, which led to increased spending due to support programmes and 
a shortfall in revenue collection caused by the slowdown in economic activity.  
Table 1.2 Financial accounts of the central government, 2016 -2022 
(% of GDP)   
2016  2017  2018  2019  2020  2021  2022  
Total income  20.0 20.3 20.2 19.2 16.6 19.1 19.6 
 Current income  19.3 19.6 19.4 18.4 15.7 18.5 19.1 
 Tax revenue  18.3 18.3 18.4 17.5 14.8 17.3 17.7 
 Non-tax revenue  0.9 1.3 1.0 0.9 0.9 1.1 1.3 
 Current transfers  0.0 0.0 0.0 0.0 0.0 0.1 0.2 
 Other revenue  0.0 0.1 0.1 0.1 0.3 0.1 0.1 
 Grants  0.8 0.6 0.7 0.7 0.6 0.5 0.4 
 Current expenditure  17.8 17.7 17.0 17.1 19.3 18.8 17.8 
 Consumption expenditure  10.8 10.3 9.6 9.9 10.9 10.8 9.8 
 Remunerations  8.0 7.8 7.6 7.6 8.2 8.0 7.5 
 Goods and services  2.7 2.5 1.9 2.2 2.7 2.8 2.3 
 Interest and commissions  2.6 2.7 3.0 3.0 3.4 3.1 3.0 
 
19 The Fiscal Responsibility Law can be viewed at: 
https://www.poderjudicial.gob.hn/CEDIJ/Leyes/Documents/Ley%20de%20Responsabilidad%20Fiscal.pdf . 
20 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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2016  2017  2018  2019  2020  2021  2022  
 External  0.9 1.0 1.1 1.0 1.2 0.9 0.8 
 Internal  1.7 1.7 1.9 2.0 2.3 2.3 2.2 
 Current transfers  4.4 4.6 4.5 4.2 5.0 4.9 5.0 
 Current account savings  1.5 1.9 2.4 1.4 -3.6 -0.3 1.3 
 Capital expenditure  5.0 5.3 5.3 4.6 4.3 5.3 3.1 
 Real investment  2.0 2.5 2.3 1.7 0.9 1.6 0.9 
 Capital transfers  3.0 2.8 3.0 2.9 3.3 3.7 2.2 
Total net expenditure  22.8 23.0 22.3 21.6 23.6 24.1 20.9 
Savings (+) Deficit ( -) -2.7 -2.7 -2.1 -2.5 -7.0 -5.0 -1.3 
Financing  2.7 2.7 2.1 2.5 7.0 5.0 1.3 
 Net external financing  0.7 3.6 0.9 1.5 .. .. .. 
 Net external credit  0.7 3.7 0.9 1.5 .. .. .. 
 Use 1.5 4.8 1.9 2.5 .. .. .. 
 Amortization  -0.8 -1.1 -1.0 -1.0 .. .. .. 
 Other  0.0 0.0 0.0 0.0 .. .. .. 
 Net domestic financing  2.0 -0.9 1.2 1.0 .. .. .. 
 Net domestic credit  2.3 0.7 1.7 1.5 .. .. .. 
 Other net financial transactions  -0.3 -1.6 -0.5 -0.5 .. .. .. 
Public sector external debt (end of period, % 
of GDP)  28.3 31.1 30.9 30.9 38.4 32.7 32.7 
Central government domestic debt (% of GDP)  18.3 18.0 19.1 19.3 25.1 26.3 26.3 
.. Not available.  
Note:  The sum of the figures may not correspond to the totals, owing to rounding.  
Source:  BCH, Memoria Anual 2022  and previous years.  
1.25.   Total income held steady at around 20% of GDP in 2016 -18 but fell to 19.2% in 2019, 
reflecting fiscal adjustments and lower GDP growth. Owing to the negative effects of the COVID -19 
pandemic, tax revenue dropped to 16.6% of GDP in 2020. This is explained mainly by a signifi cant 
reduction in tax collection (the tax revenue -to-GDP ratio fell to 14.8% in 2020). Tax revenue 
rebounded with the recovery of the economy, accounting for 19.1% of GDP in 2021. The tax on 
production, consumption and sales (IPCV) was the main source of t ax receipts, accounting for 47.3% 
of the total in 2021, followed by income tax (30.6%), the tax on services and specific activities 
(16.6%), taxes on imports (4.6%), property taxes (0.9%) and taxes on potential profits and 
gambling (0.01%).21 
1.26.   Tax and non -tax revenue continued to recover during 2022, with total revenue accounting for 
19.6% of GDP in 2022. This, coupled with a decline in the pace of expenditure growth as the effect 
of most aid programmes came to an end, contributed to a reduction in the centr al government deficit 
amounting to 1.3% of GDP.  
1.27.   The share of expenditure decreased between 2017 and 2019, when it stood at 21.6% of GDP, 
before rising sharply to 23.6% of GDP in 2021 as a result of higher current expenditure due to 
COVID -19 pandemic respon se measures. In 2021, the share of expenditure in GDP fell to 19.9% as 
a result of cuts in current expenditure, despite attempts to improve revenue collection.  
1.28.   The fiscal position improved significantly in 2022, thanks in part to the strong economic 
recove ry. The 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 152,542.5 million (HNL 21,869.1 million more than in the same period of 2021), 
obtained primarily from higher receipts from income tax and the IPCV, which together accounted for 
72.8% of total tax revenue. In fact, tax revenue totalled HNL 137,519.0 million (17.7% of GDP), up 
by 16.2% compared to 2021, ow ing mainly to an increase in income and sales tax receipts. Total 
central government expenditure reached HNL 98,246.5 million in the first three quarters of 2022, 
down HNL 2,054.1 million compared to 2021, as a result of a decline in capital transfers and real 
investment and lower spending on goods and services, which offset higher spending on current 
transfers (mainly to public enterprises and the private sector), remuneration and interest payments 
on public debt. Of this expenditure, 46.9% was on consumpt ion, 24.1% on current transfers, 14.8% 
on capital expenditure and 14.2% on interest and commission payments. The balance sheet for the 
 
21 High Court of Audit ors, Informe de Rendición de Cuentas de l Sector Público, Periodo 2021,  
31 August  2022. Viewed at: 
https://www.tsc.gob.hn/web/Rendicion_de_cuentas/2021/Informe_Ejecutivo_Verificacion_2022.p df. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  year showed a deficit of HNL 10,033.6 million, equivalent to 1.3% of GDP, financed entirely from 
external funds.22 This i s a departure from previous years, when the deficit was financed mostly by 
domestic borrowing, and in particular through bond issues, generally at market interest rates. 
Central government domestic borrowing stood at HNL 200,407.8 million in December 2022,  of which 
76.2% was bonded debt, the main holders being the BCH, decentralized agencies and the private 
financial system.23 
1.29.   Legislative Decree No. 8 -2022 of 15 February 2022 declared a fiscal and financial emergency. 
It also authorized SEFIN to restore the  fiscal balance, revive economic growth and, if necessary, 
during the fiscal years 2022 and 2023, take out internal or external loans directly, reallocate 
available external resources, place debt securities in the domestic or international market and carry  
out other public credit operations worth up to USD 2 billion in addition to the amount of debt 
authorized in Article 1 of Decree No. 107 -2021 of 10 December 2021 (USD 1,250 million).24 
1.30.   To address the increase in the fiscal deficit, the BCH made HNL 24,745.5 million 
(USD  1 billion) available to the Government for social investment and job creation projects, 
especially in the social sector and in the areas of health, education, agriculture, natural resources 
and the environment, energy, youth training, access to credit, and infrastructure.  
1.31.   According to the current administration 's budgetary guidelines, the macrofiscal rules laid down 
in the LRF penalize public investment by treating fiscal responsibility as a policy of fiscal discipline 
and adj ustment aimed at avoiding discretionary spending and indebtedness without having achieved 
a significant curtailment of exemptions, under which the tax foregone on an annual basis amounts 
to 7% of GDP or 44.8% of the tax revenue approved in the General Reve nue and Expenditure Budget 
for Fiscal Year 2022. The current administration considers that ensuring fiscal consolidation and debt 
sustainability requires amendments to the LRF. Accordingly, the budget for 2023 modifies the fiscal 
rules by establishing a ne w way of recording current expenditure, differentiating it from social 
expenditure and excluding the payment of interest and commissions on public debt.25 
1.32.   The 2023 budget seeks to improve tax collection and redirect public expenditure towards 
investment an d the social sector, improving efficiency by reducing the number of tax exemptions. 
In line with the Medium -Term Macrofiscal Framework 2023 -26, to estimate revenue and 
expenditure, the 2023 budget uses the following macroeconomic variables observed in June  2022: 
(a) GDP growth estimated in the range of 3.5% to 4.5%; (b) cumulative inflation of 6.57%; (c) the 
average exchange rate projected at present dollar values.26 The fiscal targets for the central 
government and the NFPS, as set out in the Framework, ar e based on Legislative Decree No. 30 -
2022, which interprets the exception rule set out in the Fiscal Responsibility Law, allowing the deficit 
levels in the Law to be exceeded. For 2023, deficits of 4.4% and 6.0% of GDP are proposed for the 
NFPS and the cen tral government, respectively. The difference is explained by a surplus of 2.0% of 
GDP in the pensions and social security sector.27 
1.33.   The NFPS domestic  debt balance at the end of June 2022 stood at HNL  153,513.1 million , 
equivalent to 19.8% of GDP, compared  to HNL 146,442.9 million in December 2021 (21.4% of GDP). 
The NFPS external debt balance was USD  8,398.9 million (26.4% of GDP), compared to USD 8,558.6 
million at the end of 2021 (30.1%  of GDP). This reduction reflects the net balance between 
disbursemen ts of USD 232.1 million and external debt service payments of USD 448.1 million (USD 
319.4 million principal and USD  128.7  million interest payments).  
 
22 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . 
23 BCH (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . 
24 The text of the Decree can be viewed at: https://www.tsc.gob.hn/web/leyes/Decreto -107-2021.pdf . 
25 Government of the Republic of Honduras, Ministry of  Finance (2023), Lineamientos de Política 
Presupuestaria 2023 . Viewed at: https://www.sefin.gob.hn/download_file.php?download_file=/wp -
content/uploads/Presupuesto/2023/aprobado/Lineamientos -AIF-2023.pdf . 
26 Office of the President of the Republ ic, Ministry of  Finance. Marco Presupuestario de Mediano 
Plazo 2023-25. Viewed at: https://w ww.sefin.gob.hn/download_file.php?download_file=/wp -
content/uploads/Presupuesto/2023/aprobado/Marco -Macro -Fiscal -Mediano -Plazo-2023-2026.pdf . 
27 Office of the President of the Republic, Ministry of  Finance. Lineamientos de  Política Presupuestaria. 
Ejercicio Fiscal 2023 . Viewed at: https://www.sefin.gob.hn/download_file.php?dow nload_file=/wp -
content/uploads/Presupuesto/2023/aprobado/Política -Presupuestaria -2023.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  1.2.3   Monetary and exchange -rate policy and prices  
1.34.   The Constitution of the Republic and the Law on the BCH esta blish that the BCH is responsible 
for maintaining the internal and external value of the national currency and ensuring the smooth 
functioning of the payments system. The Governing Board of the BCH formulates, develops and 
implements the country 's monetary , credit and exchange -rate policy. The Law on the BCH sets the 
objective of maintaining the internal and external value of the currency and, to this end, establishes 
an annual monetary programme with specific targets for domestic assets and net internation al 
reserves, in line with inflation. Every year, the Board of Directors approves the monetary 
programme, the policy guidelines of which are informed by an analysis of domestic and external 
economic conditions and an assessment of future economic trends and  the possible impact on the 
exchange rate. The BCH monitors the behaviour of the exchange rate without setting targets.  
1.35.   The Open -Market Operations Commission (COMA) of the BCH is in charge of following and 
applying the guidelines established by the Governi ng Board in the monetary programme, for which 
purpose it meets at least eight times a year, on pre -established dates, to analyse the trends and 
prospects for macroeconomic variables and the different markets ' performance and outlook, with a 
view to determi ning policies for the participation of the BCH in the money and financial market. 
COMA is committed to setting moderate interest rates in order to contribute to maintaining the 
internal and external value of the lempira. COMA submits proposals on monetary policy and on 
mechanisms and instruments for its implementation to the Governing Board of the BCH for its 
consideration. The ongoing monitoring and analysis of economic variables and of compliance with 
the targets in the monetary programme that the Commiss ion requires for decision -making is carried 
out by the Technical Committee on Monetary Policy  (CTPM) . 
1.36.   The monetary programme contains a detailed analysis of recent trends in the main domestic 
macroeconomic variables and in the international context relevan t to Honduras, and is an instrument 
used by the BCH to influence the expectations of economic agents. In this connection, COMA seeks 
to disseminate and explain its recommendations to the public in order to facilitate decision -making 
by households and firms , reduce uncertainty, increase the effectiveness of monetary policy and 
disseminate information on which economic agents may base their expectations. In formulating 
monetary policy recommendations, COMA seeks to reduce deviations (as measured by the 
percen tage change in the consumer price index) from the inflation targets established in the 
monetary programme, in a manner consistent with economic growth and employment targets.  
1.37.   The main monetary policy tools deployed by the BCH are open -market operations and  the 
monetary policy rate (MPR). It may also use the legal reserve. Open -market operations consist 
mainly of selling BCH securities in competitive auctions. The MPR signals the monetary policy stance 
of the BCH and is the maximum interest rate acceptable f or bids to purchase at liquidity auctions for 
Honduran financial institutions and the minimum acceptable rate for bids to sell. The MPR serves as 
a reference for interbank operations. In its conduct of monetary policy, the BCH uses short -term 
interest rate s as an operational variable, while the monetary aggregates serve as indicative targets. 
The legal reserve is calculated on the average of deposit obligations in the immediately preceding 
fortnight; it must be fully constituted in demand deposits at the BC H, and a minimum daily amount 
equivalent to 80% of the deposit must be held.  
1.38.   During the period under review, a cautious, somewhat restrictive monetary stance was 
maintained between 2016 and 2019, and the MPR was kept at between 5.5% and 5.75%. Prior to 
the pandemic, in both December 2019 and February 2020, the BCH, in response to the moderation 
of growth in the national economy, decided to reduce the MPR by 25 basis points to 5.25%. Later, 
in a context marked by the worsening of the COVID -19 pandemic (exten sion of lockdown measures 
and restrictions on the mobility of goods and services), which led to a decline in economic activity 
and employment, the BCH, among other measures, authorized reducing the MPR on three further 
occasions in 2020: from 5.25% to 4.50 % in March; to 3.75% in August; and to 3.00% in November, 
a rate that has remained in force to date.  
1.39.   The BCH is authorized to extend credit to banks, savings and loan associations and financial 
corporations to meet their temporary liquidity shortages, subject to prior certification of their 
compliance with current capital adequacy requirements issued by the National Banking and 
Insurance Commission (CNBS). Financial entities may also avail themselves of the permanent credit 
facilities and rep urchase agreements (repos). Moreover, between 2020 and 2021, the BCH 
channelled the funds received under the SBA and the SCF to the public sector. Also, as already WT/TPR/S/443 /Rev.1  • Honduras  
 
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  noted, the BCH granted a loan of USD 1 billion to finance public investment projects 
(Decree  No. 30-2022).  
1.40.   During the pre -pandemic part of the period under review, the monetary policy of the BCH 
continued to be geared towards maintaining low and stable inflation and an adequate level of 
international reserves, periodically analysing the domestic and international environment and 
outlook, and adjusting the conduct of monetary policy in order to maintain levels of liquidity in the 
financial system consistent with price stability. During the pandemic, the BCH revised and updated 
the macroeconomic pro jections contained in the monetary programme and its revisions on several 
occasions, in line with developments in the global and domestic economy, maintaining the inflation 
tolerance range at 4.0±1.0 percentage point.28 In the 2022 -23 review of the monetar y programme, 
the BCH estimated an inflation rate (year -on-year percentage change in the consumer price index) 
of 10.30% for 2022 and 5.63% by the end of 2023; a real GDP growth rate of between 4.0% and 
4.5% in 2022 and between 3.5% and 4.5% in 2023; growth  in goods exports of 18.7% in 2022 and 
2.6% in 2023, and in imports of 18.5% and 2.7% in 2022 and 2023, respectively; a 
balance -of-payments current account deficit of 4.5% in 2022 and 2.8% in 2023, both as a 
percentage of GDP; and a NFPS deficit — as a per centage of GDP — of 3.0% and 4.2% for 2022 and 
2023, respectively.29 
1.41.   The review of the monetary programme establishes the following monetary, credit and 
exchange -rate policy measures with the aim of maintaining the internal and external value of the 
curren cy: (a) continue to use the MPR as the main instrument to signal the monetary policy stance 
to the market, while adjusting its level in line with the national and international economic situation 
and outlook, the inflation expectations of economic agents a nd the BCH 's short - and medium -term 
inflation forecasts; (b) continue to analyse the composition of direct monetary policy tools in order 
to better signal the policy stance; (c) continue to gradually withdraw excess liquidity so that liquidity 
levels are c onsistent with economic activity and the objective of price stability; (d) monitor the 
performance of the foreign exchange market, in particular the organized foreign exchange market, 
in order to preserve the internal and external value of the currency; (e ) evaluate the monetary 
programme (Article 16 of the Law on the BCH) at least every three months and adjust monetary, 
credit and exchange -rate policy measures in the light of likely changes in the outlook or assumptions 
used in the programme; (f) continuou sly monitor the impact of COVID -19 and geopolitical factors 
on the national economy with a view to the timely adoption of the necessary countermeasures. In 
addition, the Monetary Authority reaffirmed its commitment to periodically analyse the national and 
international environment and outlook, and to adjust its conduct of monetary policy in order to keep 
liquidity levels in the financial system consistent with price stability.30 
1.42.   During the period under review, inflation generally remained within the establi shed tolerance 
range, except in 2022, when it was affected by external shocks stemming from global supply chain 
problems and the Russian invasion of Ukraine. Between 2016 and 2021, the annual average rate of 
inflation, as measured by the consumer price ind ex, ranged from 2.71% to 4.48%. In 2022, rising 
global inflationary pressures due to higher global costs affecting the prices of raw materials, mainly 
energy and food, led to an acceleration 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.31 Core inflation (which excludes 
agri-foodstuffs, fuels and electricity rates) behaved similarly to to tal inflation, standing at 9.16% in 
 
28 BCH (2022), Revisión del Programa Monetario 2022 -23, August 2022. Viewed at: 
https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Revisi%C3%B3n%20Programa%20Monet
ario%202022 -2023.pdf . 
29 BCH (2022), Programa Monetario 2022 -23. Viewed at: 
https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Programa%20Moneta rio%202022 -
2023.pdf . 
30 BCH (2022), Programa Monetario 2022 -23. Viewed at: 
https://www.bch.hn/estadisticos/AM/L IBPROGRAMA%20MONETARIO/Programa%20Monetario%202022 -
2023.pdf . 
31 According to the BCH, the three items account for about 69.1% of year -on-year inflation. The 
industrially processed foods that recorded the largest price inc reases include ground coffee, vegetable 
shortening, chicken and beef, graded rice, powdered and pasteurized milk, and bottled soft drinks. The 
agri-foodstuffs that experienced price increases are red beans, corn, chicken eggs, corn tortillas, potato, 
cabba ge, dairy products, sweet chili, pear tomato and red onion. BCH (2022), Revisión del Programa Monetario 
2022-23, August 2022. Viewed at: 
https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Revisi%C3%B3n%20Programa%20Monet
ario%202022 -2023.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
- 23 - 
 
  July 2022, driven by higher raw material and fuel prices and by inflationary pressures caused - albeit 
to a lesser extent - by aggregate demand, and a process of adjustment in production costs.32 
1.43.   Under the current foreig n exchange system, exchange rate policy is implemented through the 
exchange rate band regime, via the electronic system for foreign currency transactions (SENDI, 
through which the interbank foreign exchange market (MID) operates). The BCH uses a margin of 
1% above or below the centre of the exchange rate band.33 Foreign exchange dealers (banks and 
exchange bureaux) and the BCH participate in the MID by submitting non -nominative purchase and 
sale bids of at least USD 10,000 in full multiples of USD 10 for hi gher amounts, and of up to USD 
500,000 for bids for the purchase of currency. The BCH participates in the MID to prevent sudden 
fluctuations in the price of foreign currency without changing its trend, and to accumulate 
international reserves and meet the foreign exchange requirements of public sector institutions.34 
Bids in the MID that are above the ceiling or below the floor of the exchange rate band are not 
accepted.  
1.44.   Every day, an amount of foreign currency (USD) is auctioned publicly and equitably amon g 
the various foreign exchange dealers through the SENDI, which is administered by the International 
Department of the BCH. Foreign exchange operations are settled in the deposit accounts held by the 
institutions of the financial system at the BCH through the BCH real -time system (BCH -TR). The 
BCH-TR, operational since March 2013 and administered by the BCH, is the real -time gross 
settlement (RTGS) for large -value payments. It is a system for the continuous clearing of funds 
transfers and settlement of secu rities on an individual (one -to-one) basis, in real time and without 
net compensation. The BCH -TR is a key tool that facilitates the BCH 's functions of liquidity 
management, payments system oversight and monetary policy implementation.35 
1.45.   During the period under review, the BCH took steps to incorporate more market elements in 
the determination of the exchange rate. In 2017, the BCH introduced changes to the foreign 
exchange regulations, as a result of which, since 14 June 2021, dealers have been allo wed to sell 
100% of the foreign currency acquired from the public to their private sector clients; at the same 
time, BCH foreign exchange auctions were suspended as a mechanism for allocating foreign currency 
to natural and legal persons. Moreover, to inco rporate more market elements in the determination 
of the reference exchange rate, the Governing Board of the BCH, through Agreement No. 17/2021 
of 9 December 2021, modified the foreign exchange regulations to give greater weight to MID 
negotiations when ca lculating the centre of the exchange -rate band. At the same time, the 
participation of exchange bureaux in the MID was incorporated in order to stimulate the foreign 
exchange market, and access to foreign currency was facilitated for members of the public who carry 
out transactions in these bureaux.36 In March 2022, the BCH modified the foreign exchange 
regulations to give greater weight to the base price37 when calculating the centre of the exchange 
rate band, thereby helping to reduce exchange rate deprec iation, which had been fuelled by higher 
 
32 According to the BCH, the three items account for about 69.1% of year -on-year inflation. The 
indust rially processed foods that recorded the largest price increases include ground coffee, vegetable 
shortening, chicken and beef, graded rice, powdered and pasteurized milk, and bottled soft drinks. The 
agri-foodstuffs that experienced price increases are re d beans, corn, chicken eggs, corn tortillas, potato, 
cabbage, dairy products, sweet chili, pear tomato and red onion. BCH (2022), Revisión del Programa Monetario 
2022-23, August 2022. Viewed at: 
https://www.bch.hn/estadisticos/AM/LIBPROGRAMA%20MONETARIO/Revisi%C3%B3n%20Programa%20Monet
ario%202022 -2023.pdf . 
33 The centre of the exchange rate band is calculated by adding the average base price (price of the 
currency estimated by the BCH to guide negotiating positions in the foreign exchange auction and in the MID) 
over the previous seven days, weighted at 80%, t o the weighted average exchange rate of the MID over the 
previous seven days, weighted at 20%. The BCH reviews the base price after every five events in order to 
maintain the external competitiveness of the national currency. As part of this review, it con siders the internal 
and external inflation differential between Honduras and its main trading partners, the nominal effective 
exchange rate index and the international reserves coverage.  
34 BCH, Mercado Interbancario de Divisas . Viewed at: 
https://www.bch.hn/operativos/INTL/Paginas/Mercado -Interbancario -de-Divisas.aspx . 
35 BCH, Sistema Banco Central de Honduras en Tiempo Real (BCH -TR). Viewed at: 
https://www.bch.hn/politica -institucional/sistemas -de-pago/sistemas -de-pagos/bch -tr. 
36 BCH (2022), Memoria  2021. Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202021.pdf . 
37 The base price is determined as follo ws: (1) the differential between domestic inflation and the 
expected inflation rates of Honduras' s main trading partners; (2) changes in the exchange rates of the main 
trading partners; and (3) the performance of official reserve assets (coverage in months  of imports).  WT/TPR/S/443 /Rev.1  • Honduras  
 
- 24 - 
 
  inflows of foreign exchange from family remittances and exports. Lastly, effective 5 March 2022, a 
change was made to the calculation of the reference exchange rate, which is now defined as the 
weighted average exch ange rate calculated at the close of the previous business day 's trading in the 
MID, in order to reflect the supply and demand conditions for foreign currency in the foreign 
exchange market. Furthermore, changes were made to the rules governing the BCH 's intervention 
in the MID, with the aim of moderating exchange rate volatility, and to the rules governing 
intervention through reserve accumulation.  
1.2.4   Balance of payments  
1.46.   The current account of the balance of payments continued to post large deficits during the 
review period, with the exception of 2020. The deficit peaked at USD 1,582 million in 2018, 
equivalent to 6.6% of GDP (Table 1.3). In 2020, as a result of the impact of the pandemic on 
economic activity, imports contracted considerably, resultin g in a current account surplus of 
USD 666 million, equivalent to 2.8% of GDP. However, as the usual pace of economic activity 
resumed, imports of goods and services increased substantially in 2021 and 2022, again leading to 
a deficit, which reached USD 1,4 87 million in 2021 and  USD 1,080 million in 2022, accounting for 
5.3% and 3.4% of GDP respectively.  
1.47.   Imports of goods and services increased rapidly between 2016 and 2018, before declining in 
2019 and experiencing a sharp drop in 2020, reflecting the contra ction in demand caused by the 
pandemic. With the recovery of growth in 2021, imports of goods and services rebounded strongly, 
reaching USD  15,034 million, and were 46.8% higher than in 2020; they totalled USD 17,581 million 
in 2022. Exports of goods and s ervices grew by 3.2% between 2016 and 2019, before contracting 
by 15.9% in 2020. Exports rebounded in 2021 and grew by 31.9%. The export figures include the 
earnings of the maquila  industry. Exports of goods and services grew again (19.1%) in 2022. The 
balance of goods and services was deeply in deficit in all years of the review period: the deficit 
reached USD 6,586 million in  2021, equivalent to 23.3% of GDP, and USD 7,533 million in 2022, 
equivalent to 23.9% of nominal GDP. This reflects structural defic its in the balances of both goods 
and services.  
1.48.   Net transfers from abroad continued to be one of the main elements of the deficit in the 
balance of goods and services. Transfers continued to grow on a sustained basis during the review 
period, and  the balan ce of transfers reached USD 7,621 million in 2021, equivalent to 26.8% of GDP, 
and USD  8,939  million in 2022, equivalent to 28.4% of GDP. Family remittances  are particularly 
important in this category, totalling USD 7,184  million or 25.3% of GDP in 2021, a n increase of 
86.7% compared to  2016, and USD 8,465 million (26.9% of GDP) in 2022.  Remittances increased 
in each year of the review period, including in 2020 during the pandemic. Private transfers are ever 
more essential to sustaining domestic demand, par ticularly to financing much of domestic 
consumption, as they are responsible for financing more than a quarter of private expenditure.  
1.49.   The financial and capital accounts of the balance of payments are generally in surplus, and 
recorded net income of USD 1, 450 million in 2021 (5.1% of GDP) and USD 1,380 million in 2022 
(4.4% of GDP), largely owing to direct capital investment flows for private investment and loans to 
the General Government  and the financial sector. Net  international reserves held in the fina ncial 
system stood at USD  8,678  million in late 2021, equivalent to almost seven months of goods and 
services imports. The level of reserves declined slightly in December 2022, when it totalled 
USD 8,421.3 million. This was because of an external debt serv ice payment of USD 730.4 million, 
net foreign exchange sales in the interbank foreign exchange market (MID) amounting to 
USD 336.2  million, an increase to the fuel import bill of USD 76.8 million and other net outflows of 
USD 121.5 million. These negative flows were only partially offset by external disbursements of 
USD 871.2 million, foreign exchange purchases of USD  107.5  million and donations of 
USD 23.5 million. The official reserve assets of the Central Bank of Honduras covered 6.0  months of 
imports of  goods and services.38 
 
38Central Bank of Honduras (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
- 25 - 
 
  Table 1.3 Balance of payments, 2016 -2022 
(USD million)   2016  2017  2018  2019  2020a 2021a 2022a 
I. Current accountb -683 -288 -1,582  -653 666 -1,487  -1,080  
 Goods and services  
 Balance of goods  -2,599  -2,753  -3,818  -3,361  -2,569  -4,857  -5,412  
Exports  7,960  8,656  8,644  8,788  7,684  10,216  12,169  
General goods  3,813  4,439  4,245  4,151  4,144  5,039  5,987  
Goods for processing  4,019  4,082  4,277  4,522  3,392  4,980  6,033  
Other goods  128 135 121 115 148 197 149 
Imports  10,559  11,409  12,462  12,149  10,253  15,073  17,581  
General goods  8,166  8,787  9,742  9,406  8,123  11,935  13,545  
Goods for processing  2,384  2,613  2,711  2,734  2,120  3,128  4,027  
Other goods  9 9 9 9 10 10 10 
 Services  balance  -578 -775 -1,062  -1,213  -1,102  -1,729  -2,122  
Income  1,154  1,282  1,254  1,193  706 853 1,094  
Expenditure  1,732  2,058  2,316  2,406  1,807  2,582  3,216  
Goods and services balance  -3,178  -3,528  -4,880  -4,574  -3,671  -6,586  -7,533  
 Balance of income  -1,508  -1,406  -1,882  -1,973  -1,646  -2,522  -2,485  
 Income  88 137 170 185 124 114 200 
Interest  60 98 144 166 105 79 163 
Direct investment  12 21 9 2 3 16 16 
Other income  16 18 17 17 16 19 21 
 Payments  1,595  1,542  2,051  2,159  1,770  2,636  2,685  
Interest  276 368 385 483 455 431 465 
Direct investment  1,278  913 1,378  1,346  1,023  1,861  1,881  
Other income  41 261 288 330 292 344 339 
Balance of goods, services and income  -4,685  -4,934  -6,762  -6,547  -5,317  -9,108  -10,019  
 Balance of transfers  4,003  4,646  5,180  5,894  5,983  7,621  8,939  
Income from family remittances  3,847  4,305  4,760  5,385  5,573  7,184  8,465  
II. Capital account  130 181 168 195 551 301 279 
 Credit  130 181 168 195 551 301 279 
Capital transfers  130 181 168 195 551 301 279 
 Debit  0 0 0 0 0 0 0 
III. Financial accountc 993 1,622  1,088  1,129  474 1,188  1,101  
 Direct investmentd 900 1,035  895 496 373 382 680 
Direct investment abroad  -239 -141 -66 -3 -46 -357 -143 
Direct investment in Honduras  1,139  1,176  961 498 419 739 823 
 Portfolio investment  -75 678 -54 6 91 -89 -326 
Assets  -77 -119 -36 -24 -23 -230 -206 
Shares and other capital participation  0 -3 2 -2 -3 0 -1 
Debt securities  -77 -116 -38 -22 -20 -230 -206 
Liabilities  2 797 -19 30 114 141 -120 
Shares and other capital participation  2 797 -19 30 114 141 -120 
 Other investment  167 -91 247 628 10 895 747 
Assets  -103 -394 -200 261 -702 249 229 
Commercial credit  12 -68 -8 -15 -54 -92 38 
 Sectors other than the General  
 Government  12 -68 -8 -15 -54 -92 38 
Loans  -7 -10 -4 12 0 -22 13 
 Financial sector  -7 -10 -4 12 0 -22 13 
Currency and deposits  -113 -276 -184 247 -334 128 151 
 Financial sector  -48 -28 84 46 -212 -20 122 
 Other sectors  -65 -248 -268 201 -122 149 29 
Other assets  5 -39 -4 17 -315 235 28 
 Central Bank  -2 -3 -6 0 0 0 0 
 Financial sector  7 -36 2 17 -315 235 28 
 Liabilities  270 303 447 366 713 646 518 
Commercial credit  61 -35 -25 42 62 46 57 
 General Government  0 0 0 0 0 0 0 
 Other sectors  61 -35 -25 42 62 46 57 
Loans  190 289 468 305 624 258 496 
 Central Bank  -2 -1 -1 -24 32 -21 -21 
 General Government  152 191 219 372 767 131 603 
 Financial sector  -166 26 262 146 -73 335 -47 
 Other sectors  206 74 -12 -189 -102 -187 -40 
Currency and deposits  27 34 7 33 13 -1 -40 
 Central Bank  0 2 -5 -2 0 0 1 
 Financial sector  27 32 13 35 12 -1 -41 
Other liabilities  -7 14 -3 -15 14 343 5 
 Central Bank  0 0 0 0 0 342 0 
 General Government  0 0 0 -3 0 0 0 
 Financial sector  -7 14 -3 -12 14 1 5 
IV. Net errors and omissionse -390 -630 372 318 220 457 -426 
Overall balance  50 885 46 988 1,911  459 -126 WT/TPR/S/443 /Rev.1  • Honduras  
 
- 26 - 
 
   2016  2017  2018  2019  2020a 2021a 2022a 
V. Reserves and related headings  -50 -885 -46 -988 -1,911  -459 126 
BCH reserve assetsf -66 -884 -50 -993 -2,381  -587 122 
Use of IMF credit  0 0 0 0 466 124 0 
Special financing  16 -1 4 5 4 4 4 
a Preliminary data.  
b A positive (negative) sign means an inflow (outflow) of capital for the country.  
c Net variation in assets: A positive (negative) sign means a reduction (increase) in claims on 
non-residents. Example: Reduction in deposits by residents abroad (positive sign). Net variation in 
liabilities: A positive (negative) sign means an increase (reduction) in liabilities to non -residents. 
Example: Increase i n deposits by non -residents in the country (positive sign).  
d Includes shares and capital participations, profits, and reinvested dividends or other capital.  
e A positive (negative) sign means an inflow (outflow) not recorded in the balance of payments.  
f A positive (negative) sign means a reduction (increase) in claims on non -residents.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding.  
Source:  Central Bank of Honduras.  
1.50.   The total external debt was USD 11,796.3 million at t he end of 2022, USD 208.8 million 
less than in December 2021, and equivalent to 37.4% of GDP. Of this total, USD 9,540.1 million 
was public sector debt, an increase of USD 290.3 million compared to December 2021, and 
USD 2,256.5 million was non -guaranteed private sector debt. Of the external debt portfolio 
contracted by the public sector, 83.1% is in USD, 12.8% is in SDR, 2.3% is in EUR and 1.8% is in 
other currencies.  In 2022, the General Government contracted a new external debt of 
USD 1,309.0  million, of  which USD 1,155.0 million was for budgetary support and USD 154.0 million 
was for the implementation of projects and programmes.39 External debt service payments totalled 
USD 1,827.8 million, equivalent to 5.8% of GDP (USD  1,849.4  million in 2021), of whi ch 96.8% was 
used for principal repayments and 3.2% was for interest payments and other financial costs.40 The 
balance of public sector external debt/GDP stood at  30.1%, down from 32.4% in December 2021.  
1.3  Developments in trade and investment  
1.3.1   Trends and patterns in merchandise and services trade  
1.3.1.1   Composition of merchandise trade  
1.51.   The composition of merchandise exports is divided between manufactured and agricultural 
products. Exports from the maquila  industry are mainly manufactured products. The main expor t 
item was textiles, in particular made -up textiles.  
1.52.   Honduras 's overall exp orts in 2022 (including maquila ) totalled USD 12,135 million, compared 
to USD 7,926 million in 2016, an increase of 53%. This is equivalent to average annual growth in 
export value of 7.3%. The main export products were textiles and textile articles (40.5% of the 
total), coffee (11.7% of the total), machinery and appliances, electrical equipment and parts thereof 
(9.7%) and bananas and other fruits (6.5%) (Table A1.1 and Chart 1.1).  
1.53.   Honduras 's c.i.f. imports totalled USD 19,544 million in 2022, compared to USD 12,407 million 
in 2016, an increase of 57.5%. Between 2016 and 2022, c.i.f. imports increased at an average 
annual import value rate  of 7.8%. In 2022, imports consisted primaril y of manufactured products, 
particularly textile fibres (19.9% of the total), fuels (15.2%), machinery and equipment (13.5%) 
and chemicals (11.4%) (Table A1.2 and Chart 1.1).  
1.3.1.2   Direction of merchandise trade  
1.54.   The main market for Honduran exports continues to be the United States, which absorbed 
50.6% of the total in 2022, down from the 57.0% recorded in 2016 (Table  A1.3 and Chart 1.2). It 
 
39 By creditor, USD 61 3.0 million was agreed with the Inter -American Development Bank, 
USD 450.0  million with the Central American Bank for Economic Integration, USD 210.0 million with the 
International Development Association of the World Bank and USD 36.0 million with the Off icial Credit Institute 
of the Government of Spain. Central Bank of Honduras (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . 
40 Central Bank of Honduras (2023), Memoria Anual 2022 . Viewed at: 
https://www.bch.hn/estadisticos/GIE/LIBMemoria/Memoria%20Anual%202022.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
- 27 - 
 
  is followed by the European Union with 11.4% of the total exported in the same period, Nicaragua 
(8.7%), El Salvador (8.5%)  and Guatemala (5.5%).  
1.55.   The United States is also the main source of imports, corresponding to 36.9% of total imports 
in 2022 (42.4% in 2016). China was the source of 11.5% of imports in 2022, followed by Guatemala 
(9.4%) and El Salvador (7.7%) (Table A1.4 and Chart 1.2). Other significant trading partners in 
terms of imports are Mexico (5.3%), Costa Rica (5.3%) and the European Union (4.9%).  
Chart 1.1 Merchandise trade by main products, 2016 and 2022  
 
2016 2022
Exports
Total: USD 7,926  million
Imports
Total: USD 11,480 million Total: USD 19,544 millionTotal: USD 12,135 millionOther
8.2%Other
7.1%
Mineral 
products
10.6%
Chemicals
12.6%
Plastics
5.6%Electrical 
machinery 
and 
appliances
16.0%Other
7.7%
Mineral 
products
15.5%
Chemicals
11.4%
Plastics
5.7%Base metals
6.9%Electrical 
machinery and 
appliances
13.5%Other
6.8%
Base 
metals
5.6%
Textiles
20.6%Vegetable 
products
20.9%Vegetable 
products
19.8%
Transport 
equipment
5.3%Transport 
equipment
4.1%Prepared 
foodstuffs
5.6%Prepared 
foodstuffs
6.7%
Vegetable 
products
3.8%Prepared 
foodstuffs
9.0%
Textiles
19.9%Electrical 
machinery and 
appliances
8.2%
Base 
metals
3.5%Electrical 
machinery and 
appliances
9.7%
Chemicals
3.0%Chemicals
2.9%Base metals
2.3%
Paper and 
paperboard
3.5%Prepared 
foodstuffs
8.8%Vegetable 
products
4.1%Animal 
products
4.9%
Textiles
42.5%Animal 
products
4.0%
Textiles
40.5%
Paper and 
paperboard
3.0%Fats and 
oils
4.4%Fats and 
oils
5.8%WT/TPR/S/443 /Rev.1  • Honduras  
 
- 28 - 
 
  Source: WTO Secretariat calculations based on data provided by the authorities.  
Chart 1.2 Merchandise trade by trading partner, 2016 and 2022  
 
Source:  WTO Secretariat calculations based on data provided by the authorities.  
1.3.1.3   Trade in services  
1.56.   The Honduran services balance shows a structural deficit, which increased substantially during 
the review period from USD 578.3 million in 2016 to USD 2,121.6 million in 2022 (Table 1.4). This 
increase was largely attributabl e to the impact of the COVID -19 pandemic, which significantly 
reduced travel  sector  credit , in which Honduras traditionally has a surplus, while all other sectors 
were in deficit. The sectors posting the largest deficit are transport, particularly maritime  transport, 
royalties and insurance.  
2016 2022
Exports
Total: USD 7,926 million
Imports
Total: USD 11,480 million Total: USD 19,544 millionTotal: USD 12,135 millionEl Salvador
8.7%Other
0.3%
United 
States
57.0%Other 
America
8.1%
Guatemala
7.5%America
83.3%United 
States
50.6%Other 
America
10.0%
Guatemala
5.5%Other
0.2%Asia
3.2%
America
84.4%Asia
2.0%
United 
States
42.4%
Other 
America
11.4%
Mexico
6.3%China
10.1%Other 
Asia
5.1%Other
1.0%
United 
States
36.9%
Other 
America
13.5%China
11.5%Other 
Asia
4.9%Other
1.7%
America
74.8%America
72.8%Europe
6.0%Europe
5.6%Asia
18.2%Asia
19.9%Europe
13.2%
Guatemala
3.6%
El Salvador
7.7%EU-27
11.9%Other 
Europe
1.4%
Guatemala
9.4%Other 
Europe
1.9%
El Salvador
8.5%EU-27
11.4%
Japan
1.1% Japan
1.3%Europe
13.2%
EU-27
5.5%EU-27
4.9%Other 
Europe
0.6% Other Europe
0.7%Nicaragua
7.0%
India
1.7%Nicaragua
8.7%
India
2.4%
El Salvador
7.2%Mexico
5.3%WT/TPR/S/443 /Rev.1  • Honduras  
 
- 29 - 
 
  Table 1.4 Services balance, 2016 -2022 
(USD million)  
 2016  2017  2018  2019  2020a 2021a 2022a 
Services balance  -578.3  -775.2  -1,062.0  -1,213.2  -1,101.7  -1,728.9  -2,121.6  
Credit  1,153.5  1,282.4  1,253.6  1,192.7  705.5  853.2  1,094.2  
1. Transport  120.4  127.3  142.5  144.5  95.1 127.7  173.6  
 1.1 Maritime  78.6 81.4 84.3 84.8 64.5 82.8 96.6 
 1.1.1 Freight - general merchandise  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.1.2 Freight - goods for processing  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.1.3 Other maritime transport  78.6 81.4 84.3 84.8 64.5 82.8 96.6 
 1.2 Air  28.5 30.9 45.2 47.1 19.3 32.9 58.6 
 1.2.1 Fares  5.3 5.1 6.9 7.3 2.3 1.8 9.4 
 1.2.2 Freight - general merchandise  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.2.3 Freight - goods for processing  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.2.4 Other air transport  23.3 25.8 38.3 39.9 17.0 31.1 49.2 
 1.3 Other transport  13.3 15.0 12.9 12.6 11.3 12.0 18.3 
 1.3.1 Fares  2.1 2.1 2.1 2.0 0.1 0.5 2.4 
 1.3.2 Freight - general merchandise  11.2 12.9 10.9 10.6 11.3 11.5 15.9 
 1.3.3 Freight - goods for processing  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.3.4 Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2. Travel  577.8  602.5  591.6  549.1  154.9  302.6  539.7  
 2.1 Business  57.8 60.3 59.2 54.9 15.5 62.6 111.7  
 2.2 Personal  520.0  542.3  532.5  494.2  139.4  240.0  428.0  
3. Other services  455.3  552.6  519.5  499.0  455.5  422.9  381.0  
A. Communications services  249.6  262.4  220.6  176.3  143.0  122.9  90.0 
 A.1 Postal and courier services  1.3 1.1 1.3 1.3 1.3 1.3 1.3 
 A.2 Telecommunications services  248.3  261.3  219.3  175.0  141.7  121.6  88.7 
B. Construction services  2.4 0.0 0.0 13.0 15.8 21.7 14.5 
C. Insurance services  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
D. Financial services  3.8 19.1 3.1 3.8 3.8 3.4 3.8 
 D.1 Financial services  3.8 19.0 3.1 3.8 3.8 3.4 3.8 
 D.1.1 Credit card transactions  1.9 1.9 1.9 1.9 1.9 1.8 1.9 
 D.1.2 Other financial services  1.9 17.1 1.2 1.9 1.9 1.6 1.9 
E. Computer and information services  8.7 12.3 11.5 11.9 11.6 15.5 11.7 
F. Royalties and licence fees  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
G. Other business services  128.4  199.9  218.6  238.4  223.7  197.4  205.2  
 G.1 Trade -related services  31.3 8.4 8.2 9.4 6.5 6.1 10.1 
 G.2 Operational leasing  2.9 1.8 1.1 1.9 11.2 1.7 1.1 
 G.3 Business, professional and technical services  94.2 189.7  209.3  227.1  206.0  189.6  194.0  
H. Personal, cultural and recreational 
services  7.4 7.4 7.4 5.9 4.5 7.4 7.4 
I. Government services, n.i.e.  54.9 51.5 58.2 49.7 53.0 54.6 48.4 
Debit  1,731.8  2,057.6  2,315.6  2,405.9  1,807.2  2,582.1  3,215.8  
1. Transport  914.4  983.5  1,199.5  1,162.2  927.7  1,502.7  1,973.8  
 1.1 Maritime  544.2  605.0  794.0  743.9  600.0  1,002.1  1,386.9  
 1.1.1 Freight - general merchandise  410.4  540.7  636.7  595.4  494.3  841.9  1,188.8  
 1.1.2 Freight - goods for processing  133.7  64.3 157.4  148.5  105.7  160.2  198.2  
 1.1.3 Other maritime transport  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.2 Air  153.1  155.5  199.0  207.4  129.7  195.0  267.7  
 1.2.1 Fares  109.7  114.9  147.9  155.3  66.4 136.2  202.2  
 1.2.2 Freight - general merchandise  37.6 37.8 44.2 45.6 58.6 51.8 56.8 
 1.2.3 Freight - goods for processing  5.8 2.8 6.8 6.5 4.6 7.0 8.6 
 1.2.4 Other air transport  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 1.3 Other transport  217.1  223.1  206.4  211.0  198.0  305.6  319.2  
 1.3.1 Fares  2.1 0.7 1.7 0.7 0.3 0.3 0.5 
 1.3.2 Freight - general merchandise  209.2  219.6  197.9  203.8  193.2  298.4  310.1  
 1.3.3 Freight - goods for processing  5.8 2.8 6.8 6.5 4.6 7.0 8.6 
 1.3.4 Other  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
2. Travel  370.1  401.4  408.0  499.1  133.0  281.2  420.2  
 2.1 Business  76.2 82.7 84.0 101.3  13.3 28.1 42.0 
 2.2 Personal  293.8  318.7  323.9  397.8  119.7  253.1  378.2  
3. Other services  447.4  672.7  708.2  744.6  746.5  798.2  821.8  
A. Communications services  77.3 81.9 72.4 76.8 64.0 71.3 71.2 
 A.1 Postal and courier services  17.6 19.0 17.6 22.7 11.4 17.9 17.0 
 A.2 Telecommunications services  59.7 62.9 54.7 54.1 52.6 53.4 54.3 
B. Construction services  1.2 5.0 5.0 0.0 0.0 0.0 0.0 
C. Insurance services  105.5  118.0  118.1  130.5  140.5  151.9  147.9  
 C.1 Reinsurance commissions  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 C.2 Reinsurance charges  96.6 108.3  107.9  120.0  131.4  139.8  133.9  
 C.3 Freight insurance charges  8.9 9.7 10.3 10.5 9.1 12.2 14.1 
D. Financial services  19.7 40.4 45.0 43.1 46.9 43.2 45.8 
 D.1 Financial services  2.9 22.5 30.3 29.8 23.9 27.5 30.2 
 D.1.1 Credit card transactions  1.5 1.5 0.0 1.5 1.5 1.5 1.5 
 D.1.2 Other financial services  1.5 21.1 30.3 28.4 22.4 26.1 28.6 
 D.2 Commissions and other services  16.8 17.9 14.7 13.3 23.0 15.7 15.6 
 D.2.1 External debt commissions  15.9 17.0 13.9 12.5 22.2 14.9 14.8 
 D.2.2 Commissions on arrears  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 D.2.3 Services survey  0.8 0.8 0.8 0.8 0.8 0.8 0.8 WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019  2020a 2021a 2022a 
E. Computer and information services  15.5 13.5 97.4 113.5  111.8  120.0  135.5  
F. Royalties and licence fees  66.6 109.4  115.1  84.5 62.4 93.9 102.3  
G. Other business services  116.3  256.4  220.4  236.8  265.5  227.2  237.9  
 G.1 Trade -related services  2.8 17.6 17.3 16.8 12.2 13.3 6.2 
 G.2 Operational leasing  12.5 14.3 10.1 2.9 2.4 2.9 2.4 
 G.3 Business, professional and technical services  101.1  224.5  193.0  217.1  250.9  211.1  229.3  
H. Personal, cultural and recreational 
services  9.3 9.3 9.3 32.4 27.2 31.3 41.3 
I. Government services  36.0 38.8 25.5 27.1 28.2 59.3 39.8 
a  Provisional figures.  
Source:  Central Bank of Honduras.  
1.3.2   Trends and patterns in FDI  
1.57.   Foreign direct investment (FDI ) flows declined during the review period, partly owing to the 
impact of the pandemic on economic activity and disinvestment in some sectors, including the 
maquila  sector, and partly to  the climate of insecurity, dropping from USD 1,139.4 million in 2016 
to USD 498.1 million  in 2019 (Table 1.5). Investment flows were subsequently affected by the 
pandemic, falling to USD  418.7  million in 2020 before recovering in 2021 and 2022, when FDI flows 
stood at USD  738.7  million and USD 822.6 million respectively. The  best performance in these years 
was mainly owing to greater investment in the commerce, restaurant and hotel sector. Between 
2016 and 2022, the sectors receiving the largest volume of investment were: financial and business 
services; commerce , restaurants  and hotels; and maquila . 
Table 1.5 Foreign direct investment flows by economic activity, 2016 -2022 
(USD million)  
 2016  2017  2018  2019  2020a 2021a 2022a 
Agriculture, forestry, hunting and fishing  -29.2 -67.2 62.1 -3.8 6.7 18.8 35 
Commerce, restaurants and hotels  156.5  157.3  58.4 7.1 -11.3 147.9  393.5  
Construction  20.3 102.0  5.8 -3.1 -30.8 15.3 -11.4 
Electricity, gas and water  4.3 171.0  242.6  138.5  77.4 98.9 82.3 
Servicesb 419.7  118.9  298.8  261.3  314.3  314.1  321.8  
Mining and quarrying  -64.8 0.2 -5.6 12.3 -1.1 43.5 58.6 
Manufacturing  221.8  35.5 63.1 -75.7 -165.3  42.0 -27.1 
Goods processing industry ( maquila ) 208.4  599.9  -100.5  -34.6 235.0  77.4 3.6 
Transport, storage and 
telecommunications  202.3  58.1 336.6  196.1  -6.3 -19.2 -33.7 
Total  1,139.4  1,175.8  961.3  498.1  418.6  738.7  822.6  
a Preliminary figures.  
b Includes financial institutions, insurance and business services.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding. Negative values mean 
disinvestment, owing mainly to acquisitions of businesses or a decrease in liabilities.  
Source:  Central Bank of Honduras, Macroeconomic Statistics Department, Balance of Payments Secti on. 
1.58.   Panama, the United States and European Union countries are the main sources of foreign 
investment and together account for over half of the total FDI in Honduras between 2016 and 2022, 
followed by Colombia and Guatemala (Table 1.6).  
Table 1.6 Foreign direct investment flows by origin, 2016 -2022 
(USD million)   2016  2017  2018  2019a 2020a 2021a 2022a 
Total  1,139.4  1,175.8  961.4  498.3  418.4  738.7  822.6  
America  761.6  1,021.5  506.2  468.3  523.7  698.7  787.1  
 North America  138.2  600.7  63.0 102.6  215.3  83.2 220.6  
 United States of America  -3.6 564.2  -15.4 -42.5 247.6  109.5  190.5  
 Canada  -12.5 3.5 -1.9 8.7 0.4 2.7 19.8 
 Mexico  154.3  33.1 80.3 136.4  -32.7 -29.0 10.3 
 Latin America  623.3  420.8  443.2  365.7  308.4  615.4  566.5  
 Central America  479.0  214.1  271.4  199.7  145.2  292.2  333.8  
 Guatemala  158.1  55.8 39.7 120.6  72.4 133.5  60.1 
 El Salvador  20.3 4.6 16.6 25.5 3.2 15.7 22.1 
 Nicaragua  23.7 3.5 8.0 5.8 12.0 11.0 14.4 
 Costa Rica  4.2 -6.1 19.3 -41.6 1.6 0 0 
 Panama  272.7  156.3  187.8  89.4 56.0 132.0  237.2  WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019a 2020a 2021a 2022a 
 Caribbean  43.3 166.3  88.1 62.3 30.5 141.2  59.3 
 Bahamas  10.5 179.3  38.6 5.1 7.3 0 0 
 Barbados  0.7 -0.7 2.9 -2.9 -3.7 0 0 
 Bermuda  26.0 -23.7 33.4 33.0 24.8 0 0 
 Curaçao  .. .. 0.0 1.5 -10.5 0 0 
 Cayman Islands  .. .. -3.4 8.5 3.5 0 0 
 British Virgin Islands  6.0 3.8 12.3 12.3 2.9 0 0 
 Dominican Republic  .. .. 4.3 4.8 6.2 0 0 
 Other  0.0 7.7 0.0 0.0 0.0 0 0 
 Rest of Latin America  101.0  40.4 83.7 103.7  132.7  182.0  173.4  
 Argentina  .. .. -0.7 0.0 0.0 0 0 
 Brazil  1.9 28.2 -15.9 0.3 -23.0 0 0 
 Chile .. .. 1.4 -0.2 0.0 0 0 
 Colombia  98.6 30.5 105.8  104.5  156.3  169.1  160.4  
 Ecuador  0.5 -0.6 -6.7 0.0 0.0 0 0 
 Peru .. .. 0.0 -0.4 -0.3 0 0 
 Uruguay  .. .. -0.2 -0.5 -0.3 0 0 
 Other  0.0 -17.7 0.0 0.0 0.0 0 0 
Europe  376.1  100.4  456.0  25.3 -96.1 -10.5 5.0 
 Germany  157.6  44.1 26.3 -8.2 -15.1 -19.2 2.8 
 Austria  3.6 0.9 0.6 3.5 1.6 0 0 
 Belgium  77.5 1.1 126.5  8.1 -35.1 -64.1 -49.7 
 Denmark  .. .. -1.2 -0.2 -0.1 0 0 
 Spain  0.3 1.0 9.2 1.8 -4.3 -7.1 35.5 
 Finland  -9.2 0.9 6.9 10.4 6.8 0 0 
 France  .. .. -0.1 -0.1 0.0 0 0 
 Italy 12.1 49.8 -31.2 2.1 7.2 14.6 4.1 
 Luxembourg  107.8  -2.8 247.4  10.2 -6.3 12.7 -22.9 
 Norway  .. .. 12.7 1.3 -0.6 0 0 
 Netherlands  -12.6 15.5 49.2 2.4 -14.6 0.7 20.2 
 Portugal  .. .. -2.8 0.5 0.0 0 0 
 United Kingdom  -0.1 -20.0 1.3 -0.4 1.6 0 0 
 Sweden  .. .. 4.4 -2.7 -0.7 0 0 
 Switzerland  39.1 -13.4 6.8 -3.4 -36.5 28.2 3.9 
 Other  0.0 23.4 0.0 0.0 0.0 0 0 
Asia and Oceania  1.7 53.9 -0.8 4.7 -9.2 50.4 30.5 
 China  11.0 18.7 -20.4 5.2 -4.4 0 0 
 Republic of Korea  1.1 10.9 -3.0 3.1 -1.5 18.5 12.9 
 Philippines  0.0 0.0 15.1 -4.9 14.0 0 0 
 Hong Kong, China  1.3 -0.2 -1.5 -2.1 -2.0 0 0 
 India 3.1 0.2 2.1 1.2 -1.1 0 0 
 Israel  .. .. 9.8 3.0 3.3 14.9 8.2 
 Japan  .. .. 7.0 2.7 1.0 8.0 6.8 
 New Zealand  -0.7 0.1 -3.1 -1.7 -0.7 0 0 
 Singapore  -14.0 -2.6 -8.1 -1.8 -12.7 0 0 
 Sri Lanka  0.0 8.1 1.4 -0.7 -5.2 0 0 
 Chinese Taipei  -0.1 0.6 -0.1 0.7 0.1 0 0 
 Other  0.0 18.0 0.0 0.0 0.0 0 0 
.. Not available.  
a Preliminary figures.  
Note:  The sum of the parts is not necessarily equal to the total, owing to rounding. Negative values mean 
disinvestment, owing mainly to acquisitions of businesses or a decrease in liabilities.  
Source:  Central Bank of Honduras, Macroeconomic Statistics Department.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  2  TRADE AND INVESTMENT REGIME  
2.1  General framework  
2.1.  During the period under review (2016 -22), the 1982  Constitution of the Republic of Honduras 
was amended twice.1 The constitutional reform process is initiated by the National  Congress, which 
also approves and ratifies the reform decree.2 Once the decree has been ratified, the 
executive  branch promulgates it and cannot sanction or object to it.3 All provisions of the 
Constitution can be amended, except the constitutional reform process, the system of government 
(which will always be republican, democratic and representative), the presidential term of office and 
the criteria for selecting presidential candidates. In  2022, a reform decree was adopted, which 
repealed all constitutional provisions relating to the Employment and Economic Development Zones 
(ZEDE)4, which as of March  2023 had still not been ratified.  
2.2.  The State of Honduras has three separate and independen t branches of power. The President 
of the Republic is the head of the executive branch; if they are unable to exercise their functions, 
they are replaced by a presidential appointee.5 The President is elected every four years (re -election 
is not permitted ).6 The National  Congress, comprising 128  deputies elected every four  years, 
constitutes the legislative  branch. The judicial branch is made up of the Supreme Court of Justice 
(CSJ), the courts of appeal and lower courts.7 
2.3.  The centralized public administ ration comprises the Office of the President of the Republic, the 
Council of Ministers, and the government m inistries. These report directly to the President of the 
Republic.8 In 2022, the public administration was restructured, and several ministries wer e created.9 
Honduras currently  has 24  ministries.10 
2.4.  Honduras is divided into 18  departments and 298  municipalities. Each department is led by a 
governor appointed by the Executive. Each municipality has a municipal council ( corporación 
municipal ) comprisi ng a mayor and councillors.11 
2.5.  The Constitution is the supreme law and takes precedence over: (a) international treaties12; 
(b) organic laws; (c) codes of the Republic; (d) ordinary laws; (e) regulations (executive decisions); 
(f) executive decrees; (g) leg islative decrees; and (h) decisions issued by the ministries. To become 
part of domestic law, an international treaty requires approval by the National  Congress and 
ratification by the Executive.13 Honduras has an online legal information system, but there  are no 
 
1 Decrees  No. 2-2019 and No.  3-2021.  
2 Both approval and ratification require a qualified majority of two thirds of deputies.  
3 Articles  218, 373 and 374 of the Constitution.  
4 Decree  No. 32-2022.  
5 Three presidential appointees are also elected when the President is elected.  
6 The most recent general elections were held in 2021.  
7 Article  303 of the Constitution.  
8 General Law on Public Administration (Decree No.  146-86) and Article  246 of the Cons titution.  
9 Executive Decree No.  PCM-05-2022.  
10 They are: (1) the Office of the President; (2) the Ministry of Social Development; (3) the Ministry of 
Finance; (4) Ministry of Justice, the Interior and Decentralization; (5) the Ministry of Foreign Affairs and 
International Cooperation; (6) the Ministry of Transparency and Anti -Corruption Measures; (7) the Ministry of 
Strategic Planning; (8) the Ministry of Economic Development; (9) the Ministry of Women's Affairs; (10) the 
Ministry of Security; (11) the Min istry of Defence; (12) the Ministry of Health; (13) the Ministry of Natural 
Resources and the Environment; (14) the Ministry of Education; (15) the Ministry of Human Rights; (16) the 
Ministry of Agriculture and Livestock; (17) the Ministry of Energy; (18) the Ministry of Infrastructure and 
Transport; (19) the Ministry of Labour and Social Security; (20) the Ministry of Tourism; (21) the Ministry of 
Cultures, Arts and Heritage of the Peoples of Honduras; (22) the Ministry of Community Development, Water 
and Sanitation; (23) the Ministry of National Risk and Contingency Management; and (24) the Ministry of 
Project Development and Monitoring, under the Office of the President.  
11 Law on Municipalities (Decree No.  134-90). 
12 International human rights treaties ha ve the same status as the Constitution.  
13 Treaties are approved by an absolute majority, unless they modify the Constitution. In such cases, a 
qualified majority is required. Articles  16 and 17 of the Constitution.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  consolidated texts of laws that include all changes.14 The Official Journal can be viewed online, but 
registration is required.  
2.6.  There are two types of laws in Honduras: ordinary or common; and organic. There have been 
no changes to the legislative procedure since the last review in 2016 (Box  2.1). Draft laws are 
debated in plenary sessions of Congress three times, unless classified as "urgent " (e.g. in the event 
of a health or climate crisis), in which case a single debate may be held.15 Draft laws, once approved 
by the National  Congress, must be sanctioned by the Executive, unless it raises any objections. 
However, in certain cases (e.g. const itutional reforms and the budget law), the Executive 's sanction 
is not required nor can it object.16 
Box 2.1 Legislative procedure  
Right of initiative: A draft law can be proposed by deputies, the President , ministers, the CSJ (judicial matters), the 
National Electoral Council (electoral matters)a and citizens (supported by at least 3,000  signatures).  
Formulation of laws:  
The draft law is submitted to and examined by the various committees. If the purpose of the draft law is to amend the Codes 
of the Republic (e.g. the Tax Code) or the budget law, the committee will ask for the opinion of the CSJ or the Ministry of 
Finance.  
The draft approved by the committee is forwarded to the plenary session of Congress where three debates are held. The text 
as approved (by an absolute majority) is submitted to the Executive.  
Sanction, promulgation and entry into force:  
• The Executive sanctions the draft law. The law is promulgated and published in the Official Journal. Laws usually enter 
into force 20  days after their publication.  
• The Executive makes comments. The draft law and comments are returned to Congress where the text is debat ed 
further. If comments are submitted on grounds of unconstitutionality, Congress will request an opinion from the CSJ. 
The text, if approved by deputies (by a qualified majority), is submitted to the Executive to be promulgated "without 
delay ". 
a The Nat ional Electoral Council, which replaced the Supreme Electoral Tribunal, was set up in 2019 
through a constitutional reform.  
Source:  Articles  213-221 of the Constitution; and Organic Law of the Legislature (Decree  No. 363-2013), as 
amended by Decrees  No. 117-2021 and 140 -2021.  
2.7.  While the power to legislate rests with the National  Congress, the Constitution also grants this 
power to the Executive; it can legislate through executive decrees on matters within its competence, 
some of which relate to trade, such as the regulation of tariffs, and the establishment of 
extraordinary measures in economic and financial matters when the national interest so warrants.17 
To have legal force, executive decrees must be "authorized " by the minister in charge of the rele vant 
portfolio.18 The National  Congress may amend and repeal these decrees.19 Since 2016, various 
executive decrees have been issued on the creation of new entities in the area of trade, such as the 
Customs Administration of Honduras (AAH) and the Health Regulation Agency (ARSA).20 
2.2  Trade Policy formulation and objectives  
2.8.  The Minist ry of Economic Development (SDE) is the institution responsible for formulating and 
implementing trade policy, promoting exports and attracting investment. To set the direction of 
trade policy and plan its objectives, the SDE consults and coordinates with other ministries and other 
public institutions that are directly or indirectly linked to foreign trade. It works mainly with the 
Ministry of Foreign Affairs and International Cooperation (SRECI), the Ministry of Finance (SEFIN), 
the Ministry of Agriculture  and Livestock (SAG), the Ministry of Strategic Planning (SPE), the Ministry 
of Natural Resources and the Environment (MiAmente), and the Ministry of Women 's Affairs. The 
AAH and the Revenue Administration Service (SAR) are also involved in formulating tra de policy.21 
 
14 Virtual Library of the High Court of Au ditors. Information viewed at: 
https://www.tsc.gob.hn/biblioteca/index.php . 
15 Article  63 of the Organic Law of the Legislature (Decree  No. 363-2013).  
16 Article  218 of the Constitution.  
17 Article  245 of the Constitution and information provided by the authorities.  
18 Article  248 of the Constitution.  
19 Article  205 of the Constitution.  
20 The AAH was set up by Executive  Decree  No. PCM-059-2019, and the ARSA by 
Executive  Decree  No. PCM-032-2017.  
21 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  The SDE also meets with trade associations, especially the Honduran Private Enterprise Council 
(CHEP) to learn about and consider the positions of different sectors of the economy.  
2.9.  Honduran trade policy is set out in a long -term development pl an, the 2010 -38 Country Vision, 
which has been implemented through various government plans.22 In the context of this review, the 
authorities have indicated the need to update trade policy guidelines and objectives in the light of 
the impact of the pandemi c and the weather events that struck Honduras in 2020. The 2022 -26 
National Plan to Refound Honduras (PNRH) was therefore produced, with a strategic government 
plan being drawn up and sectoral policies being reviewed  with a view to its implementation.  
2.10.   Honduras considers that trade should contribute to economic growth in order to promote 
inclusiveness and sustainability. Honduran trade policy continues to be oriented towards openness, 
with the objective of continuing to integrate into international markets. The main objective of 
Honduran trade policy continues to be to increase exports by consolidating and adding value to 
traditional exports , and to bring about diversification.23 To promote export  growth, Honduras intends 
to integrate into global value chains  and better manage trade agreements (through digitalization 
and simplified processes). In this context, Honduras is still using tools like the free trade zone regime 
to promote exports. However, it faces certain challenges in terms of access to finance, re search and 
development, infrastructure, and recognition of technical and sanitary requirements, which 
undermine its export capacity.  
2.11.   Honduras considers that there should be greater participation of women in its 
internationalization strategy. The authoritie s have indicated that numerous initiatives have been 
taken in this regard, such as the Women 's City (Ciudad Mujer ) Project, which aims to promote 
women 's economic empowerment and their integration and participation in trade. In addition, 
Honduras considers  it essential to adopt responsible and sustainable trade practices given its 
vulnerability to climate change.24 
2.3  Trade agreements and arrangements  
2.3.1   WTO  
2.12.   Honduras is an original Member of the WTO  and accords at least most -favoured nation (MFN) 
treatment to all  its trading partners. This is the fourth review of its trade policies. Since the previous 
Review in 2016, Honduras has notified its trade and trade -related measures to the WTO 
(Table  A2.1).  
2.13.   In 2015, Honduras adopted the Trade Facilitation Agreement (TFA)25 and submitted its 
instrument of ratification to the WTO in 2016. To coordinate Honduras 's implementation of the 
Agreement, which entered into force in 2017, the National Trade Facilitation Committee (CONFACO) 
was set up in 2018 and started meeting in 201 9.26 CONFACO, which is chaired by the SDE, comprises 
representatives of nine public institutions and eight representatives from the private sector (each 
representative has voting rights).27 By March  2023, Honduras had implemented 70.6% of its 
commitments.28 
 
22 Information provided by the authorities.  
23 Information provided by the authorities.  
24 Honduras National Climate Change Strategy adopted in 2022. Information viewed at: 
https://icf.gob.hn/wp -content/uploads/2022/02/Estrategia -Nacional -de-Cambio -Climatico.pdf ; and Third 
National Communication on Climate Change. Information viewed at: 
https://unfccc.int/sites/default/files/resource/Third%20National%20Communication%20HONDURAS.pdf . 
25 Decree  No. 146-2015.  
26 Executive  Decree No. PCM -039-2018; and SDE . Information viewed at: https://sde.gob.hn/comite -
de-facilitacion -de-comercioconfaco /. 
27 Representing the public sector: (a) the SDE, SAG, SEFIN  and the Ministries of Health, Security, and 
Infrastructure and Public Services; (b) the Presidential Commission for the Comprehensive  Reform of the 
Customs System and Trade Operators (COPRISAO); (c) the Health Regulation Agency; and (d) the National 
Migra tion Institute. Representing the private sector: the Honduran Private Enterprise Council (COHEP), the 
industrial sector, the export sector, the logistics sector, the transport sector, the production sector and the 
agro-industrial sector.  
28 TFA Database. In formation viewed at: https://tfadatabase.org/en/members/honduras . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  2.14.   Honduras joined the Information Technology Agreement (ITA), but does not participate in the 
expanded ITA. Honduras is not a party to the Agreement on Government Procurement or the 
Agreement on Trade in Civil Aircraft, and does not have observer status i n the respective 
committees. In 2011, Honduras accepted the Protocol amending the Agreement on Trade -Related 
Aspects of Intellectual Property Rights (TRIPS)  
2.15.   At the Twelfth Ministerial Conference (MC12), Honduras reiterated its support for the 
multilateral trading system based on clear and equitable rules, which should contribute to the growth 
and well -being of all Members. At the same time, Honduras is in favour of reforming the WTO to 
strengthen its functioning. Honduras believes it is important for the WT O to consider "issues 
concerning the dynamic and ever -changing reality of international trade ".29 In this connection, 
Honduras participates in joint initiatives, structured discussions and the working groups on 
e-commerce, the integration of MSMEs into tra de, investment facilitation for development, and the 
relationship between trade and environmental sustainability, and between trade and gender.  
2.16.   In the context of WTO negotiations, as a small and vulnerable economy, Honduras promotes 
provisions that, in its  view, are "crucial " to sustaining food security and farmers ' well-being. 
Honduras supports special and differential treatment and other flexibilities, such as domestic support 
measures, the special safeguard mechanism and public stockholding programmes.30 Honduras is 
part of two negotiating groups on agriculture (the G -33 and the Group of Small and Vulnerable 
Economies). It has also co -sponsored the proposal to establish a multilateral system for notifying 
and registering geographical indications for wines  and spirits.  
2.17.   Since 2016, Honduras has not made use of the dispute settlement mechanism or been 
involved either as a complainant or a respondent, but has been a third party in 11  cases.  
2.3.2   Regional and preferential agreements  
2.18.   As of 2022, Honduras was particip ating in 14 trade agreements, including the Central 
American Common Market (CACM), to which Costa  Rica, El Salvador, Guatemala, Nicaragua and 
Panama are also parties. Most of Honduras 's trade agreements are with partners in the region 
(Chart  2.1). 
Chart 2.1 Honduras 's trade agreements in force in 2022  
 
Note:  AAP.A25TM is a partial scope agreement under Article  25 of the Treaty of Montevideo.  
Source:  WTO Secretariat.  
2.19.   All of Honduras 's trade agreements include t rade in goods and services, with the exception of 
the agreement with the Bolivarian Republic of Venezuela , which is a partial scope agreement under 
the Latin American Integration Association  (LAIA) , which covers only trade in a limited number of 
goods. In general, the agreements negotiated by Honduras include, besides market access, areas 
such as investment, government procurement, intellectual property, e -commerce, and labour or 
environmental issues.  
 
29 WTO document WT/MIN(22)/ST/130 of 13  June 2022.  
30 WTO document WT/MIN(22)/ST/130 of 13  June 2022.  
Honduras
Costa RicaGuatemala
Nicaragua
El SalvadorUnited StatesDominican
Republic
PanamaCAFTA -DR
United 
KingdomEUCanada Mexico
ColombiaChile
Northern TrianglePeru
Chinese TaipeiRepublic of
KoreaBolivarian
Republic of
Venezuela
CACM
Central AmericaCentral AmericaCentral AmericaWT/TPR/S/443 /Rev.1  • Honduras  
 
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  2.20.   During the review period, trade agreements with Peru (20 17), the Republic of Korea (2019) 
and the United Kingdom (2021) entered into force for Honduras. The agreement with Peru is a 
bilateral agreement that will see Honduras eliminate 98.8% of tariff lines  (Table 2.1); the  tariff lines  
that will remain subject to duties fall  under Sections I -IV and XV of the Harmonized System (HS). 
For the Republic of Korea, Honduras will phase out tariffs on 95.6% of tariff lines and 308 lines 
across various HS Sections will remain dutiable (Table  2.1).31 Honduras has not negotiated tariff 
rate quotas with Peru or the Republic of Korea. Liberalization of trade in services with both partners 
adopts a negative list approach.32 
Table 2.1 Tariff reduction, 2016 -22 
 Republic of Korea  Peru  
Signature  21/02/2019  29/05/2015  
Entry into force  01/10/2019  01/01/2017  
End of the tariff reduction period for Honduras  2038 2036 
Tariff reduction programme:  (% of tariff lines)  
Immediate  63.3 77.0 
Less than 10 years  10.5 7.3 
10 years  17.3 13.5 
More than 10 years  4.5 1.0 
Tariff maintained  4.4 1.2 
Source:  Information provided by the authorities.  
2.21.   The Association Agreement between Central America and the United Kingdom of Great Britain 
and Northern Ireland (AACRU) was signed in 2019 and entered into force in 2021. The agreement 
guarantees continuity of market access conditions and other disciplines negotiated under the 
Association Agreement between the European Union and Central America (AACUE). As a result, the 
tariff reduction schedule, tariff preferences and (regional and national33) quotas agreed under the 
AACUE are maintained under the AACRU. However, to implement the AACRU, some technical 
modifications were made, such as adjusting tariff quota volumes. The rule s of origin for 
the United  Kingdom remain the same as those negotiated with the EU. The AACRU also retains the 
positive list approach to the liberalization of trade in services.34 
2.22.   The authorities have indicated that in 2020, under the Free Trade Agreement between 
Central  America and Mexico, the Parties agreed the list of entities subject to the provisions on 
government procurement.  
2.23.   With regard to the CACM, in 2022, the new Central American Regulations on the Origin of 
Goods entered into force, repealing the  previous regulations that had been in force since 2006.35 
The new Regulations underwent technical amendments following the adoption of the Central 
American Single Declaration (DUCA) and take into account importers ' involvement in the origin 
verification p rocess.36 In 2019, the process to renegotiate the Treaty on Investment and Trade in 
Services began.  
2.24.   Much of Honduras 's trade is conducted under preferential agreements. In 2021, 95% of 
Honduran exports went to markets offering preferential access and 76% o f imports originated in 
these markets. The most important trade agreements for Honduras are the Central 
America -Dominican Republic Free Trade Agreement (CAFTA -DR), CACM and the AACUE.  
2.3.2.1   Process of deep integration with Guatemala  
2.25.   Since the last review, Honduras has continued the gradual and progressive process of deep 
integration with Guatemala with a view to creating a customs union.37 However , not all goods move 
 
31 WTO document WT/REG452/1/Rev.1 of 17  October  2022. The lines that will remain dutiable at the 
end of the tariff reduction programme fall under Sections I -IV, VI, VII, IX, X, XII, XIII, XV, XVI and XX 
(information provided by the authorities).  
32 Information provided by the authorities.  
33 Central America grants regional tariff quotas for cured ham and bellies (streaky), whey, and prepared 
or preserved meat of swine. Honduras grants national quotas for milk in  powder and cheese.  
34 Information provided by the authorities.  
35 COMIECO Resolution No.  449-2021.  
36 Information provided by the authorities.  
37 El Salvador is in the process of joining this process.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  freely between Honduras and Guatemala. Honduras excluded 690 tariff lines (at the HS 10 -digit 
level) because of their "sensitive " nature, because they receive different preferential treatment in 
the two markets, or because they are regulated or controlled products due to sanitary or 
phytosanitary reasons or technical regul ations.38 
2.26.   Since 2017, goods moving without restrictions between Honduras and Guatemala must be 
accompanied by the Central American Invoice and Single Declaration (FYDUCA ) (Chart  2.2). Goods 
that cannot move freely require the DUCA . All goods moving between these two markets have to go 
through the integrated border posts (PFIs).39 There are currently three such posts between Honduras 
and Guatemala, where Honduran and Guate malan customs, tax and sanitary/phytosanitary officials 
operate. Each PFI has a trade facilitation centre, which handles goods that move freely, and an 
integrated control centre, where excluded goods are processed. Honduras also has five peripheral 
customs  offices that are used as entry and exit points.40 
Chart 2.2 Central American Invoice and Single Declaration (FYDUCA)  
 
a The Honduran supplier submits the FYDUCA via the virtual office of the Revenue Administ ration 
Service (SAR).  
b Internal taxes in Honduras are the sales tax (ISV), production and consumption tax (IPC) and 
selective consumption tax (ISC).  
Note:  There are two types of FYDUCA: (1) the normal FYDUCA, when the buyer has to pay the ISV; and 
(2) the  ex officio  FYDUCA, when the buyer is exempt from paying the ISV.  
Source:  FYDUCA Manual. Information viewed at: https://www.ua.sieca.int/PIC . 
2.3.3   Other agreements and arrangements  
2.27.   Australia, Japan, New Zealand, Norway, the Russian Federation and Switzerland offer 
preferential treatment to Honduras under the Generalized System of Preferences (GSP).41 
2.4  Investment regime  
2.28.   The investment regime in Honduras is mainly governed by the Constitution and the Law on 
Investment Promotion and Protection (Decree No.  51-2011) and its implementing regulations42, and 
by the nine agreements on the reciprocal promotion and protection of investments43 and, with regard 
to arbitration procedure s, by the Convention on the Settlement of Investment Disputes between 
States and Nationals of Other States, the New York Convention and the Inter -American Convention 
on International Commercial Arbitration. Honduras is party to the Convention Establishing the 
Multilateral Investment Guarantee Agency.  
 
38 Products excluded from free movement include agricultura l products (e.g. dairy products, eggs, black 
and red beans, white and yellow maize, unroasted coffee or cane sugar); and products such as cement, 
petroleum products, medicines, fertilizers and vehicles (information provided by the authorities).  
39 Customs O perations Guide. Information viewed at: 
https://www.sieca.int/index.php/download/descargue -la-guia-de-operaciones -aduaneras/ . 
40 AAH. Information viewed at: https://www.aduanas.gob.hn/union -aduanera /. 
41 Information provided by the authorities.  
42 Law on Investment Promotion and Protection (Decree  No. 51-2011), as amended by 
Decree  No. 284-2013. Regulations implementing the Law on Investment Promotion and Protection 
(Executive  Decision  No. 22-DGTC -2014).  
43 Chile; France; Germany; Netherlands; Republic of Korea; Spain; Switzerland; United States; 
and United Kingdom.  
Supplier
BuyerRevenue authority
Buyer’s bankRevenue authorityaElectronically
submits the
FYDUCAElectronically
submits the
FYDUCA
Verifies and validates the
FYDUCA ; notifies buyer
Electronically pays theinternal
taxes levied onthepurchase
(within 24 hours )Notification 
ofpaymentNotifies that thepayment of
internal taxes has been madeNotifies thesupplier that the
goods can be sentWT/TPR/S/443 /Rev.1  • Honduras  
 
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  2.29.   The National Investment Council (CNI) is tasked with attracting foreign investment into 
Honduras. Investment promotion focuses on both traditional target sectors (agribusiness, textiles, 
tourism and business su pport services, such as call centres and business process outsourcing) and 
new sectors (energy, logistics, forestry, mining and construction).44 The CNI also supports foreign 
investors before, during and after making their investment.  
2.30.   To attract investment , Honduras provides tax benefits to certain sectors (such as tourism and 
clean electricity generation), as well as under special export promotion schemes. The ZEDE regime, 
established in 2013 with the aim of "creating an attractive economic and legal envir onment " to 
encourage domestic and foreign investment, was withdrawn in 2020.45 However, pursuant to the 
Law on Employment and Economic Development Zones, the incentives granted thereunder will 
remain in place for 10  years.46 As a result, the authorities have indicated that the companies covered 
by this regime are still operating and receiving the corresponding benefits.  At present (March  2023), 
Honduras has three ZEDEs (Ciudad Morazán, Orquídea and Próspera), where construction and real 
estate  companies, an agricultural company, and financial and tourism service providers operate. As 
part of this Review, the authorities have indicated that there were no data available on ZEDEs.  
2.31.   The Constitution allows the State, on the grounds of public order o r social interest, to retain 
the exclusive right to operate certain basic industries and provide certain basic services (Article  332). 
As a result, in 2022, some activities were still reserved to the State (Box  2.2), such as the marketing 
of electricity, a  subsector in which private capital investment was allowed until 2022. Furthermore, 
the State still has a natural monopoly on transmission and distribution  in the electricity sector. In 
reserved activities, the State may be the operator, or grant concessio ns47 or operating contracts.48 
Mineral resources are owned by the State, and exploration and extraction of such resources require 
a concession.49  
Box 2.2 Activities reserved to the State, 2016 -2022 
• Activities that affect public healtha (Article  3 of the Law on the Promotion and Protection of Investment (Decree  
No. 51-2011))  
• Marketing of electricity (Article  15 of the General Law on the Electricity Industr y (Decree  No. 404-2013), as amended by 
Decree  No. 46-2022)  
• Issuance of currency (Article  342 of the Constitution)  
• Manufacture, import, distribution and sale of arms and ammunition (Article  292 of the Constitution)  
• National Lottery and other lotteries (A rticle 5 of the Organic Law on the National Foundation for Children 
(Decree  No. 438-77)) 
• Prospecting for, exploration and exploitation; processing and refining; transportation; storage; and marketing of 
hydrocarbons (Article  1 of the Law on Hydrocarbons ( Decree  No. 194-84)) 
• The postal service (Articles  3 and 4 of the Organic Law on the Honduran Postal Company (Decree  No. 120-93)) 
• Auxiliary air navigation services (Article  95 of the Law on Civil Aviation (Decree  No. 55-2004))  
• Treatment of solid and organic waste (Articles  29 and 67 of the General Law on the Environment (Decree  No. 104-93)) 
• Treatment of toxic, hazardous or radioactive waste (Article  3 of Decree No. 51 -2011)  
a Activities included in the Health Code (Decree  No. 65-91). 
Source:  WTO Sec retariat and information provided by the authorities.  
2.32.   As in 2016, access to small -scale industry and trade is prohibited for foreign nationals.50 
However, in accordance with the information provided by the authorities for this Review, foreign 
participation  in these activities is authorized based on the principle of reciprocity.  
 
44 CNI. Information viewed at: https://www.cni.hn/s ectores -de-inversion /. 
45 Articles  2 and 5 of the Law on Employment and Economic Development Zones 
(Decree  No. 120-2013); and Decree  No. 33-2022.  
46 Article  45 of Decree No.  120-2013.  
47 The authorities have indicated that the national lottery and the air navigation service are subject to 
concessions.  
48 Operating contracts are used in the hydrocarbon sector.  
49 Law on Mining (Decree  No. 238-2012), as amended by Decrees  No. 109-2019 and No.  135-2020.  
50 Article  337 of the Const itution.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  2.33.   Foreign nationals can obtain the same financing terms as nationals at Honduran banks and 
can participate without any limits (i.e. up to 100%) in the share capital of Honduran compani es in 
those sectors where there are no restrictions.51 However, for certain activities, caps on FDI are still 
imposed (Table  2.2). Both the caps and the activities concerned have remained unchanged since 
2016. There is no consolidated list of activities su bject to caps on FDI.  
Table 2.2 Activities subject to caps on FDI, 2016 -2022  
Cap Activities  Legislation  
70% Construction or consulting services  Article  67 of the Organic Law of the Association of Civil Engineers of 
Honduras (Decree  No. 47-1987); Articles  100 and 101 of the 
Regulations of the Organic Law of the Association of Civil Engineers 
of Honduras  60% Construction and consulting 
services  
49% Commercial fishing  Article  20 of the Law on Fishing (Decree No.  154-59) 
Domestic air transport  Article  106 of the Law on Civil Aviation (Decree  No. 55 -2004), as 
amended by Decree  No. 65-2017 
International air transport  Air service agreements  
Domestic maritime transport and 
cabotage  Articles  5 and 6 of the Maritime Transport Regulations 
(Agreement  No. 000764 -97) 
National land transport  Article  18 of the Law on Land Transport (Decree  No. 319-76) 
Commercial agent services  Article  4 of the Law on Representatives, Distributors and Agents of 
National and Foreign Enterprises (Decree  No. 549-1977), as 
amended by Decree  No. 804-79 Distribution services (incl. petrol 
stations)  
Source:  WTO Secretariat and information provided by the authorities.  
2.34.   Honduras grants national treatment to foreign investment. Foreign investors do not require 
prior authorization to invest and, as in the case of domestic investment, there is no obligation to 
register foreign investment in the Investor Register, which is ke pt by the CNI for statistical 
purposes.52 However, registration – which costs HNL  20053 – offers foreign investors certain benefits, 
such as simplified immigration procedures.54 
2.35.   Foreign nationals can buy real estate throughout Honduras, except around borde r areas 
(i.e. within 40  km of the borders and coastlines).55 In such areas, foreign nationals can nevertheless 
purchase urban real estate for housing and certain types of projects, such as for tourism purposes.56 
In the event of a dispute, foreign nationals can avail themselves of two regimes to safeguard their 
property rights.57 The State may expropriate real estate out of necessity or in the public interest.58 
2.36.   Honduras continues to implement the legal stability regime for foreign investment of more 
than USD  2 million in any economic activity and area of the countr y. Legal stability contracts are 
requested from the CNI, signed by the Executive, and approved by the National Congress.59 These 
contracts guarantee fiscal stability (at the state and local levels) for 15  years, or 25  years for the 
forestry sector. In addi tion, the benefits are extended to investments covered by a public -private 
partnership for the term of the concession. The authorities have indicated that legal stability 
contracts are not frequently used.  
2.37.   Investment projects designated as being of "priority interest "60 (or national interest) are 
granted tax relief related to the annual amortization of start -up costs (20% can be deducted 
 
51 Article  4 of Decree No.  51-2011.  
52 Registration can be done online: https://www.cni.hn/registro -de-inversionistas /. 
53 SDE and CNI (2021), "Consejo Nacional de Inversiones (CNI) (Promoción y Protección de Inversiones 
Privadas) ", Guía del Inversionista – Honduras 2020 -21. Viewed at: https://sde.gob.hn/wp -
content/uploads/2021/08/3. -Consejo -Nacional -de-Inversiones.pdf . 
54 Permanent residence permits for inv estors are granted to foreign nationals who invest at least 
USD 50,000 (Law on Migration and Aliens (Decree  No. 208-2003)).  
55 Article  107 of the Constitution.  
56 Articles  4 and 5 of the Law on the Purchase of Urban Property in the Areas Delimited by Article  107 of 
Constitution of the Republic (Decree  No. 90-90). 
57 Dispute Prevention Regime and the Guarantee Regime for the Completion of Projects on Disputed 
Real Estate (Decree  No. 51-2011).  
58 Article  106 of the Constitution.  
59 Decree  No. 51-2011, as amended b y Decree No.  284-2013; Executive Decree  No. 22-DGTC -2014; 
and Decree No.  54-2019.  
60For a project to be designated as of "priority interest ", an application must be submitted to the CNI 
and approved by the National  Congress and the President.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  annually) and the option of requesting that the cost of tangible fixed assets be written off more 
quickly (accelerated depreciation).61 According to the authorities, public -private partnership projects 
can be designated as being of "priority interest ". 
2.38.   Foreign nationals can set up branches and different types of commercial companies in 
Honduras.62 The most com mon type used by foreign nationals are  limited liability companies  
(sociedad de responsabilidad limitada ) and joint -stock companies  (sociedad anónima ).63 Setting up 
a company involves registering with the Business Register, the Chamber of Commerce and Indu stry 
(CCI) and the National Tax Register (RTN)64, and may require national and local permits, licences 
and other authorizations.65 As part of the Digital Republic of Honduras (Digital Government), 
Honduras has been digitalizing procedures with the aim of s tandardizing and streamlining them.66 
2.39.   Foreign nationals may also "incorporate " companies in Honduras that are incorporated in 
other jurisdictions, which become subject to Honduran law.67 To "incorporate " a foreign company, a 
company 's certificate of regist ration in the country of origin and the document appointing a 
representative (permanent resident) in Honduras are required; both documents must be apostilled 
or authenticated. The company is registered as a foreign company in the Commercial Registry, with 
the CCI and the RTN.68 
2.40.   Foreign cooperatives, in whose place of origin reciprocity is offered, can operate in 
Honduras.69 
2.41.   Honduras continues to require that a minimum percentage of national workers be employed 
in all companies established in the country, namely 90% of the workforce and 85% of the payroll. 
The Ministry of Labour and Social Security may allow a higher proportion of foreign nationals to be 
employed, for a period of five years, after which, to the extent possible, they must be replace d by 
Honduran employees.70 
2.42.   Honduras does not apply restrictions on capital repatriation or the payment of profits, 
dividends, interest and royalties abroad.71 Foreign investors must pay income tax (ISR) on dividends 
and any profits derived from investments  in Honduras.72 Honduras is not party to any double taxation 
avoidance agreements.  
 
 
61 Articles  32-35 of Decree  No. 51-2011.  
62 The types of commercial companies that can be set up are a general partnership ( sociedad colectiva ); 
a limited partnership ( sociedad en comandita simple ); a partnership limited by shares ( sociedad en comandita 
por acciones ); a limited liability company ( sociedad de responsabilidad limitada ); and a joint -stock 
company( sociedad anónima ). 
63 The other types of commercial companies are a general partnership, a limited partnership and a joint -
stock company. eRegulations Honduras Progra mme. Information viewed 
at: https://honduras.eregulations.org/menu/1?l=es . 
64For limited liability companies or joint -stock companies, all three registrations can be submitted at the 
same time using the special single form (FUE). This is submitted electronically via "Mi Empresa en Línea ". 
65 SDE and CNI (2021), "Inicio de Operación de una Empresa " and "Aspectos e Incentivos Legales ", 
Guía del Inversionista – Honduras 2020 -2021. Viewed at: https:/ /sde.gob.hn/wp -content/uploads/2021/08/1. -
Inicio -de-Operacion -de-una-Empresa.pdf  and https://sde.gob.hn/wp -content/uploads/2 021/08/7. -Aspectos -e-
incentivos -legales.pdf . 
66 Information provided by the authorities.  
67 Article  55 of Decree No.  51-2011.  
68 Information provided by the authorities.  
69 Article  19 of the Law on Honduran Cooperatives (Dec ree No.  65-1987), as amended by Decree 
No. 146-2019.  
70 Article  137 of the Constitution and Article  11 of the Labour Code.  
71 Article  4 of Decree No.  51-2011.  
72 SAR. Information viewed at: https://www.sar.gob.hn/helpie_faq/cual -es-la-tasa-que-se-aplica -por-
concepto -de-impuesto -sobre-la-renta -a-las-personas -naturales -y-juridicas -no-domiciliadas -y-o-no-residentes -
que-obtienen -ingresos -de-fuente -hondurena /. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3  TRADE POLICIES AND PRACTICES BY MEASURE  
3.1  Measures  directly affecting imports  
3.1.1   Customs  procedures, valuation, and requirements  
3.1.1.1   Customs  procedures and requir ements  
3.1.  Honduras 's customs regime is governed primarily by the Customs Law (Decree No. 212 -87) 
and the Central American Uniform Customs Code (CAUCA IV) and its implementing Regulations 
(RECAUCA  IV).1 Where it is not contrary to the Central American regulations or in areas not covered 
by CAUCA and RECAUCA, the Customs Law still applies. There have been no major changes to 
Honduras 's customs legislation since the country 's last review in 2016.2 However, both CAUCA and 
its implementing Regulations have been amended since 2018 .3 
3.2.  Goods can enter Honduras under various definitive, temporary or suspensive, and 
duty-exemption customs regimes.4 There were no changes to the import regimes between 2016 
and 2022.  
3.3.  The Customs Administration of Honduras (AAH) was established in 2019 an d began operating 
as the new customs authority in 2020, replacing the Customs Revenue Directorate (DARA).5 The 
AAH is tasked with controlling and facilitating the entry and exit of goods, implementing the customs 
regimes, determining the levies applicable  to goods, monitoring exemptions and collecting customs 
duties.6 
3.4.  In addition to the AAH, the Ministry  of Economic Development (SDE), the Ministry of  Finance 
(SEFIN), the National Agricultural Health and Safety Service (SENASA) of the Ministry of  Agricultu re 
and Livestock (SAG), the Health Regulation Agency (ARSA) and the Ministry of  Natural Resources 
and the Environment (SERNA) are involved in foreign trade operations (Table 3.1). ARSA was created 
in 2017 as a decentralized agency of the Ministry of  Health  (SESAL) to regulate and provide 
registration, permits, licences, certifications and other sanitary authorizations.7 
Table 3.1 Main institutions involved in import procedures, 2022  
 Procedures  
SDE Issues import licences for dairy produce and onions.  
Issues import certificates for goods subject to a shortage quota.  
Issues import certificates for goods subject to purchase and sale agreements.  
Issues import certificates for preferential tariff quotas.  
SEFIN  Administers duty -free arrangements.  
Administers tax exemptions.  
SENASA  Issues phytosanitary import permits for plants and plant products and by -products.  
Issues phytosanitary import permits for agricultural inputs (e.g. pesticides, fertilizers and related 
substances).  
Issues animal health import permits for animals and animal products and by -products.  
Issues animal health import permits for veterinary products.  
ARSA  Issues sanitary import authorizations for raw materials used in the production of food and beverages, 
and food additives.  
 
1 CAUCA and RECAUCA entered into force in Honduras in 2008. Honduras' s customs legislation can be 
viewed at: https://www.aduanas.gob.hn/biblioteca -virtual/legislacion -aduanera/ ; and the Central American 
regula tions at: https://www.sieca.int/index.php/integracion -economica/integracion -economica/libre -
comercio/administracion -aduanera /. 
2 In 2020, Article 166 bis of RECAUCA, which provides for the mutual recognition of authorized 
economic operators in Central America, was amended to stipulate that customs authorities are responsible for 
subscribing to the relevant agreements (Resolution No. 431 -2020 (COMIECO -EX)). 
3 Information provided by the authorities.  
4 Definitive regimes: definitive import (Article 92 of CAUCA). Temporary or suspensive regimes: 
customs transit (Article 94); temporary import and re -export in the same state (Article 97); temporary 
admission for inward processing (Article 98); and customs or in -bond warehousing (Article 99). 
Duty-exemption regimes: free zones (Article 101) and re -import (Article 105).  
5 Executive Decree No. PCM -059-2019.  
6 Customs Law (Decree No. 212 -87) and Tax Code (Decree No. 170 -2016).  
7 Decree No. PCM -032-2017.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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   Procedures  
Issues special import authorizations for products of sanitary interesta that do not require sanitary 
registration (e.g. products not available for sale).  
Issues import permits for controlled substances.b 
SERNA  Issues import authorizations for natural and synthetic refrigerants (ozone -depleting substances (ODS)) 
and equipment containing them.  
a Products of sanitary interest are: (a) foods and beverages; (b) pharmaceutical products 
(e.g. medicines, vaccines, controlled substances, cosmetic and h ygiene products, and pesticides for 
domestic and professional use); and (c) medical devices.  
b Controlled substances are narcotic and psychotropic medicines, and precursors and chemical 
substances used in their manufacture (Communiqué No. 009 -ARSA -2017).  
Source:  WTO Secretariat, on the basis of WTO document G/TFA/N/HND/3/Rev.1 of 12 August 2020; AAH. 
Viewed at: https://www.aduanas.gob.hn/facilitacion -del-comercio/ ; SDE. Viewed at: 
https://sde.gob.hn/facilitacion -del-comercio/ ; SDE and the National Investme nt Council ( CNI) 
(2021), "Importaciones/Exportaciones ", Guía del Inversionista - Honduras 2020 -21. Viewed at: 
https://sde.gob.hn/wp -content/uploads/2021/08/5. -Importaciones -y-Exportaciones.pdf ; and 
information provided by the authorities.  
3.5.  Prior to importing, certain importers must register in order to request an import licence or meet 
other import or tax requirements (Table 3.2).  
Table 3.2 Registration of importers, 2022  
Institution  Registration of importers  
SDE Dairy produce  
Onions  
SEFIN  Alcoholic beverages  
Cigarettes  
SENASA  Seeds and plant materials  
Agricultural inputs (e.g. pesticides, fertilizers and related substances)  
Organic agricultural products  
ARSA  Food and beverages; pharmaceutical products (e.g. medicines, vaccines, controlled substances, 
cosmetic and hygiene products, and pesticides for domestic and professional use); and medical 
devices  
SERNA  Natural and synthetic refrigerants (ODS)  
Equipment containing ODS  
Source:  WTO Secretariat.  
3.6.  For customs clearance, the importer must appoint a customs broker, who must be a national 
of a State party to the Central American Common Market (CACM).8 However, use of a customs 
broker is optional if the goods fall under the temporary admission for inward processing regime or 
the Free Zones (ZOLI) regime.9 
3.7.  As a trade facilitation measure, in 2021, the AAH introduced an Authorized Economic Operator 
(AEO) programme, which is currently only available to importers and exporters ( domestic and 
foreign10) that meet certain criteria.11 However, so far, no importers have been granted authorization 
under the programme. The AAH will gradually extend the AEO programme to other operators in the 
trade logistics chain (e.g. customs brokers).12 RECAUCA provides for the mutual recognition of AEO s 
across Central America.13 The AAH became a party to the Regional AEO Mutual Recognition 
Agreement in 2021.14 
 
8 Article 76 of RECAUCA.  
9 Article 88 of RECAUCA. In addition, Article 87 of RECAUCA stipulates that use of a customs agent  is 
not required for certain imports (e.g. courier deliveries).  
10 Foreign natural persons must reside in Honduras. Foreign legal entities must be established or legally 
represented in Honduras.  
11 Decision ADUANAS -DE-050-2020. The AAH has published a guide explaining the requirements, 
obligations and advantages of the AEO programme and the authorization process. The guide can be viewed at: 
https: //www.aduanas.gob.hn/wp -content/uploads/2021/01/PROCEDIMIENTO -OEA-PARA -EL-USUARIO -
EXTERNO.pdf . 
12 Preguntas Frecuentes de la AAH . Viewed at: https://www.aduanas.gob.hn/operador -economico -
autorizado -oeahonduras /. 
13 Article 166 bis of RECAUCA, as amended by Resolution No. 431 -2020 (COMIECO -EX). 
14 The customs authorities of 11 Central and South American States are signatories to the Agreement.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.8.  Since 2019, the Central American Single Declaration (DUCA) has been used for imports to 
Honduras. The DUCA consolidates into a single document th e three customs declarations previously 
used (Chart 3.1).  There are three types of DUCA: (a) DUCA -F for tariff -free imports originating from 
the CACM and goods that are still excluded from free movement in the process of deep integration 
between Honduras a nd Guatemala (Section 2.3);15 (b) DUCA -D for imports originating outside the 
CACM and products originating from the CACM that are subject to tariffs;16 and (c) DUCA -T for 
international overland transit.  
Chart 3.1 Central American Single Declaration (DUCA)  
 
a The DM was also referred to as a single customs declaration (DUA).  
Source:  Resolution No. 409 -2018 (COMIECO -LXXXV), as amended by Resolution No. 410 -2019 
(COMIECO -EX). 
3.9.  The DUCA -F and DUCA -D require supporting documents.17 Although requirements vary 
depending on the customs regime and the features of the imported product, the following documents 
usually have to be provided: (a) the commercial invoice;18 (b) the transport document (bill of lading, 
air waybill or waybill for land transport, depending on the means of transport); (c) the customs value 
declaration (DVA);19 (d) the certificate of origin; (e) the licence, permit, certificate or other document 
if the import is subject to non -tariff measures; ( f) proof of the security deposit; and (g) the certificate 
of exemption if the importer enjoys duty -free arrangements or tax exemptions.  
3.10.   As a trade facilitation measure, the SDE created the Honduras Integrated Foreign Trade 
Management Portal (PGICE) in 2021  to provide importers with information on the type of DUCA 
required, as well as on the supporting documents and other requirements (e.g. prior registration) 
for each product type and source market.20 
3.11.   Honduras does not have a single window for imports. All types of DUCA are completed and 
submitted through the automated customs revenue system of Honduras (SARAH), along with 
scanned versions of supporting documents. The AAH updated the SARAH in 2018. According to the 
 
15 There are 690 lines (at the HS 10 -digit level) within Honduras' s tariff universe that are excluded from 
free movement. These products inclu de agricultural products (e.g. dairy produce, eggs, black and red beans, 
white and yellow maize, unroasted coffee and cane sugar) and products such as cement, petroleum products, 
medicines, fertilizers and vehicles (Section 2.3).  
16 The only products origin ating from Central America that are not duty -free are sugar, unroasted coffee 
and, for Honduras, petroleum products, ethyl alcohol and distilled alcoholic beverages from El  Salvador, and 
roasted coffee from Costa Rica (Annex A of the General Treaty on Cent ral American Economic Integration. 
Viewed at: https://www.sieca.int/?product=anexo -a-del-tratado -general -de-integracion -economica ). 
17 Article 321 of RECAUCA, as amended by Resolution No. 306 -2013 (COMIECO -EX). 
18 The commercial invoice must be in Spanish or translated into Spanish 
(Circular  DARA -SVA-023-2019).  
19 Article 212 of RECAUCA exempts importers from providing the DVA f or DUCA -F imports. The DVA is 
also not required for certain DUCA -D imports, such as those subject to a temporary or suspensive regime or a 
duty-exemption regime.  
20 PGICE. Viewed at: https://pgice.sde.gob.hn /. The portal provides the same information service to 
exporters.  
WT/TPR/S/443 /Rev.1  • Honduras  
 
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  authorities, the new version (SARAH WEB 2.0 ) is more secure, faster and simpler to use. The AAH 
charges a service fee of USD 5 for each import DUCA issued.21 
3.12.   All goods are subject to a risk analysis, based on which the AAH authorizes immediate 
clearance (green channel), inspects the documents (yell ow channel) or carries out a physical 
inspection of the goods in addition to the document inspection (red channel). According to the 
authorities, some goods, such as used vehicles, are always assigned to the red channel. During the 
review period, an averag e of 66.8% of goods were assigned to the green channel (Chart 3.2). The 
document inspection takes 10 to 15 minutes, while the time needed for the physical inspection 
depends on the cargo and product type.22 The country 's main port, Puerto Cortés, has scann ers to 
facilitate inspections.  
Chart 3.2 Processing channels, 2016 -2022 
 
Source:  Information provided by the authorities.  
3.13.   The authorities have said, in the context of this review, that no studies have been carried out 
to determine national customs clearance times. However, in 2021, the AAH launched a pilot project 
entitled "Aduana sin Papeles " (Paperless Customs) at Puerto Co rtés to make all stages of the customs 
process paper -free.23 According to the authorities, this measure has helped to optimize procedures 
and reduced clearance times from seven days and eight hours to three days and 10 hours. The 
authorities also underscor ed the environmental benefits of reducing paper use.  
3.1.1.2   Customs valuation  
3.14.   Customs valuation is governed by the Agreement on Implementation of Article VII of the 
GATT  1994, CAUCA and RECAUCA IV. Honduras mainly uses transaction value to determine the 
value of imported goods.24 According to the authorities, this method was used for 80% of imports 
in 2021. In all other cases, and primarily for used vehicles, the fall -back method was used when the 
declared value was rejected.  
3.15.   Honduras still makes use of price guid es to determine customs value if there is any 
"reasonable " doubt regarding the declared value. The authorities indicated that these guides are 
used mainly to determine the value of used goods, particularly vehicles.  
3.16.   In 2021, to mitigate the impact of the i ncrease in maritime transport costs on importers and 
end-consumers, Honduras authorized a one -off reduction of 75% in the freight cost used to calculate 
the customs value. This measure was applicable to all definitive imports from October 2021 to 
June 2022.25 According to the AAH, the foregone tax amounted to HNL 1,033.8 million.26 
 
21 Article 50 of the Law on Revenue Enhancement, Social Equity and Rationalization of Public 
Expenditure (Decree No. 17 -2010).  
22 Information provided by the authorit ies. 
23 Aduanas News, "Honduras pone en marcha Aduanas sin papeles en Puerto Cortés ", 
7 September  2021.  
24 Circular DARA -SVA-023-2019.  
25 Decrees No. 96 -2021 and No. 26 -2022.  
26 AAH. Viewed at: https://www.aduanas.gob.hn/un -sacrificio -fiscal-de-1033-8-millones -de-lempiras -
regist ra-aduanas -honduras -por-reduccion -al-calculo -al-costo -del-flete-maritimo /. 
WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.1.2   Rules of origin  
3.17.   Honduras does not apply any non -preferential rules of origin.27 
3.18.   Honduras applies the preferential rules of origin set out in the trade agreements it has signed. 
Since its last trade policy review in 2016, Honduras has begun applying the rules of origin under the 
free trade agreements signed with the Republic of Korea, Peru and the United Kingdom, all of which 
entered into force during the review period.28 
3.19.   The trade agreements that Honduras has entered into use general criteria to confer origin. 
Under these criteria, a good is originating if it is: (a) wholly obtained or produced in the territory of 
one of the Parties; or (b) produced entirely in the territo ry of one Party exclusively from originating 
materials. However, if the good combines both originating and non -originating materials, specific 
rules of origin apply that require a change in tariff classification for the non -originating materials 
(change of  tariff heading) and/or a minimum regional value content (RVC) for the end -product. For 
the three agreements that entered into force during the review period, the RVC is between 20% 
and 50% for the agreement with the Republic of Korea, between 30% and 50% for the agreement 
with Peru and 25% for the agreement with the United Kingdom. Generally speaking, all new trade 
agreements also include other origin criteria, such as those pertaining to de minimis , cumulation, 
sets of goods and composite goods, and direc t consignment. Cumulation can be bilateral, regional 
or extended. Under the agreement with Peru, for instance, cumulation is bilateral, while under the 
agreements with the Republic of Korea and the United Kingdom, it is both bilateral and regional.  
3.1.3   Tariffs  
3.1.3.1   Structure and levels  
3.20.   The new Central American Tariff System (SAC 2022), which entered into force in 2022, 
incorporates the seventh amendment to the Harmonized System.29 In SAC 2022, there were 
351 sets of amendments to the nomenclature, with new Section a nd Chapter notes added, tariff 
codes created and removed, and changes to product descriptions.30 
3.21.   In 2022, Honduras 's tariff contained 7,531 lines at the HS 2022 10 -digit level (6,974 lines at 
the HS 2012 10 -digit level). Honduras only applies ad valorem  tariffs, except for products subject to 
the price band (six tariff lines for yellow maize, white maize, grain sorghum, maize flour and other 
processed grains).  
3.22.   Honduras 's tariff structure has not changed substantially. The average MFN applied rate was 
5.9% i n 2022, the same as in 2015 (Table  3.3). The protection given to agricultural products 
(WTO  definition) remains higher than that given to non -agricultural products, with tariffs ranging 
from 0% to 164%. In 2022, the protection given to agricultural product s was virtually the same as 
in 2015 (10.8% compared to 10.7% in 2015), while that given to non -agricultural products remained 
unchanged compared with 2015 (5.1%). The highest average tariff by WTO category was applied 
primarily to agricultural products, sp ecifically dairy produce, animals and animal products, and 
beverages, alcohol and tobacco, with rates of 22.6% (22% in 2015), 18.3% (18.4% in 2015) and 
12.3% (12.4% in 2015), respectively. Among non -agricultural products, clothing was the most 
protected, w ith a tariff of 14.8%, the same as in 2015 (Table A3.1).  
 
27 WTO document G/RO/N/3 of 27 July 1995.  
28 The Association Agreement between Central America and the United Kingdom of Great Britain and 
Northern  Ireland (AACRU) maintains the rules of origin negotiated within the framework of the Association 
Agreement between Central America and the European Union (AACUE).  
29 Resolution No.  450-2021 (COMIECO -EX). 
30 SIECA press release. Viewed at: https://www.sieca.int/index.php/news/la -secretaria -de-integracion -
economica -centroamericana -sieca-informa/ . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.3 MFN tariff structure, 2015 and 2022  
 
2015  
(HS 
2012)  2022  
(HS 
2022)  
Total number of lines  6,974  7,531  
 Ad valorem  rates (> 0%)  3,611  3,904  
 Duty-free 3,357  3,621  
 Non-ad valorem  rates 6a 6a 
Non-ad valorem  tariffs (% of all tariff lines)  0.1a 0.1a 
Non-ad valorem  tariffs with no ad valorem   
equivalents (% of all tariff lines)  0.1a 0.1a 
Tariff quotas (% of all tariff lines)  0.0 0.0 
Duty-free tariff lines (% of all tariff lines)  48.1 48.1 
Average for lines with a tariff greater than zero (%)  11.4 11.4 
Arithmetic average (%)  5.9 5.9 
 Agricultural products (WTO definition) (%)  10.7 10.8 
 Non-agricultural products (including petroleum, WTO definition) (%)  5.1 5.1 
National tariff peaks (% of all tariff lines)b 0.8 0.8 
International tariff peaks (% of all tariff lines)c  0.8 0.8 
Overall standard deviation of applied rates  7.8 7.8 
Bound tariff lines (% of all tariff lines)  100.0  100.0  
a Corresponds to lines subject to the price band.  
b National tariff peaks are defined as rates exceeding three times the overall simple average applied 
rate. 
c International tariff peaks are defined as rates exceeding 15%.  
Source:  WTO Secretariat calculations, based on data provided by the authorities.  
3.23.   There are 13 applied tariff rates ranging from 0% to 164%. The most common rate is 0%, 
which applies to 48.1% of tariff lines (the same percentage as in 2015) (Chart 3.3). Rates of 5%, 
10% and 15% apply to 51.2% of goods. Rates above 15% apply to 0.8% of tariff lines. The maximum 
rate of 164% still applies to imports of poultry meat under HS subheadings 0207.13.93.00, 
0207.13.94.00, 0207.14.93.00, 0207.14.94.00 and 1602.32.10.00, while the second highest rate 
of 55% still applies to cigarettes (HS subheading 2402.20.00.00).  
Chart 3.3 Frequency dis tribution of tariffs, 2015 and 2022  
(% of all tariff linesa) 
 
a There were a total of 6,974 lines for the 2015 tariff and 7,531 lines for the 2022 tariff.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
48.1%
12.9%15.8%22.4%
0.2% 0.0% 0.4% 0.2%48.1%
13.1%15.7%22.4%
0.2% 0.0% 0.4% 0.2%
0102030405060
0% >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%-35% >35%2015 tariff (HS 2012)
2022 tariff (HS 2022)WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.24.   Honduras bound all i ts tariff lines during the Uruguay Round, with around 85% bound at 35%, 
1% bound at higher rates and the remaining lines bound at levels below 35%.  
3.25.   For the purpose of this review, the Secretariat identified nine tariff lines with an applied rate 
exceeding the bound rate (Table 3.4).31 Some of these products were already mentioned in the 2015 
review as having an applied tariff above the bound rate.  
Table 3.4 Products with applied tariffs higher than the bound rates, 2022  
HS code  Description MFN tariff  Description bound 
tariff  2015 MFN 
tariff (%)  2022 MFN 
tariff (%)  Bound tariff 
(%) 
0405.10.00.00  Butter  Butter  20 20 8 
0406.20.20.00  Mozzarella cheese  Other mozzarella type  n.a. 35 20 
0406.20.90.00  Other cheese  Other cheese  35 35 20 
0406.30.00.00  Processed cheese, not 
grated or powdered  Processed cheese, not 
grated or powdered  35 35 20 
0406.90.20.00  Cheddar type, in blocks 
or slabs  Cheddar type, in 
blocks or slabs  35 35 20 
3808.91.10.00  Put up as pastilles or in 
strips which operate by 
burning; flypapers  Insecticides  n.a. 10 7 
7210.61.10.00  Plated or coated with 
aluminium -zinc alloys, 
of a thickness of 0.16 
mm or more but not 
exceeding 2  mm Plated or coated with 
aluminium -zinc alloys 
of a thickness of 0.16 
mm or more but not 
exceeding 2  mm 15 15 8 
7210.69.10.00  Other plated or coated 
with aluminium, of a 
thickness of 0.16 mm or 
more but not exceeding 
2 mm  Other plated or coated 
with aluminium, of a 
thickness of 0.16 mm 
or more but not 
exceeding 2  mm 15 15 8 
8486.20.91.00  Resistance furnaces for 
heating bars of metal or 
granular materials, for a 
temperature not 
exceeding 900°C, other 
than laboratory furnaces  Machines and 
apparatus for the 
manufacture of 
semiconductor devices 
or of electronic 
integrated circuits  n.a. 10 0 
n.a. Not applicable.  
Source:  WTO Secretariat calculations based on data provided by the authorities.  
3.26.   Pursuant to Article XXVIII:5 of the GATT 1994, Honduras reserved the right to modify its 
bound tariffs for the three -year period commencing 1  January  2018 and subsequently for the 
three -year period commencing 1 January 2021.32 
3.1.3.2   Price band system  
3.27.   The price band system is still in force in Honduras.33 In practice, however, it is not used. The 
products to which the sys tem can be applied include yellow maize, grain sorghum, maize flour and 
pre-gelatinized meal (Table 3.5). The tariff applied to these products is 5% or 15%.  
 
31 In under taking this analysis, the Secretariat only took into account the tariff lines contained in 
Schedule LXXXVIII in HS 1996 that are strictly comparable to those in HS 2007 and HS 2012.  
32 WTO documents G/MA/349 of 4 December 2017 and G/MA/386 of 18 November 2020.  
33 Regulations on the Marketing of Agricultural Products (Decision No.  0195-03). Under this system, 
tariffs are modified in line with international prices, with a view to limiting the impact of price fluctuations on 
the domestic market. Each year, before eac h product's first harvest, the Honduran Agricultural Marketing 
Institute (IHMA) sets the band's floor and ceiling prices on the basis of monthly international prices over the 
previous 60 months. If a product's international price falls below the band's flo or price, an ad valorem  
surcharge equivalent to the percentage difference between the two prices is added to the tariff. Under no 
circumstances can the sum of the tariff and the surcharge exceed the bound tariff rate. If a product's 
international price ris es above the band's ceiling price, a discount equivalent to the percentage difference 
between the two prices is applied to the tariff; the maximum authorized discount is 5%.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.5 Tariff lines subject to the price band sys tem, 2015 and 2022  
HS code  Description  MFN tariff 
(%) Bound tariff (%)  
2015  2022  
1005.90.20.00  Yellow maize (corn)  15 15 45 
1007.90.00.00  Other grain sorghum  15 15 45 
1102.20.00.00  Maize (corn) flour  15 15 35 
1103.13.10.00  Pregelatinized meal (for example: meal used as an 
additive in the brewing industry)  15 15 35 
1103.13.90.00  Other meal  15 15 35 
1104.23.00.00  Other worked grains of maize (corn)  5 5 35 
Source:  WTO Secretariat calculations based on data provided by the authorities.  
3.1.3.3   Preferential tariffs  
3.28.   As a CACM  member, Honduras grants, with a few exceptions, preferential treatment (0% 
tariff) to imports originating from the CACM.34 Honduras also extends preferential treatment to 
imports from countries with which it has signed preferential agreements (Table 3.6). Duty -free entry 
under the CAFTA -DR and the agreements with Chile and Mexico account for over 95% of the tariff 
universe. T he average preferential tariffs in the agreements negotiated by Honduras are all well 
below the average MFN rate. Preferential tariffs range from 0% to 2.6%; for non -agricultural 
products, they are even lower, at between 0% and 1.8% (Table 3.6).  
Table 3.6 Summary analysis of preferential tariffs, 2022  
 Total  WTO categories  
Agricultural  
products  Non-agricultural  
products  
(including petroleum)  
Average (%)  
Duty -free 
lines (%)  
Average (%)  
Duty -free 
lines (%)  
Average (%)  
Duty -free 
lines (%)  
MFN 5.9 48.1 10.8 26.2 5.1 51.7 
CAFTA -DR 0.0 99.5 0.3 96.4 0.0 100.0  
Canada  1.0 76.4 4.3 58.7 0.5 79.3 
Chile 0.6 96.6 2.9 88.8 0.2 97.9 
Colombia  1.6 84.6 5.5 63.9 0.9 88.0 
Korea, Rep. of  2.6 63.7 7.2 36.5 1.8 68.2 
Mexico  0.6 97.1 3.4 84.8 0.1 99.1 
Panama  1.7 85.4 3.2 80.8 1.5 86.1 
Peru 1.1 84.5 4.3 64.3 0.5 87.8 
Dominican Rep.  1.0 93.5 2.3 90.4 0.8 94.1 
United Kingdom  0.9 91.8 5.4 69.5 0.1 95.4 
Chinese Taipei  2.3 79.2 5.0 73.2 1.8 80.2 
European Union  0.9 91.8 5.4 69.5 0.1 95.4 
Source:   WTO Secretariat calculations based on data provided by the authorities.  
3.1.3.4   Tariff quotas  
3.29.   Honduras did not negotiate tariff quotas within the framework of the WTO,35 but it does 
apply  preferential tariff quotas under certain regional agreements.36 The preferential tariff 
 
34 The only products originating from Central America that are not duty -free are su gar, unroasted coffee 
and, for Honduras, petroleum products, ethyl alcohol and distilled alcoholic beverages from El  Salvador, and 
roasted coffee from Costa Rica (Annex A of the General Treaty on Central American Economic Integration). 
Viewed at: https://www.sieca.int/?product=anexo -a-del-tratado -general -de-integracion -economica ). 
35 WTO document TN/AG/S/5 of 21 March 2002.  
36 Preferential tariff quotas have been negotiated under the CAFTA -DR and the agreements with Canada, 
Colombia, the European Union, Panama and the United Kingdom.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  quotas  mainly  cover agricultural products, and the most commonly used are those negotiated under 
the CAFTA -DR.37 
3.30.   Honduras uses shortage quotas when domestic supply falls short of ag ro-industrial demand. 
Upon the request of the Government, producers, agro -industries, marketers or consumers, the SDE 
and the SAG will determine the shortage volume based on supply and estimated demand. Supply is 
determined by factoring in national product ion, domestic inventories and, where applicable, volumes 
imported under tariff quotas. The SDE authorizes shortage quotas and publishes (by way of a 
decision) the volumes concerned and the period of validity, taking into account the SAG 's 
recommendations.38 Shortage quotas are allocated based on the percentage of national production 
purchased in the prior year (performance requirement). These quotas can be extended if the 
shortage persists. An import licence or certificate is required to import goods subjec t to a shortage 
quota (Section 3.1.5).39 
3.31.   During the review period (2016 -22), shortage quotas were used for skimmed milk powder 
(HS 0402.10.00.00), whole milk powder (HS 0402.21.22.00) and frozen orange juice 
(HS 2009.11.00.00). The shortage quota tariff is  always 0%.40 
3.32.   In addition, Honduras continues to use purchase agreements for products such as rough rice 
(HS 1006.10.90.00), yellow maize (HS 1005.90.20.00), white maize (HS 1005.90.30.00) and 
sorghum (HS 1007.90.00.00). These agreements are negotiated bet ween producers and 
agro-industries, with the support of the State.41 For rough rice and white maize, the shortage quota 
sets in once the national production volume stipulated in the agreement has been purchased.  
3.1.3.5   Tariff concessions  
3.33.   Tariff concessions are applied to goods entering Honduras under suspensive or duty -
exemption customs regimes. Imports to be used for export support programmes are also duty -free 
(Section  3.2.4).  
3.34.   During the public health emergency in 2020 -22, Honduras introduced t ariff concessions on 
imports of products needed to manufacture sanitizer products and medical supplies (e.g. raw 
materials, machinery and equipment, and packaging and containers).42 
3.35.   Honduras continues to grant tariff concessions to the tourism sector, comp anies that generate 
clean electricity, and customer service centres and business outsourcing centres.43 Entities such as 
the Honduran Coffee Institute (IHCAFE), non -profit associations, the Red Cross and agricultural 
cooperatives are also granted tariff co ncessions.44 
3.1.4   Other charges affecting imports  
3.36.   As in 2016, both imported and domestic goods are subject to the sales tax (ISV)45, the 
production and consumption tax (IPC)46 and the selective consumption tax (ISC).47 Since Honduras 's 
 
37 Information provided by the authorities  
38 SDE. Viewed at: https://sde.gob.hn/integracion -economica -y-politica -comercial /. 
39 SDE. Viewed at: https://sde.gob.hn/int egracion -economica -y-politica -comercial / and AAH Circular 
DARA -SAT-089-2019. Viewed at: https://www.aduanas.gob.hn/seccion -de-administracion -de-tratados /. 
40 WTO document TN/AG/S/5 of 21 March 2002.  
41 The authorities have indicated that there is no framework law governing the establishment of these 
agreements, which are instead established by ministerial decisi on. 
42 Article 39 of the Law on Relief for  the Productive Sector and Workers in the face of  the effects of the 
COVID -19 Pandemic (Decree No. 33 -2020), as amended by Decree No. 43 -2020, and Decisions No. 232 -2020 
and No. 241 -2020; and Decision No. 173 -2022.  
43 Law on the Promotion of Tourism (Decree No. 68 -2017); Law on the Promotion of Electricity 
Generation from Renewable Resources (Decree No. 70 -2007); Law on the Promotion of Call Centres and 
Outsourcing of Business Services (Decree No. 90 -2012).  
44 Article 1 of the Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures (Decree 
No. 278 -2013); and Decree No. 65 -87. 
45 Law on the Sales Tax (Decree -Law No. 24 -94). 
46 Law on Revenue Enhancement, Social Equity and Rationalization of Pu blic Expenditure (Decree 
No. 17-2010).  
47 Law on Selective Consumption Taxes (Decree No. 58 -1982).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  last review, there have b een no major changes in the application and scope of these taxes. Some 
goods continue to be subject to several taxes (Table 3.7).  
Table 3.7 Products subject to several domestic taxes, 2016 -2022 
Product  ISV IPC ISC 
Alcoholic beverages  X X X 
Beer X X  
Cigarettes  X X  
Used vehicles  X  X 
Source:  WTO Secretariat.  
3.37.   The general ISV rate is still 15%. A rate of 18% is applied to eight HS tariff lines (at the 
10-digit level), including products such as beer, spirits ( "aguardiente "), blended spirits and other 
alcoholic beverages, as well as cigarettes and airline tickets. In 2022, 389 HS tariff lines (at the 
10-digit level), including products making up the basic basket, were exempt from the ISV.48 During 
the review period, agricultural inputs (e.g. seeds and fertilizers) were also exempt49, as were some 
services.  
3.38.   In response to the public health emergency in 2020 -22, inputs needed for the manufacture 
of disinfectants, medicines and medical supplies were, as an exceptional measure, exempted from 
the ISV.50 The exemption applied to raw materials, ethyl alcohol, machinery and equipment, and 
packaging and containers.51 Since 2021, various electricity supply services (e.g. distribution 
services) have also been exempt ed.52 
3.39.   The production and consumption tax (IPC) is a special tax applied to 29 tariff lines (at the 
HS 10-digit level), including cigarettes, carbonated, alcoholic and other prepared or fermented 
beverages, and ethyl alcohol. Each year, the Ministry of  Finance (SEFIN) publishes, by way of a 
decision, the list of goods subject to this tax and adjusts the rate applicable to each based on the 
year-on-year change in the Consumer Price Index; the annual adjustment cannot exceed 6% (it was 
5.32% in 2022).53 During  the 2020 -22 period, ethyl alcohol was exempt from this tax, since it was 
considered an essential product in the context of the public health emergency.54 
3.40.   The selective consumption tax (ISC) is applied to various products, including foodstuffs 
(coffee, tea, preserves and fruit), alcoholic beverages (whisky, rum and gin, but not beer), cosmetics 
and perfumes, textiles, toys, and new and used vehicles.55 In 2022, 244 tariff lines (at the HS 
10-digit level) were subject to the ISC. As in 2016, the tax rate is 10% for all products, with the 
exception of vehicles, for which the rate ranges from 10% to 60% depending on the vehicle 's c.i.f. 
value and age. Hybrid and electric vehicles and those using alternative fuels continue to be 
exempted.56 
3.41.   In additi on to the above taxes, Honduras applies two levies on specific products: the eco -tax, 
which applies only to imports, and the contribution to support social programmes and road 
maintenance  (ACPV), which applies to both imports and domestic sales.  
3.42.   The eco -tax is levied on imports of used vehicles. In 2022, the eco -tax was HNL 10,000 for 
vehicles from 2005 or earlier. For other vehicles, it ranged from HNL 5,000 to HNL 10,000 depending 
 
48 The basic basket is made up of 271 food products and school supplies, and two transport services. 
See Annex I of Decree -Law No. 24 -94, as amended by Executi ve Decision No. 017 -2017.  
49 Article 15 of the Law on the Sales tax (Decree -Law No. 24 -94), as amended by Decrees No. 119 -2016 
and No. 160 -2018.  
50 Decision No. 173 -2022.  
51 Decree No. 29 -2020 and Decision No. 227 -2020. Article 39 of the Law on Relief for  the Productive 
Sector and Workers in the face of  the effects of the COVID -19 Pandemic (Decree No. 33 -2020), as amended by 
Decree No. 43 -2020, and Decisions No. 232 -2020 and No. 241 -2020.  
52 Article 11 of Decree No.  100-2020.  
53 Decision No. 172 -2022.  
54 Decree N o. 29-2020 and SEFIN Decision No. 227 -2020; and Decision No. 173 -2020.  
55 Information provided by the authorities.  
56 Regulations implementing the Law on Revenue Enhancement, Social Equity and Rationalization of 
Public Expenditure and the Special Single Tax on Cigarettes (Decision No. 1121 -2010).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  on the vehicle 's c.i.f. value. The revenue collected is used to finance the  Fund for the Management 
of Protected Areas and Wildlife (FAPVS), the AAH, the Property Institute and municipalities.57 
3.43.   The ACPV is levied on imports and sales of some fossil fuels. The revenue is used to finance 
social and road maintenance projects.58 The ACPV is set at a specific rate. In response to the increase 
in international prices, the rate for gasoline, diesel and Bunker C fuel oil was lowered in February 
2022 (Table 3.8). This measure is still in force and, for the time being, there are no plans t o lift it. 
Since 2012, fossil fuels (diesel and Bunker C fuel oil) used by electricity generation companies that 
operate stand -alone systems have been exempted from the ACPV.59 In 2021, this exemption was 
extended to include all power generation companies.60 This exemption was still in force in 2022 and, 
according to the authorities, there are no plans to lift it.  
Table 3.8 ACPV, 2016 -2022 
(USD/litre)  
 HS code  2016 -22 rate  Rate since 2022  
Premium -grade gasoline  2710.12.30.00  1.4089  0.9949  
Regular -grade gasoline  2710.12.30.00  1.2416  0.8276  
Diesel  2710.19.21.00  0.8606  0.4466  
Fuel oil (Bunker C)  2710.19.22.00  0.4267  0.4267  
Kerosene  2710.19.12.00  0.1500  0.1500  
Liquefied petroleum gas (LPG)  2711.19.00.00  0.1500  0.1500  
AvJet  2710.19.11.00  0.0300  0.0300  
Source:  Information provided by the authorities.  
3.1.5   Import prohibitions, restrictions, and licensing  
3.44.   Honduras continues to apply import prohibitions on certain goods to protect human health, 
public security and the environment.  
3.45.   Since 2016, there have been no substantial changes to the imports banned, which include 
toxic substances and hazardous waste; certain games and software; incandescent lamps; asbestos; 
methyl bromide; CFC -contain ing products; mercury -added products (since 2020); and vehicles that 
are more than 10 or 13 years old (depending on the type).61 However, since 2021, a vehicle amnesty 
has been in place, meaning that the ban on imports was lifted for used vehicles of a cer tain age.62 
3.46.   Since 2015, imports of onions have only been permitted between June and December or when 
national production falls short.63 In addition, an import licence is required to import onions.  
3.47.   Honduras continues to apply an import licensing regime, irrespective of the origin of the 
goods.64 During the review period, some changes were made in terms of the products covered by 
the regime  and the issuing agencies. Since 2015, a licence has been required to import onions.65 
Since 2017, ARSA has been responsible for issuing import permits for controlled substances, a task 
 
57 Law on Revenue Enhancement, Social Equity and Rationalization of Public Expenditure (Decree 
No. 17-2010); Decree No. 9 -2021; Decree No. 153 -2021, as amended by Decree No. 15 -2022.  
58 Law to Promote Production, Compe titiveness and Support for Human Development (Decree 
No. 131-98), as amended by Decrees No. 41 -2004 and No. 278 -2013.  
59 Decree No. 181 -2012.  
60 Decree No. 100 -2021 and SEFIN Decision No. 260 -2021.  
61 Information provided by the authorities; AAH. Viewed at: 
https://www.aduanas.gob.hn/departamento -tecnico -aduanero -2/; Administrative Provision No. ADUANAS -
DNOA -078-2021; Article 13 of the General Regulatio ns on the Use of Ozone -Depleting Substances (Decision 
No. 907 -2002); and Article 21 of the Law on Revenue Enhancement, Social Equity and Rationalization of Public 
Expenditure (Decree No. 17 -2010).  
62 Information provided by the authorities and Decrees No. 153 -2021 and No. 15 -2022.  
63 SDE Viewed at: https://sde.gob.hn/integracion -economica -y-politica -comercial /. 
64 WTO documents G/LIC/N/3/HND/10 of 12 August 2016, G/LIC/N/3/HND/11 of 20 October 2020, 
G/LIC/N/3/HND/12 of 27 April 2021 and G/LIC/N/3/HND/13 of 7 April 2022.  
65 Ministerial Decision No. 009 -15, as amended by Decision No. 042 -2016. See also the SDE. Viewed  at: 
https://sde.gob.hn/integracion -economica -y-politica -comercial /. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  previously entrusted to the Ministry of  Health. In addition, although imports of methyl bromide have 
been banned since 2012, this product is still included in the list of products requiring a licence.66 
3.48.   Honduras 's import licensing regime is used primarily to manage quotas and for statistical 
purposes.67 Import licences may b e either automatic or non -automatic, with non -automatic being 
the more common type in Honduras (Table 3.9)  
3.49.   Import licences are referred to as authorizations, special authorizations, certificates, licences 
or permits, depending on the issuing agency (Table 3.9). In many cases, registration is required 
before applying for an import licence. Licences have to be paid for, are non -transferrable and are 
required for each import; they are valid for a set time period and in many cases can be renewed 
only once. An a ppeal may be made against an agency 's decision to refuse to issue a licence. 
According to the authorities, the SDE digitized its licence application and issuing process during the 
review period.  
Table 3.9 Prod ucts subject to import licensing and other restrictions, 2016 -2022 
Product  
Issuing 
agency  
Licence 
name  
Type  
Prior 
registration  
Issue time  
Period of 
validity  
Animals and animal 
products and by -
products  SENASA  Animal health 
import permit  Non-
automatic  No 72 hours  30 days 
(renewable)  
Industrial explosives; 
commercial and military 
weapons; munitions for 
commercial and military 
use Ministry of  
Defence  Import licence  Automatic  No .. 1-3 years  
Finished pyrotechnic 
products (potassium 
chlorate, nitrocellulose, 
amorphous 
phosphorous)  Ministry of 
Defence  Import licence  Non-
automatic  No .. 1-3 years  
Natural and synthetic 
refrigerants (ODS) and 
ODS-containing 
equipment  SERNA  Import 
authorization  Non-
automatic  Yes 10 working 
days 30 days 
(renewable)  
Agricultural inputs  SENASA  Phytosanitary 
import permit  Non-
automatic  Yes 24-72 hours  30 days 
(renewable)  
Dairy produce  SDE Import licence  Automatic  Yes 5 working 
days 60 days 
(renewable)  
Veterinary products  SENASA  Animal health 
import permit  Non-
automatic  No 72 hours  30 days 
(renewable)  
Controlled substances  ARSA  Import permit  Non-
automatic  Yes 5, 10, 15 or 
20 days  150 calendar 
days 
Plants and plant 
products and by -
products  SENASA  Phytosanitary 
import permit  Non-
automatic  Yes, for seeds 
and plant 
materials  24-72 hours  30 days 
(renewable)  
Onions  SDE Import licence  Automatic  Yes 10 working 
days 30 days, 
renewable for 
15 days  
Raw materials used in 
the production of food 
and beverages, and 
food additives  ARSA  Sanitary import 
authorization  .. No 2, 5, 20 or 
30 working 
days 6 months  
Products of sanitary 
interest that do not 
require sanitary 
registration (e.g. 
products not available 
for sale)  ARSA  Special import 
authorization  .. No 1, 5, 10 or 
15 working 
days 12 months  
 
66 Circular DARA -DTA-183-2019. Viewed at: https://www.aduanas.gob.hn/departamento -tecnico -
aduanero -2/. 
67 WTO documents G/LIC/N/3/HND/1 of 12 November 2007 and G/LIC/N/3/HND/1/Add.1 of 
26 March  2010.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Product  
Issuing 
agency  
Licence 
name  
Type  
Prior 
registration  
Issue time  
Period of 
validity  
Products subject to 
shortage quotas  SDE Import licence 
or certificate  Non-
automatic  No 10 working 
days As needed  
Products subject to 
purchase agreements  SDE Import 
certificate  Non-
automatic  No 10 working 
days As needed  
.. Not available.  
Source:  WTO Secretariat, on the basis of WTO documents G/LIC/N/3/HND/1 of 12 November 2007, 
G/LIC/N/3/HND/1/Add.1 of 26 March 2010, G/LIC/N/3/HND/1/Add.1/Corr.1 of 16  September 2010, 
and G/LIC/N/3/HND/8 of 10 December 2013; SDE. Viewed at: https://sde.gob.hn/integracion -
economica -y-politica -comercial /; and inf ormation provided by the authorities . 
3.1.6   Anti-dumping, countervailing, and safeguard measures  
3.50.   Trade remedies in Honduras are regulated by the relevant WTO Agreements68, the Central 
American Regulations on Unfair Business Practices and the Central American Reg ulations on 
Safeguard Measures  (RCMS) .69 There have been no major changes to the legal framework since the 
last review in 2016.  
3.51.   The SDE 's Directorate -General of Economic Integration and Trade Policy (DGIEPC) continues 
to be the investigating authority in t he area of trade defence.  
3.52.   In order to impose trade remedies, it needs to be determined that there is a causal link 
between the unfair practice (dumping or subsidization) or the sudden and recent increase in imports 
and the serious injury suffered by a dome stic industry or the threat of serious injury.  
3.53.   The procedure for investigating the existence of dumping and subsidization and establishing 
measures has not changed since 2016 (Chart 3.4). Investigations must be concluded within a 
12-month period70, which, in exceptional cases, may be extended by six months. Provisional duties 
are imposed for a maximum of four months. However, under certain circumstances, they may be 
maintained for six months in dumping cases. Definitive duties remain in place for as long as  is 
necessary to counteract the effects of the dumping or subsidization, but for no longer than five  years. 
Prior to the expiry of these duties or the end of the five -year period, the DGIEPC may, either ex officio 
or at the request of the domestic industry , conduct a sunset review to determine whether the expiry 
of the duty would be likely to lead to continuation of the injury and unfair practice. Duties can 
continue to be applied while the review, which may not last more than 12 months, is being 
conducted.  
 
68 Agreement on Safeguar ds, Agreement on Implementation of Article VI of the General Agreement on 
Tariffs and Trade 1994 (Anti -Dumping Agreement) and Agreement on Subsidies and Countervailing Measures.  
69 Resolution No. 193 -2007 (COMIECO -XLIV) and Resolution No. 19 -96 of the Counc il of Ministers 
Responsible for Economic Integration and Regional Development (COMRIEDRE -IV). 
70 The investigation may be concluded early if: the DGIEPC determines that the margin of dumping or 
amount of the subsidy is de minimis  or that the volume of impor ts or the injury is negligible; price 
undertakings are agreed; or, in the case of subsidies, a mutually agreed solution is reached when the exporting 
government is notified.  
 WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Chart 3.4 Procedure in respect of dumping and subsidization  
 
 
Source: WTO Secretariat.  
 
3.54.   The circumvention of anti -dumping and countervailing measures is not regulated in Honduras.  
3.55.   Between 2016 and 2022, Honduras neither initiated any procedure to investigate unfair trade 
practices (no requests were submitted) nor adopted anti -dumping or counterv ailing measures.71 
3.56.   The safeguards investigation procedure has also remained unchanged since 2016 (Chart 3.5). 
Under the Central American Regulations on Safeguard Measures, the investigation period is generally 
three years.72 Provisional measures are applie d for a maximum of 200 days73, while definitive 
measures are applied for a four -year period, which may be extended. As a developing country, 
Honduras may extend a measure for a longer period of time if the DGIEPC determines that there is 
a need for it to b e maintained.  
Chart 3.5 Procedure in respect of safeguards  
 
Source:  WTO Secretariat.  
3.57.   Between 2016 and 2022, Honduras neither initiated any safeguard proceedings (no requests 
were submitted) nor adopted measures in that area.  
 
71 WTO documents G/ADP/N/*/Add.1 and information provided by the authorities.  
72 The DGIEPC may select a longer or shorter period for the investigation. In any event, the period 
should be indicated in the resolution initiating the investigation.  
73 Provisional measures consist of tariff increases, guaranteed by means of a bond. The amount s 
received are returned if the investigation fails to determine that the increased imports have caused or threaten 
to cause serious injury to a domestic industry.  
The domestic industry asks the DGIEPC to 
initiate an investigationThe DGIEP requests information 
(questionnaire)
The DGIEPC makes a preliminary 
determination of dumping or subsidization
The DGIEPC issues the final 
determination report The DGIEPC rejects 
the requestEnd
Subsidies; the exporting government 
undertakes to eliminate or limit subsidization or 
commits to other mutually agreed measures
EndThe DGIEPC initiates the investigation 
ex officioThe DGIEPC accepts 
the requestThe DGIEPC notifies 
the exporting 
governmentThe DGIEPC issues the 
resolution initiative the 
investigation and notifies the 
parties
The DGIEPC notifies 
the domestic industry
The SDEterminates the 
provisional measuresThe SDEorders the 
application of provisional 
measuresThe DGIEPC advises the SDE
to apply provisional 
measuresThe DGIEPC notifies 
the partiesYes
The DGIEPC notifies the 
parties
No 
The SDEannounces the closure of the 
investigation and issues the final resolution 
determining whether to definitively impose 
anti-dumping or countervailing dutiesThe DGIEPC notifies the 
partiesPrice undertakings are agreed, published 
and notified
The DGIEPC
accepts the 
requestThe DGIEPC issues a resolution 
initiating the investigation and notifies 
the parties and the WTOThe DGIEPC
requests 
information 
(questionnaire)The DGIEPC makes a preliminary determination that 
the increase in imports has caused or threatens to 
cause serious injury to the domestic industry
The SDEorders the 
application of a provisional 
safeguard measure
The DGIEPC notifies the 
parties, the AAH and the WTOThe DGIEPC
rejects the requestEnd
The DGIEPC notifies the 
parties the AAH and the 
WTOThe SDEterminates 
the provisional 
safeguard measure
The SDEannounces the closure of the investigation and issues the final 
resolution determining whether or not to apply a definitive safeguard measureThe DGIEPC recommends the application of a 
provisional safeguard measure
The DGIEPC ends the 
investigation and issues the 
final reportThe domestic industry asks the DGIEPC to 
initiate an investigation
The DGIEPC initiates the investigation
ex officioThe DGIEPC
notifies the 
domestic industry 
EndNo Yes The DGIEPC consults WTO Members 
with a substantial interest in the 
measureWT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.58.   Within the WTO, Honduras did not reserve the right to use special safeguards for agricultural 
products. A number of Honduras 's preferential trade agreements provide for the use of the special 
agricultural safeguard.  
3.59.   With regard to sa feguards, the Convention on the Central American Tariff and Customs 
Regime establishes a clause under which special safeguard measures may be imposed if an MCCA 
State party faces: serious balance -of-payments difficulties; sudden and generalized shortages o f 
raw materials and basic finished goods; market disruption; unfair trade practices; or any other 
situation that may develop into a national emergency.74 In 2021, Honduras adopted measures to 
regulate the procedure for establishing, modifying or eliminatin g a safeguard measure. An ad hoc  
commission is responsible for the procedure, including the investigation.75 The measure, which 
involves varying the tariff as necessary, is implemented for an initial 30 -day period, which may be 
extended until the ad hoc commission makes a decision on whether to suspend, modify or renew 
the measure. This decision is notified to the Secretariat for Central American Economic Integration 
(SIECA). Honduras has had a safeguard measure in place under the Convention since 2015 to t ackle 
disruption in the domestic market for iron and steel products. As part of this measure, Honduras 
unilaterally and "temporarily " increased the tariffs for eight tariff lines to 35% (Table 3.10).76 
According to the authorities, tariff increases cannot exceed the WTO bound rate.  
Table 3.10 Tariff lines subject to the Central American safeguard clause, 2016 -2023 
HS code  Description  MFN Bound  
rate 
7213.10.00.00   - Containing indentations, ribs, grooves or other 
deformations produced during the rolling process  15% 35% 
7214.20.00.00   - Containing indentations, ribs, grooves or other 
deformations produced during the rolling process or 
twisted after rolling  15% 35% 
7215.10.00.00   - Of free -cutting steel, not further worked than cold -
formed or cold -finished  0% 35% 
7215.50.00.00   - Other, not further worked than cold -formed or 
cold-finished  0% 35% 
7215.90.00.00  - Other  0% 35% 
7228.30.10.00  - - Containing indentations, ribs, grooves or other 
deformations produced during the rolling process or 
twisted after rolling  0% 35% 
7228.30.90.00  - - Other  0% 35% 
7228.70.00.00  - Angles, shapes and sections  0% 35% 
Source:  Decision No. 030 -2015 and information provided by the authorities.  
3.2  Measures directly affecting exports  
3.2.1   Customs procedures and requirements  
3.60.   There were no major changes to the customs regimes for exports between 2016 and 2022.77 
Exporters may carry out customs procedures themselves, which means that engaging a customs 
broker is optional.78 To facilitate trade, the AAH introduced the AEO programme in 2021. According 
to the authorities, in 2022, the AAH had authorized four exporters to function as AEOs for a 
(renewable) period of three years.79 
3.61.   Exporters of certain products are required to register (Table 3.11). Registration is necessary 
in order to apply for an export licence or fulfil other requirements and/or pay the export tax.  
 
74 Article 26 of the Convention on the Central American Tariff and Customs Regime.  
75 Decision No. 005 -2021.  
76 Decision No. 030 -2015.  
77 Definitive regimes: definitive export (Article 93 of CAUCA). Temporary or suspended -duty regimes: 
temporary export with re -import in the same state (Article 102) and temporary export for outward processing  
(Article 103). Duty -free regimes: free zones (Article 101) and re -export (Article 106).  
78 Article 88 of RECAUCA.  
79 These AEOs are exporters of coffee, food products, hardware products and tobacco (information 
provided by the authorities).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.11 Registration of exporters  
Institution  Registration of exporters  
SENASA  Agricultural inputs (e.g. pesticides, fertilizers and related substances)  
Organic agricultural products  
ARSA  Controlled substances  
SERNA  Natural and synthetic refrigerant gases (ozone -depleting substances (ODS))  
Equipment containing ODS  
Honduran Coffee 
Institute (IHCAFE)  Coffeea 
Honduran Geology and 
Mining Institute 
(INHGEOMIN)  Metallic and non -metallic mineralsa 
Gems or precious stonesa 
a Traders must also register.  
Source:  WTO Secretariat and information provided by the authorities.  
3.62.   Prior to exporting, exporters are required to submit an export declaration to the  Central Bank 
of Honduras  (BCH), specifying the quantity, value and destination of the  exports, in addition to the 
indicative date of the operation and the foreign currency payment that will be made. The BCH must 
approve the declaration in order for exportation to go ahead. Although the declaration is required 
for all destinations (provided  that the value of the exports exceeds USD 3,00080), not all exporters 
are required to submit it to the BCH, as those operating under the ZOLI regime are exempt from 
this obligation. Exporters must deposit and sell all foreign currency on the foreign excha nge market 
within the period of time specified in the export declaration.81 
3.63.   The Central American Single Declarations DUCA -F and DUCA -D are used for both imports and 
exports. DUCA -F is submitted electronically through the Export Processing Centre , while DUC A-D is 
submitted through the SARAH.82 The AAH charges a service fee of USD 5 for each DUCA processed.83 
3.64.   DUCA -D and DUCA -F must be accompanied by supporting documents, which may vary 
depending on the customs regime and the nature of the exports. Supporting documents include: 
(a) the commercial invoice; (b) the transport document; (c) the certificate of origin84; (d) the export 
declaration issued by the BCH; and (e) the licence, permit, certificate or any other document that is 
required in accordance with the nature of the product (e.g. animal or plant health certificate, free 
sale certificate (food products), food and beverage export certificate (CEAB) and export inspection 
certificate for minerals and their by -products) or the export desti nation (e.g. eligibility certificate for 
sugar exports to the United States market).85 The main institutions that issue supporting documents 
are the SDE, SENASA, ARSA and SERNA (table 3.12).  
 
80 Information pr ovided by the authorities.  
81 BCH. Viewed at: https://www.bch.hn/operativos/INTL/Paginas/Declaracion -de-Exportacion.aspx . 
82 Informati on provided by the authorities.  
83 Article 50 of the Law on Revenue Enhancement, Social Equity and Rationalization of Public 
Expenditure (Decree No. 17 -2010).  
84 Certificates of origin are issued free of charge by the SDE. Under the GSP, the certificate is i ssued by 
the National Association of Industrialists and costs USD 3 (SDE and CNI (2021), 
"Importaciones/Exportaciones ", Guía del Inversionista - Honduras 2020 -2021.  
85 SDE. Viewed at: https://sde.gob.hn/wp -content/uploads/2017/07/Descripci%C3%B3n -Certificado -de-
Elegibilidad.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.12 Main in stitutions involved in export procedures, 2022  
 Procedures  
SDE Issues certificates of origina 
Issues export licences for red beans  
Issues export certificates for preferential tariff quotas  
SENASA  Issues animal and plant health export certificates  
ARSA  Issues the free sale certificate for exporting food and beverages  
Issues the CEAB for unfortified sugar, flour and salt intended for exportb 
Issues export permits for controlled substances  
SERNA  Issues export authorizations for natural and synthetic refrigerant gases (ODS) and equipment 
containing them  
a Issues the certificates of origin required under trade agreements. Under the GSP, the certificate is 
issued by the National Association of Industrialists.  
b The CEAB was established by Communiqué No. C -002-ARSA -2022.  
Source:  WTO Secretariat, on the basis of WTO document G/TFA/N/HND/3/Rev.1 of 12 August 2020; AAH. 
Viewed at: https://www.aduanas. gob.hn/facilitacion -del-comercio /; SDE. Viewed  at: 
https://sde.gob.hn/facilitacion -del-comercio /; SDE and CNI (2021), "Import aciones/Exportaciones ", 
Guía del Inversionista - Honduras 2020 -21. Viewed at: https://sde.gob.hn/wp -
content/uploads/2021/08/5. -Importaciones -y-Exportaciones.pdf ; and information provided by the 
authoriti es. 
3.2.2   Taxes, charges, and levies  
3.65.   The sale of green coffee and certain minerals and precious stones on the domestic market 
and the exportation of these products are subject to the payment of a tax (Table 3.13). The taxes 
are paid upon registering with the IHC AFE and the INHGEOMIN. The amounts received by the IHCAFE 
are used to finance research and development services, training for primary and agro -industrial 
producers and the implementation of coffee policy, including support programmes for small 
producers.86 The tax paid to the mining sector, known as the special mining tax (IEM), finances the 
INHGEOMIN, mining municipalities and the Treasury General of the Republic.87 In 2019, the rate of 
the IEM was reduced for metallic minerals and increased for non -metall ic minerals and precious 
stones. However, since 2020, a rate of 1.5%, rather than 3%, has been applied to certain 
non-metallic minerals in order to promote exports.88 
Table 3.13 Export tax  
(Changes are highlighted in grey)  
HS code  Description  Tax 2016 -22 
0901.11.30.00  Green coffee  USD 4 or USD 9 per quintal, depending on whether 
the international price is ≤ USD 90 or > USD 90 per 
46 kg bag  
2505.10.00.00; 
2505.90.00.00; 
2517.10.00.00  Non-metallic industrial 
minerals  
Until 2019: 2.5% of the f.o.b. value  
From 2019: 3% of the f.o.b. value  7102.10.00.00; 
7102.21.00.00; 
7102.29.00.00; 
7102.31.00.00; 
7102.39.00.00; 
7103.10.00.00; 
7103.91.00.00; 
7103.99.00.00  Gems or precious stones  
 
86 WTO document WT/TPR/M/336/Add.1 of 5 July 2016.  
87 Until 2019, the Public -Private Partne rship Promotion Agency was also a beneficiary of proceeds from 
the tax.  
88 Decree No. 238 -2012, as amended by Decree No. 135 -2020.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  HS code  Description  Tax 2016 -22 
2821.10.00.00; 
2825.80.00.00; 
7106.10.00.00; 
7106.92.10.00; 
7106.92.90.00; 
7108.11.00.00; 
7108.12.00.00; 
7108.13.00.00; 
7112.91.00.00  Metallic minerals, oxides 
and sulphides  Until 2019: 6% of the f.o.b. value  
From 2019: 5% of the f.o.b. value  
Source:  Law on Financial Revitalization of the Coffee Production Sector (Decree No.  152-2003), General Law 
on Mining (Decree No.  238-2012) and information provided by the authorities.  
3.2.3    Export prohibitions, restrictions, and licensing  
3.66.   Honduras maintains som e export prohibitions and restrictions. To protect the environment, 
Honduras continues to prohibit the export of wood of latifoliate species from natural forests.89 
3.67.   The ban on the export of red beans (HS 0713.32.00.00 and 0713.33.40.00), which had been 
in place to ensure domestic market supply, was lifted in 2020. However, exports of beans require 
an export licence issued by the SDE and may only take place if there is sufficient supply for the 
domestic market and the exporter has a contract with foreign buy ers.90 In addition to beans, other 
products are also regulated by export licences and other types of permit (Table 3.14). Depending 
on the institution, export licences, permits, authorizations and certificates are issued. Most export 
licences are non -autom atic. In certain cases, registration of the exporter is a prerequisite.  
Table 3.14 Exports subject to export licensing or other requirements, 2016 -2022 
Product  Institution  Licence name  Type  Prior 
registration  
Firearms, ammunition and 
explosive materials  Ministry of 
Defence  Export licence  Automatic  No 
Plants and plant products and 
by-products  SENASA  Plant health export 
certificate  Automatic  No 
Animals and animal products 
and by-products  SENASA  Animal health export 
certificate  Automatic  No 
Unfortified sugar, flour and salt, 
not marketed in Honduras  ARSA  Food and beverage export 
certificate (CEAB)  Non-automatic  No 
Red beans  SDE Export licence  Non-automatic  No 
Natural and synthetic refrigerant 
gases (ODS) and equipment 
containing them  SERNA  Export authorization  Non-automatic  Ys 
Controlled substances  ARSA  Export permit  Non-automatic  Yes 
Source:  WTO Secretariat.  
3.68.   Food exports must be accompanied by the free sale certificate issued by ARSA, which ensures 
compliance with the requirements for the sale of food on the Honduran market.  
 
89 Article 102 of the Law on Forestry, Protected Areas and Wildlife (Decree No.  98-2007).  
90 SDE. Viewed at: https://sde.gob.hn/integracion -economica -y-politica -comercial /. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.2.4   Export support and promotion  
3.2.4.1   Export support  
3.69.   Honduras notified the WTO that, between 20 16 and 2020, it did not subsidize exports of 
agricultural products.91 During the years 2016 -19 and in 2022, Honduras provided subsidies to 
reduce the costs of marketing agricultural exports.92 
3.70.   Within the WTO, Honduras continues to have the right to maintai n export subsidy 
programmes, as its gross national product per capita has not exceeded USD 1,000 (in constant 1990 
dollars) for three consecutive years.93 In 2023, Honduras notified two export subsidy regimes: the 
Temporary Import Regime (RIT) and the ZOLI  regime.94 The Industrial Export Processing Zones 
(ZIP) regime95 previously notified by Honduras has not been abolished, but has fallen into disuse. 
Companies once affiliated with the ZIP regime have opted to use the ZOLI regime, which offers 
broader benef its. 
3.71.   The RIT and the ZOLI regime continue to be administered by the SDE and the AAH. All 
Honduran or foreign natural and legal persons established in Honduras may avail themselves of 
either of these regimes, which underwent a number of changes during the 2 016-22 period.  
3.72.   The RIT allows certain goods to be imported with suspension of tariffs and other import 
charges, provided that they are re -exported once they have been processed. In the case of 
machinery, it can be used in Honduras and then re -exported in t he same state.96 The goods eligible 
continue to be: (a)  raw materials, semi -finished goods, containers and packaging, as well as other 
inputs used in production; (b)  machinery, equipment, moulds, tools, spare parts and other parts 
needed for production; an d (c) samples, instructions, patterns and models.97 
3.73.   A maximum time frame ( "production cycle ") for the use and re -export of imported goods was 
established in 2017 (Table 3.15). In the context of the previous review, the authorities had indicated 
that the go ods had to be used and re -exported within 12 months. In 2017, the time frame was set 
according to the company type, ranging from one to five years. Companies may request a single 
extension from the AAH in the event of unforeseen circumstances or force maje ure. The company 
may not appeal if the AAH rejects the request.98 No extensions have been requested since 2017.99 
Companies availing themselves of the RIT may do so for a period of 12 years.100 
 
91 WTO document G/AG/N/HND/47 of 10 January 2018 and WTO documents G/AG/N/HND/53, 
G/AG/N/HND/54, G/AG/N/HND/55 and G/AG/N/HND/56 of 5 January 2021.  
92 WTO document G/AG/N/HND/49 of 3 September 2018; WTO documents G/AG/N/HND/50, 
G/AG/N/HND/51 and G/AG/N/HND/52 of 18 March 2020; and WTO document G/AG/N/HND/57 of 
18 January  2023.  
93 WTO document G/SCM/110/Add.19 of 31 March 2022.  
94 WTO document G/SCM/N/401/ HND of 10 January 2023. The free zone regime in Honduras is known 
as the ZOLI regime.  
95 WTO document G/SCM/N/220/HND of 1 September 2011.  
96 Decree No. 37 -84, as amended by Legislative Decree No. 190 -86, Legislative Decree No. 8 -85, 
Decree No. 135 -94, Decre e No. 113 -2011, Decree No. 261 -2011, Decree No. 124 -2013 and Decree 
No. 278-2013.  
97 Article 1 of Decree No.  37-84, as amended by Article  30 of Decree No.  113-2011 and Article 1 
of Decree No.  261-2011.  
98 Regulations on the Customs Procedure for the Re -expor t of Goods under the RIT (Decision 
No. 704-2017).  
99 Information provided by the authorities.  
100 Article 23 of the Law on Public Financial Management, Control of Exemptions and Anti -evasion 
Measures (Decree No.  278-2013).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.15 Production cycle for goods imported under the RIT  
Time frame  Company type  
1 year  Manufacturing  
2 years  Agro-industry  
3 years  Aquaculture  
4 years  Beef and pork production and packing  
5 years  Mining and quarrying  
1 year and 6 months  Other sectors  
Source:  Regulations on the Customs Procedure for the Re -export of Goods under the RIT (Decision 
No. 704-2017).  
3.74.   Substantial changes have been made to the ZOLI regime since 2016. In 2020, various 
provisions of the 1976 Law on  Free Zones were amended and new regulations were issued, repealing 
those that had been in force since 2010.101 According to the SDE, the legislation needed to be 
comprehensively reviewed and updated in order to provide greater certainty for users of the re gime 
and investors.102 
3.75.   As a result, the revised Law: (a) simplified, centralized and streamlined the procedure for 
setting up companies in free zones103; (b) increased the period of validity for tax exemptions from 
12 to 15 years and provided for a 10 -year e xtension; (c) established facilities for the entry of goods 
and mechanisms to facilitate customs control104; and (d) introduced penalties for failure to comply 
with export requirements and authorized the SDE to terminate or suspend benefits.105 
3.76.   There were no  changes to the other benefits and features of the ZOLI regime. Free zones are 
considered to be extraterritorial fiscal and customs zones, meaning that tariffs and other charges on 
imports are not paid. All company types (commercial and industrial companie s and service providers) 
can set up in free zones. While there are no minimum investment requirements, the operator, when 
applying for permission to set up in a free zone, must submit a three -year investment plan to the 
SDE for consideration.106 
3.77.   Companies a vailing themselves of the RIT and the ZOLI regimes may also sell their output on 
the domestic market, provided that they clear the goods for domestic consumption and have been 
authorized by the SDE. However, companies in free zones must export at least 50%  of their output, 
except where it is not produced domestically, in which case all their output may be sold on the 
domestic market. Moreover, between 2020 and 2022, companies in free zones that were 
manufacturing medical equipment required to tackle the hea lth emergency were able to sell all their 
output tax free on the domestic market.107 
3.78.   In 2022, 273 companies were covered by the RIT and 586 companies had operations in 
39 free zones. The ZOLI regime makes a substantial contribution to Honduras 's foreign tra de, 
accounting for 18.7% of imports and 19.2% of exports in 2022 (Table 3.16). Most of the companies 
covered by the ZOLI regime are maquila  companies, particularly in sectors such as textiles and 
clothing, machinery and electrical products.108 
 
101 Law on Free Zones (Decree No. 356 -1976), as amended by Decree No. 8 -2020. The Regulation s to 
the Law on Free Zones (Decision No. 41 -2020) repealed the Regulation s contained in Decision No. 43 -2009.  
102 SDE press note. Viewed at: https://sde.gob.hn/wp -content/uploads/2017/07/LEY -DE-ZONAS -
LIBRES.pdf . 
103 Since 2020, the procedure has been carried out electronically and solely via the SDE, which has 
centralized the process and coo rdinates with SEFIN and the AAH. Prior to this, all three of these institutions 
needed to be contacted. The maximum period for setting up a business was reduced from nine months to one 
month.  
104 For example, companies in the free zones may set up reception,  custody, inspection and clearance 
areas on their premises for use by the AAH.  
105 Article 16 of Decree No. 356 -1976, as amended by Decree No. 8 -2020; Article 4 -B of Decree 
No. 356-1976, as supplemented by Decree No. 8 -2020; Decision No. 41 -2020.  
106 CNI. View ed at: https://www.cni.hn/regimenes -especiales /. 
107 Decree No. 29 -2020 and information provided by the authorities.   
108 Free Trade Zones Association of the Americas (20 20), Book Estadístico de las Zonas Francas de 
Honduras 2020 . Viewed at: https://www.media.asociacionzonasfrancas.org/media/estadisticas -
pais/Honduras/2020/Book_Est._ -_Honduras.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.16 Statistics on special export support regimes, 2016 and 2022  
 RIT ZOLI  
2016  2022  2016  2022  
Imports (USD million)  320.4  641.6  4,963.9  7,219.1  
% of total imports  2.6 2.9 40.3 32.4 
Exports (USD million)  1,541.7  1,855.7  1,703.3  1,912.1  
% of total exports  15.9 18.7 17.6 19.2 
Source:  Information provided by the authorities.  
3.79.   In the context of this review, the authorities indicated that, in 2022, one company continued 
to operate under the Agricultural Export Zones (ZADE) regime, which was abolished in 2003.109 The 
benefits of this regime, which consist of exemptions from tariffs, other charges on imports, income 
tax and municipal taxes, will be maintained until 2025. The company covered by this regime exports 
all its output, but could also sell it on the domest ic market, subject to the payment of tariffs and 
other charges and authorization by the SDE.110 In 2020, the tax cost of coverage by the ZADE regime 
was HNL 90.2 million.111 
3.80.   The authorities confirmed that, as in 2016, the drawback regime has fallen into disu se (it is 
regulated by the 1987 Customs Law). Operators prefer to use the RIT as it offers greater benefits.  
3.2.4.2   Export promotion  
3.81.   Honduras does not have an export promotion agency in the true sense of the term. The SDE 
and other ministries , particularly the Mi nistry of Foreign Affairs and the SAG, are responsible for 
promoting exports. They provide trade intelligence services, organize "exploratory " visits to 
Honduras for foreign entrepreneurs and participate in trade fairs. The SDE is also responsible for 
administering Honduras 's trade agreements and, consequently, for advising exporters on how to 
make better use of market access opportunities.  
3.82.   In addition, the National Service for Entrepreneurship and Small Businesses (SENPRENDE) 
has focused specifically on en hancing the export capacity of MSMEs and helping them with the 
outsourcing process, which also includes access to financing.112 
3.83.   the Honduras Integrated Foreign Trade Management Portal (PGICE), which is administered 
by the SDE, has been operational since 202 1 and contributes to facilitating customs procedures by 
providing information on the export requirements for each product and destination market, thereby 
helping to boost the presence of Honduran products abroad.113 
3.2.5   Export finance, insurance, and guarantees  
3.84.   As in 2016, Honduras has no official programmes for financing or insuring exports or offering 
guarantees to exporters.114 
3.3  Measures affecting production and trade  
3.3.1   Incentives  
3.85.   In 2020, the Law on Relief for  the Productive Sector and Workers (Decree No. 33 -2020) 
authorized small and medium -sized taxpayers115 to delay the submission of their tax declarations 
 
109 Law establishing Agricultural Export Zones (Decree No.  233-2001), repealed by the Tax Equity Law 
(Decree No.  51-2003).  
110 The company grows African palm, bananas and vegetables and produces palm oil and derivatives.  
111 Information provided by the authorities.  
112 Information provided by the authorities.  
113 PGICE. Viewed at: https://pgice.sde.gob.hn /. 
114 Information provided by the authorities.  
115 In 2022, there were more than 3 million small taxpayers in Honduras, including 140,000  small 
enterprises and 95,000 individual traders. In addition, there were 2,049 medium -sized taxpayers and 721 large 
taxpayers. SAR. https://www.sar.gob.hn/2022/05/sar -reclasifica -a-grandes -y-medianos -contribuyentes -para-
un-mayor -control /. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  for 2019 and postpone payment of the associated taxes. It also offered them a discount of 8.5% on 
the amount of income tax payable in 2019.  
3.3.1.1   Micro, small and medium -sized enterprises (MSMEs)  
3.86.   According to the authorities, MSMEs account for 30 -35% of GDP and employ 70% of the 
labour force. Companies are classified as micro, small or medium -sized enterprises according to the 
number  of employees. Microenterprises h ave up to 10 employees, small enterprises have 
between  11 and  50 employees and medium -sized enterprises have between 51 and 150 employees. 
The majority of Honduran MSMEs are family run.116 
3.87.   According to research carried out by the National Autonomous Univers ity of Honduras (UNAH) 
in 2020, the pandemic had a significant impact on the sales of MSMEs, which fell by more than 80%. 
Recovery was slow, especially for companies run by women, as they had fewer opportunities to 
secure financing.117 Another study from 20 21 shows that the structural conditions in Honduras prior 
to the pandemic, such as poor connectivity, financial exclusion and poor access to electricity, also 
impeded the rapid recovery of the MSME sector.118 Although the Government did introduce stimulus 
measures to counteract the damage done to the sector, the UNAH, in 2020, found substantial 
variations in the use of the support measures implemented, depending on the size of the company, 
as microenterprises lack the capacity to undertake the necessary procedures to request support. 
The most frequently used measures were the extensions granted under the Law on Relief for  the 
Productive Sector and Workers.119 
3.88.   Tax benefits are granted to micro and small enterpris es to promote development, 
strengthening and formalization. During the review period, these incentives were granted under two 
laws: the Law to Support Micro and Small Enterprises (Decree No. 145 -2018), which was repealed 
in 2021, and the 2022 Law for the E conomic Recovery and Revitalization of Micro and Small 
Enterprises (Decree No. 48 -2022). Micro and small enterprises that availed themselves of the 
benefits of the 2018 Law may not take advantage of the 2022 Law.120 
3.89.   The tax incentives granted consist of an exemption from income tax, net assets tax, the 
temporary solidarity contribution and municipal taxes.121 The 2022 Law also provides for tax benefits 
linked to the depreciation and amortization of assets. The incentives granted to all micro and small 
enterpr ises (MSEs) under the 2018 Law had a maximum duration of five years. However, to 
encourage the establishment and incorporation of a greater number of MSEs, the 2022 Law grants 
incentives to recently established or incorporated companies for a five -year per iod, while those that 
were already operating in 2022 are granted incentives for only two years. Incentives are granted 
only to those enterprises that fulfil the performance requirements in the area of job creation and 
that have a maximum gross income of HN L 8 million.122 The tax revenue foregone in 2021 stood at 
HNL 55.9 million; more recent data is unavailable.123 
 
116 Durón Bustamante N. (2021), Sondeo situacional de efectos del COVID19 en el sector MIPYME en los 
municipios fronterizos de Ocotepeque, El Triunfo y Los Trojes Honduras , prepared for the  BE1-PAESCA project 
and the Executive Secretariat of the Central American Agricultural Council. Viewed at: 
https://www.cac.int/sites/default/files/doc umentosdedescarga/Sondeo%20situacional%20Honduras.pdf . 
117 UNAH. Viewed at: https://iies.unah.edu.hn/iies/analisis -de-resiliencia -empresarial -covid-
19/#:~:text=La%20investigaci%C3%B3n%20%E2%80%9CAn%C3%A1lisis%20de%20resiliencia,(COHEP)%2
C%20el%20Proyecto%20Transfo rmando . 
118Durón Bustamante N. (2021), Sondeo situacional de efectos del COVID19 en el sector MIPYME en los 
municipios fronterizos de Ocotepeque, El Triunfo y Los Trojes Honduras , prepared for the  BE1‑PAESCA project 
and the  Executive Secretariat of the Central American Agricultural Council. Viewed at: 
https://www.cac.int/sites/default/files/documentosdedescarga/Sond eo%20situacional%20Honduras.pdf . 
119 UNAH. Viewed at: https://iies.unah.edu.hn/iies/analisis -de-resiliencia -empresarial -covid-
19/#:~:text=La%20investigaci%C3%B3n%20%E2%80%9CAn%C3%A1lisis%20de%20resiliencia,(COHEP)%2
C%20el%20Proyecto%20Transformando . 
120 Article  9 of Decree  No. 48-2022.  
121 Non-fiscal incentives, such as exemption from registration fees and others, are also granted.  
122 In 2018, the job creation requirement was 30% and the maximum gross income requirement was 
HNL 3 milli on. Since 2022, the job creation requirement has been 20% and the maximum gross income 
requirement has been HNL 8 million.  
123 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.3.1.2   Finance and guarantees  
3.90.   The Honduran Production and Housing Bank (BANHPROVI) continues to be the state bank 
responsible for financing production sectors124, social housing and MSMEs.125 The National 
Agricultural Development Bank (BANADESA) is a development bank and also provides financing to 
the agricultural sector and MSMEs (section 4.1).  
3.91.   BANHPROVI grants loans directly or through financi al intermediaries (including rural savings 
and loan funds).126 BANHPROVI is financed by the BCH and the amount that it receives is specified 
in the Law on Financial Support for Production Sectors in Honduras (Decree No. 175 -2008), which 
is reviewed periodic ally on the basis of the financing needs of the production sectors. In 2021 (the 
most recent budgetary review), BANHPROVI was granted HNL 14,000 million, 40% of which is for 
financing housing projects, 20% for financing production units affected by crises (including natural 
phenomena) and 40% for financing microcredits and other production sectors.127 
3.92.   The bank offers direct loans, in national or foreign currency, for the acquisition of fixed assets 
and/or working capital. These loans are capped according to the type of beneficiary.128 The duration 
of the loans ranges from 36 to 120 months, with a grace period of between 6 and 24 months. The 
bank uses market interest rates or preferential rates. In 2022, the annual interest rate was 7% for 
the agricultural sect or and 10% for SMEs. For microcredits, it ranged between 15% and 22%.129 
3.93.   The review period saw a change in the bank 's loan portfolio. There was a drastic reduction in 
direct loans to the agricultural sector, from 43.2% of the loan portfolio in 2018 to 9.6% in 2022. 
However, there was an increase in housing loans (Chart 3.6). The agricultural sector was financed 
by second -tier banks (Chart 3.6) and BANADESA.  
Chart 3.6 Loans granted by BANHPROVI, according to loan  type, 
operator  and sector,  2016 -2022 
 
Note: No data were provided on direct loans in 2016 and 2017.  
Source:  Information provided by the authorities.  
 
124 The definition of production sectors has not changed since 2016. Such sectors process ra w materials, 
natural resources and other inputs in order to produce goods and services.  
125 Law on Financial Support for Production Sectors in Honduras (Decree No. 175 -2008).  
126 BANHPROVI. Viewed at: https://banhprovi.gob.hn/requisitos -para-la-calificacion -y-elegibilidad -de-
cajas-rurales -de-ahorro -y-credito -crac/. 
127 Article 1 of Decree No. 175 -2008, as amended by Decree No. 67 -2009; and information provided by 
the authorities.  
128 The maximum amounts are HNL 720,000 for microcredits, HNL 2.9 million for the agricultural sector 
and HNL 30 million  for SMEs.  
129 BANHPROVI. Viewed at: https://banhprovi.gob.hn/banca -de-primer -piso/. 
13.4 33.2 30.1 45.5 54.9 43.2 31.5 41.4 29.9 9.6 39.2 20.4 22.7 22.5 
35.1 
0102030405060708090100
Second tier
Direct loans
Second tier
Direct loans
Second tier
Direct loans
Second tier
Direct loans
Second tier
Direct loans
Second tier
Direct loans
Second tier
Direct loans
2016 2017 2018 2019 2020 2021 2022(% of total loans)Small agricultural producers, companies in the
informal sector (micro enterprises) and small
enterprises
MSMEs
Production
Other
SMEs
Agricultural sector
Micro enterprises
HousingSecond tier
Direct loansWT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.94.   In addition, since 2015, SENPRENDE  has been implementing the solidarity loan programme, 
which finances MSMEs that are unable to obtain loans from financial institutions. The solidarity loan 
programme also grants loans to rural associative enterprises (EAC) and agricultural producers.130 
3.95.   As a result of the health and climate crises, BANHPROVI established four guarantee funds in 
2020 and 2021 to support the recovery of MSMEs, large companies131 and companies operating in 
priority sectors, i.e. those that create jobs and/or generate foreign c urrency (Table 3.17).132 
However, given that these funds were created to address an emergency situation, they only offer 
short-term guarantees that do not always meet companies ' needs, which is why they are little used 
(Table 3.17). The authorities indicate d that they were reviewing the funds ' conditions of use with a 
view to extending the term of the guarantees.133 
Table 3.17 BANHPROVI guarantee funds, 2020 -2022 
 Recovery guarantee fund  
Agrocredit 8.7  Tourism 
guarantee fund 
(FOGATUR)  For MSMEs  For large 
companies  
Adversely affected by the COVID -19 
pandemic  
Year of creation  2020 2020 2020 2021 
Beneficiaries  MSMEs  Large companies  All company types  MSMEs  
Maximum term of 
the guarantee  48 months  48 months  180 months  Duration of the loan 
plus six months  
% coverage of 
the guarantee  65%, 75%, 85% or 
90%, depending on 
the loan amount 
(working capital and 
fixed assets)  40%, 50% or 60%, 
depending on the 
loan amount 
(working capital)  65%, 75%, 85% or 
90%, depending on 
the loan amount 
(working capital and 
fixed assets)  Working capital: 
80%; fixed assets: 
70% 
Amount 
guaranteed up to 
2022 (% use of 
the fund)  HNL 3,248 million 
(42.9%)  HNL 481.5 million 
(3.8%)  HNL 1,470 million 
(70%)  HNL 14,914 million 
(3%) 
Source : BANHPROVI, "Productos y Servicios ". Viewed at: https://banhprovi.gob.hn/ ; and information 
provided by the authorities.  
3.96.   In addition to the BANHPROVI guarantee funds, there ar e other guarantee funds administered 
by a private company, Confianza Sociedad Administradora de Fondos de Garantía Recíproca 
(CONFIANZA SA -FGR). BANHPROVI forms part of its board of directors. This company, which began 
operating in 2015, administers six fu nds, including the micro, small and medium -sized enterprises 
guarantee fund  (FOGMIPYME) , the agricultural mutual guarantee fund  (FAGRE) , the small -scale 
fishing guarantee fund  (FOGAPE)  and the coffee sector guarantee fund  (FONCAFE) . The funds ' 
resources ar e made up of various contributions, including from CONFIANZA SA -FGR's partners and 
public entities. Unlike BANHPROVI, CONFIANZA SA -FGR only serves its partners; the guarantees 
cover up to 50% of the loan granted.134 
3.3.1.3   Sectoral incentives  
3.97.   Honduras continues to offer tax incentives for certain sectors or activities. As in 2016, the 
areas targeted are agriculture135, tourism, electricity generation using renewable sources136 and the 
 
130 Solidarity loan. Viewed at: https://www.creditosolidario.hn/index.php . 
131 These are companies whose debt level is equivalent to at least 6% of capital. They are classified as 
"large commercial debtors " (information provided by the authoritie s). 
132 BANHPROVI administers three other funds guaranteeing, respectively: water security (FIDEAGUA), 
entrepreneurial initiatives of indigenous peoples (FOGAPIAH) and the provision of public land transport 
(FOGATT).  
133 BCH (2020), Informe de Estabilidad Fina nciera , June. Viewed at: 
https://www.bch.hn/EN/Estadisticos/EF/LIBESTABILIDADESP/IF%20Junio%202020.pdf . 
134 Law on the System of Mu tual Guarantee Funds for the Promotion of MSMEs, Social Housing and 
Technical/Vocational Education (Decree  No. 205-2011), as amended by Decree No. 92 -2018; and CONFIANZA 
SA-FGR. Viewed at: https://www.confianza.hn /. 
135 Special Law on Agricultural Investment and Rural Job Creation (Decree No. 322 -98). 
136 Law on the Promotion of Electricity Generation from Renewable Resources (Decree No.  70-2007).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  provision of customer services and outsourcing services.137 The Law on t he Promotion of Tourism, 
repealing the 1998 Law on Tourism Incentives, was enacted in 2017. However, the benefits granted 
under the Law on Tourism Incentives remain in effect, so there continue to be beneficiaries in 2023. 
Nonetheless, most tourism service  providers now operate under the new Law. Furthermore, 
according to the authorities, one company continued to benefit during the review period from the 
incentives granted under the Tourism -related  Free Zones (ZOLT) regime, which was abolished in 
1998.138 The operator continues to benefit from an exemption from tariffs and other charges on 
imports. The regime offered a 20 -year exemption from income tax and a 10 -year exemption from 
municipal taxes.  
3.98.   The incentives generally consist of exemptions from various ta xes, including tariffs and 
income tax. They allow for the importation, for an indefinite period, of the goods, inputs, tools, 
equipment and other materials needed to operate, without payment of tariffs and sales tax. The 
exemption from income tax has a max imum duration, for instance between 10 and 15 years. The 
incentives are generally granted without taking into account the capital invested in different sectors; 
a minimum capital requirement exists only for call centres and the outsourcing of business serv ices. 
In addition, in the tourism sector, some incentives depend on the location of the project.  
3.3.2   Standards and other technical requirements  
3.99.   The National Quality System (SNC) is regulated by the 2011 Law on the National Quality 
System (Decree No. 29-2011), which has not been amended during the review period. The 
regulations to implement this Law are still in preparation.139 
3.100.   The composition of the SNC has not changed since 2011. The National Quality Council 
(CNCA) is the governing body responsible fo r developing national quality policy. The Honduran 
Standardization Organization (OHN), the Honduran Metrology Centre (CEHM) and the Honduran 
Accreditation Agency (OHA) are also part of the SNC. In the context of this review, the authorities 
indicated that the OHA has not yet been recognized internationally. In  2017, the SNC and its 
component bodies were brought under the purview of the SDE140. They had previously been under 
the Ministry of  Strategic Planning.  
3.101.   Honduras has accepted the Code of Good Practice i n the Agreement on Technical Barriers to 
Trade.141 Public institutions prepare preliminary draft Honduran Technical Regulations (RTHs) in their 
area of competence, in collaboration with the private sector. The preliminary draft RTHs are 
submitted to the Int er-institutional Technical Regulation Council (CIRT)142, which coordinates the 
procedure for preparing RTHs (Chart 3.7).143 To prepare an RTH, Honduran "technical standards " 
(OHN standards) or regional or international standards must be used as a reference. If the RTH is 
based on an OHN standard, the latter does not cease to have effect.  
 
137 Law on the Promotion of Call Centres and Outsourcing of Business Services (Decree No.  90-2012).  
138 Law on Tourism Incentives (Decree No. 314 -98), repealing the ZOLT regime.  
139 Information provided by the authorities.  
140 Executive Decree PCM -042-2017.  
141 WTO document G/TBT/CS/N/165 of 27 March 2006.  
142 The CIRT is chaired by the Directorate -General of Consumer Protection and made up of 
representatives of the public se ctor, including the institution that has submitted the draft, and the private 
sector.  
143 Decision No. 77 -2018.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Chart 3.7 Preparation of Honduran Technical Regulations  
Source:  Information provided by the authorities.  
3.102.   the procedure for adopting an RTH consists of various steps, including national consultations 
followed by international consultations once the draft has been notified to the WTO. The SDE is the 
national authority responsible for WTO TBT notifi cations and, together with the Ministry of  Health 
(SESAL)144, acts as the enquiry point. All steps in the procedure for preparing technical regulations 
must be completed, except in the case of emergency technical regulations, for which international 
public consultations are not required, but which must be notified to the WTO as soon as they are 
implemented.  
3.103.   Within the CIRT, RTHs are adopted by consensus, or, in the absence of consensus, by simple 
majority.145 They are disseminated through decisions of the com petent institution.146 RTHs are 
revised ex officio every two years, or earlier if an adjustment is required as a result of any 
technological or scientific advance. No revisions were carried out during the review period. In 2022, 
there were three RTHs in force, which were based on Honduran, regional and int ernational 
standards.147 
3.104.   Since 2016, Honduras has notified 13 new technical regulations to the WTO, in addition to 
addenda to 31 technical regulations that had already been notified.148 No emergency technical 
regulations have been notified. The new technical  regulations mostly concern electrical products and 
dairy products. The technical regulations notified by Honduras were not the subject of any specific 
trade concerns between 2016 and 2022.149 
3.105.   Honduras has no legislative instrument that specifically regulat es labelling. Locally produced 
and imported products must comply with the requirements set out in the Consumer Protection Law 
(Decree No. 24 -2008) and the Central American Technical Regulations (RTCAs). The Law lays down 
general labelling requirements for pre-packaged products for consumption and health (Article 23). 
There are RTCAs for the labelling of pre -packaged foods, cosmetics, cleaning products, medicines 
for human use, pesticides for domestic or professional use, footwear and textiles. While certain  
RTCAs do not specifically regulate labelling, they may contain related provisions. Labels must be in 
Spanish. For imported products, the labelling requirement must be met before the goods enter 
Honduras.  
3.106.   Products manufactured in Honduras and imported prod ucts must meet the requirements 
established in the technical regulations in force. Conformity assessment bodies (CABs) are 
responsible for verifying compliance with these requirements. These may be Honduran or foreign 
 
144 ARSA, as a SESAL body, is responsible for responding to requests for information (information 
provided by the authorities).  
145 Article 14 of Decision No.  77-2018.  
146 In the case of ministries , these will be ministerial decisions.  
147 Information provided by the authorities.  
148 No revisions have been notified.  
149 WTO ePing platform. Viewed at: https://eping.wto.org/es . 
Preparation of the annual  
RTH plan  
Pre-assessment  
Approval of the  
pre-assessment  
Preparation of the  
preliminary draft RTH  
Acceptance of the  
preliminary draft RTH  
Convening of the  
Technical Regulation Committee (CRT)  
Preparation of the  
draft RTH  
Public consultations and  
notification to the WTO  
Review of the  
comments  
Approval of the draft  
RTH 
Publication of the RTH  
Public institutions  
CIRT 
Public institutions  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  bodies that have been accredited by th e Honduran Accreditation Agency (OHA), which is the national 
accreditation body, or by foreign accreditation bodies. The OHA accepts and recognizes foreign 
accreditations. In 2022, there were 31 CABs in Honduras (Table 3.18).  
Table 3.18 Conformity assessment bodies (CABs), 2022  
CABs  Type  
CABs accredited by the OHA  Nine testing laboratories, two clinical laboratories and one 
inspection body  
CABs accredited by other accreditation bodies  Twelve testing laboratories, two calibration laboratories and 
one body for the certification of persons  
CABs whose foreign accreditation is accepted 
and recognized by the OHA  Four product certification bodies  
Source:  Information provided by the authorities.  
3.107.   As the nati onal standardization body, the OHN is responsible for developing Honduran 
"technical standards " (OHN standards), the use of which is voluntary.150 However, if an OHN 
standard is used to prepare an RTH , the use of the standard becomes mandatory through the RTH. 
Transparency and consensus are key in the preparation process, which involves various stages and 
lasts about nine months (Chart 3.8) .151 If relevant regional or international standards exist, they  
must be taken into account when preparing the draft.  OHN standards are reviewed every five years, 
or earlier if needed, to decide whether they are to be maintained, revised/updated or revoked. There 
are currently 174 OHN standards in force, 166 of which a re based on international standards.152 The 
OHN has an electronic catalogue of standards, the consultation of which entails a cost.  
Chart 3.8 Procedure for preparing OHN standards  
 
Source:  WTO Secretariat.  
3.108.   The Honduran Metrology Centre administers the metrology system and is therefore the 
custodian of national measurement standards. Two private laboratories provide measuring 
instrument calibration services 3.2.4.1 Export support . 
3.3.3   Sanitary and phytosanitary requirements  
3.109.   In Honduras, sanitary and phytosanitary (SPS) measures are regulated by the WTO 
Agreement on the Application of Sanitary and Phytosanitary Measures, the Central American 
Regulations on Sanitary and Phytosanitary Meas ures and Procedures, the Law on Plant and Animal 
Health (Decree No. 157 -94) and the Health Code (Decree No. 65 -91). Use is also made of various 
regulations adopted by the National Agriculture and Food Health and Safety Service (SENASA)153 of 
the Ministry of  Agriculture and Livestock (SAG) and by the Health Regulation Agency (ARSA). New 
regulations have been issued since 2016 (Table 3.19).154 In addition, Honduras uses a number of 
Central American Technical Regulations related to the implementation of plant an d animal health 
measures and food safety.  
 
150 The OHN is made up of representatives from the public, private, academic and consumer sectors.  
151 Article 24 of the Law on the National Quality System (Decree No.  29-2011).  
152 Information provided by the authorities.  
153 The National Agriculture and Food Health and Safety Service was established in 2016 by virtue of 
Executive Decree No. PCM -015-2016 to replace the National Agricultural Health Service (SENASA). The 
acronym SENASA continues to be used t o refer to the new agency.  
154 All of the regulations issued by SENASA can be viewed at: https://senasa.gob.hn/reglamentos /. 
Draft stage Preparation 
stage
Committee 
stagePublic consultation stage
Approval 
stagePublication 
stageRevision 
stagePreliminary 
stageWT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.19 SPS regulations adopted, 2016 -2022 
Issuing 
institution  Regulations  Decision No.  
SENASA  General Regulations on the National System for Agricultural, 
Aquacul ture and Fishery Traceability and Registration (SINART)  C.D.SENASA -006-2018 
Regulations on the registration of establishments importing, 
processing and/or exporting products and by -products of animal 
and/or plant origin  C.D.SENASA -05-2018 
Regulations on the prevention, control and eradication of avian 
diseases  C.D.SENASA -004-2018 
Regulations for the introduction, conservation, production, 
certification, distribution and marketing of grafted avocado ( persea  
americana ) plan ts 161-2017 
Regulations on the registration and renewal of collection centres  C.D.SENASA -002-2020 
ARSA  Regulations on the sanitary control of food and beverages  06-2005 
Source:  WTO Secretariat.  
3.110.   SENASA remains responsible for ensuring the protection of human, animal and plant health, 
and the conservation and safety of products and by -products of animal and plant origin in order to 
prevent the spread of pests and diseases. ARSA was established in 2 017 and is responsible for 
ensuring that processed and semi -processed foods are fit for consumption.155 
3.111.   The Agricultural Protection Service  (SEPA)  of the International Regional Organization for 
Plant and Animal Health (OIRSA) continues to provide agricultur al quarantine services at Honduras 's 
borders.156 
3.112.   In order to achieve the aim of SPS policy, Honduras is encouraging the adoption of good 
agricultural practices and good manufacturing practices, as well as the strengthening of 
epidemiological surveillance to  prevent, control and eradicate diseases. In the poultry industry, for 
example, SENASA provides training in the field and in laboratories under the National Poultry 
Farming Programme in order to strengthen surveillance and maintain avian disease -free statu s.157 
In 2018, Honduras adopted regulations requiring procedures that make it possible to establish 
traceability at any stage of the production process in the agricultural, aquaculture and fishery sectors 
in order to ensure the maximum level of sanitary con trol. In addition, in 2022, to improve sanitary 
regulations, food safety and quality, SENASA and ARSA signed an agreement to create a National 
Food Control System  (SNCA) , which would centralize the management and prevention of 
food-related risks.  
3.113.   In Hondur as, SPS measures are determined on the basis of the Codex Alimentarius 
standards, the health codes of the World Organisation for Animal Health (WOAH) and the principles 
of the International Plant Protection Convention. Most SPS measures are in line with in ternational 
standards.158 
3.114.   The WTO must be notified of all (new or amended) SPS measures before they enter into 
force, except for measures taken in case of emergency, which must be notified as soon as they are 
implemented. The SDE is the notification authori ty and, together with SENASA and SESAL,159 serves 
as the enquiry point responsible for dealing with requests for additional information on existing or 
new measures.160 Since 2016, Honduras has notified 12 new SPS measures and amended 13 other 
previously noti fied measures.161 No emergency measures have been notified. In 2020, Mexico raised 
 
155 ARSA was created by Executive Decree No. PCM-032-2017.  
156 Since 2000, by agreement, SAG has delegated the provision of quarantine services to the OIRSA 
(OIRSA article of 16 October 2020. Viewed at: https://www.oirsa.org/noticia -detalle.aspx?id=7999 ). 
157 Decisions No. C.D.SENASA -003-2018 and No. C.D.SENASA -004-2022.  
158 Information provided by the authorities.  
159 ARSA, as a SESAL entity, is responsible for answering enquiries (information provided by the  
authorities).  
160 WTO ePing SPS&TBT Platform. Viewed at: https://eping.wto.org /. 
161 No revisions have been notified.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  a specific trade concern on SPS measures in Honduras, in relation to delays in risk analysis for the 
import of pasteurized dairy products.162 
3.115.   The plant and animal health  impor t and export requirements can be consulted via the 
Honduras Integrated Foreign Trade Management Portal (PGICE).163 A (animal and plant health ) 
import permit issued by SENASA is required to import animals and plants, animal or plant products 
and by -products,  and inputs for agricultural use into Honduras (Section 3.1.5). The application must 
be submitted online on the SENASA website; the importer must register with SENASA as a 
prerequisite.164 The permit, which is issued within 24 -72 hours, is valid for 30 days  and renewable. 
There is a cost for issuing the permit.165 
3.116.   A sanitary import authorization issued by ARSA is required to import raw materials for the 
production of foods and beverages, as well as food additives.166 The application may be submitted 
in person or online.167 The cost of authorization depends on the time frame for issuance, which 
ranges from 2 to 30 days. The sanitary import authorization is valid for six months and a new 
application must be submitted when it expires.168 In order to obtain the sanit ary import 
authorization, applicants must already be in receipt of sanitary registration issued by ARSA. When 
raw materials or additives are of animal or plant origin, an import permit from SENASA is required 
in addition to the sanitary registration and sa nitary authorization.169 
3.117.   SENASA also issues animal and plant health  export certificates, which take three days to 
issue and entail a cost.170 
3.118.   As a member of the CACM, Honduras continues to implement the Central American Sanitary 
and Phytosanitary Directive o n Trade Facilitation in Respect of Shipments and Goods, which defines 
the risk levels used to establish entry requirements.171 
3.3.4   Competition policy and price controls  
3.3.4.1   Competition policy  
3.119.   The competition regime in Honduras is governed by the Constitution, the Law on the 
Defence  and Promotion of Competition (LDPC, Decree No. 357 -2005) and its Regulations (Decision 
No. 001 -2007), and the resolutions issued by the Commission for the Defence and Promotion of 
Competition (CDPC).172 Since the previou s Review, the legal framework has not undergone any 
substantial revisions. A number of changes were made to the Law to update the amounts of fines.173 
3.120.   Monopolies, monopsonies, oligopolies, hoarding and similar practices are prohibited in 
Honduras. However, the exploitation of an intellectual property right is not considered a monopoly.174 
3.121.   The LDPC applies to all sectors of the economy, including regulated sectors,175 as well as to 
all economic operators, whether public or private, Honduran or foreign, operatin g within and outside 
 
162 WTO document G/SPS/R/100 of 21 December 2020.  
163 PGICE. Viewed at: https://pgice.sde.gob.hn /. 
164 The websites are: https://senasa.gob.hn/  and https://www.ua.sieca.int/NotificacionesMSF/  
USUARIO/Login . 
165 Regulations on Service Fees (Decision No. C.D.SENASA -005-2019).  
166 PGICE. Viewed at: https://pgice.sde.gob.hn /. 
167 ARSA. Viewed at: https://www.arsa.gob.hn /. 
168 Decision No. 034 -2020.  
169 PGICE. V iewed at: https://pgice.sde.gob.hn /. 
170 PGICE. Viewed at: https://pgice.sde.gob.hn /. 
171 Annex to Resolution  No. 338-2014 (COMIECO -EX). 
172 Unfair trade practices are regulated by the Commercial Code. However, the LDPC penalizes such 
practices if they are undertaken by an operator with a significant market share (Article 7 of the LDPC).  
173 The most recent adjustment is contained in Resolution No. 005 -CDPC -2021-AÑO-XV. Viewed at: 
https://www.cdpc.hn/?q=www.resoluciones_norm . 
174 Article 339 of the Co nstitution.  
175 Telecommunications, electricity, financial services and transport.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Honduras, provided that foreign operations affect competition in the internal market.176 The Law 
does not stipulate any exceptions to the competition regime.  
3.122.   As in 2016, the CDPC is the authority responsible for enforcing the competitio n regime in all 
sectors of the economy. In the regulated sectors, however, sectoral laws may grant regulatory 
bodies the authority to apply the competition regime. The National Telecommunications Commission 
(CONATEL), for example, is in charge of competiti on in the telecommunications sector, although it 
collaborates with the CDPC to reach agreement on measures. However, CONATEL issues the final 
decision.177 
3.123.   The CDPC may launch investigations into alleged anti -competitive practices ex officio  or at 
the reques t of a party. To examine mergers in the regulated sectors, the CDPC may request the 
collaboration and opinion of the regulatory bodies.178 Economic operators can appeal CPDC decisions 
through administrative channels. If the appeal is unsuccessful, it can be  brought before the 
administrative courts.179 
3.124.   As a promotional and preventive measure, the CDPC conducts studies to analyse the degree 
of competition in the various sectors and issues recommendations to remove distortions or barriers 
to competition. For thi s purpose, the Commission may cooperate with the regulatory bodies in the 
regulated sectors.180 
3.125.   In Honduras, practices that distort competition by reason of their nature or their effect are 
prohibited. The penalties imposed on operators engaging in such pra ctices may be equal to three 
times the economic benefits obtained through the illegal practice, or, if the benefit cannot be 
determined, up to 10% of the sales made the previous year.181 
3.126.   The practices prohibited because of their nature involve horizontal ag reements (cartels). 
These practices are not legally valid and consist of concerted practices between direct competitors 
to fix prices or discounts, restrict supply, divide up the market or coordinate bids in tendering 
processes.182 The existence of a cartel  may be disclosed under the CDPC 's administrative leniency 
programme. Through this programme, the operator, whether a company or an individual acting on 
behalf of a company, reveals its participation in a cartel in exchange for a reduction in the size of 
the fine. There is no limit to the number of operators eligible for the programme. However, the 
percentage by which the fine is reduced depends on the order in which they enter the programme. 
The fine of the first entrant is fully waived. The reduction for the second is between 50% and 30%; 
for the third, between 30% and 20%; and for the fourth and subsequent parties, 20%.183 However, 
joining the leniency programme does not exempt parties from any civil or criminal liability, which, 
according to the authoriti es, discourages participation in the programme.184 
3.127.   Practices prohibited by virtue of their effect (vertical agreements) are those agreed between 
indirect competitors in order, inter alia, to exclude other agents or make it difficult for them to gain 
market access, to impose exclusivity or tied or conditional sales contracts, or to engage in acts of 
unfair competition. The effect of the practice is therefore analysed on a case -by-case basis. However, 
for these practices to be penalized, they must be carried o ut by an operator taking undue advantage 
 
176 In Honduras, professional associations must also be governed by the LDPC.  
177 Information provided by the authorities; General Regulations of the Framework Law on the 
Telecommunications Sector; and CDPC (2018), Estudio Sectorial sobre el Mercado de Telecomunicaciones en 
Honduras . Viewed at: 
https://www.cdpc.hn/sites/default/files/Privado/estudios_mercado/Estudio%20Sectorial%20de%2 0Telecomuni
caciones%20en%20Honduras%20%28Telefon%C3%ADa%20M%C3%B3vil%2C%20Fija%20e%20Internet%29
.pdf. 
178 Article 26 of Decision No.  001-2007.  
179 Article 45 of the LDPC.  
180 Article 17 of Decision No.  001-2007.  
181 Article 37 of  the LDPC.  
182 Article 6 of the LDPC.  
183 Articles 51 -A to 51 -E of Decree No. 357 -2005, supplemented by Decree No. 4 -2015, and the CDPC 
Regulations on the administrative leniency programme or procedure for the case of restrictive practices and 
consultations or  those prohibited by reason of their nature.  
184 Article 6 of the LDPC and Article 51 -A of the LDPC, supplemented by Decree No. 4 -2015.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  of a significant market share.185 A number of criteria are analysed to determine whether there is a 
significant share, such as whether there are barriers preventing access to production inputs or entry 
to the market,  or whether an operator has a quota (sales or customers) that exceeds a certain 
threshold. However, the LDPC does not stipulate the threshold. In the context of this Review, the 
authorities have indicated that, in practice, the percentage share of the rele vant market (25%) 
continues to be used to examine economic mergers.  
3.128.   Moreover, the Law provides that vertical practices are not penalized when, despite affecting 
competition, they generate economic efficiencies and consumer well -being.186 
3.129.   In Honduras, the CDPC must be notified in advance of economic concentrations (merger, 
acquisition, consolidation, integration or combination of businesses, including those carried out 
abroad that have an impact on Honduras.187 The Law does not provide for e xceptions to the 
obligation to notify, and prescribes penalties in the event of late notification. Economic 
concentrations exceeding a certain threshold of total assets, sales or relevant market share must 
also be verified ex ante  (Table 3.20).188 For these  purposes, the CDPC will therefore conduct an 
economic analysis of the operation,189 for which it has 45 days, after which the operation may be 
favourably approved, prohibited or approved with conditions to correct possible anti -competitive 
effects. However , the Law provides that certain economic concentrations, even if they exceed the 
thresholds, must be favourably approved without the need for economic analysis; these are 
operations that relate mainly to the creation of temporary strategic alliances or cor porate 
restructuring.190 
Table 3.20 Criteria and thresholds for examining economic mergers, 2016 -2023 
Criteria  Thresholds  
Total assets in Honduras  > 4,000  minimum wage units  
Sales volume in Honduras  > 5,000  minimum wage units  
Share of the relevant market  > 25%  
Note:  Minimum wage units may be consulted at: http://www.trabajo.gob.hn/tabla -de-salario -de-empleo -
por-hora/. 
Source:  Resolution No. 04 -CDPC -2014-AÑO-IX. 
3.130.   Between 2016 and 2022, the CDPC launc hed 10 investigations, 8 of which were initiated 
after a complaint was received (Table 3.21). The investigations were carried out in the 
pharmaceutical, transport and financial services sectors and in commerce. Two practices were 
penalized for abuse of sig nificant market share. During the review period, the Commission approved 
nine economic mergers in sectors such as energy and mining, financial and transport services, and 
industry.191 
Table 3.21 Competition dat a, 2016 -2022 
 2016  2017  2018  2019  2020  2021  2022  Total  
Anti-competitive practices  
Investigations initiated  3 1 1 3 0 1 1 10 
Following a complaint  3 2 2 0 1 0 0 8 
Ex officio  0 2 0 0 0 0 0 2 
Practices penalized  0 2 0 0 0 0 0 2 
By reason of their nature  0 1 0 0 0 0 0 1 
By reason of their effect  0 1 0 0 0 0 0 1 
Mergers  
Notified  6 6 10 3 4 11 9 49 
Approved  0 1 1 0 3 3 1 9 
Approved conditionally  0 0 0 0 0 0 0 0 
 
185 Other terminology may be used in regulated sectors. For example, the General Regulations of the 
Framework Law on the Tel ecommunications Sector refers to an "operator with significant market power 
(SMP) ". 
186Article 9 of the LDPC.  
187 Article 14 of Decision No.  001-2007.  
188 Articles 13 and 16 of the LDPC.  
189 The CDPC assesses the degree of concentration before and after the operat ion, the possible 
introduction of market -entry barriers, and potential risks of unilateral abusive conduct (Article 16 of the LDPC).  
190 Article  13 of Decision No.  001-2007.  
191 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019  2020  2021  2022  Total  
Prohibited  2 1 0 0 0 1 1 5 
Penalty for late notification  6 3 3 3 1 1 1 18 
Source:  Information provided by the authorities.  
3.3.4.2   Price controls  
3.131.   The Consumer Protection Law (Decree No. 24 -2008) prohibits any practice whose purpose 
is to increase consumer sales prices or tariffs.192 
3.132.    The SDE, through the Directorate -General of Consumer P rotection (DGPC), may set the 
consumer sales price or tariff or the marketing margin for certain goods, services or inputs if 
emergency, monopoly or oligopolistic situations arise that may result in speculation, hoarding or 
scarcity of supply, and lead to rising prices or tariffs.193 The Consumer Protection Law stipulates that 
the following may be controlled: the prices of staples or goods essential for consumption or health 
and the inputs needed for their manufacture; the tariffs for essential mass -use serv ices; and the 
price of the inputs needed for economic activities.194 As a basis for setting prices or tariffs, the DGPC 
uses the weighted average prices or tariffs for a period of between 60 and 90 days. The regulated 
prices or tariffs remain in force for a t least one month, followed by possible renewal for an additional 
month and until the circumstances giving rise to the regulation end.195 
3.133.   The DGPC  may also regulate (stabilize) the prices of basic basket products196 that are 
produced or consumed seasonally.197 
3.134.   Since 2010, the DGPC has used a temporary mechanism to determin e maximum sales prices 
on markets for the products included on the list of food security products . The products on the list 
are included in the basic basket,198 and other products considered essential may also be added 
according to need, for instance in cases of health or climate  emergencies. When the (market) selling 
price of any of the products on the list exceeds the rate of inflation for the preceding month by more 
than 10%, the SDE sets a temporary maximum price based on a calculation of weighted prices for 
a period of betwee n 60 and 90 days. The price is regulated for one month only, which may be 
extended by another month if the existence of speculative practices is established; the regulation 
may be maintained beyond two months until the circumstances giving rise to it come to an end.199 
Suppliers may request the review or elimination of the regulation when, for example, the costs of 
the raw materials used to make the food security products increase.  
3.135.   In 2020 -21, owing to the emergency caused by the pandemic and adverse climate  events, 
the DGPC fixed maximum prices for certain goods and inputs, including all products in the basic food 
basket and ethyl alcohol (Table 3.22). In 2022, price controls established as a result of the 
emergency situation were removed.  
 
192 Article 68 of Decree No.  24-2008.  
193 In the case of monopolies or oligopolies, the DGPC requires the approval of the CDPC to regulate 
prices or tariffs (Article 71 of Decree  No. 24-2008).  
194 Article 72 of Decree No.  24-2008.  
195 Article  74 of Decree  No. 24-2008 and Article  83 of the Regulations of the Consumer Protection Law 
(Decision No.  084-2021). The SDE publishes regulated prices in ministerial decisions.  
196 The basic basket continues to include 240 food products, 31 non -food products (including school 
supplies) and 2 transport services. See Anne x I to Decree Law No. 24 -94, as amended by Executive Decision 
No. 017 -2017.  
197 Article 8 of Decree No.  24-2008.  
198 The basic food basket consists of 30 foods and non -alcoholic beverages considered essential for 
consumption by Hondurans.  
199 Article 74 of Decre e No.  24-2008 and information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.22 Price controls, 2016 -2022 
Description  Ministerial Decision No.  
Balanced animal feed  212-2020, 227 -2020 
Basic food basket  023-2020, 027 -2020, 034 -2020, 039 -2020, 046 -2020, 
053-2020, 101 -2020, 104 -2020, 151 -2020, 222 -2020, 
231-2020, 234 -2020, 55 -2021, 136 -2022 
Mats 223-2020 
Biosecurity products (face masks, antibacterial gel, 
ethyl alcohol and latex gloves)  018-2020, 030 -2020, 040 -2020, 106 -2020, 109 -2020 
Source:  Information provided by the authorities.  
3.136.   Consumer prices for refined fuels (gasoline, kerosene, diesel, fuel oil and LPG) continue to 
be regulated. From 2017, the Ministry of  Energy (SEN) replaced the SDE as the entity authorized to 
determine prices.200 The regulation continues to be based on the import parity price system.201 
3.137.   The electricity tariffs of end users (regulated users) are regulated (Section 4.2.1). The tariffs 
for other essential mass -use services may also be regulated.202 
3.138.   In Honduras, the price of certain products continues to be monito red. The DGPC monitors 
several sales prices, including the prices of the basic food basket, refined fuels, construction 
materials, medicines, concentrated animal feed and agricultural inputs.203 In addition, for fiscal 
control purposes, SEFIN also monitors the price of various products, such as cigarettes and other 
tobacco products.204 
3.3.5   State trading, state -owned enterprises, and privatization  
3.139.   In 2022, Honduras advised that it did not have state -trading enterprises, pursuant to 
Article  XVII:4(a) of the GATT 1994 and paragraph 1 of the Understanding on the Interpretation of 
Article XVII .205 
3.140.   As in 2016, the State owns two banks and eight non -financial public enterprises (NFPEs) 
engaged in various activities (Table 3.23). Moreover, in 2020, the Honduran Airp ort Infrastructure 
and Services Company (EHISA) was established, "excluding all private capital participation ". EHISA 
was created as a public limited company.206 
Table 3.23 State -owned enterprises, 2016 -2022 
State -owned enterprises  Activity  
Banks  
Honduran Production and Housing Bank (BANHPROVI)  Development bank  
National Agricultural Development Bank (BANADESA)  Agricultural bank  
Non-financial public enterprises  
Honduran Postal Service (HONDUCOR)  Postal service  
Honduran Telecommunications Company (HONDUTEL)  Telecommunications services  
National Electricity Company (ENEE)  Electricity generation, transmission, distribution and 
marketing  
National Ports Company (ENP)  Port operator and port services provider  
Honduran National Railway (FNH)  Rail transport service  
Honduran Agricultural Marketing Institute (IMHA)  Distributor of staple grains  
National Drinking Water and Sewage Service (SANAA)  Assists municipalities with drinking water and 
sanitation  
National Basic Products Supply Company (BANASUPRO)  Markets products in the basic basket  
Other  
Honduran Airport Infrastructure and Services Company (EHISA)  Airport operator  
Source:  WTO Secretariat.  
 
200 The Petroleum Administration Commission (CAP) remains the entity authorized to regulate prices. 
In 2017, the CAP was moved from the SDE to the SEN.  
201 Ministerial Decision No. SEN -001-2020.  
202 Article 72 of Decree No.  24-2008.  
203 Information provided by the authorities.  
204 Decision No. 172 -2022.  
205 WTO document G/STR/N/19/HND of 30 June 2022.  
206 Executive Decree No. PCM -084-2020.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.141.   The authorities have indicated that the GDP share of NFPEs was 1.7% in 2016 and, according 
to estimates, 0.8% in 2021, while their share of employment varied between 0.2% and 0.3% during 
the review period. According to SEFIN, over the last three years analy sed, the operating balance of 
NFPEs recorded a deficit equivalent to 0.5% of GDP in 2018, 0.02% in 2019 and 0.2% in 2020. The 
deficit is largely explained by the deterioration in the financial position of the National Electricity 
Company (ENEE) and the Hon duran Telecommunications Company (HONDUTEL).207 
3.142.   In 2022, some activities continued to be reserved to the State (Section 2.4), although private 
capital may participate through concessions208 or operating contracts. However, State enterprises 
may be the sole or major operators or providers. For example, since 2022, ENEE has been the 
exclusive marketer of electricity in Honduras and also has a monopoly on transmission and 
distribution. In the a rea of transport services, the State was the only provider of rail passenger 
transport services in the north of the country (the service has been suspended since the pandemic), 
and the National Ports Company (ENP) continues to operate and manage all intern ational traffic 
ports, with the exception of two (Puerto Cortés and Roatán (cruise ports) that are under concession.  
3.3.6   Government procurement  
3.143.   Procurement procedures for goods, services and public works in Honduras are governed by 
two laws: the Law on Governm ent Procurement (LCE, Decree  No. 74-2001) and the Law on Efficient 
and Transparent Procurement using Electronic Means (LCETME, Decree  No. 36-2013), and their 
accompanying Regulations.209 In addition, general rules contained in guides and manuals apply.210 
Honduras also applies the provisions on government procurement negotiated in its preferential trade 
agreements. Honduras is not a party to the WTO Agreement on Government Procurement and does 
not participate as an observer in the Committee.  
3.144.   During the period  under review (2016 -22), no changes were made to the LCE or the LCETME. 
However, under the General Provisions on the State Budget (DGP), procurement thresholds are 
updated every year. Other procedural provisions, such as procurement methods, are also inclu ded 
in the DGP.211 In 2018, the Regulations implementing the LCE were amended to create the position 
of certified public buyer.212 
3.145.   As part of this review, the authorities have indicated that the LCE will be revised with the 
aim of promoting sustainable procu rement and the participation of MSMEs and women. Currently, 
to promote the participation of MSMEs in government procurement, the Law on the Promotion and 
Development of the Competitiveness of Micro, Small and Medium -Sized Enterprises 
(Decree  No. 135-2008) stipulates that the general State budget must provide for 30% MSME 
participation in state purchases (goods, services and works). However, it is not known whether this 
provision is implemented.  
3.146.   The LCE and the LCETME regulate procurement of all public, nati onal and municipal 
institutions, including state -owned enterprises. However, there are some exceptions, such as 
concession contracts, which are governed by the Law on the Promotion and Development of Public 
Works and National Infrastructure (Decree  No. 283-98).213 
3.147.   The Office for the Regulation of Government Procurement and Purchasing (ONCAE) is 
responsible for issuing general rules on implementation of the LCE and LCETME, as well as for 
promoting the automation of procedures to ensure good procurement practi ces (efficiency, publicity, 
 
207 SEFIN (various years), Memoria Institucional . 
208 The national lottery and air -navigation service are under concession (Section 2.4).  
209 Regulations to the Law on Government Procurement (Executive  Decision  No. 055-2002) and 
Regulations to the Law on Efficient and Transparent Procurement using Electronic M eans 
(Executive  Decision  00641 -2014).  
210 Article  30 of Decree  No. 74-2001 and the Office for the Regulation of Government Procurement and 
Purchasing (ONCAE). Information viewed at: https://web.oncae.gob.hn/biblioteca -virtual/manuales -y-guias . 
211 Title XI of the General Budget of Revenues and Expenditures of the Republic and its General 
Provisions. Fiscal Year 2022 (Decree  No. 157-2022).  
212 Executive  Decision  No. 055-2002, as amended by Executive  Decision  No. 028-2018.  
213 Articles  1 and 8 of Decree  No. 74-2001; and Article  34 of the Law on the Promotion and 
Development of Public Works and National Infrastructure (Decree  No. 283-98). WT/TPR/S/443 /Rev.1  • Honduras  
 
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  transparency, equality and free competition).214 The ONCAE  is also responsible for signing framework 
agreements and administering the Electronic Catalogue, as well as for determining the goods and 
services to be procured through the joint procurement method.215 
3.148.   ONCAE also manages the Register of Suppliers and Cont ractors and the HonduCompras 
electronic platform. This platform is used solely to disseminate tender notices and procurement 
documents, and to monitor the status of procedures. Tenders cannot be submitted via 
HonduCompras. Public procurement procedures are  therefore still processed in person.  
3.149.   Each public entity is responsible for its own procurement.216To improve transparency in 
procedures, since 2018, each procuring entity must have public buyers certified by the ONCAE 
(compradores públicos certificados - CPC); the CPC must be a public employee.217 CPCs are 
responsible for authorizing the Annual Procurement and Contracting Plan (PACC), the procurement 
documents, and the award and modification of contracts, thereby certifying that the regulations are 
enforced.218 In practice, however, some entities still do not have CPCs.219 
3.150.   The objective of public procurement policy is to make procurement efficient in terms of cost, 
quality and time.220 Procuring entities must plan their purchases, by producing a PACC that takes 
budget forecasts into account. In principle, the entity must adjust the PACC once its budget is 
known.221 The PACC requires the approval of the National  Congress. Once approved, the PACC is 
published on HonduCompras. According to the authorities, however, t his was done by only 43% of 
procuring entities in 2022.  
3.151.   Foreign participation in government procurement procedures is governed by the principle of 
reciprocity.222 However, when foreigners participate, Honduras continues to apply price preferences 
in favour of Honduran suppliers. For public works contracts, the price offered by the foreign supplier 
is increased by 7.5%. For goods and services, the tariff or other charges are added to the price; or, 
if exempt, 15% is added to the price. Honduras applies these preferences to goods with a domestic 
content of at least 40% of the final price of the goods.223 Selected foreign suppliers may also be 
required to employ Honduran nationals. The objective of this requirement is to encourage technology 
transfer.224 
3.152.   Both Hond uran and foreign suppliers must register with the Register of Suppliers and 
Contractors.225 Collusion is a prohibited anti -competitive practice, which may lead to 
de-registration.226 
3.153.   The only change in procurement methods was the introduction of the special procedure in 
2022.227 Accordingly, during the period under review, Honduras used the following methods: 
(i) tendering, competitive bidding and direct , governed by the LCE ; (ii) framework agreements, 
 
214 ONCAE's public proc urement manual. Viewed at: 
http://h1.honducompras.gob.hn/Procesos/MANUAL_CONTRATACION_ONCAE_GPR_Julio2015.pdf.  
215 Articles  6 and 26 of Decree  No. 36-2013.  
216 Article  32 of Decree  No. 74-2001. However, in the health sector, the Honduran Social Security 
Institute has an agreement with the United Nations Office for Project Services to purchase medicines, medical 
equipment, haemodia lysis services and ambulances (UNOPS. Viewed at: https://www.unops.org/es/news -and-
stories/news/unops -and-honduras -strengthen -partn ership -to-advance -healthcare ). 
217Three years of experience in public procurement is required to become a CPC.  
218 Articles  44-A, 44 -B and 44 -C of Executive  Decision  No. 055-2002, as supplemented by 
Executive  Decision  No. 028-2018; and information provided by the authorities.  
219 ONCAE (2021), Memoria Institucional – Gestión 2021 . Viewed at: 
https://web.oncae.gob.hn/oncae/quienes -somos/memorias -institucionales . 
220 Article  5 of Decree  No. 74-2001.  
221 Article  9 of Decree  No. 74-2001; and ONCAE. Viewed at: https://web.oncae.gob.hn/biblioteca -
virtual/manuales -y-guias#bfaccordion -18-slider -4. 
222 Article  7 of Decree  No. 74-2001.  
223 Article  53 of Decree  No. 74-2001 and Article  128 o f Executive  Decision  No. 055-2002.  
224 Articles  150-151 of Decree  No. 74-2001.  
225 Article  58 of Executive Decision  No. 055-2002.  
226 Article  49 of Decree  No. 74-2001, Article  70 of Executive Decision  No. 055-2002 and the Law on the 
Defence and Promotion of Comp etition (Decree  No. 357-2005).  
227 Title XV of Decree  No. 107-2021, as amended by Decree  No. 30-2022 and  Decree No.  31-2022.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  joint procurement and reverse auctions, governed by the LCETME; and (iii) small -scale procurement 
and the special procurement procedure, governed by the DGPs.  
3.154.   In tendering and competitive bidding processes, the number of partic ipants is not limited, 
unless the nature, characteristics and complexity of the contract require prequalification of three to 
six bidders, which are directly invited to submit bids. Prequalification is often used for public works 
contracts and related cons ultancy services. International tendering and open competitions are used, 
for example, when the technology does not exist in Honduras, in which case the notice must be 
published abroad. Private tendering is a direct invitation and requires at least three s uppliers. In 
contrast, in a private or limited competition, the number of participants is not limited (only the 
contracting threshold is determinative). Small -scale procurement is used with bids from at least 
three suppliers.  
3.155.   The use of tendering, competit ions and small -scale procurement is based on the type and 
amount of the contract (Table  3.24). However, private or limited tendering may be used, even if the 
threshold is exceeded, when there are only three suppliers, public or open tendering has been 
unsuccessful or cannot be used owing to lack of time, in cases of urgency228 or for security 
reasons.229 
Table 3.24 Procurement methods by type and threshold in 2023  
(HNL)  
Type of contract  Thresholds  Method  
Public works  ≥ 3,000,000.01   Public tendering  
≥ 1,000,000.01  ≤ 3,000,000.00  Private tendering  
≥ 300,000.01  ≤ 1,000,000.00  Small -scale procurement (3  bids) 
≥ 50,000.01  ≤ 300,000.00  2 bids  
≥ 0.01  ≤ 50,000  1 bid 
Consultancy services  ≥ 1,000,000.01   Open competition  
≥ 300,000.01  ≤ 1,000,000.00  Limited competition  
≥ 0.01  ≤ 300,000  Small -scale procurement (3  bids) 
Goods and services  ≥ 1,000,000.01   Public tendering  
≥ 300,000.01  ≤ 1,000,000.00  Private tendering  
≥ 50,000.01  ≤ 300,000  Small -scale procurement (3  bids) 
≥ 10,000.01  ≤ 50,000.00  Small -scale procurement (2  bids) 
≥ 0.01  ≤ 10,000.00  Small -scale procurement (1  bid) 
Source:   DGP for fiscal year 2023 (Chapter  XI of Decree  No. 157-2022).  
3.156.   Direct contracting is used, inter alia , when tendering or competitions cannot be used, for 
example in economic, social or health emergencies. This procurement method is authorized by 
Executive  Decrees declaring a state of emergency.230 To help the economy recover following the 
pandemic, direct contracting was also authorized by law.231 Direct contracting can also be used to 
procure goods or services subject to exclusive sales because they are protected by a patent or mark.  
3.157.   The special procurement procedure, introduced in 2022, is used when a competitive 
procedure needs to be carried out  quickly and there is no time to organize public tendering or an 
open competition. This method is not governed by thresholds. All suppliers are publicly invited to 
participate. When the special procedure is unsuccessful, direct procurement by bids is used.  In 
November  2022, five special procedures were used.232 However, this procurement method is not 
listed in the DGP for fiscal year 2023.  
3.158.   In a competitive procedure, contracts are generally awarded to the lowest -price bid. 
However, other criteria are also us ed, in which case a scoring method is used to evaluate the various 
criteria. The winning bid is the one with the highest score, but not necessarily the lowest price.233 
 
228 These are unforeseen circumstances, which, without being characterized as emergencies, require 
prompt attention so as not to hinder the provision of public services (Executive  Decision  No. 055-2002).  
229 Article  60 of Decree  No. 74-2001.  
230 Information provi ded by the authorities.  
231 Law on Relief for the Productive Sector and Workers to the face of  the effects of the COVID -19 
Pandemic (Decree  No. 33-2020).  
232 ONCAE. Viewed at: https://web.oncae.gob.hn/ciudadania/procedimiento -especial -de-compras . 
233 Articles  51-52 of Decree  No. 74-2001.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.159.   According to the authorities, in 2021, government procurement accounted for 8.6% of GDP 
and 6.7% of public expenditure.234 In 2022, the value of government procurement was 
HNL 4,991.5  million. During the period under review, public tendering and small -scale procurement 
were the two most frequently used methods (Chart  3.9). 
Chart 3.9 Government procurement by method, 2016 -2022 
(in millions of HNL)  
 
Source:  Information provided by the authorities.  
3.3.7  Intellectual property rights  
3.160.   Industrial property rights and copyright and related rights are protected by the Constitution 
(Article  108), the Law on Industrial Property (Decree  No. 12-99-E), the Law on Copyright and 
Related Rights (Decree  No. 4-99-E) and the Law implement ing the Free Trade Agreement between 
the United  States, Central  America and the Dominican  Republic (Decree  No. 16-2006). Honduras is 
also party to 11 WIPO  treaties, including the Marrakesh  Treaty, which entered into force in Honduras 
in 2017. The Directorate -General of  Intellectual Property  of Honduras  (DIGEPIH), of the Property 
Institute (IP), continues to apply the intellectual property regime. Since 2018, the Health Regulation 
Agency (ARSA), as the competent entity in the area of health care, has been responsible for  
protecting the confidentiality of pharmaceutical test data.  
3.161.   In the area of plant varieties, the National Agriculture and Food Health and Safety Service 
(SENASA) is the institution responsible for issuing breeder certificates and administering the register  
of plant varieties. However, in 2018, the Law on the Protection of New Varieties of Plants (Decree 
No. 21-2012) was repealed. A new law has not been enacted since then, but there is a draft law. 
Breeder certificates granted before the repeal are still reg istered with SENASA.235 Honduras is not a 
member of the UPOV Convention.  
3.162.   To strengthen the intellectual property regime, Honduras continues to implement the 
National Intellectual Property Strategy, adopted in 2013.236 As part of this review, the authorities 
highlighted the achievements of the five pillars of the Strategy (Table  3.25).  
 
234 The authorities note that, for the calculation, they took into account the data recorded on the 
HonduCompra s platform, the GDP data at constant 2000 prices, at market prices, as reported by the BCH and 
the Outturn Report of the General Revenue and Expenditure Budget of the Republic and the Decentralized 
Institutions, Fiscal Year 2021.  
235 Information provided by the authorities.  
236 Executive  Decree No.  013-2013.  
71.048.456.3
25.017.924.139.62.6
5.3 6.2
62.1
42.835.532.9
11,231
6,4337,12917,580
5,51219,467
4,992
020406080100
02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000
2016 2017 2018 2019 2020 2021 2022
(%)
Private tendering Open competition Limited competition
Public tendering Small-scale procurement Direct contracting
Framework agreements and joint procurement Total amount contracted (in millions of HNL)WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 3.25 Implementation of the National Intellectual Property Strategy, 2016 -2022 
Pillars Measures implemented since 2016  
Education and culture  At the Honduras Academy of Intellectual Property (ACAPIH), the DIGEPIH organized 
training workshops for the general public and specifically for universities, MSMEs, 
indigenous peoples, judges, prose cutors, police and customs agents.  
Technology and Innovation Support Centres  (CATI)  have been set up to provide technical 
assistance in the area of industrial property, in particular with regard to patent searches.  
Science and innovation 
for health  In 2018, the test data protection regulation s was adopted.  
Biodiversity and the 
environment  In 2021, the national regulation s on access to genetic resources and derivatives and the 
fair and equitable sharing of benefits from their utilization was adopted.  
Productivity and 
competitiveness  In collaboration with the Chambers of Commerce  and the National Entrepreneurship 
Service, the DIGEPIH provides technical and legal assistance to entrepreneurs, in 
particular MSMEs, at business development centres  (CDE) . The workshops mainly focus on 
disseminating the benefits of the registration of ma rks and geographical indications (GIs)  
Intellectual property 
enforcement  Inter-institutional coordination  and cooperation  was strengthened  through the Inter -
institutional Commission to Combat Piracy and Counterfeiting (CICOMPYF), which was 
created in 1997.  
Source:  WTO Secretariat and information provided by the authorities.  
3.163.   To foster a culture of innovation, the first innovation and busines s incubation centre for 
MSMEs was opened in 2022, and Technical Innovation Roundtables continue to be organized, 
bringing together the Government, various private sector associations, academia and international 
institutions, with a view to supporting the d evelopment and use of innovation to promote the 
competitiveness of Honduran products and services, and thus to secure greater market access.237 
3.164.   Despite efforts to create a culture of innovation, few patent applications have been filed 
since 2016 by Honduran residents (only one invention patent was granted) (Chart  3.10). Residents 
make more use of marks, a possible indication that commercial activities are significant. In 2022, a 
total of 355  patents (inventions, utility models and industrial designs)  were granted to residents 
and 3,996 to non -residents; 39,036 marks were registered by residents and 135,812 by 
non-residents.238 
 
237 ANDI. Viewed at: https://www.andi.hn/mesa -tecnica -de-innovacion -de-honduras /. 
238 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Chart 3.10 Industrial property data, 2016 -2022 
 
Source:  Information provided by  the authorities.   
020406080100120140160180200
2016 2017 2018 2019 2020 2021 2022Patent applications for inventions
Residents Non-residents020406080100
2016 2017 2018 2019 2020 2021 2022Patented inventions
Residents Non-residents
01,0002,0003,0004,0005,0006,0007,0008,0009,000
2016 2017 2018 2019 2020 2021 2022Patent applications for registration of marks
Residents Non-residents01,0002,0003,0004,0005,0006,0007,0008,000
2016 2017 2018 2019 2020 2021 2022Registered marks
Residents Non-residents0246810
2016 2017 2018 2019 2020 2021 2022Patent applications for utility models
Residents Non-residents0246810
2016 2017 2018 2019 2020 2021 2022Patented utility models
Residents Non-residents
0510152025303540
2016 2017 2018 2019 2020 2021 2022Patent applications for industrial designs
Residents Non-residents05101520253035404550
2016 2017 2018 2019 2020 2021 2022Patented industrial designs
Residents Non-residentsWT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.165.   The Law on Industrial Property protects inventions, utility models, industrial designs, 
industrial secrets and distinctive signs. Distinctive signs include marks, trade names, advertising 
slogans and signs, emblems and logos, geographica l indications and appellations of origin. The Law 
does not contain provisions on the protection of layout designs of integrated circuits, which may be 
protected either by industrial law (if they are incorporated into industrial designs) or by copyright 
(if the drawings are considered artistic works). Similarly, computer programs are protected by 
copyright.239 
3.166.   Honduran legislation protects test data for pharmaceutical and agricultural chemical 
products.240 To prevent unfair commercial use, protection continues  in effect even if the data are 
disclosed to obtain sanitary registration and marketing authorization. Protection lasts five years from 
placement on the market for pharmaceuticals and ten years for agricultural chemicals. To strengthen 
the protection of te st data for pharmaceutical products, ARSA issued the test data protect ion 
regulation s (Decision  No. 024-2018) in 2018.241 Since 2018, when applying for sanitary registration 
and authorization to market a new drug, the holder must also apply for an ARSA prot ection 
certificate; the term of protection has not changed.  
3.167.   Since 2016, the term of protection of the various intellectual property rights has not changed 
(Table  3.26). The term of patent protection can be extended by claiming delays in the process. The 
extension is requested if the patent was granted more than five years after the patent application 
was filed or more than three years after the review was carried out. In Honduras, patents (including 
pharmaceutical patents) are granted within two and a half years.242 
Table 3.26 Protection of intellectual property rights  
 Type of 
protection  Requirements for securing protection  Term of protection  
Inventions  Patents  Be novel, involve an inventive step and be 
capable of industrial application  20 years from the date of filing of 
the application  
Utility 
models  Patents  Be novel and be capable of industrial application  15 years from the date of filing  
Industrial 
designs  Patents  Be original and be capable of industrial application  5 years from the date of filing, with 
extensions of up to two 5 -year terms  
Industrial 
secrets  Automatic 
protection  Undisclosed information held by a natural or legal 
person, which may be used in any produc tive, 
industrial or commercial activity, and which is 
capable of being shared with a third party  As long as it is undisclosed  
Test data are protected for 5 years 
(pharmaceuticals) or 10 years 
(agricultural chemicals)  
Marks  Registration  Visible signs that allow the products or services of 
one enterprise to be distinguished from the 
products or services of another enterprise  10 years from the date of 
registration.  Protection may be 
renewed indefinitely for periods of 
the same length  
Advertising 
express ions 
or signs  Registration  Legends, advertisements, slogans, combinations 
of words, engraved designs and other similar 
means, provided they are original or 
characteristic, which are used to attract the 
attention of consumers to a particular product, 
servic e or enterprise  10 years from the date of 
registration.  Protection may be 
renewed indefinitely for periods of 
the same length  
Geographical 
indications  Registration  The quality, reputation and other characteristics 
are fundamentally attributable to the geo graphical 
origin  For as long as the requirements 
conferring protection continue to 
exist 
Appellations 
of origin  Registration  The quality, reputation and other characteristics 
are exclusively or essentially attributable to the 
geographical origin  For as lo ng as the requirements 
conferring protection continue to 
exist 
Copyright 
and related 
rights  Automatic 
protection  Creation or publication of the work  Economic rights: life of the author 
plus 75  years; anonymous works: 
75 years from publication; collective 
and pseudonymous works: 75  years 
from their publication or creation; 
photographic works: 50  years from 
their creation  
Source:  Decrees  No. 12-99-E, No.  4-99-E and 16 -2006.  
 
239 Information provided by the authorities.  
240 Article  19 of the Law on the Implementation of the Free Trade Agreement between the United  States, 
Central  America and the Dominican  Republic (Decree  No. 16-2006).  
241 According to the authorities, the DIGEPIH was involved in developing the Regulation.  
242 IP. Viewed at: https://www.ip.gob.hn/patentes ; and information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.168.   Protection confers on the holder the exclusive right of exploitation, ena bling him/her to grant 
licences for exploitation and to prevent any person, without his/her agreement, from exploiting the 
right for industrial or commercial purposes. The exploitation of an intellectual property right is not 
considered a monopoly in Hondu ras.243 
3.169.   Under the Law on Industrial Property, the DIGEPIH  may grant non -exclusive compulsory 
licences for patents on grounds of emergency, national security, nutrition or public health (also as 
"public interest " grounds).244 However, no licence of this type has ever been granted in Honduras.  
3.170.   Honduras applies the regime of international exhaustion of rights for patents and marks.245 
However, for patents, parallel imports are permitted only for the purposes of scientific research, 
teaching and experiments. The authorities have also indicated that for pharmaceutical a nd 
agrochemical patents, parallel imports are permitted only on grounds of emergency, national 
security, nutrition or public health.  In the case of marks, parallel imports are allowed, but the 
products and their packaging must not have been modified or alt ered to ensure consumer protection.  
3.171.   The procedure for granting patents and industrial property registrations has not changed 
since 2016. The procedure comprises: filing of the application; examination of form and publication 
of the application; filing of o bjections; examination of substance; and granting and publication of 
the patent or registration. The Law on Industrial Property allows third parties to initiate nullity 
proceedings.  
3.172.   To facilitate the processing of applications, Honduras participates in two  international 
databases, TMClass for marks (since 2021) and DSView for international designs (since 2018).246 
During the period under review, the DIGEPIH also started using software developed by WIPO to 
speed up procedures and reduce time frames, as well a s to make information on the progress of 
applications available to the public online.247 However, it is still not possible to process applications 
online in 2022. The DIGEPIH does not have agreements with foreign institutes to expedite the 
substantive exami nation of applications filed by non -residents, but participates in the Support 
System for Patent Applications Management for Central American Countries and the Dominican 
Republic (CADOPAT). CADOPAT is a system implemented by the Mexican Institute of Intell ectual 
Property (IMPI), which allows the DIGEPIH to leverage the results of substantive examinations 
carried out by IMPI.  
3.173.   According to the authorities, all types of marks are protected in Honduras. Traditional and 
non-traditional marks248, collective marks,  certification marks, well -known and famous marks are 
therefore protected. The Nice  Classification is used to register marks, although Honduras is not a 
party to the Nice  Agreement. Applications to register a mark must be filed for each class of product  or 
service under which the mark is to be registered; single applications are not allowed. The time -limit 
for registering a mark is up to six months.  
3.174.   Honduran coffee is the only product whose origin is protected. Foreign GIs/AOs can be 
registered in Honduras.249 The procedure governing the registration of both Honduran and foreign 
GIs/AOs is the same as for the registration of marks.  
3.175.   The registration of copyright and related rights with the DIGEPIH  is optional, but it is 
recommended to prove the existence of the work and protect the author, the performer or producer 
in the event of unlawful use of the work and/or potential conflicts with third parties. Honduras 
recognizes the international exhaustio n of copyright.  
 
243 Article  339 of the Constitution.  
244 Articles  66-68 and 70 of Decree  No. 12-99-E. 
245 Articles  18 and 98 of Decree  No. 12-99-E. 
246 Information provided by the authorities.  
247 The authorities have indicated that the software was the Industrial Property Automati on System  
(IPAS) , WIPO File and WIPO Publish.  
248 In Honduras, two types of non -traditional marks have been registered: three -dimensional marks and 
sound marks (IP PowerPoint presentation). Information viewed at: https://ipkey.eu/sites/default/files/ipkey -
docs/2020/IPKeyLA_jul2020_Franklin%20L%C3%B3pez -
Marcas%20no%20tradicionales_Exp eriencia%20hondure%C3%B1a -presentacion.pdf ). 
249 Article  126 of the Law on Industrial Property (Decree  No. 12-99-E). WT/TPR/S/443 /Rev.1  • Honduras  
 
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  3.176.   The holder of an intellectual property right may file an administrative appeal with the 
DIGEPIH when their right is used unlawfully; conciliation is available as an alternative method. The 
holder can initiate proceedings in the civil and cr iminal courts. Honduras has no specialized 
intellectual property courts.  
3.177.   With regard to IPR protection at the border, the Customs Administration  of Honduras  (AAH) 
may act ex officio , following a complaint from the holder or at the request of the Public Pro secutor 's 
Office (Special Prosecutor 's Office for Intellectual Property (FEPROSI)), to seize goods suspected of 
infringing rights. In all cases, the AAH must notify the importer and the right holder of the suspension 
of customs clearance. The AAH has ten d ays to issue the notification. If the right holder does not 
initiate the relevant legal proceedings, the AAH will release the goods, unless there is "well-founded 
presumption of the offence ", in which case the AAH will inform the Special Prosecutor 's Offic e. 
Infringing goods are destroyed; in some cases, they may be donated.250 The AAH does not have a 
database to detect counterfeit marks.  
3.178.   In the national market, FEPROSI and the DIGEPIH are responsible for inspecting premises 
and seizing goods ex officio  or at a party 's request, in collaboration with the National Police (Special 
Crimes Unit of the Police Investigation Directorate (DPI)).  
3.179.   The Commission to Combat Piracy and Counterfeiting (CICOMPYF), continues to be the body 
that coordinates and monitors instit utional enforcement.251 The CICOMPYF organizes training 
workshops for prosecutors and customs agents and campaigns to raise public awareness of the 
consequences of consuming pirated and counterfeit products.252 Through the CICOMPYF, FEPROSI 
and the DIGEPIH a lso collaborate with the National Telecommunications Commission (CONATEL) to 
combat piracy of broadcasting signals.  
3.180.   In the digital sphere, protection measures such as the notice and withdrawal mechanism are 
not used. However, the authorities have indicated  that the DIGEPIH collaborates with HONDUTEL, 
the public operator, to exclude users who upload illegal content to the network. FEPROSI also has 
prosecutors that investigate all types of cybercrime. In Honduras, Internet service providers are not 
responsibl e for hosting users who share content that infringes intellectual property rights.253 
3.181.   The use of pirated or counterfeit products in Honduras is not penalized.254 
 
 
250 TRIPS, Article  316 of the Central American Uniform Customs Code Regulations (RECAUCA) and 
information pr ovided by the authorities.  
251 The CICOMPYF comprises the DIGEPIH, FEPROSI, AAH, CONATEL and the Ministry of Health; the 
Supreme Court of Justice has observer status with the CICOMPYF.  
252 Information provided by the authorities; and IP. Viewed at: https://www .ip.gob.hn/cicompyf.  
253 Information provided by the authorities.  
254 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4  TRADE POLICIES BY SECTOR  
4.1  Agriculture, forestry, and fisheries  
4.1.  The agricultural sector (crop farming, livestock, hunting, forestry and fisheries) remains a 
relatively important activity for the Honduran economy, with its share of GDP increasing from 12.0% 
in 2016 to 12.6% in 2022 ( Table 4.1). The sector experienced er ratic growth during the period under 
review . The contractions were due to both internal and external causes1, in particular adverse 
weather events, such as Tropical Storm 12 and the category 5 hurricanes in 2020, which destroyed 
large areas of banana, Afr ican palm, and sugar cane crops, among others. According to the 
authorities, there is also a lack of dynamism in the agricultural sector  – which is dominated by small 
producers  – as well as a shortage of technical expertise, quality inputs, market informat ion, financial 
resources and investment in rural areas. Other elements that adversely affected agricultural activity 
were migration and the ageing of the rural population. The agricultural sector continues to be a 
major generator of employment, mostly unsk illed. Between 2016 and 2022, the sector provided 
work for about 27.3% of the country 's economically active population, compared with 21.5% 
in 2022, reflecting the impact of migration on the labour force in this sector.  
4.2.  The Honduran agricultural sector is still characterized by its relative concentration. Coffee and 
bananas accounted for 42.2% of agricultural output in 2016 and 44.2% in 2022. However, other 
major products, such as tubers, fruit and vegetables, as well as African palm, increased their share 
of production, while livestock declined somewhat. Coffee is the main agricultural product in 
Honduras. High -quality Honduran coffee and organic coffee maintained their competitiveness during 
the period under review, surpassing bananas as the main agricultu ral export products. However, 
aside from traditional agricultural products, Honduras is also promoting the cultivation of 
non-traditional products, such as high -value vegetables and other fruit (cocoa, melon and 
watermelon), for which there are opportuniti es to be exploited in the international market.  
4.3.  The agricultural sector continues to be a major source of foreign exchange. Between 2016 and 
2022, the share of agricultural products (as defined by the WTO) in total exports averaged over 
30%, reaching more than 35% in some years. Honduras remains a net exporter of agricultural 
products. In 2022, imports of agricultural products accounted for 15.6%  of total imports. The main 
agricultural products imported into Honduras were cereals and prepared foodstuffs, wh ile the main 
export products were coffee (as in previous years); fruit, vegetables and garden produce, including 
bananas; and fats (palm oil). According to the authorities, imports of staple grains have been 
growing steadily for several years, as investmen t in agriculture has declined, even as demand for 
both human consumption and the food industry needs to be met. The main export markets were the 
United States (36.7% in 2022) and the European Union (29.9% in 2022).2 In this regard, to promote 
exports of a gricultural products, Honduras continued to adopt a strategy aimed at opening up new 
or niche markets by improving the administration and implementation of trade agreements. In 
addition, through the National Agriculture and Food Health and Safety Service ( SENASA), Honduras  
is making an effort to improve food production and processing infrastructure to meet minimum  
safety and quality requirements, and efforts have been made to expand the limited certification 
systems to improve access to export markets.  
Table 4.1 Main agricultural sector indicators, 2016 –2022 
 2016  2017  2018  2019  2020a 2021a 2022a 
Crop farming, livestock, hunting, forestry and fisheries  
Share of GDP (% at current prices)  12.0 12.7 11.6 10.8 12.1 11.0 12.6 
Real growth rate (% at 2000 prices)  4.8 10.3 2.6 -1.0 -6.3 0.4 -0.7 
Share of agricultural production (%)  
 Coffee  27.1 32.8 29.5 26.5 25.9 31.2 31.5 
 Tubers, vegetables, pulses and fruits  13.6 12.5 13.4 17.1 16.5 15.6 13.3 
 Bananas  15.1 14.2 15.0 14.5 14.7 10.4 12.7 
 African palm  7.0 7.7 5.8 4.4 6.3 10.1 9.8 
Memorandum items:  
 Beef cattle  12.6 11.2 11.8 12.4 11.3 10.2 9.6 
 Forestry  4.0 3.8 4.0 4.2 3.9 4.7 4.2 
Fisheriesb 1.9 2.1 2.1 2.3 2.6 2.0 1.6 
Employment (% of total employment)  28.5 33.0 31.6 30.5 23.4 22.2 21.5 
 
1 Information provided by the authorities.  
2 Calculations by the WTO Secretariat based on data provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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   2016  2017  2018  2019  2020a 2021a 2022a 
Agricultural products (WTO definition)  
Exports  
Values (USD million)  2,515  3,073  2,810  2,661  2,738  3,190  3,974  
Share of total exports (%)  31.7 35.6 32.6 30.4 35.8 31.3 32.7 
Growth rate (%)  2.2 22.2 -8.6 -5.3 2.9 16.5 24.6 
Top five products, by HS chapter (% of agricultural total)  
 09. Coffee, tea, mat e and spices  36.5 43.2 40.1 36.1 32.3 39.5 35.6 
 08. Edible fruit and nuts; peel of citrus fruit or 
 melons  23.8 20.6 23.1 24.0 24.4 14.3 20.0 
 15. Animal or vegetable fats and oils; prepared 
 edible fats  13.9 14.7 12.5 13.0 14.7 18.2 17.6 
 24. Tobacco and manufactured tobacco substitutes  6.1 4.9 6.0 5.5 6.1 6.0 5.4 
 20. Preparations of vegetables, fruit, nuts or other 
 parts of plants  2.4 2.2 2.8 2.9 3.1 3.5 3.6 
Imports  
Values (USD million)  1,662  1,653  1,897  1,919  1,958  2,558  3,039  
Share of total imports (%)  14.5 13.3 13.9 14.4 17.4 15.4 15.6 
Growth rate (%)  3.2 -0.6 14.8 1.1 2.0 30.7 18.8 
Top five products, by HS chapter (% of agricultural total)  
 10. Cereals  15.3 12.2 14.8 14.4 15.4 14.7 17.2 
 21. Miscellaneous edible preparations  14.7 15.2 14.2 16.3 17.4 16.6 15.6 
 23. Residues and waste from the food industries; 
 prepared animal fodder  12.4 13.0 13.4 12.0 13.2 12.4 12.9 
 22. Beverages, spirits and vinegar  7.0 8.1 8.2 9.4 7.8 9.4 8.6 
 19. Preparations of cereals, flour, starch or milk   11.7 11.3 10.4 9.8 9.1 7.9 8.3 
a Preliminary figures.  
b Fish and shrimp farming activities as well as the catching of fish, shrimp, lobster and other aquatic 
products on the high seas.  
Source:  Central Bank of Honduras, and data provided by the authorities.  
4.4.  The institutions involved  in the agricultural sector have not changed substantially since the last 
review, nor have their roles. The Ministry of Agriculture and Livestock (SAG) is the main governing 
body of the sector and has several units (Table 4.2),  some of which  are called "programmes ". Other 
public institutions that operate in the agricultural sector are the National Agrarian Institute (INA), 
the Honduran Agricultural Market Institute (IHMA), the National Agricultural Development Bank 
(BANADESA), the National Basic Products Su pply Company (BANASUPRO) and the Honduran 
National Institute for Forest Conservation and Development, Protected Areas and Wildlife (ICF). 
The Honduran Coffee Institute (IHCAFE), a private, non -profit public interest organization, continues 
to play an impor tant role in the sector, as it is responsible for implementing the policy of the National 
Coffee Council (CONACAFE) to promote the development of the coffee industry.  
Table 4.2 Institutions attached to the SAG, 2022  
Institution  Function  
National Agriculture and Food Health and 
Safety Service (SENASA)  Provides quality assurance services in agricultural health and food 
safety and national and international certification.  
Directorate of Science and Agricultural 
Technology (DICTA)  Provides goods and services and technology transfer to increase 
agricultural production and productivity.  
Directorate -General  of Fisheries 
(DIGEPESCA)  Responsible for control and supervision of fish eries; grants permits for  
the marketing and export of fishery products and their use.  
Directorate -General  of Irrigation and 
Drainage (DGRD)  Promotes and supports the development and transformation of the 
agricultural sector through optimal use of water and the incorporation 
of irrigation systems and water management for production.  
National Rural Infrastructure and Irrigation 
Service (SENINFRA)  Regulates, coordinates and evaluates rural infrastructure and irrigation 
works and programmes implemented by the public and private sectors.  
Project Administration Unit (UAP)  Sees to the implementation of programmes and projects financed with 
national and/or external funds.  
Management Planning and Evaluation Unit 
(UPEG)  Designs, coordinates, plans, evaluates and advises on i nvestment 
policies, programmes and projects.  
Source:  Information provided by the authorities.  
4.5.  The State Policy for the Agrifood Sector and Rural Areas 2004 –21, which has expired, 
established objectives that included (i) increasing competitiveness and the capacity to break into 
international markets; (ii) supplying the domestic market, thus ensuring food security; (iii) using 
resources in a sustainable manner; and (iv) contributing to poverty reduction. Honduras is currently 
developi ng a new sectoral policy and intervention strategies. The new policy will seek to be inclusive, 
diversify production, and increase productivity, as well as use innovative and sustainable WT/TPR/S/443 /Rev.1  • Honduras  
 
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  technologies to reduce vulnerability to climate change. Furthermore, in order to enhance growth and 
diversification, the new policy will promote access to land and financial resources.  
4.6.  To achieve these objectives and overcome the challenges, Honduras has continued to 
implement a number of strategic programmes, some of which  were already in place in 2016, such 
as the National Agrifood Development Programme (PRONAGRO); the National Fisheries and 
Aquaculture Programme (PRONAPAC) and the National Rural and Urban Sustainable Development 
Programme (PRONADERS) (Box 4.1). It also of fers services through SENASA, SENINFRA and DICTA 
with the aim of improving food health and safety and promoting technological innovation, 
diversification, value addition and agrifood chain integration. Honduras provides access to 
agricultural credit and ru ral finance through BANADESA and the Honduran Production and Housing 
Bank (BANHPROVI) through private banks.  
Box 4.1 SAG programmes, 2022  
National Agrifood Development Programme (PRONAGRO)  
Improve marketing.  
Achieve greater market access for agricultural products by establishing public -private partnerships.  
Increase value  addition  and diversify agricultural and agro-industrial  production.  
National Fisheries and Aquaculture Programme (PRONAPAC)  
Promote the development of the fisheries sector and the cultivation and protection of hydrobiological species.  
Manage and promote the sustainability of fisheries and aquaculture resources.  
National Rural and Urban Sustainable Development Programme (PRONADERS ) 
Improve quality of life in rural communities.  
Manage natural resources in a sustainable manner.  
Decrease environmental vulnerability.  
Source:  Online information. Viewed at: https://www.pronagro.sag.gob.hn/sobre -pronagro /; 
https://pronaders.gob.hn /; and https://www.fao.org/faolex/results/details/en/c/LEX -FAOC121723 /. 
4.7.  The Agricultural Policy for the SICA Region 2019 –30, which replaced the Central Ame rican 
Agricultural Policy (PACA), is an integral part of  Honduran agricultural policy. To achieve a 
sustainable improvement in the competitiveness of the agricultural sector, the new policy includes 
elements to foster public -private investment, labour forc e specialization, diversification and value  
addition in agrifood chains, technological development and innovation, and the removal of barriers 
to intra -regional trade, as well as business strategies, particularly for small and medium -sized 
producers.3 
4.1.1   Measures affecting imports  
4.8.  The MFN tariff applied by Honduras did not change substantially during the period under review. 
In 2022, the protection given to agricultural products (WTO definition) was 10.8% (10.7% in 2015) 
and remained higher than that for non -agricultural products (5.1%) and the average tariff (5.9%). 
Tariffs continued to range from 0% to 164%. In addition, the highest tariffs by WTO category were 
applied on agricultural products, specifically dairy produce, animals and animal products, and 
beverages, alcoholic beverages and tobacco, with rates of 22.6% (22% in 2015), 18.3% (18.4% in 
2015) and 12.3% (12.4% in 2015), respectively ( Table A3.1). The maximum tariff of 164% is applied 
on imports of poultry meat of HS headings 0207.13, 0207.14 and 160 2.32. The second highest 
rate (55%) is that applied to cigarettes (HS subheading 2402.20.00.00).  
4.9.  Honduras uses ad valorem  tariffs for all agricultural products, except for products subject to 
the price band system.4 This system, which applies to products such as yellow maize, grain sorghum, 
maize flour and other processed grains (6 tariff lines at the HS 8 -digit level), is still in force, although 
it is not used.5 The system allows the tariff to be modified in line with changes in international prices, 
in order to mitigate the impact of fluctuations in the domestic market ( Section 3.1.3.2).  
 
3 Online information. Viewed at: 
https://www.cac.int/sites/default/files/Politica%20Agropecuaria%20CAC.pdf . 
4 Regulations on the Marketing of Agricultural Products (De cision No. 0195 -03). 
5 Information provided by the authorities.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.10.   Some products of agricultural origin and agricultural inputs, both imported and domestic, 
including foodstuffs in the basic shopping basket6, are exempt from sales tax (ISV), which is 
generally 15%.7 
4.11.   Honduras applies preferential tariff quotas only under certain regional agreements, not in the 
WTO framework. The most commonly used are those negotiated under CAFTA -DR. Honduras also 
continues to  use shortage quotas if the supply on the domestic market is insufficient to meet 
agro-industrial  demand.8 Quotas are allocated according to the percentage of domestic output 
purchased during the previous year (performance requirement).9 During the perio d under 
review  (2016 –22), shortage quotas were used for skimmed milk powder (HS 0402.10.00.00), whole 
milk powder (HS 0402.21.22.00) and frozen orange juice (HS 2009.11.00.00.00).  
4.12.   Honduras continues to use purchase agreements to guarantee a secure price fo r the producer 
and a fair price for the consumer. The SAG establishes  purchase agreements between agribusiness 
and producers of rough rice (HS 1006.10.90.00), yellow maize (HS 1005.90.20.00), white maize 
(HS 1005.90.30.00) and sorghum (HS 1007.90.00.00.00) , setting purchase volumes and 
guaranteed minimum prices. According to those agreements, in the case of rough rice and white 
maize, the shortage quotas are activated once the volume of national production stipulated in the 
agreement has been acquired. The quantity that can be imported under this quota at a 0% tariff 
varies in accordance with domestic supply estimates. In the case of white maize , a processor that 
buys one quintal on the domestic market can import one quintal tariff -free, while in the case of  
yellow maize a processor that buys one quintal can import four quintals tariff -free.10 Products 
imported tariff -free have to be processed and cannot be sold either on the domestic market as whole 
grain for human consumption or to an industry that is not a  party to the agreement.  
4.13.   In the WTO framework, Honduras did not reserve the right to resort to special safeguards for 
agricultural products. However, since 2015 the import of onions is allowed only during a specific 
period of the year  or when domestic production is insufficient .11 
4.14.   Honduras maintains a system of automatic and non -automatic import licences, inter alia, to 
administer quotas (preferential or shortage), keep statistics, or ensure animal health and plant 
protection. In general, for phytosanitary reasons, the importation of products and by -products 
of plant and animal origin requires a non -automatic import licence. In addition, importing onions 
currently requires a non -automatic licence and prior registration of the importer.  
4.15.   In general, Honduras does not tax exports. Only  exports of green coffee, as well as its sale 
on the domestic market, are subject to a contribution, which is used to finance IHCAFE. This 
contribution is based on the international price per quintal of coffee and varies between USD 4 
and USD 9.  
4.16.   Honduras h as notified the WTO that it did not subsidize any agricultural exports between 2016 
and 2020.12 Between 2016 and 2019, and in 2022, Honduras granted subsidies to reduce the 
marketing costs of agricultural exports.13 
 
6 The basic shopping basket includes 271 food products and school supplies, and 2 transport services 
(Decree Law No. 24 -94 as amended by Executive Decision No. 017 -2017).  
7 Article 15 of the S ales Tax Law (Decree Law No. 24 -94) as amended by Decrees Nos. 119 -2016 and 
160-2018.  
8 SDE (Ministry of Economic Development). Viewed  at: https://sde.gob.hn/integracion -economica -y-
politica -comercial /. 
9 The tariff within the shortage quota is always 0% (WTO document TN/AG/S/5 of 21 March 2002).  
10 Decision No. A -788-14 of 1 September 2014.  
11 SDE. Viewed at: https://sde.gob.hn/integracion -economica -y-politica -comercial /. 
12 WTO document G/AG/N/HND/47 of 10 January 2018; and WTO documents G/AG/N/HND/53, 
G/AG/N/HND/54, G/AG/N/HND/55 and G/AG /N/HND/56 of 5 January 2021.  
13 WTO documents G/AG/N/HND/49 of 3 September 2018; WTO documents G/AG/N/HND/50, 
G/AG/N/HND/51, G/AG/N/HND/52 of 18 March 2020; and WTO document G/AG/N/HND/57 of 18 January 2023 
for 2022.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.17.   The Agricultural Export Zones (ZADE) reg ime was suspended.14 However, its suspension did 
not have retroactive effect. There is currently only one beneficiary company.15 Eligible enterprises 
were exempt from all import duties, internal taxes on the goods they imported and/or exported, and 
income  tax (ISR).  
4.1.2   Domestic support  
4.18.   In 2018, Honduras notified a series of agricultural support measures that had been in force 
in 201616, as well as the amendment of some existing measures and the introduction of other new 
ones.17 It appears that several of the programmes that were in place during the previous review and 
in 2018, when the last notification was made, are no longer so. In 2016 (May), Honduras had several 
domestic support programmes related to t raining, outreach and advisory services and infrastruct ure, 
as well as a development assistance programme ( Table 4.3). The programmes did not provide 
specific support for any particular product; in general, they were intended to benefit producers with 
limited resources by providing the necessary inputs for pro duction and access to capital to invest in 
infrastructure and technical assistance, with the aim of contributing to the economic recovery and 
food security of small farmers.  
Table 4.3 Domestic support programm es, 2016  
Category  Name and description of measure   
Training services   
Honduras Rural Competitiveness Project 
(COMRURAL)  Facilitate processes for establishing productive 
partnerships.  
Promote training, information dissemination and 
technical assistance.  
Promote investment by small and medium -sized 
producers in productive partnerships.  Ongoing  
Improving the competitiveness of the 
rural economy  in Yoro (PROMECOM)  Strengthen producer organizations.  Concluded in 
2017 
EMPRENDESUR  Programme  Create income - and employment -generation 
opportunities for small producers.  
Promote food security for small producers.  Concluded in 
2019 
Extension and advisory services   
Programme for competitiveness and 
sustainable development in the 
south -western border region 
(PROLENCA)  Improve the incomes, employment opportunities, agri -
food security and living conditions of the rural poor.  Concludes in 
2023 
Infrastructure services   
Jamastrán Valley agricultural irrigation 
development project Modernize to increase the efficiency of agriculture in the 
Jamastrán Valley.  Ongoing  
Measures Exempt from the Reduction Commitment - Special and Differential Treatment - "Development 
Programmes " 
Investment subsidies generally available to agriculture   
Productive solidarity voucher projecta Technology transfer to small -scale staple grain 
producers.  Ongoing  
Agricultural irrigation development 
project (PDABR)  Promote agricultural development through the 
sustainable use of water and irrigation systems.  Ongoing  
a In 2022 this programme was renamed the producti ve technology voucher  (bono tecnológico 
productivo ) project.  
Source:  WTO documents G/AG/N/HND/46 and G/AG/N/HND/48 of 9 January and 3 September 2018, 
respectively, and informatio n provided by the authorities.  
4.19.   In addition to the programmes notified, since 2016 Honduras has also implemented a 
programme to promote competitiveness and development in the Northern Zone,18 as well as other 
programmes such as the coffee voucher  (bono cafe talero ) for fertilizer for small and medium -sized 
producers ; the voucher for drilling wells and building water reservoirs to reduce drought impact; the 
livestock voucher  (bono ganadero ); and the Economic and Social Inclusion Project for Small Rural 
 
14 Decree No. 233 -2002 of 1 February 2002 . 
15 Online information from SEFIN. Viewed at: http://www.sefin.gob.hn/wp -
content/uploads/2015/01/Registro_ZADE.pdf . 
16 WTO document G/AG/N/HND/48 of 9 January 2018.  
17 WTO document G/AG/N/HND/46 of 18 January 2018.  
18 Project  for Competitiveness and Sustainable Rural Development in the Northern Zone (Horizontes del 
Norte ). WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Producers in the Northeast Region of Honduras (PROINORTE).19 The main objective of the latter is 
to increase incomes and improve nutrition among small producers and their families, by boosting 
their productivity and marketing capacities and strengthening t heir resilience in the context of 
climate change. The livestock voucher is a programme aimed at improving herds that the SAG has 
been implementing in 12 departments since 2022. The programme has four components: nutrition 
and feeding, value -added dairy pro ducts, animal health and reproductive biotechnology. As part of 
the voucher, grass seed and a veterinary kit containing vitamins, dewormers and electric fences will 
be provided; a national and sectoral vaccination plan is also included.  
4.20.   Agrarian reform agr o-industrial enterprises currently continue to enjoy exemptions from 
payment of import duties, including customs duties and other charges on the importation of 
agricultural machinery and inputs.20 Some companies are also exempt from paying income tax and 
property and municipal taxes for 10 years. The Special Law on Agricultural Investment and Rural 
Job Creation exempts certain new investment projects from the net assets tax.21 
4.21.   BANADESA continues to offer financing to the agricultural sector at preferential interest rates 
ranging from 2.5% to 12%. The average annual lending rate in 2022 (Q3) was 14.7%. BANHPROVI 
also grants loans at preferential rates (7% in 2022) to the agricultural sector and has a specific 
guarantee fund for the sector: the Agr icultural Cr edit 8.7 Guarantee Fund. The agricultural sector is 
the main beneficiary of BANHPROVI loans.  
4.22.   The National Basic Products Supply Company (BANASUPRO) is responsible for marketing basic 
consumer products, particularly to the low -income population, at reasonab le and competitive prices, 
through distribution and sales centres. Through these distribution and sales centres it regulates the 
prices of basic shopping basket products.22 In order to keep products reasonably priced and 
competitive, BANASUPRO may import t he articles it needs completely tax -free, subject to obtaining 
the appropriate permit.23 
4.2  Mining and energy  
4.2.1   Electricity  
4.23.   The electricity sector is governed by the General Law on the Electricity Industry (LGIE) 
of 2013.24 The institutions governing the sector are the Ministry of Energy (SEN), which is the 
governing body, and the Electricity Regulatory Commission (CREE ), the market regulator. In 2022, 
the System Operator (ODS), a private, non -profit entity established in 2013 to manage the national 
electricity market , was transformed into the National Dispatch Centre (CND), a public entity, and 
integrated with the National Electricity Company (ENEE), the state operator.25 
4.24.   Both the State  – through the ENEE  – and private operators are involved in the sector. One of 
the biggest changes during the period under review has been that from 2022 onwards private 
operators are not allowed to participate in marketing. Therefore, the ENEE is currently the only entity 
entitled to market electricity in Honduras.26 In addition, the ENEE still has a natural monopoly on 
transmission and distribution; however, the company has licensed  the provision of services since 
2016. ENEE is also the only Honduran operator that can particip ate in the regional electricity market 
(MER), therefore only the ENEE imports and exports electricity.27 Private entities participate in the 
 
19 Information provided by the authorities and view ed at: https://docplayer.es/105306798 -Proyecto -de-
inclusion -economica -y-social -de-pequenos -productores -rurales -en-la-region -noreste -de-honduras -
proinorte.html . 
20 Decree No. 101 -87 reforming Article 42 of the Law on Agroindustrial Cooperative Enterprises.  
21 Decree No. 322.98, Official Journal of 20 January 1990 , and Decree No. 20 -99. 
22 Decree -Law No. 1.049 of 15 July 1980.  
23 WTO document WT/TPR/S/336/Rev.1 of 1 August 2016.  
24 General Law on the Electricity Industry (Decree No. 404 -2013), as amended by Decrees Nos. 61 -2020 
and 2 -2022. Various regulations and prov isions on the implementation of the LGIE have been passed or 
amended since the last review of Honduras in 2016 (viewed at: https://www.cree.gob.hn/leyes -reglamentos -y-
normas -tecnica s/). 
25 Article 9 of Decree No. 404 -2013, as amended by Decree No. 2 -2022; and ODS. Viewed at: 
https://www.ods.org.hn/index.php/quienes -somos/filosofia -ods/historia -del-sector . 
26 Articles 1 and 15 of Decree No. 404 -2013, as amended by Decree No. 46 -2022. 
27 Regional Electrical Interconnection Commission (2021), 2020 MER Report . Viewed at: 
https://crie.org.gt/wp -content/uploads/2021/06/Informe -Anual -MER-2020.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  generation market, which they dominate, as 75.9% of electricity is produced by privately -owned 
plants.28 
4.25.   The Specia l Energy Law enacted in 2022 , for which regulations have not yet been adopted,  
stipulates that electricity is a  "national -security public good and a human right of an economic and 
social nature ".29 The objective of Honduras is to ensure an affordable elect ricity supply and, 
subsequently, to "recover " and regain control of the sector. Under the new law, the ENEE is 
authorized to renegotiate all electricity purchase agreements concluded with private generation 
companies. The Special Energy Law provides that i n the event of failure to renegotiate agreement 
conditions, including tariffs, the ENEE can terminate agreements or acquire the plant at "fair value ".30 
The Special Energy Law does not define what "acquisition (...) at fair value " consists of, which could 
lead to even greater uncertainty among private generators and undermine investment in the 
generation sector. In addition, the ENEE is highly indebted to generators. In 2022, that debt was 
equivalent to 10% of GDP; therefore, it is not fulfilling the purcha se agreements. The debt appears 
to be a consequence of high transmission and distribution losses, which amounted to 33% of output 
in 2021.31 Furthermore, the Special Energy Law stipulates that private investment in the sector 
cannot exceed the total amount  of public investment,32 as Honduras aims to increase state 
participation in the sector, especially in generation.33 
4.26.   Domestic and foreign operators wishing to participate in the electricity market are subject to 
the same requirements to operate. All operat ors must enrol in the Public Register of Electricity Sector 
Companies administered by the CREE. Plants using renewable sources must also obtain a concession 
for the use of the natural resource and an environmental authorization or licence from the Ministry  
of Natural Resources and the Environment (SERNA). The CREE issues operating licences for 
transmission and distribution.34 
4.27.   For sectors where the State does not have a monopoly, the rules governing market 
competition are provided by the Law to Protect and Promote Competition . Furthermore , the General 
Law on the Electricity Industry prohibits vertical integration. This provision applies to both the ENEE 
and private operators. However, while the ENEE 's activities are separate, the authorities ment ioned 
that a degree of integration still exists in order to ensure efficient cost management.  
4.28.   Rates are regulated for all consumers, except for qualified consumers35, who buy electricity 
at a rate agreed with generators, distributors and traders.36 In sett ing regulated rates, the ENEE 
uses a methodology established by the CREE in 2016, which was modified in 2020 to give greater 
weight to generation costs.37 Rates are set according to voltage level, and periodically adjusted to 
reflect the change in generati on, transmission and distribution costs.38 However, since 2021, to 
mitigate rate hikes due to the high increase in the cost of generation, all rates were frozen and 
the ENEE was compensated; transfers to date have amounted to HNL 1,086.8 million .39 In addition, 
in order to keep rates stable, since 2021 companies using fossil fuels (diesel and Bunker C) to 
generate electricity have been exempt from paying the ACPV  tax.40 
 
28 Article 4 of Decree No. 404 -2013 and information provided by the authorities.  
29 Special Law to Guarantee the Electricity Service as a National -Security Public Good and a Human 
Right of an Economic and Social Nature (Decree No. 46 -2022). This law is known as the "Special Energy Law ". 
30 Articles 4 –6 of Decree No. 2 -2022.  
31 SEN (2022), Balance Energético 2021 . Viewed at: https://sen.hn/wp -
content/uploads/2022/09/Balance -Energe tico-2021.pdf . 
32 Article 3 of Decree No. 46 -2022.  
33 Information provided by the authorities.  
34 Decree No. 404 -2013.  
35 Qualified consumers are the large -scale consumers. To qualify, from 2022 onwards, more than 5 MW 
of power had to be purchased (Decree No. 46 -2022).  
36 Article 1 of Decree No. 404 -2013. 
37 Regulations for the Calculation of Provisional Rates (Resolution No. CREE -016), as amended by 
Decision No. 065 -2020; and Rate Regulations (Resolution No. CREE -148).  
38 Article 22 of Decree No. 404 -2013; Article 5 of Resolution No. CREE -016; CREE. Viewed at: 
https://www.cree.gob.hn/historico -de-informes /; and SEN (2020), Informe Estadístico Anual del Subsector 
Eléctrico 2019 . Viewed at: 
https://portalunico. iaip.gob.hn/portal/ver_documento.php?uid=ODQ1NzYwODkzNDc2MzQ4NzEyNDYxOTg3MjM
0Mg== . 
39 Information provided by the authorities ; and Decision No. CREE -38-2022. 
40 Decree No. 100 -2021 and SEFIN Decision No. 260 -2021.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.29.   Between 2018 and 2021, a discount (or "voucher ") was granted to household consumers 
(with a monthly consumption of up to 300 kWh) and small commercial consumers (with a monthly 
consumption of up to 3,000 kWh), namely  MSMEs.41 The Ministry of Finance (SEFIN) funded this  
assistance by transferring HNL 1,873.1 million through the SEN to the ENEE . In 2022, only household 
consumption of up to 150 kWh was subsidi zed through a cross -subsidy mechanism that had been 
banned in 2013 but was reintroduced.42 The State financed 60% of the subsidy, with commercial 
and industrial consumers, except small commercial consumers, financing the rest. In 2022, the 
amount of the cross -subsidy was HNL 1,211.6  million.43 According to the authorities, this subsidy 
benefits 80% of consumers.  
4.30.   Electricity consumption in Honduras, which was 11,275.6 GWh in 2022, rose steadily during 
the period under review, except in 2020.44 Honduras is a net importer of electricity, although imports 
typically cover a small percentage of demand (2% in 2021). Electricity is imported from Guatemala 
under the MER.45 85% of Honduran t erritory has access to electricity supply through the national 
interconnected system (SIN) in which the ENEE and private generators participate. In the rest of the 
country, electricity is produced and distributed via isolated systems operated by private co mpanies, 
or via autonomous systems. 13% of households lack electricity supply.46 
4.31.   Honduras 's electricity matrix is relatively diversified, as multiple generation technologies are 
used ( Chart 4.1). Thermal generation (fuel oil and diesel) is still the main t echnology used. However, 
tax incentives for plants using renewable sources have contributed to the development of renewable 
technologies.47 In 2022, 62.6% of electricity was generated using all these technologies, compared 
to 48.6% in 2016. In terms of ren ewable sources, Honduras mainly uses hydropower, which can 
give rise to difficulties in the event of drought, as was the case in 2019, when thermal production 
had to be stepped up to meet demand. To reduce dependence on this type of energy, the use of 
photovoltaic and wind technologies, as well as biomass and geothermal energy, has been intensified.  
 
41 Inform ation provided by the authorities.  
42 Article 18 of Decree No. 404 -2013, as amended by Decree No. 2 -2022.  
43 Information provided by the authorities.  
44 ODS (2020), Planificación Operativa de Largo Plazo 2021 -2023. Information viewed at: 
https://www.ods.org.hn/pdf/2021/Plan_Generacion/Informe%20Planificaci%C3%B3n%20Operativa%20de%20
Largo%20Plazo%202021%20 -%202023.pdf ; and information provided by the authorities . 
45 SEN (2022), Balance Energético 2021 . Viewed at: https://sen.hn/wp -
content/uploads/2022/0 9/Balance -Energetico -2021.pdf ; and SEN (2019), Balance Energético 2018 . Viewed at: 
https://sen.hn/wp -content/uploads/2020/05/BEN2018_v3.pdf . 
46 SEN (2021), Informe de Cobertura y Acceso a la Electricidad en Honduras . Viewed at: 
https://sen.hn/wp -content/uploads/2022/01/INFORME -DE-COBERTURA -Y-ACCESO -A-LA-ELECTRICIDAD -EN-
HONDURAS -V-211221.pdf . 
47 The incentives consist of exemption from tariffs and other charges on imports, as well as from income 
tax (Law on the Promotion of Electricity Generation from Renewable Resources (Decree No. 70 -2007), as 
amended by Decrees Nos. 138 -2013 and 19 -2020) . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Chart 4.1 Electricity generation by type of technology, 2016 –2022 
(%) 
 
Note:  In 2016, coal -fired technology produced 0.3% of electricity; there was no geothermal production.  
Source:  Information provided by the authorities.  
4.3  Manufacturing  
4.32.   The manufacturing sector 's share of the Honduran economy remains significant. Between 
2016 and 2022, it accounted fo r 16.6% of GDP on average ( Table 4.4). The sector remains a major 
employer, with 600,000 workers in 2022, or 15.3% of the economically active population (EAP). 
Women make up 49.4% of the labour force. The goods -for-processing or maquila  industry, operating  
under free trade zone rules , known as the Free Zone (ZOLI) and/or maquila  regime, continues to be 
an important component of the sector. On average, between 2016 and 2022, the maquila  sector 
generated 37.4% of manufacturing GDP, and in 2022 it employed 35. 3% of the sector 's workers.48 
4.33.   In 2022, the value of manufacturing output was USD 20 ,840 million, 38.2% of which was 
generated by the maquila  industry ( Table 4.4).  In Honduras, the main manufacturing industries are 
food; beverages and tobacco, mainly to sup ply the domestic market; and textiles, leather and 
footwear (Table 4.4). The vast majority of textile and footwear goods are manufactured by maquila  
companies and are Honduras 's most important export product ( Section 1.3.1).49 In addition, maquila  
companies manufacture automobile electrical systems and parts .50 
4.34.   Tariff protection granted to the manufacturing sector (WTO definition of non -agricultural 
products) did not change between 2015 and 2022. The average applied MFN tariff was 5.1%. 
In 2022, th e manufacturing products that still had the highest average tariff protection, which also 
did not change substantially, were fish and fish products (11.7%; 11.6% in 2015), clothing (14.8%, 
unchanged) and textiles (8.1%, unchanged) ( Table A3.1).  
4.35.   In 2022, ap plied tariffs in the sector ranged from 0% to 15%, while bound tariffs ranged from 
0% to 55%. The products with the consolidated rate of 55% are leather , rubber, footwear and travel 
articles  (Table A3.1). In the context of this review, the Secretariat iden tified some manufactured 
products (four tariff lines) for which applied tariffs exceed bound tariffs ( Section 3.1.3.1).  
Table 4.4 Main manufacturing sector indicators, 2016 –2022 
 2016  2017  2018  2019  2020a 2021a 2022a 
Share of GDP (% at current prices)  17.1 17.1 16.9 16.4 16.0 16.4 16.0 
Real growth rate (% at 2000 prices)  3.0 3.9 3.9 2.0 -14.0 19.4 6.0 
Share in manufacturing gross value added (GVA) (%)  
 Food, beverages and tobacco  49.3 51.2 50.5 49.9 53.3 49.5 48.9 
 Manufacture of textile products, leather and 
 footwear  23.5 21.4 22.0 22.9 18.3 21.0 22.0 
 
48 BCH (2021), Industria de Bienes para Transformación y Actividades Conexas.  Viewed at: 
https://www.bch.hn/estadisticas -y-publicaciones -economicas/sector -real/informes -y-publicaciones/industria -
de-bienes -para-transformacion -y-actividades -conexas ; and information provided by the authorities . 
49 BCH (2021), Industria de Bienes para Transformación y Actividades Conexas . 
50 BCH (2021), Industria de Bienes para Transformación y Actividades Conexas . 
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   2016  2017  2018  2019  2020a 2021a 2022a 
 Other  27.2 27.4 27.5 27.2 28.4 29.5 29.1 
Employment (% of total employment)  14.8 13.6 13.4 13.5 16.2 15.2 15.3 
Total manufacturing output (in USD million)b 13,900  14,926  15,580  15,785  13,886  18,111  20,840  
Goods -for-processing industry (% of manufacturing 
output)b 39.3 36.9 37.5 39.3 33.4 37.4 38.2 
Trade (manufacturing sector according to WTO  definition)  
Exports  
Values (USD million)  5,410  5,550  5,800  6,094  4,913  6,991  8,159  
Share of total exports (%)  68.3 64.4 67.4 69.6 64.2 68.7 67.2 
Growth rate (%)  -5.0 2.6 4.5 5.1 -19.4 42.3 16.7 
Top five products, by HS chapter (% of manufacturing total)  
 61. Articles of apparel and clothing accessories, 
 knitted or crocheted  41.0 41.4 47.8 47.7 38.8 42.8 45.5 
 85. Electrical machinery and equipment; sound and 
 image recorders and reproducers   11.4 10.8 10.6 10.5 11.9 12.7 13.9 
 62. Articles of apparel and clothing accessories, not 
 knitted or crocheted  13.6 12.6 9.1 10.4 9.9 9.4 9.1 
 03. Fish and crustaceans, molluscs and other 
 aquatic invertebrates  6.1 6.2 5.9 5.9 7.8 5.9 5.3 
 39. Plastics and articles thereof  1.6 1.9 2.0 1.9 2.1 2.3 2.5 
Imports  
Values (USD million)  8,713  9,440  10,225  9,874  8,324  12,292  13,871  
Share of total imports (%)  75.9 76.1 74.9 74.3 74.2 74.2 71.0 
Growth rate (%)  -5.6 8.3 8.3 -3.4 -15.7 47.7 12.8 
Top five products, by HS chapter (% of manufacturing total)  
 84. Nuclear reactors, boilers, machinery and 
 mechanical appliances  9.4 9.7 10.1 9.8 9.0 9.8 10.0 
 55. Man -made staple fibres  10.9 10.0 8.7 9.4 8.6 8.1 9.1 
 85. Electrical machinery and equipment; sound and 
 image recorders and reproducers   11.7 11.5 11.7 11.4 11.6 11.4 9.0 
 39. Plastics and articles thereof  6.0 5.8 5.9 5.9 6.7 7.0 6.9 
 52. Cotton  3.7 4.7 4.6 5.3 3.1 4.3 6.3 
Trade in goods for processing ( maquila ) 
Exports  
Values (USD million)  4,019  4,079  4,277  4,522  3,392  4,976  6,031  
Growth rate (%)  -5.1 1.5 4.9 5.7 -25.0 46.7 21.2 
Top five products, by HS chapter (% of manufacturing -for-processing total)  
 61. Articles of apparel and clothing accessories, 
 knitted or crocheted  55.1 56.3 64.7 64.1 55.9 60.0 61.3 
 85. Electrical machinery and equipment; sound and 
 image recorders and reproducers  14.7 14.4 14.2 13.8 16.9 17.6 18.6 
 62. Articles of apparel and clothing accessories, not 
 knitted or crocheted  18.3 17.1 12.2 13.8 14.2 13.1 12.2 
 60. Knitted or crocheted fabrics  2.7 3.0 2.6 3.1 3.3 2.8 2.4 
 54. Man -made filaments  1.0 1.2 0.9 1.1 1.5 1.5 1.5 
Imports   
Values (USD million)  2,565  2,719  2,913  2,933  2,245  3,305  4,240  
Growth rate (%)  -4.4 6.0 7.2 0.7 -23.5 47.2 28.3 
Top five products, by HS chapter (% of manufacturing -for-processing total)  
 55. Man -made staple fibres  36.2 34.2 30.0 31.0 31.3 29.8 29.3 
 52. Cotton  12.0 16.0 15.6 17.3 11.1 15.4 20.1 
 61. Articles of apparel and clothing accessories, 
 knitted or crocheted  7.4 9.3 11.1 13.2 12.8 14.2 16.2 
 85. Electrical machinery and equipment; sound and 
 image recorders and reproducers   12.6 11.6 13.6 11.9 16.3 14.8 12.2 
 60. Knitted or crocheted fabrics  7.4 7.2 7.0 8.1 6.8 6.0 5.0 
a Preliminary figures.  
b Figures as of November 2022.  
Source:  Central Bank of Honduras, and data provided by the authorities.  
4.4  Services  
4.4.1   Financial services  
4.36.   The National Banking and Insurance Commission  (CNBS), established by Article  245.31 of the 
Constitution of the Republic, is responsible for supervising banks and insurance companies, stock 
exchanges and other financial institutions in Honduras.51 The CNBS is a  decentralized entity attached 
 
51 Pursuant to Decree No.  155-95 (the Law on the National Banking and Insurance Commission), the 
CNBS supervises, monitors and controls, through supervisory authorities (see below), public and private WT/TPR/S/443 /Rev.1  • Honduras  
 
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  to the Office of the President of the Republic, with operational and budgetary independence and 
broad administrative powers. It oversees financial, insurance, social security, securities and other 
activities related to the ha ndling, use and investment of resources deposited by the public, as well 
as other financial institutions, and ensures that supervised institutions have systems for the 
prevention of money laundering and the financing of terrorism.52 The Central Bank of Hon duras 
(BCH) monitors and controls the banking operations it carries out.  
4.37.   The CNBS consists of three supervisory authorities, each of which is responsible for a specific 
financial area: banks and other financial institutions, insurance, and pensions and sec urities.53 The 
CNBS is authorized to determine the prudential rules, particularly the solvency ratio, and may order 
the compulsory liquidation of a bank whose solvency ratio is less than 60% of the level required.  
4.38.   At the end of 2022, the national financial  system  (SFN) under CNBS supervision 
comprised  83 entities: 15  commercial banks, of which 9  were foreign -owned; 9  finance companies; 
3 state-owned banks, including the BCH; 1  representative office of a foreign bank; 13  insurers; 
7 brokerages; 5  public pens ion funds; 5  private financial development organizations  (OPDFs); 
4 private pension funds; 4  general bonded warehouses; 4  risk rating companies; 3  remittance 
companies; 2  credit card processors; 2  foreign exchange bureaus; 2  private risk centres; 1  stock 
market; 1  mutual guarantee fund manager; 1  payment services institution; and 1  institution 
classified as other financial institution.54 SFN financial assets totalled HNL  749,890,707.6  million at 
the close of 2022 (approximately USD  30,733  million, or 108% o f estimated GDP for 2022), of 
which  76.3% was in local currency and 23.7% in foreign currency.55 
4.39.   The Law on the Financial System (Decree No.  129-2004) of 21  September  2004 continues to 
govern and regulate the Honduran financial system. This law was amended  three times during the 
period under review. The most significant and extensive amendment of the Law on the Financial 
System was introduced by Legislative Decree No.  160-2016, which amended some 30  articles and 
made changes to the titles and chapters of th is law. The main amendment was the addition of new 
articles, which are outlined in Table  4.5. 
Table 4.5 Main amendments to the Law on the Financial System introduced by 
Decree  No. 160-2016  
 
 
Banking Resolution  
Name  Article  
(1) Principles  115-A 
(2) Grounds  115-B 
(3) Authority in Charge of the Resolution Process  115-C 
(4) Suspension of Payments and Terms of an Entity Under Liquidation  115-D 
(5) Information Sharing and Cooperation  115-E 
 
banking institutions, insurers, reinsurers, finance compan ies, savings and loan associations, general bonded 
warehouses, stock exchanges, brokerages, foreign exchange bureaus, pension and retirement funds, and any 
other entities that perform similar functions. These entities are referred to as supervised institut ions. 
52 Article  1 of Decree No.  155-95 (the Law on the National Banking and Insurance Commission, which 
organizes CNBS activities) stipulates that the CNBS must enforce the laws regulating financial activities, 
provided that such activities are developed p ursuant to Honduran laws and in the public interest and that their 
development is in keeping with the economic function of each one. It also provides that the rights of users of 
services offered by supervised institutions, preferably those of savers, depos itors, insured and investors, must 
be respected, that supervised institutions must have sufficient equity to safeguard their solvency, that the 
supervision must promote financial system stability, as a complement to the work of the BCH, that the 
shareholde rs, directors and officials of supervised institutions must meet the moral integrity and good repute 
requirements for proper performance, that regulatory frameworks must promote free competition, equity of 
participation, the efficiency of supervised instit utions and the protection of creditors’ rights, and that the 
adoption of good practices in the administration of risks inherent in the activities carried out by supervised 
institutions must be promoted.  
53 Information from the CNBS. Viewed at: https://www.cnbs.gob.hn/acerca -de-la-cnbs/. 
54 Refers to the Private Contributions Regime  (RAP), an institution that manages second -tier bank and 
pension funds. The list of insti tutions can be viewed at: https://www.cnbs.gob.hn/sitios -relacionados -enlaces -
de-interes /. 
55 Information from the CNBS. Viewed at: 
https://publicaciones.cnbs.gob.hn/boletines/_layouts/15/xlviewer.aspx?id=/boletines/Estados%20Financieros
%20NIIF%20a%20partir%20de%20enero%202017/Estados%20Financieros.xlsx&Source=https%3A%2F%2Fp
ublicaciones  per cen t2Ecnbs  per cent2Egob  per cent2Ehn%2Fboletines%2FPaginas%2FEstados -Financieros -
NIIF-%2528a -partir -de-e. WT/TPR/S/443 /Rev.1  • Honduras  
 
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(6) Preservation of Critical Services by Companies Belonging to the Group of the Entity Under 
Liquidation  115-F 
Official Administration of the Resolution  
Name  Article  
(1) Objectives  115-G 
(2) Appointment of the Administrator  115-H 
(3) Administrator 's Powers and Duties  115-I 
(4) Inventory of Assets and Liabilities and Action Plan  115-J 
(5) Termination of the Resolution  115-K 
Resolution Measures  
Name  Article  
(1) Types of Measures  115-L 
(2) Recapitalization  115-M 
(3) Mergers and Acquisitions  115-N 
(4) Transfers of Institutions ' Assets and Liabilities  115-Ñ 
(5) Bridge Bank  115-O 
(6) Asset Manager  115-P 
(7) Resolution of Foreign -Owned Institutions  115-Q 
(8) Financing of Resolution Measures  115-R 
(9) Equitable Treatment of Creditors of an Institution Under Resolution  115-S 
(10) Amparo Actions  115-T 
(11) Liability Regime  115-U 
Resolution Unit  
Name  Article  
(1) Creation  115-V 
(2) Structure  115-W 
(3) Functions  115-X 
Preventive Recovery and Resolution Plans  
Name  Article  
(1) Recovery and Resolution  115-Y 
Source:  Information provided by the authorities.  
4.40.   In addition, Article  180-A of Decree No.  160-2016 creates the Financial Stability Council, an 
inter-institutional body established by the BCH, the CNBS, the Deposit Insurance Fund and the 
Ministry of Finance. The Council 's main objective is to preserve and maintain the stability and normal 
functioning of the financial system.  
4.41.   The second amendment was les s extensive and was implemented through Decree 
No. 054-2019 (the Law on the Reorganization of Bodies Driving Economic Development, Job 
Creation, Administrative Facilitation and Promotion of the Country between the Government of the 
Republic and the Private  Sector). Under this law, amendments were made to permit financial 
institutions to operate in the so -called Financial Centres promoted by Employment and Economic 
Development Zones  (ZEDEs). This law also allowed these Financial Centres to establish their ow n 
legal frameworks, with regulations as or more demanding than those issued by the CNBS 
(amendment to Article  17-A of the Law on the Financial System). In addition, exposure limits on 
credit or investment operations in projects of national interest (reform  of Article  48 of the Law on 
the Financial System) were eliminated and changes were introduced to the calculation criteria for 
credit with parties directly related to ZEDE -promoted Financial Centres (amendment to Article  63-a). 
4.42.   The third amendment was intr oduced by Decree No.  32-2022. Through this decree, the 
amendments relating to the ZEDEs contained in Decree No.  054-2019 were repealed. Article  1 of 
Decree No.  32-2022 repeals the Law that originally shaped the ZEDEs, whereas Article  2 stipulates 
that any regulatory framework on the promotion and support of ZEDEs in the country lacks legal 
validity. The authorities specified that Decree No.  32-2022 should be ratified in a second legislative 
session.  
4.43.   The CNBS is responsible for authorizing the establishment of financial institutions. The formal 
application must include: the name, nationality and domicile of each participant; a draft public deed 
of incorporation and articles of association; the financial and administrative structure; the proposed 
technical pla ns and operations of the envisaged institution; an economic and financial study 
demonstrating the viability of the new institution; the certificate of deposit or custody showing that 
at least 10% of the minimum capital of the envisaged institution has been  deposited with the Central 
Bank or invested in government securities; and the source of funds to be used in the disbursement 
of the minimum capital required. The capital deposited with the Central Bank must remain in the 
country permanently. For foreign -owned banks, certification is required from the supervisory body WT/TPR/S/443 /Rev.1  • Honduras  
 
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  of the place of origin of the applicant institution, as well as the place in which the parent company 
or ultimate controller is located, and information must be provided on the good governance  and 
management of the applicant institution, unrestricted compliance with the prudential rules of the 
aforementioned place of origin and the absence of mutual restrictions on consolidated supervision.  
4.4.1.1   Banking services  
4.44.   The 2004  Law on the Financial System and amendments thereto govern banking activity in 
Honduras. The banking system 's regulatory bodies are the CNBS, through the Supervisory Authority 
for Banks, Finance Companies, and Savings and Loan Associations, and the BCH.  
4.45.   In 2022, the following entities  were operating in Honduras: 15  commercial banks, of which 
9 were foreign -owned; 2  state-owned banks aside from the BCH, namely the National Agricultural 
Development Bank  (BANADESA) and the Honduran Production and Housing Bank  (BAHPROVI); and 
1 representat ive office of a foreign bank. In 2022, commercial banks managed around 96.2% of 
total SFN  assets, with 55.8% concentrated in domestic banks and 44.2% in foreign -owned banks. 
Since 2010, the banking market has been characterized by a high level of concentra tion. In  2014, 
the six biggest commercial banks handled 79.3% of assets, 79.1% of the loan portfolio and 81.2% 
of deposits.56 Commercial banks continue to dominate the financial system and, at the end of 2022, 
held a 96.3% share of total assets. The six do mestic banks held 55.8% of assets, whereas 
foreign -owned banks held a 44.2% share of total assets. The system 's five biggest banks in terms 
of asset size held a 75.7% share of the banking system 's total assets. The total assets of commercial 
banks amounted  to HNL  778,702  million in December  2022 (Table  4.6). The loan portfolio was still 
the most significant asset, with a 64.2% share of total assets in the case of commercial banks and 
85.7% in the case of state -owned banks, followed by investments (16.4%) an d liquid assets 
(15.4%). Funds deposited by the public amounted to HNL  530,345  million in 2022, representing 
82% of total liabilities.  
Table 4.6 Assets of major banks and non -banking institutions  
 % of total assets  % of total loans  
2016  2022  2016  2022  
Commercial banks  91.7 96.3 86.0 90.3 
Banco de Honduras, S.A.  0.88 0.86 0.34 0.13 
Banco Atlántida, S.A.  15.60  18.37  16.08  20.28  
Banco de Occidente, S.A.  13.21  14.97  8.65 10.64  
Banco de los Trabajadores, S.A.  1.47 1.21 1.72 1.25 
Banco Financiera Centroamericana, S.A.  2.28 1.92 2.26 1.92 
Banco Hondureño del Café, S.A.  1.03 0.69 0.79 0.35 
Banco del País, S.A.  9.02 9.94 10.11  10.38  
Banco Financiera Comercial Hondureña, S.A.  18.98  18.60  18.33  17.40  
Banco Lafise (Honduras), Sociedad Anónima  3.40 2.78 3.01 2.68 
Banco Davivienda Honduras, Sociedad Anónima  5.99 5.80 6.11 6.46 
Banco Promerica, S.A.  2.93 2.23 2.67 2.09 
Banco de Desarrollo Rural Honduras, S.A.  2.83 2.52 3.61 2.69 
Banco Azteca de Honduras, S.A.  0.96 0.70 0.48 0.42 
Banco Popular, S.A.  0.31 0.54 0.37 0.72 
Banco de América Central Honduras, S.A.  12.81  15.16  11.49  12.88  
State -owned banks  6.2 1.7 11.7 7.4 
Central Bank of Honduras  .. .. .. .. 
National Agricultural Development Bank  .. .. .. .. 
Honduran Production and Housing Bank  6.2 1.7 11.7 7.40 
Finance companies  2.1 2.0 2.3 2.3 
Financiera Codimersa, S.A.  0.05 0.07 0.07 0.09 
Leasing Atlántida, S.A.  0.30 0.38 0.04 0.12 
Financiera Credi  Q, S.A.  0.57 0.51 0.76 0.69 
Financiera Solidaria, S.A.  0.22 0.17 0.27 0.23 
Corporación Financiera Internacional, S.A.  0.12 0.16 0.16 0.23 
Compañía Financiera, S.A.  0.31 0.40 0.41 0.54 
Financiera Insular, S.A.  0.03 0.03 0.02 0.01 
 
56 CNBS  (2015), Memorias  2014. Viewed at: http://www.cnbs.gob.hn/files/memoria/Memoria_2014.pdf ; 
and Central American Monetary Council  (2015), Informe del Sistema Bancario de Centroamérica, Repúbl ica 
Dominicana y Panamá  2014. Viewed at: http://www.secmca.org/INFORMES/11%20EFR/EFR2014.pdf . WT/TPR/S/443 /Rev.1  • Honduras  
 
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   % of total assets  % of total loans  
2016  2022  2016  2022  
Financiera Finca Honduras, S.A.  0.12 0.07 0.15 0.10 
Organización de Desarrollo Empresarial Femenino Financiera, S.A.  0.34 0.20 0.45 0.30 
..  Not available.  
Source:  Information provided by the authorities.  
4.46.   Pursuant to Article  46 of the Law on the Financial System, banking entities are authorized to: 
receive demand, savings and fixed -term deposits in local or foreign currency; grant loans in local or 
foreign currency; issue capitalization and savings and loan  securities for family housing; purchase 
securities in local or foreign currency, except those issued by the same bank; issue general, 
commercial and mortgage bonds as well as mortgage certificates at fixed or variable interest rates, 
in local or foreign c urrency; accept and discount time bills of exchange from operations related to 
the production of or trade in goods or services; conduct factoring operations; accept and manage 
trusts; maintain assets and liabilities in foreign currency; and conduct foreign  exchange trading, 
among other operations.  
4.47.   Savings and loan associations (Article  58 of the Law on the Financial System) are authorized 
to receive savings and fixed -term deposits in local or foreign currency and grant loans for the study, 
design, construct ion, purchase, expansion, repair, improvement and conversion of housing or for 
the removal of liens stemming from the acquisition of housing, as well as loans for urban 
improvement, the development of land to be used for home construction, the purchase of land and 
the financing of other housing -related needs. They may also: lend to their depositors for non -housing 
purposes up to 50% of the loan portfolio; carry out foreign exchange trading operations, subject to 
prior authorization by the Central Bank; purc hase mortgage loans; invest in securities issued or 
guaranteed by other institutions in the country 's financial system up to 20% of the capital and capital 
reserves; issue mortgage bonds or certificates and savings and loan securities for family housing 
and capitalization; and manage trusts related to the development of housing programmes, among 
others. Finance companies (Article  60 of the Law on the Financial System) may: grant all types of 
loans and make investments in local and foreign currency; receive deposits in savings and term 
accounts in local and foreign currency for periods longer than 30  days; and issue securities and stock 
market bonds in accordance with this law.  
4.48.   Finance companies are supervised by the CNBS and are regulated by the Law Regulati ng 
Private Development Institutions Engaging in Financial Activities (Decree No.  229-2000 and its 
implementing regulations). Pursuant to these regulations, these institutions may grant loans in local 
or foreign currency, backed by a mortgage, collateral or  assets.  
4.49.   Under the Law on Financial System Institutions (Article  78), financial groups are defined as 
those consisting of one or more financial system institutions. They may also be composed of one or 
more of the following: foreign exchange bureaus, genera l bonded warehouses, insurance or 
reinsurance companies, credit card issuers and/or managers, lessors, brokerages, centralized 
custody depositories, securities clearing and settlement systems, pension fund managers, 
remittance companies, mutual fund manage ment companies, companies dedicated to discounting 
documents, and other institutions with similar financial activities and purposes. Financial groups are 
regulated by the CNBS.  
4.50.   The legislation authorizes the commercial presence of foreign banks through leg ally 
established branches and representative offices, subject to the reciprocity principle. Branches must 
have two legal representatives permanently domiciled in Honduras. The CNBS resolution authorizing 
the operation of a financial institution must be rec orded in the Business Register. Applications for 
authorization require security equivalent to 10% of the fixed capital it is planned to invest to be 
deposited in the BCH or invested in government securities. In the case of commercial banks, the 
CNBS author ization is subject to the favourable opinion of the BCH based on an economic needs 
test. In 2022, the CNBS issued draft amendments to the Regulations on Minimum Requirements for 
the Establishment of Supervised Institutions, which aim to establish the minim um procedures and 
requirements to be followed and met for an authorization, opinion or decision on applications to form WT/TPR/S/443 /Rev.1  • Honduras  
 
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  and establish any of the institutions supervised by the CNBS.57 In January  2023, the CNBS issued 
new Regulations on Minimum Requirements  for the Establishment of Supervised Institutions.58 
4.51.   Commercial banks, both Honduran and foreign, must be set up as a closed -end public limited 
company. Their establishment is subject to a minimum fixed capital payment prior to the start of 
operations. For eign institutions must invest their fixed capital in Honduras. The CNBS must update 
this amount every two years, but the period may be reduced if the macroeconomic situation so 
requires, subject to the prior opinion of the BCH.59 In 2018, subject to the favourable opinion of the 
BCH, the CNBS increased the minimum amount required for commercial banks from HNL  500 million, 
established in 201660, to HNL  600 million and gave already established banks a period of up to 
two years in wh ich to comply with the new threshold.61 The CNBS has not updated the minimum 
capital amount since then.  
4.52.   Commercial banks, both Honduran and foreign, may open (and/or close) branches, agencies 
and other types of institutions for offering financial services,  provided that they inform the CNBS. 
The Commission may limit or prohibit the opening of branches or agencies for lack of capital or 
reserves. The law regulates mergers and acquisitions between commercial banks. Under Article  11 
of the Law on the Defence a nd Promotion of Competition, any document, contract, agreement or 
convention concluded between independent economic operators, aimed at merging, acquiring, 
consolidating, integrating or combining a business, must be previously approved by the Commission 
for the Defence and Promotion of Competition  (CDPC). The investigation may be initiated ex officio  
or at the request of a party. The CDPC has 45  working days to approve, reject or place conditions 
on an application based on the results of the technical, lega l and economic analysis of the effects 
the operation may have on competition. If the application is approved, the CDPC submits it to the 
BCH. If the BCH expresses a favourable opinion, the application is forwarded to the CNBS, which 
authorizes the merger. The share transfer requires the authorization of the CNBS if it presupposes 
a change of control in the institution or if a single shareholder acquires an amount equal to or greater 
than 10% of the registered capital.  
4.53.   Pursuant to the Law on the Financial Sy stem, banks are required to notify the CNBS if they 
make investments amounting to 5% or more of their registered capital. Moreover, some investments 
must be kept within certain limits. Banks may not grant loans for the purpose of enabling the 
borrower to p ay, in whole or in part, the price of the shares of the lending institution itself or to 
grant loans secured by the shares of the bank itself. In addition, they may not provide guarantees 
or incur obligations for unspecified amounts or invest in shares exc eeding 25% of the issuer 's 
registered capital or 20% of their own capital and reserves. Loans granted to persons domiciled 
abroad must be approved by the BCH, except for credits granted to Honduran citizens for the 
acquisition of land or the construction, purchase or improvement of housing in Honduras.62 A bank 
may also not grant loans for more than 30% of its capital to related parties63, nor may it invest more 
than 40% of its capital and capital reserves in furnishings, equipment and real estate outside t he 
national territory without prior authorization.  
4.54.   The COVID -19 pandemic affected banking in Honduras. According to the authorities, the 
impact of the pandemic on the banking system was especially felt in operational aspects and 
technological adaptation. T he pandemic led to reduced credit growth and redirected growth in 
banking activity mainly to high -liquidity assets such as investments in securities and cash and cash 
equivalents. Liquidity in the banking system increased due to a higher accumulation of de posits, 
which grew at a rate of 15.1% in 2020, with savings and demand deposits showing the greatest 
 
57 CNBS, Proyecto de Reformas al Reglamento de Requisitos Míni mos para el Establecimiento de 
Instituciones Supervisadas . Viewed at: https://www.cnbs.gob.hn/proyectos -de-normativa /. 
58 CNBS Circular No.  002/2023 of 10  January 2023. Viewed at: 
https://circulares.cnbs.gob.hn/Archivo/Viewer/2529/C002 -2023.pdf . 
59 Articles  5 and 36 of Decree No.  129-2004, CNBS Circul ar No.080/2013 of 3  May 2013.  
60 Pursuant to Resolution GE No.  734/14 -09-2016 issued on 14  September  2016, the CNBS set the 
minimum capital amount at HNL  500 million for banks, HNL  100 million for savings and loan associations, and 
HNL 70 million for financ e companies, as well as for any other financial system institutions.  
61 CNBS Circular No.  027/2018. Resolution GES No.  1035/03 -12/2018 of 4  December  2018. Viewed at: 
https://ci rculares.cnbs.gob.hn/Archivo/Viewer/105/027 -2018%20f.pdf . The minimum requirements were also 
increased for savings and loan associations (from HNL  100 million to HNL  120 million) and for finance 
companies and other financial intermediation institutions (from HNL  70 million to HNL  85 million).  
62 Articles  47 and 48 of Decree No.  129-2004.  
63 Article  63 of Decree No.  129-2004.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  momentum. Another major impact of the COVID -19 pandemic on the banking system, according to 
the authorities, was noted in profitability levels owing to slo wer credit growth, an increase in deposits 
and higher spending on the establishment of credit reserves. At the end of 2020, profitability was 
down 35.3% compared to 2019.  
4.55.   The authorities responded to the situation created by the pandemic with a series of m easures 
aimed mainly at protecting users. Resolution GES No.  175/21 -03-2020 contains temporary financial 
measures that: (a)  enable institutions supervised by the CNBS that carry out credit operations to 
give grace periods (until 30  June 2020) to debtors wh ose cash flows decreased as a result of the 
measures taken to combat the virus. The services sector, tourism - and transport -related activities, 
including hotels, motels and the like, the construction of hotels and similar buildings, restaurants, 
cafés and the like, land, air and maritime transport, the agricultural sector, maquila  and MSMEs are 
considered to be affected; (b)  offer the possibility of applying these relief mechanisms to consumer 
and housing credit obligations of natural persons who can prove that they did not receive sufficient 
resources, either through wages or other sources of income from their economic activity, in order to 
enable them to fulfil their obligations; (c)  prohibit supervised institutions from charging debtors fees, 
late interes t, administrative costs or other charges associated with relief operations; and (d)  allow 
for the maintenance, until October  2020, of the risk category of credit operations of affected debtors 
availing themselves of temporary relief mechanisms. In July  2020, the relief mechanisms were 
extended until 31  December  2020 by Resolution GES No.  278/25 -06-2020, which also established a 
deadline of 31  December  2020 for formalizing refinancing or readjustment of the credit obligations 
of debtors covered by relief mec hanisms.  
4.56.   In December  2022, loans and interest granted by commercial banks amounted to 
HNL 461,107  million, while total loans amounted to HNL  483,334  million.64 Financial spreads 
continued to be relatively high. In the third quarter of 2022, the weighted av erage lending rate (in 
local currency) was 14.7%, while the weighted average deposit rate was 4.2%, a spread of 10.5% 
(Section  1). 
4.57.   Profitability indicators deteriorated considerably during the pandemic, but have since 
recovered. In December  2022, the retur n on assets  (ROA) of commercial banks was 1.31%, 
compared to 0.71% in December  2020, but less than the 1.9% observed during the previous 
review  (2014). The pandemic led to an accumulation of deposits and put a brake on credit, a 
situation that has been gra dually corrected. The return on equity (ROE) was 15.07%, compared 
to 7.7% in December  2020, but was below the 16.8% recorded in 2014. With respect to the 
accumulation of deposits, the commercial banking system had a liquidity ratio of 39.3% (cash and 
cash equivalents and liquid investments as well as deposits from the public) in 2022, compared 
to 20% during the previous review, but below the 47.2% noted in December  2020, which far exceeds 
the existing prudential requirements.  
4.58.   Commercial banks complied with the capital adequacy ratio  (CAR) during the entire period 
under review. The banking system 's CAR was not very volatile during that period. The monthly 
average of that indicator was 13.75% between 2015 and the end of 2021. Despite the situation 
brought abou t by the pandemic, the banking system maintained a CAR of 14.19% in 
December  2020, higher than that required by the regulator and above the ratio recorded at the close 
of 2019 (13.69%); the CAR was 14.09% and 13.53% in December  2021 and December  2022, 
respectively. At that date, all banks had indicators above the required minimum (10%).  
4.59.   The number of non -performing loans increased during the pandemic, but the measures 
implemented by the authorities kept the increase from becoming substantial, and the situat ion 
improved significantly during the review period. This increase was accompanied by a ratio of credit 
 
64 Information from the CNBS. Viewed at: 
https://publicaciones.cnbs.gob.hn/boletines/_layouts/15/xlviewer.aspx?id=/boletines/Estados%20Financieros
%20NIIF%20a%20partir%20de%20enero%202017/Estados%20Financieros.xlsx&Source=https%3A%2F%2Fp
ublicaciones  per cent2Ecnbs  per cent2Egob  per cent2Ehn%2Fboletines%2FPaginas%2FEstados  per 
cent2DFinancieros  per cent2DNIIF  per cent2D%2528a  per cent2Dpartir  per cent2Dde  per cent2Denero  per 
cent2D2017%2529  per cent2Easpx . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  reserves to the non -performing loan portfolio (coverage ratio) of 125.67%. The non -performing loan 
ratio, which was 3.82% in December  2020, fell to 3.26 % in December  2022.65 
4.60.   Where prudential rules are concerned, the CNBS makes use of the Basel principles. 
Since  2020, the CNBS has applied the comprehensive risk  based supervis ory (RBS)  framework .66 
The framework  is designed to assist the CNBS in fulfilling its objectives, as set forth in the 
Constitution of the Republic and the Law on the National Banking and Insurance Commission. The 
framework  describes the principles, concepts and core process that the CNBS uses to guide the 
monitoring and identification o f real and potential risks that may affect supervised institutions. The 
methodology for determining the risk profile (composite risk) of supervised institutions focuses on 
the analysis of significant activities, for which several factors are identified and  assessed, namely 
the inherent risks to which they are exposed according to their business models, the quality of the 
comprehensive risk management carried out, and the quality and adequacy of the financial resources 
used to address the net risk assumed by  the supervised institution. The methodology takes into 
account relevant international best practices and principles established by supervisory bodies, such 
as the Basel Committee on Banking Supervision  (BCBS), the International Association of Insurance 
Supervisors  (IAIS), the Organisation for Economic Co -operation and Development  (OECD) and the 
International Organisation of Pension Supervisors  (IOPS). To this end, supervised institutions must 
maintain organizational structures and control practices appropr iate to their particular 
circumstances.67 
4.61.   Since its last review in 2016, the CNBS  has made progress in implementing the Basel 
principles and has taken steps to implement the three Basel  II and  III pillars. According to the 
authorities, the CNBS has gradually moved forward in adopting Basel 's international supervisory 
standards. The mai n results are shown in Box  4.2, in addition to the pending reforms.  
Box 4.2 Main developments in the implementation of the Basel principles, 2016 -2022 
Since the last Honduran review in 2016, the CNBS has made th e following progress in implementing the Basel 
principles:  
Pillar  I (capital, risk coverage and leverage restrictions)  
Capital:  
Resolution GES No.  920/19 -10-2018 approved reforms to the capital adequacy standards and incorporated the capital 
conservation coverage and leverage ratio, as follows:  
• Capital conservation coverage: a 2.5% ratio (the same as Basel) was established in addition to the 
required capital adequacy ratio. It was stipulated that this ratio should be gradually completed, rea ching 
2.5% by the end of 2023.  
• Leverage ratio: A required 4% leverage ratio was established for all supervised financial institutions.  
The authorities have indicated that the pending reforms include establishing a countercyclical buffer between 0% and 
2.5%, consisting of ordinary capital, to be implemented where credit growth is considered to cause systemic risk; 
and revising the methods used to estimate capital requirement percentages for risk -weighted assets to calculate 
credit, market, operationa l and credit valuation adjustment risks, as well as additional capital charges to institutions 
of systemic importance.  
Liquidity:  
A new liquidity regulation was approved through Resolution GES No.  593/06 -07-2018, later amended by Resolution 
GES No.  540/2 4-06-2019. The concept of liquidity coverage ratio  (LCR) was adopted. It was established that the LCR 
may not be less than 100% and that it must be calculated and fulfilled in local and foreign currency, and on a 
combined basis. This percentage is to be re ached gradually. Committees on Assets and Liabilities  (CAPA), Risk 
Management Committees and a Liquidity Risk Management  (LRM)  System were also created.  
The net stable funding ratio  (NSFR), a long -term structural indicator designed to alleviate liquidity mismatches, has 
yet to be implemented.  
 
65 Through Resolution GES No . 654/22 -12-2020, the CNBS decided to temporarily change how the 
default coverage indicator was calculated as of December  2020 by incorporating the concept of a credit 
portfolio at risk.  
66 Circular CNBS No.  48/2020. Information from the CNBS. Viewed at: https://www.cnbs.gob.hn/marco -
integral -de-supervision -basada -en-riesgos -misbr /. 
67 Information from the CNBS. Viewed at: https://www.cnbs.gob.hn/marco -integral -de-supervision -
basada -en-riesgos -misbr /. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Pillar II (risk management and supervision):  
Resolution GES No.  662/29 -12-2020 approves the comprehensive risk  based supervisory (RBS)  framework , which 
provides for dynamic and prospective risk monitoring, with an emphasis on understanding and anticipating the risks 
faced by supervised institutions and sectors.  
Pillar III (market discipline):  
The Rules for Strengthening Transparency, Financial Culture and Financial User Support were established , as was a 
supplementary rule thereto. The CNBS also developed a series of tools and programmes aimed at improving 
information asymmetries between financial users and supervised entities and prepared an updated credit background 
report. It implemented the Conoce y Compara  programme to compare the tariffs and costs of the main financial 
products offered by the financial system and published the costs and fees associated with credit operations.  
Source:  Information provided by the authorities.  
4.62.   Deposits in com mercial banks are insured by the Deposit Insurance Fund  (FOSEDE) up to the 
equivalent of USD  9,632.92 in lempiras. FOSEDE is a decentralized entity of the Office of the 
President of the Republic, attached to the BCH, that enjoys technical, administrative a nd budgetary 
independence. FOSEDE is a savings protection system. Its main function is to ensure the restitution 
of cash deposits made by the public in private banks, savings and loan associations, and duly 
authorized finance companies subject to compulsor y liquidation. It began operating in June  2001, 
and its activities are defined and regulated mainly by the Law on Deposit Insurance in Financial 
System Institutions, contained in Decree -Law No.  53-2001, published in Official Journal No.  29.490 
on 30  May 2001. The 2001  law was amended by Decrees Nos.  128-2002, 283 -2002, 160 -2003, 
106-2004, 129 -2004 and 89 -2006.68 
4.63.   In addition, Honduras has nine finance companies, which had HNL  17,343.3  million in assets 
as of 31  December  2022. Finance companies may perform th e following operations: (1)  grant all 
types of loans and make investments in local and foreign currency; (2)  receive deposits in savings 
and term accounts in local and foreign currency for periods longer than 30  days; and (3)  issue serial 
or non -serial sec urities. The credit granted by these nine organizations as of that date amounted to 
HNL 11,736.3  million.69 
4.64.   The Law on the Financial System also regulates the activities of authorized financial groups, 
which are supervised by the CNBS. Under the Law on the  Financial System, authorized financial 
groups are defined as those consisting of one or more financial system institutions. They may also 
consist of two or more legal persons engaged in activities of a financial nature, provided that: (i)  at 
least one of them is an authorized financial system institution; and (ii)  there is common control in 
matters of ownership, management, administration or use of corporate image or, if there are no 
such relationships, then under an agreement, they decide to maintain comm on control or act as a 
decision -making unit. Financial groups may also be composed of one or more of the following: 
foreign exchange bureaus, general bonded warehouses, insurance or reinsurance companies, credit 
card issuers and/or managers, lessors, broke rages, centralized custody depositories, securities 
clearing and settlement systems, pension fund managers, remittance companies, investment fund 
management companies, mutual fund management companies, companies dedicated to discounting 
documents, and othe r institutions with similar financial activities and purposes. At the end of 2022, 
seven authorized financial groups operated in Honduras, involving a total of 27  companies.70 Each 
group was headed by a bank. As of December  2022, the seven financial groups  had 
HNL 680,690.32  million in assets (USD  27,672.8  million) and HNL  599,550.49  million in liabilities 
(USD  24,374.2  million).  
4.65.   The CNBS  supervises financial groups on an individual and consolidated basis. Corporations 
belonging to a financial group domiciled in the country or abroad are supervised with the aim of 
 
68 Information from FOSEDE. Viewed at: https://fosede.hn/cobertura -del-seguro /. 
69 Information from the CNBS. Viewed at: 
https://publicaciones.cnbs.gob.hn/boletines/_layouts/15/xlviewer.aspx?id=/boletine s/Indicadores%20Financier
os%20NIIF/Indicadores%20Financieros.xlsx&Source=https%3A%2F%2Fpublicaciones  per cent2Ecnbs  per 
cent2Egob  per cent2Ehn%2Fboletines%2FPaginas%2FIndicadores  per cent2DFinancieros  per cent2DNIIF  per 
cent2Easpx . 
70 Information from the CNBS. Viewed at: 
https://publicaciones.cnbs.gob.hn/boletines/_layouts/15/xlviewer.aspx?id=/boletines/Grupos%20Financieros/1
.%20Grupos%20Financieros%20 -%20marzo%202022.xlsx&Source=https%3A%2F%2Fpublicaciones  per 
cent2Ecnbs  per cent2Egob  per cent2Ehn%2Fboleti nes%2FPaginas%2FGrupos  per cent2DFinancieros  per 
cent2Easpx . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  ensuring that the risks of all companies in the group are assessed and manag ed on an individual 
and consolidated basis. Investments between institutions belonging to the same financial group are 
deducted from the paid -up capital of the investment company in order to determine compliance with 
the capital requirements of each compan y in the financial group. The consolidated capital of the 
financial group must be at least equal to the sum of the capital requirements of the companies 
belonging to it. For the purpose of capital adequacy, investments between institutions belonging to 
the same financial group must not be considered.  
4.66.   The period under review was characterized by the development of financial technologies that 
created an electronic payment method with growing user demand, such as electronic wallets, which 
are instruments offered by fintech companies that are, in some case s, associated with financial 
institutions (Atlántida, Ficohsa, BAC Credomatic, Banpaís, Promérica, Azteca and Finsol). These 
institutions encourage the population to use digital money. To promote these transactions, the BCH 
amended the Regulations on Payme nt and Transfer Services Using Electronic Money and issued the 
Regulations for Services Offered by Entities Providing Electronic Payment Services.71 As of 
30 June 2022, 13.1  million electronic wallet transactions had been performed, totalling 
HNL 10,659.7  million.72 
4.4.1.2   Insurance  
4.67.   The insurance market is open to both domestic and foreign private capital, and consists only 
of private companies established in Honduras. Insurance companies may offer personal insurance 
(life, health, disability), insurance against d amage to property, or insurance of both types.73 At the 
end of 2022, 12  insurance companies were in operation, two  of them foreign -owned, five  were 
mixed capital, and the remainder domestically owned.74 There is one  company that operates 
independently in t wo separate branches of insurance, and therefore publications on the insurance 
sector refer to 13  insurers. There are no local reinsurance companies.  
4.68.   Foreign investment in the insurance sector is considerable, as illustrated by the fact that 
two insurance companies are foreign -owned, five  have mixed capital and the remainder are locally 
owned; in a similar vein, five of the companies belong to financial groups with significant domestic 
presence.  
4.69.   The insurance market remains highly concentrated. At December  2022, six insurers were 
managing 80.3% of assets and 81.4% of premiums. Net premiums in the Honduran insurance 
system amounted to HNL  13,999.9 million at December  2022, reflecting year -on-year growth of 
8.64% compared to the end of 2021. The authorities in dicated that the situation had recovered 
following the sharp deterioration during the fourth quarter of 2020, when performance was affected 
in the first instance by climatic challenges and subsequently by the steady rise in the payment of 
medical claims ar ising from the COVID -19 pandemic.  
4.70.   In 2021, 490,463  policies were issued – a year -on-year increase of 9.2%. The largest tranche 
of insurance policies falls within the damage insurance segment: at the end of 2021, they 
numbered  325,567 and accounted for 66.4 % of all existing policies, an increase of 12.6% on  2020. 
Earnings from net premiums in this segment generated HNL  5,421.6  million for the insurance sector, 
a year -on-year increase of 9.2%. Damage insurance comprises two headings: (i)  general insurance 
(fire/other similar risks and motor vehicles, worth HNL  4,187.6  million) and (ii)  other general 
insurance, worth HNL  1,234.0  million. In all, 108,762  policies were issued for the various types of 
life insurance, accounting for 22.2% of all policies issued. Th e value of net premiums rose to 
HNL 4,529.0  million, representing year -on-year growth of 14.0%. Where accident and health 
insurance is concerned, 44,898  policies were issued, or 9.2% of all existing policies.  
 
71 Published in Official Journal No.  36.012 of 26  August  2022.  
72 Viewed at: https://www.bch.hn/estadisticos/EF/LIBINFORMEEF/IEF%20Junio%202022.pdf . 
73 Article  8 of Decree No.  22-2001.  
74 CNBS (2022), Reporte del Perfil del Sistema Asegurador de Honduras Desarrollo y Competitividad del 
Sector Segu ros, April  2022. Viewed at: 
https://analitica.cnbs.gob.hn/Home/Viewer/Publicaciones%20Estad%C3%ADsticas%20y%20Financieras%2FEs
tudios%20e%20Informes%2FPerfil%20del%20Sistema%20Asegurador/Perfil%20del%20Sistema%20Asegurad
or%20de%20Honduras%20 -%20A%C3%B1o%202022.pd f. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.71.   At the end of the year, earnings from net premi ums for accidents and health stood at 
HNL 2,740.9  million, representing 21% of the insurance system 's total net premium earnings, a 
year-on-year rise of 9.8% driven mainly by the health and hospital segment, which accounted 
for 89% (HNL  2,440.4  million) of  premiums, which in turn posted a 12.7% rise.75 Insurance activity 
continued to increase in the first three quarters of 2022, as demonstrated by the growth in premiums 
(12.3% year -on-year to August) (Table  4.7 and Chart  4.2). However, although premiums inc reased 
in amount during the review period, the insurance penetration rate (or percentage of premiums in 
relation to GDP) remained relatively low at less than 2.6%. According to the authorities, the low 
penetration rate illustrates the economic and financia l decline that households have experienced in 
recent years, and their low savings capacity.76 When measured as the ratio of gross life insurance 
premiums to total premiums, the penetration rate of the Honduran insurance system was 33.7% at 
the end of 2021 – higher than in 2020 (31.7%) and 2019 (32.3%).  
Table 4.7 Main insurance indicators, 2017 -2022 
(%) 
 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Aug-22 
Average premium growth  17.8  13.8  1.9 -3.4 6.5 12.3  
Gross premiums/GDP  2.5 2.6 2.5 2.6 2.4 2.6 
Capital adequacy  3.5 4.6 4.6 4.9 3.8 3.3 
Administrative efficiency  10.5  10.0  10.3  10.5  10.2  10.0  
ROA  7.0 7.5 7.9 4.8 2.8 4.7 
Loss ratio  45.5  44.1  40.2  115.4  55.7  39.5  
 Health and Hospitalization  63.5  64.2  70.9  65.4  74.5  66.8  
 Life insurance  33.0  29.7  30.1  40.5  62.6  32.9  
Source:  Information provided by the authorities.  
Chart 4.2 Premiums ceded -in and ceded -out, by branch, 2018, 2021, 2022Q3  
(% of total)  
Source:  CNBS.  
 
75 CNBS (2022), Reporte del Perfil del Sistema Asegurador de Honduras Desarrollo y Competitividad del 
Sector Seguros , April  2022. Viewed at: 
https://analitica.cnbs.gob.hn/Home/Viewer/Publicaciones%20Estad%C3%ADsticas%20y%20F inancieras%2FEs
tudios%20e%20Informes%2FPerfil%20del%20Sistema%20Asegurador/Perfil%20del%20Sistema%20Asegurad
or%20de%20Honduras%20 -%20A%C3%B1o%202022.pdf . 
76 CNBS (2022), Reporte del Perfil del Sistema Asegurador de Honduras Desarrollo y Competitividad del 
Sector Seguros , April  2022. Viewed at: 
https://analitica.cnbs.gob.hn/Home/Viewer/Publicaciones%20Estad%C3%ADsticas%20y%20Financieras%2FEs
tudios%20e%20Informes%2FPerfil%20del%20Sistema%20Asegurador/Perfil%20del%20Sistema%2 0Asegurad
or%20de%20Honduras%20 -%20A%C3%B1o%202022.pdf . 
0 5 10 15 20 25 30 35 40 45 50DamageLifeAccident and healthBonds
2018 2021 2022Q3WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.72.   As already stated, the COVID -19 pandemic affected activity in the insurance subsector and 
reduced its profitability. The return on insurance assets (ROA) fell from 7.9% in December  2019 
to 4.8% in December  2020 and to 2.8% in December  2021, b efore partially recovering to 4.7% in 
August  2022. This was due to the loss ratio rising from 40.2% in 2019 to 115.4% in December  2020 
as a result of the pandemic, before falling to 55.7% and then to 39.5% in December  2021 and 
August  2022 respectively. The  financial adequacy ratio stood at 3.3 in August  2022 – lower than at 
the end of 2021, when it was 3.8, and 2020 (4.9). The fall in the ratio is due to the drop in net profit 
in 2020 as a result of the increase in claims payments and greater exposure to ri sk. 
4.73.   The authorities took measures to address the COVID -19 pandemic. On 26 March 2020, by 
Resolution SSE  No. 177/26 -03-2020, the Insurance Supervisory Authority approved temporary 
relief mechanisms that included allowing insurers to grant a grace period end ing on 30  June 2020 
for the payment of premiums, prohibiting them from charging extra fees and allowing them to 
include disbursements linked to the pandemic in their risk analyses. These measures enabled the 
insurance sector to mitigate the economic impact  on the country of the coronavirus health crisis.77 
Resolution SSE  No. 276/25 -06-2020 of the Insurance Supervisory Authority amended 
Resolution  SSE No.  177/26 -03-2020. In the new Resolution, the Supervisory Authority recognized 
that the temporary relief mechanisms for the insurance sector had increased the balance of 
premiums receivable by 5.9% while at the same time, despite those measures, lockdowns to prevent 
the spread of COVID -19 had resulted in a 23% deterioration in premiums receivable. It t herefore 
decided to freeze late payment fees for payments by instalment until 30  September  2020 and 
extended the time allowed for insurance institutions to 31  October  2020.78 
4.74.   Viewed from the economics perspective, the growth in life insurance is linked to individuals ' 
or families ' capacity to generate savings.  
4.75.   There have been no substantial changes to the legal and institutional framework of the 
insurance subsector since the last review in 2016, and the legislation is as it was when introduced 
in 2001. Insu rance and reinsurance services continue to be governed by the Law on Insurance and 
Reinsurance Institutions and the resolutions of the CNBS. The law remains in force, unchanged since 
its creation under Decree  No. 22-2001.79 Through the Insurance and Pensio ns Supervisory 
Authority, the Commission supervises and monitors the activities of the insurance and reinsurance 
companies, together with those of intermediaries.  
4.76.   The BCH is responsible for authorizing new insurance companies on the basis of an economic 
needs test, subject to a favourable opinion from the CNBS. Any insurance institution established in 
the country must be set up as a closed -end public limited company with its capital divided into 
registered shares.80 The founding partners of such institution s may be natural or legal persons. 
Insurance companies require a minimum amount of fixed capital determined by the BCH, subject to 
a favourable opinion from the CNBS. In  2022, the BCH increased the minimum amount of capital 
once more, to between HNL  90 million and HNL  240 million, and provided for a period of up to one 
year for existing companies to meet the new requirements (Table  4.8). The minimum capital must 
be deposited at the commencement of operations.  
Table 4.8 Minimum fixed capital for the establishment of insurance companies, 2015 
and 2022  
(HNL million)  
 2015  2022  
Companies offering general and personal insurance services  60 million  90 million  
Companies offering all types of insurance  120 million  180 million  
Reinsurers  165 million  240 million  
Source:  BCH Resolution No.  226-5/2022. Session No.  3968 of 12  May 2022.  
 
77 Resolution SSE  No. 177/26 -03-2020 may be viewed at: 
https://circulares.cnbs.gob.hn/Archivo/Viewe r/2452/1 . 
78 Resolution SSE  No. 276/25 -06-2020 may be viewed at: 
https://circulares.cnbs.gob.hn/Archivo/Viewer/2457/1 . 
79 Law on Insurance and Reinsurance Institutions (Decree No.  22-2001) of 30  April 2001. Viewed at: 
https://www.cnbs.gob.hn/leyes -y-normativas /. 
80 Article  9 of Decr ee No. 22-2001.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.77.   Under the Law on Insurance and Reinsurance Institutions (Chapter  I, Article  3), companies 
are classified according to the type of insurance they offer, namely: (a) first -group insurance 
institutions, which are those that issue personal insurance contracts; (b) second -group insurance 
institutions, which issue damage insurance contracts, including bond contracts; and (c) third -group 
insurance institutions, which issue insurance contracts for the first and second groups. There are 
currently 11  institutions in the third group and one  in the first; no institutions are registered in the 
second group.81 
4.78.   Honduras allows the commercial  presence of foreign insurance companies in the form of 
legally established branches. Branches may be established if the parent company is subject to 
prudential standards similar to or stricter than those employed in Honduras and has sufficient capital 
to meet the obligations contracted in Honduras.82 In addition to the requirements applicable to local 
companies, current legislation requires foreign companies to certify that at least 10% of the 
minimum capital of the prospective company has been deposited i n the BCH or invested in 
government securities; the amount is refunded once the application has been approved 
(Article  22(4) of the Law on Insurance and Reinsurance Institutions). The fixed capital must be 
invested in Honduras.  
4.79.   Insurance institutions may o nly engage in activities that have a direct bearing on the 
operations of insurance or bonds, the investment of their capital and their technical and 
mathematical reserves, or the sale of goods from the recovery of claims and those transferred to 
them in pa yment of debts from the activities themselves. They may also provide services exclusively 
for the persons insured by them in relation to the risks assumed. Insurers may not provide 
reinsurance services. However, they may offer certain financial services, s ubject to requirements 
governing the amounts and terms involved, such as loans for natural or legal persons resident in 
Honduras. An insurer 's lending limit is fixed at 20% of its capital and capital reserves. An insurer 
may also lend unlimited amounts bac ked by fiduciary guarantee that are repayable within not more 
than 25 years.83 
4.80.   CNBS authorization and registration in the Public Register of Insurance Agents and Brokers is 
required in order to be able to practise as an independent or dependent insurance a gent, or as an 
insurance broker. An agent or broker: must be Honduran or legally resident in the country for more 
than three consecutive years; must submit certification issued by one or more insurance institutions 
stating that he or she has the technical knowledge necessary to act as an agent; must hold an 
up-to-date certificate of registration in the Register of Insurance Agents and Brokers; and must not 
be disqualified.84 
4.81.   In 2023, there are three insurance institutions that issue individual and collectiv e agricultural 
insurance; however, these policies represent only 0.02% (95 in  2021) of all policies issued. There is 
no state subsidy for this type of policy.  
4.82.   Insurance companies may sign reinsurance contracts inside or outside Honduras but only with 
reinsurers registered with the CNBS. Foreign reinsurers must have at least a BBB - rating (or 
equivalent) to be able to provide services in Honduras.  
4.83.   The CNBS regulates the types of policy that can be sold, but the insurance companies set the 
premium rates. Insu rers are required to maintain a minimum level of capital. Since 2013, that 
requirement has been adjusted under the Law on Insurance and Reinsurance Institutions on 
three  occasions, all of them during the review period, specifically in 2017 
(Resolution  No. 297-8/2017, Session No.  3688 of 17  August  2017); in 2020 
(Resolution  No. 54-2/2020, Session No.  3817 of 5  February  2020); and in 2022 
 
81CNBS (2022), Reporte del Perfil del Sistema Asegurador de Honduras Desarrollo y Competitividad del 
Sector Seguros , April  2022. Viewed at: 
https://analitica.cnbs.gob.hn/Home/Viewer/Publicaciones%20Estad%C3%ADsticas%20y%20Financieras%2FEs
tudios%20 e%20Informes%2FPerfil%20del%20Sistema%20Asegurador/Perfil%20del%20Sistema%20Asegurad
or%20de%20Honduras%20 -%20A%C3%B1o%202022.pdf . 
82 Decree  No. 22-2001 and Regulations on the Establishment of Branches of Foreign Insurance 
Institutions issued by the BCH (Resolution  No. 448-12/2003 of 18  December  2003). Viewed at: 
https://www.cnbs.gob.hn/leyes -y-normativas /. 
83 Article  69 of Decree  No. 22-2001.  
84 Articles  94 and 96 of Decree  No. 22-2001 and Regulations on Insurance and Surety Bond 
Intermediation (CNBS Circular  No. 084/2009).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  (Resolution  No. 226-5/2022, Session No.  3968 of 12  May 2022). As a result of the amendment 
introduced in 2022, the minimum  capital requirements are: (a) first -group insurance institutions: 
HNL 90 million, (b) second -group insurance institutions: HNL  90 million, (c)  third-group insurance 
institutions: HNL  180 million and (d) re -insurance or re -guarantee institutions: HNL  240 million.  
4.84.   Applications for mergers and takeovers are submitted to the Commission for the Defence and 
Promotion of Competition (CDPC), which forwards them to the CNBS. If the CNBS gives a favourable 
opinion, the application is sent to the BCH for approval. Me rgers between insurers operating in 
different branches of insurance, or between insurers and reinsurers, are not permitted if the intention 
is to operate in both markets. Mergers which concentrate more than 25% of total premiums are 
prohibited. If a natura l person acquires shares equivalent to more than 10% of a company 's 
subscribed and paid -up capital, the BCH and the CNBS must be notified.85 
4.4.2   Telecommunications  
4.85.   There have been no substantial changes to the legal framework governing the 
telecommunications sector since the previous review in 2016. The sector is governed by the 
Framework Law on the Telecommunications Sector of 1995 (LMST, Decree No.  185-95), its General 
Regulations and the Law on Number Portability (Decree No.  97-2013). In addition to the General 
Regulations, other sets of regulations have been issued to specifically regulate areas such as the 
tariff regime or network sharing.86 During the period 2016 -23, some of these regulations were 
amended (e.g. to facilitate the portabi lity procedure) and new regulations were adopted (e.g.  in 
relation to user rights and obligations).  
4.86.   The National Telecommunications Commission (CONATEL) is the market regulator. It is also 
responsible for the competition regime governed by the Law on the D efence and Promotion of 
Competition of 2005. CONATEL seeks the opinion of the CDPC, but takes the final decision itself.87 
4.87.   Honduras does not impose restrictions on private investment (whether domestic or foreign) 
in the telecommunications sector. However, investment by foreign state -owned enterprises is not 
permitted.88 
4.88.   The primary objective of Honduran telecommunications policy is to narrow the digital divide.89 
In this regard, Honduras has taken steps to reduce interconnection costs and the cost of using the 
radio-frequency spectrum. In addition, the spectrum was redeployed to make it possible to launch 
the new generation of wireless connections.90 The universal service fund91 has been used to roll out 
broadband services in public squares and buildings in order to promote the use of information and 
communication technologies (ICTs).92 Honduras is also in the process of implementing a project by 
the name of "Digital Government ".93 In order to incentivize use of the broadband service and 
promote connectivity for vulnerable households, a subsidy was introduced in 2021 that will remain 
in place for five years, covering 100% of the cost of connection during the first year.94 
4.89.   Between 2016 and 2022, mobile internet density in Honduras mushroomed from 23.9% to 
73.7%  (Table  4.9). The increase began in earnest in 2019, due to improved access to the service, 
and was consolidated as a result of the pandemic. The density of fixed Internet use also rose, from 
2.2% to 4.6%. According to the authorities, this increase occurr ed because of the diversity of 
provision at the local level. Despite the rises, the digital divide remains significant in Honduras: in 
2022, 18% of the population still had no Internet access, and 28% of those with access did not 
 
85 Article  56 of Decree  No. 22-2001.  
86 The regulations can be viewed at: 
http://www.sitae.conatel.gob.hn/sice/armonizacion/consultasResoluciones.aspx . 
87 Article  212 B of the General Regulations of the LMST.  
88 Article  26 of Decree  No. 185-95. 
89 National Broadband Plan (PNBA).  
90 Information provided by the authorities.  
91 The name of the universal service fund is the Fund for Investment in Telecommunications and 
Information and Communication Technologies (FITT).  
92 OAS document CCP.I -TIC/doc.4974/20 rev.3 cor.1 of 30  October  2020. All operators contribute 1% of 
their monthly gross receipts to the FITT (FITT Regulations (CONATEL Resolution No.  007/14)).  
93 CNI. Viewed at: 
https://www.cni.hn/la -aceleracion -de-la-transformacion -digital -en-el-gobierno -de-honduras /. 
94 Executive Decree No.  PCM-034-2021.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  make use of it.95 Fixed telephony is falling into disuse as a result of the use of mobile telephony and 
Internet telephony (VoIP).  
Table 4.9 Telecommunications sector indicators, 2016 -2022 
 2016  2017  2018  2019  2020  2021  2022  
Fixed telephony  
Users  442,929  491,107  483,437  492,081  531,070  465,521  436,828  
Density (%)  5.1 5.5 5.4 5.3 5.7 4.9 4.6 
Fixed Internet  
Users  188,923  205,787  224,579  390,519  421,498  397,123  442,991  
Density (%)  2.2 2.3 3.8 4.1 4.0 4.0 4.6 
Mobile telephony  
Users (million)  7.8 8.2 8.0 7.4 7.0 7.6 7.7 
Density (%)  89.8 92.9 90.3 82.2 74.8 80.0 81.1 
Mobile Internet  
Users (million)  1.9 2.3 3.1 5.0 4.8 6.8 7.0 
Density (%)  23.9 25.6 34.2 55.1 51.3 72.5 73.7 
Other  (in HNL millions)  
Earnings  20,322  21,383  23,502  23,342  22,448  23,695  25,217  
Investment  3,561  4,285  3,881  4,392  3,341  4,481  4,225  
Source:  Information provided by the authorities.  
4.90.   During the pandemic, mobile service operators supplied free data, voice and SMS bundles and 
continued to provide a service for customers who were unable to pay.96 
4.91.   In order to provide these various services, operators must hold a concession (25  years, 
renewable) awarded by CONATEL through public tenders in which only prequalified suppliers can 
participate. A concession generally covers the provision of various types of services.97 CONATEL also 
grants licences for the use of the radio -frequency spectrum (25  years, renewable).98 According to 
the General Regulations of the LMST, the licences are granted directly or, if there is a frequency 
shortage, are awarded on the basis of public bidding. However, the authorities have indicated that 
frequency bands are always awarded on the basis of public bidding in order to ensure competition.  
4.92.   The market currently includes public and private operators. The State provides services 
through the Honduran Telecommunications Company (HONDUTEL). Market composition has not 
changed substantially since the previous review in 2016 (Chart  4.3). The mobile market remains 
highly concentrated and is dominated by two private operators, although HO NDUTEL also 
participates. HONDUTEL has a negligible share in the mobile voice market (less than 1%) as its 
provision is limited in both geographical and commercial terms, and it does not have the 
infrastructure to provide a mobile data service.99 However i n terms of provision of fixed services, 
HONDUTEL is the largest operator, although its market share has declined since 2016. According to 
the CDPC, the public operator has been left behind because it lacks both investment and a 
commercial strategy for adap ting to technological changes.100 
 
95 CONATEL (2022), Informe Trimestral de los Indicadores del Sector de Telecomunicaciones en 
Honduras , August. Viewed at: 
https://www.conatel.gob.hn/doc/Informes/2022/Infor me%20trimestral%20sector%20de%20Telecomunicacion
es,%202T2022.pdf . 
96 Information provided by the authorities.  
97 Articles  114, 119 and 121 of the General Regulations of the LMST.  
98 Royalties are paid for use of the spectrum . The authorities indicated that during the pandemic 
payment plans were set up so that operators could redeem the cost of the royalty.  
99 Information provided by the authorities and CDPC (2018), Estudio Sectorial sobre el Mercado de 
Telecomunicaciones en Ho nduras . Viewed at: 
https://www.cdpc.hn/sites/defau lt/files/Privado/estudios_mercado/Estudio%20Sectorial%20de%20Telecomuni
caciones%20en%20Honduras%20%28Telefon%C3%ADa%20M%C3%B3vil%2C%20Fija%20e%20Internet%29
.pdf. 
100 CDPC (2018), Estudio Sectorial sobre el Mercado de Telec omunicaciones en Honduras . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Chart 4.3 Share in the telecommunications market, 2016 and 2022  
 
Note:  HONDUTEL 's share in mobile data services is not shown as it is less than 1%.  
Source:  Information provide d by the authorities.  
4.93.   HONDUTEL continues to have significant market power (SMP) as an operator in the fixed 
telephony market and is therefore still subject to asymmetric regulatory measures laid down by 
CONATEL to maintain competition in the market. Accord ingly, CONATEL 's tariffs are regulated by 
ceilings. In the context of this review, the authorities indicated that the ceilings had not been revised 
since 2010.101 HONDUTEL must also ensure access to essential inputs.102 
4.94.   Mobile telephone tariffs are also stil l regulated by ceilings, using methodology that has not 
been revised since 2012.103 There is portability in the mobile telephony market in Honduras, and the 
procedure for switching operators was simplified in 2017. Since 2016, an average 32,400  users have 
changed their operator each year.104 
4.95.   The Interconnection Regulations were not amended between 2016 and 2022. 
In December  2022, new Regulations on Access to and Shared Use of Networks were adopted, 
repealing the regulations that had been in force since 2014.105 The new regulations allow operators 
to share active elements of their networks, a factor that in turn will be instrumental in developing 
the as yet non -operational national roaming service, and opening the door to virtual mobile 
operators.106 
4.4.3   Transport  
4.96.   In 2018, Honduras adopted the National Freight Logistics Plan (PNLOG) 2018 -30 to improve 
its transport and freight movement system and thus increase its export competitiveness and deepen 
its integration into international markets. The Plan proposes the creat ion of logistics hubs to make 
production centres an integral part of ports and airports. For example, in the northern region, the 
logistics hub will connect the production centre of San  Pedro  Sula and the Puerto  Cortés free zone 
with the road, port and air port network.  
 
101 CONATEL Resolution NR003/10.  
102 Information provided by the authorities.  
103 CONATEL Resolution NR012/12.  
104 CONATEL. Viewed at: https://www.conatel.gob.hn/ portabilidad -numerica -en-el-2022/. 
105 CONATEL Resolution NR006/22.  
106 Information provided by the authorities.  
32%68%
33%67%
América MóvilTigoMobile voice service 
2016 202216%84%
25%75%
América MóvilTigoMobile data service
2016 2022
84%1%10%3%2%0%
59%0%32%7%1%1%
HondutelInversiones ApoloServicios de Comunicaciones de
HondurasTelefónica Celular (Tigo)NAVEGAColumbusFixed voice service
2016 202210%32%28%22%4%4%
4%38%24%13%4%17%
HondutelMillicom CableServicios de Comunicaciones de
HondurasCable ColorCable SateliteOtherFixed data service
2016 2022WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.4.3.1   Air transport  
4.97.   Air transport is governed by the Civil Aviation Law (Decree No.  55-2004), its implementing 
Regulations, the Civil Aviation Regulations (RAC), and air services agreements. In 2017, the Civil 
Aviation Law107 was amended and new reg ulations were adopted in 2019 that repealed those that 
had been in force since 2005.108 Legislative changes were primarily aimed at strengthening the 
regulator 's powers and improving air safety.109 
4.98.   The Honduran Civil Aviation Board (AHAC) regulates air transport and provides air navigation 
services in the lower airspace (i.e.  up to 20,000 feet). Above this altitude, the services are provided 
by the Central American Air Navigation Agency (ACNA).110 
4.99.   In Honduras, international air transport services are prov ided on a reciprocal basis.111 The 
authorities indicated that air services agreements (ASA) are signed following requests from 
Honduras 's trading partners. Since 2016, Honduras has signed agreements with Canada, Belize, the 
United  Arab Emirates and Chinese  Taipei; it also has agreements with Ecuador, the United  States 
and Panama.112 Honduras has an open skies policy for air transport.113 Therefore, the country grants 
traffic rights up to the fifth air freedom for passenger and freight traffic, tariffs are set freely, neither 
the frequency nor the capacity of the service is limited and multiple airlines can operate the routes.  
4.100.   To improve servic e provision, promote recovery in the sector and boost post -pandemic 
tourism, Honduras has offered low -cost airlines discounts on airport fees since 2021 in order to 
encourage them to enter the market. The discounts are offered for three consecutive years, at a 
decreasing discount rate that varies by airport.114 A preferential airport tax is charged to 
passengers.115 
4.101.   There were 16  foreign airlines providing services (whether scheduled or non -scheduled) in 
2022. Since 2016, four foreign airlines, including low -cost airlines, have begun operating from 
Canada, El  Salvador and Spain. In addition, six other Honduran airlines operated routes outside 
and/or within the national territory.116 Seven foreign airlines handled international air cargo.117 
Direct flights come m ainly from the United  States and the region, and passengers departing from 
other locations have to take a connecting service.  
4.102.   AHAC grants operating certificates to domestic and foreign airlines to enable them to provide 
scheduled international services. In  2017, the requirements changed to enable foreign operators to 
apply for an operating certificate. Accordingly, like domestic operators, foreigner operators must be 
entered in the Public Register  of Commerce . The (renewable) term of the operating certifica te also 
changed. Certificates were initially valid for 10  years, but since 2017 validity has been between 
1 and 10  years, based on the economic benefit provided by the service118: the greater the economic 
benefit, the longer the validity of the certificate.119 In addition to an operating certificate, low -cost 
airlines must obtain an operating permit. Charter flights require AHAC authorization.120 
 
107 Civil Aviation Law (Decree No.  55-2004), as amended by Decree No.  65-2017.  
108 Regulations implementing the Civil Aviation Law (Executive Decision No.  SDN-025-2019).  
109 Information provided by the authorities.  
110 ACNA is part of the Central American Air Navigation Services Corporation (COCESNA).  
111 Article  4 of the Civil Aviation Law ( Decree No.  55-2004).  
112 Information provided by the authorities.  
113 Article  4 of Decree  No. 55-2004.  
114 Law promoting the Operation of Low -Cost Air Transport Routes (Decree No.  48-2021) and 
Regulations implementing the Law promoting the Operation of Low -Cost Air Transport Routes (SETUR Decision 
No. 022-2021).  
115 Information provided by the authorities.  
116 Since 2016, three national airlines and a further three international airlines have ceased operations.  
117 Information provided by the authorities.  
118 The economi c benefit is measured on the basis of the investment plan, job creation, foreign 
exchange generation, improvements in connectivity and reduction in service costs.  
119 Article  113 of Decree No.  55-2004, as amended by Decree No.  65-2017.  
120 Article  112 of Decre e No.  55-2004; Decree No.  48-2021; Article  66 of Decree No.  55-2004; and 
Regulations for issuing permits for charter flights to foreign operators (Decree No.  0273-2013).  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  4.103.   Honduras continues to reserve air services in the national territory to airlines controlled and 
managed by Honduran s (51% of capital and votes).121 The airlines must hire Honduran nationals, 
but if they can demonstrate a lack of staff, they may recruit foreigners for renewable three -month 
periods while locals are in training.122 
4.104.   Since 2017, imports of aviation fuels and lubricants have been subject to a tariff of 1% and 
the CPI (1%); prior to that date they were exempt.123 
4.105.   Honduras has four international airports: La  Ceiba, Roatán, Palmerola and San  Pedro  Sula. 
Historically, San  Pedro  Sula in the north has attracted the mo st traffic because of its proximity to 
the country 's economic and tourism centres. In December  2021, Palmerola International Airport, the 
new airport servicing Tegucigalpa, commenced operations. It replaced Toncontín Airport, which 
continues to provide loc al operations. However, while Palmerola offers operational improvements, 
its location 70  km from the capital and the fact that certain flights arrive during the night pose 
challenges for passengers travelling to the capital. Additionally, there is no hotel  infrastructure 
around the new airport, which may force passengers to make a stopover en route . For cargo traffic, 
however, Palmerola airport provides better access to production centres.  
4.106.   In 2020, the State created the Honduran Airport Infrastructure and S ervices Company 
(EHISA), a company in which "private capital holdings are proscribed ", to manage and operate the 
airports of La  Ceiba, Roatán and San  Pedro  Sula.124 Palmerola Airport is run under a concession. 
Authorization from AHAC is required to provide ground handling services at Honduran airports with 
no limit on the number of suppliers. Airlines may provide the service themselves. Changes in fees 
for airport services at Palmerola Airport must be approved by the Supervisory Authority for 
Public -Private Partnerships (SAPP). Fee adjustments at airports operated by EHISA are approved by 
the Ministry of Infrastructure and Transport.  
4.4.3.2   Maritime transport  
4.107.   In 2021, 77.8% of Honduras 's foreign trade (by volume) was carried by sea.125 The main 
maritime routes connect Honduran ports to those of the United  States, Guatemala and Colombia.126 
4.108.   Maritime transport is governed by the Organic Law on the National Merchant Marine (LOMM) 
of 1994.127 A number of regulations and provisions have been issued to implement the Law.128 
In 2016, the LOMM was amended in order, inter alia , to streamline the ship registration procedure 
and provide the Directorate -General of the Merchant Marine (DGMM), the maritime authority, with 
new powers in relation to maritime safety and inspection, and pollution prevention.129 
4.109.   Foreign shipping lines may be involved in Honduras 's foreign trade, subject to reciprocal 
treatment. The authorities have indicated that during the review  period, Honduras did not make any 
foreign trade freight reservations in favour of domestic vessels and shipping lines. Honduras allows 
the grouping of Honduran shipping lines at maritime conferences.130 
4.110.   Non-Hondurans are not required to be established or to reside in Honduras in order to 
register a ship as a Honduran merchant vessel.131 Registration takes place either at the DGMM or, 
since 2016, at Honduran representations in other countries.132 Vessels are registered by type: small 
(not excee ding 20  gross  tonnes) or large. Large and small vessels may provide international and 
 
121 Article  106 of Decree  No. 55-2004.  
122 Article  71 of Decree No.  55-2004 and informatio n provided by the authorities.  
123 Article  44 of Decree No.  55-2004, as amended by Decree No.  65-2017.  
124 Executive Decree No.  PCM-084-2020.  
125 Central American Maritime Transport Commission (COCATRAM) statistics. Viewed at: 
http://www.cocatram.org.ni/redmarport.html . 
126 UNCTAD. Viewed at: 
https://unctadstat.unctad.org/countryp rofile/maritimeprofile/en -gb/340/index.html . 
127 Organic Law on the National Merchant Marine (Decree No.  167-94), as  amended by Decrees 
Nos. 200-97, 86 -2004, 131 -98 and 120 -2016.  
128 Viewed at: https://marinamercante.gob.hn/aspectos -legales/leyes /. 
129 Decree No.  120-2016.  
130 Maritime Transport Regulations (Decision No.  000764 -97). 
131 DGMM. Viewed at : https://marinamercante.gob.hn/quienes -somos/ventajas -y-beneficios /. 
132 Article  49 of Decree No.  167-94, as amended by Decree No.  120-2016.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  cabotage services. Foreign trade vessels of less than 200  gross  tonnes may not be registered. 
Additionally, as a general rule, ships that are more than 20  years old may n ot be registered.133 
Honduras continues to allow foreign bareboat chartered vessels registered in Honduras to maintain 
their registration abroad for up to two years, subject to reciprocity.134 
4.111.   Registration of ships is subject to a registration fee at a rate that varies by tonnage. The 
registration fee is reduced for owners, shipowners or shipping lines that register a fleet engaged in 
cabotage.135 All Honduran merchant vessels pay an annual tonnage tax and foreign trade vessels 
also pay an inspection fee. The tax and fee rates are based on tonnage. Foreign trade vessels 
employing Honduran nationals receive a tonnage tax rebate.136 
4.112.   The Honduran merchant navy primarily comprises oil tankers and general cargo ships.137 
4.113.   Cabotage is reserved to Honduran vessels operat ed by shipping lines that are controlled and 
managed by Hondurans (51% of capital and votes).138 However, the DGMM may authorize the use 
of foreign vessels registered in Honduras where no Honduran vessels are available.  
4.114.   Ports in Honduras are owned by the St ate. The National Ports Company (ENP), a state -owned 
enterprise, is the port authority, and is also responsible for formulating policy on the development 
of the country 's ports system.139 There are four ports in Honduras that engage in foreign trade: 
Puerto  Cortés, Puerto  Castilla, San  Lorenzo (the only port on the Pacific coast) and Tela, as well as 
a port engaged solely in cabotage (La  Ceiba) and a cruise port (Roatán). There are plans to construct 
a new foreign trade port in the Gulf of Fonseca (Pacific).  
4.115.   The ENP manages Puerto  Castilla, San  Lorenzo and Tela and operates the terminals. In 
Puerto  Cortés, both the administration of the port and the operation of terminals (both container 
and bulk) are under concession. Puerto  Cortés continues to be Honduras 's main port and one of the 
most important ports in the Central American region.140 It primarily serves the northern area of the 
country, the heartland of the maquila  industry (Free Zone of Puerto  Cortés and the San  Pedro  Sula 
area).  
4.116.   Port services are provide d by the ENP in the ports it operates; however, in Puerto  Cortés 
they are provided by the concession -holder or third parties, who may be non -Honduran.141 Harbour 
pilots may be non -Honduran. All port services providers must be registered with the DGMM.142 The 
ENP sets the port service fees in the terminals it operates using a methodology established in 
1999.143 In Puerto  Cortés, the fees are revised annually, as stipulated in the concession contract.144 
4.117.   Cargo movement in Honduran ports increased steadily during the review period, apart from 
in 2020. The most common cargo is containerized (Table  4.10). Puerto  Cortés is the main port for 
both container and bulk traffic. In 2018, the container terminal at Puerto  Cortés was expanded to 
 
133 Article  53 of Decree No.  167-94, and DGMM. Viewed at: 
https://marinamercante.gob.hn/registro -de-buques /. 
134 Articles  56-57 of Decree No.  167-94. 
135 Article  76 of Decree No.  167-94, and DGMM. Viewed at: 
https://marinamercante.gob.hn/quienes -somos/ventajas -y-beneficios /. 
136 Articles  68 and  78-A of Decree No.  167-94, and DGMM. Viewed at: 
https://marinamercante.gob.hn/quienes -somos/ventajas -y-beneficios /. 
137 UNCTAD. Viewed at: 
https://unctadstat.unctad.org/countryprofile/maritimeprofile/en -gb/340/index.html . 
138 Articles  5 and  6 of the Maritime Transport Regulations (Decision No.  000764 -97). 
139 Organic Law on the National Ports Company (Decree No.  40-65), as amended by Decree 
No. 30-2020.  
140 In 2021, Puerto  Cortés handled 81.8% of national cargo and 6.8% of regiona l cargo (COCATRAM 
statistics, viewed at: http://www.cocatram.org.ni/redmarport.html ). 
141 Article  9 of Decree No.  40-65, as amended by Decree No.  30-2020.  
142 Article  17 of the Maritime Transport Regulations.  
143 The fee regulations can be viewed at: 
https://portalunico.iaip.gob.hn/portal/ver_documento.php?uid=OD M3MDk4OTM0NzYzNDg3MTI0NjE5ODcyMzQ
and. 
144 Information provided by the authorities and OPC. Viewed at: https://www.opc.hn/Home/Tarifas . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  accommodate simultaneous berthing and the arrival of large container ships.145 Puerto  Castilla is 
another important container port in H onduras, as it is used to export fruits (bananas) and liquid bulk 
(palm oil). Since 2020, a Single Window for Maritime Traffic (VUTM) has been available for use at 
Puerto  Cortés to expedite the arrival, stay and clearance of vessels.  
Table 4.10 Port cargo, 2016 -2022 
 2016  2017  2018  2019  2020  2021  2022  
Total ( '000 tonnes)  13,839.4  14,093.6  14,127.1  14,325.7  13,464.4  15,196.3  17,420.6  
Annual change (%)  0.7 1.8 2.3 1.4 -6.4 12.9 14.6 
 (% of total)  
Containerized cargo  37.2 37.3 39.8 37.6 35.1 35.9 36.2 
Solid bulk  22.7 23.1 28.7 28.7 32.8 28.9 34.5 
Liquid bulk  26.6 24.6 24.8 26.7 24.5 24.1 21.5 
General cargo  2.3 3.5 3.7 4.4 5.5 8.4 5.5 
Ro-Ro 0.0 0.0 0.1 0.1 0.1 0.2 0.3 
Other  11.2 11.5 2.0 2.5 2.0 2.5 2.0 
Note:  The fall in percentage share since 2018 in the row headed "Other " is due to a change in 
methodology.  
Source:  Information provided by the authorities.  
4.4.4   Tourism  
4.118.   Tourism is a priority sector for promoting the country 's economic development because of 
its as yet undeveloped synergies with the rest of the economy; however, its potential has not been 
fully tapped so its share of GDP is still modest. During the period 2016 -21, the contribution of tourism 
(hotels and restaurants) to t he Honduran economy ranged between 2% (in 2020) and 3.2% 
(in 2019); in 2022 it was 3%. Until 2020, tourism was a key source of foreign exchange, accounting 
for around half of the foreign exchange generated by all Honduran service exports in the 
period  2016-19 (Table 4.11).146 However, as a result of the pandemic, the sector 's performance 
waned and employment fell by 11.5%. The activities that were hit the hardest were catering, 
accommodation and road transport. Women, who represent two thirds of the labour f orce employed 
in the sector, were the most affected.147 
Table 4.11 International tourism indicators, 2016 -2022 
 2016  2017  2018  2019  2020  2021  2022a 
Visitors (millions)  2.2 2.1 2.3 2.3 0.7 0.8 1.9 
Tourists  0.8 0.9 0.8 0.7 0.2 0.5 0.8 
Short -stay visitors  1.4 1.3 1.5 1.6 0.5 0.4 1.1 
Of which cruise ship passengers  1.1 1.1 1.3 1.4 0.4 0.3 0.1 
Inbound tourism expenditure (USD million)b 577.7  602.5  591.6  549.1  154.9  302.6  539.7  
As a percentage of service exports  50.1 47.0 47.2 46.0 22.0 35.5 .. 
.. Not available.  
a Preliminary data.  
b Foreign exchange earnings from travel, excluding international transport.  
Source:  Information provided by the authorities.  
4.119.   To help tourism to recover, Honduras has taken a more active approach to overseas 
promotional events148 and has introduced incentives to attract low -cost airlines to the country. The 
authorities indicated that the commercial banking industry allowed tourism operators to adjus t 
payments and granted grace periods (six months). In addition, since 2020, the Honduran Production 
and Housing Bank (BANHPROVI) has administered a guarantee fund to improve tourism businesses ' 
access to finance (Section  3.3.1). However, according to the National Chamber of Tourism 
 
145 Central American Integration System (SICA). Viewed  at: 
https://www.sica.int/noticias/honduras -puerto -cortes -amplia -su-capacidad -operati va-con-muelle -6_1_114655.
html. 
146 Honduran Tourism Institute (IHT). Viewed at: 
https://www.iht.hn/sites/default/files/2023 -01/visitantes -2019-2022.pdf . 
147 IHT statistics. Viewed at: https://www.iht.hn/index.php/es/empleos -por-actividades -del-turismo . 
148 Breves Informativas , IHT. Viewed at: https://www.iht.hn/es/breves -informativas . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  (CANATURH), factors such as the country 's image abroad and its exposure to adverse climatic events 
could hamper the sector 's revival.149 
4.120.   Tourism in Honduras is essentially focused on cruises and sun and beach holidays centred  
around the Bahía Islands. Cruise ships were allowed back into Honduras from July  2021 following 
a 15-month gap due to the pandemic.150 Although the country has greater potential as a destination, 
other tourism -related products and destinations are not yet available. Palmerola International 
Airport, which became operational in 2021, could play a role in diversifying the kind of tourism that 
Honduras can offer, given its proximity to historical and archaeological destinations in the central 
area of the countr y.151 
4.121.   The Ministry of Tourism formulates policy for the sector, which is implemented by the 
Honduran Tourism Institute (IHT).152 During the review period the National Sustainable Tourism 
Strategy 2006 -21 (ENTS) was implemented. The strategy defined the objec tives for the long -term 
development of the sector and called for chambers of tourism and other tourism bodies to be 
established at municipal level, thus improving the institutional fabric of the sector and decentralizing 
the management of tourism.153 In the  context of this review, the authorities highlighted a number 
of challenges, related primarily to a lack of resources, which made it difficult to implement the ENTS, 
and consequently resulted in a failure to achieve all its goals. However, Honduras aims to  develop a 
responsible, inclusive and sustainable model for tourism. Accordingly, the new objectives of the 
sectoral policy seek to promote the inclusion of people and territories and to develop the value chain 
in the sector.  
4.122.   During the review period Hondu ras continued to incentivize tourism through tax exemptions 
under various laws and/or regimes.154 The main change was to enact the Law on the Promotion of 
Tourism (LFT) in 2017, which repealed the Law on Tourism Incentives (LIT), in force since 1998. 
The LF T retained incentives involving exemptions from tariffs and other import charges and 
introduced a 15 -year period of relief from income tax (ISR) (Table  4.12). The procedure that 
assesses eligibility for LFT incentives is conducted by the IHT. The applicant  must satisfy various 
requirements. New projects are not subject to any investment requirements; however, for existing 
projects, any new investment must be equal to or greater than 35% of the initial investment.155 The 
authorities noted that most tourism se rvice providers who had availed themselves of the benefits of 
the LIT chose to apply for those offered under the LFT.  
 
149 CANATURH. Viewed at: https://canaturh.org/plan -de-reactivacion -economicau . 
150 National Institute of Statistics (INE). Viewed at: 
https://www.ine.gob.hn/V3/2022/07/31/estadisticas -turisticas -de-honduras -2017-2021/; and Hosteltur news 
item. Viewed at: 
https://www.hosteltur.com/lat/145351_honduras -recibio -su-primer -crucero -tras-15-meses -de-pandemia.html . 
151 CNI. Viewed at: 
https://www.cni.hn/palmerola -como -puente -de-atraccion -de-la-inversion -en-honduras /. 
152 Law on the Honduran Tourism Institute (Decree No.  103-93) and its implementing Regulations 
(Executive Decision No.  030-05). 
153 The objectives were: related to the tourism economy (e.g. rise in visitor numbers and income); 
social and cultural (e.g. job crea tion, preservation of cultural heritage and integration of local communities and 
ethnicities); promotional (e.g. consolidating and accessing tourism markets and promoting supply); 
environmental (e.g. conserving natural resources); and legal and institution al (e.g. decentralizing tourism 
management and improving coordination with the private sector) (information provided by the authorities).  
154 There is also a Law on the Promotion of Sustainable Rural Tourism (Decree No.  126-2011), for which 
no implementing r egulations have ever been issued. Accordingly it has never been implemented.  
155 Article  5 of Decree  No. 68-2017.  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table 4.12 Tourism incentives, 2016 -2022 
 Exemptions  
Taxes on imports  Taxes on income  
Customs 
tariff  Sales tax  Other  ISR AST IAN 
Law on the Promotion of Tourism (Decree No.  68-2017)  X X X X X X 
Law on Tourism Incentives (Decree No.  314-98) X X X Xa   
Law on the Tourism -related  Free Zone in the Bahía Islands 
Department (Decree No.  181‐2006)  Xb X Xb Xb X X 
a The Law on Fiscal Consolidation, Control of Exemptions and Anti -Evasion Measures 
(Decree  No. 278-2013) abolished the ISR  relief. However, it did not have retroactive effect. Some 
companies continued to benefit during the review period.  
b Decree No.  278-2013 abolished duty -free privileges and the ISR relief. However, it did not have 
retroactive effect. Some companies continu ed to benefit during the review period.  
Note:  ISR = income tax, IAN = net assets tax, AST = temporary solidarity contribution.  
Source:  WTO Secretariat, and information provided by the authorities.  
4.123.   Incentives under the Law on the Tourism -related  Free Zone i n the Bahía Islands Department 
of 2006 are still being offered in 2022. However, the tariff and ISR exemptions are still granted only 
to operators who took advantage of the law 's benefits prior to 2013. Under this law, benefits were 
granted for a 12 -year p eriod. In 2022, that period was extended for a further 15  years.156 
4.124.   In addition, according to the authorities, there is just one operator who continues to benefit 
from the incentives granted under the Tourism -related  Free Zones (ZOLT) regime, which was 
abolished in 1998. The authorities have indicated that these benefits will expire in 2028.157 
4.125.   Non-Hondurans may provide all types of tourism services in Honduras, including tourist 
guide services.158 All providers must register, by service category, in the Natio nal Tourism Register 
administered by CANATURH. Once registration is complete, CANATURH gives the provider a "tourism 
certificate of registration ". Registration is renewed every year.159 
 
 
156 Decree No.  92-2021.  
157 Information provided by the authorities.  
158 Honduran National Regulations on Tourist Guides.  
159 Article  39 of Decree No.  103-93; Article  95 of Executive Decision No.  030-05; and CANATURH. 
Viewed at: https://canaturh.org/como -registrarte -3/. WT/TPR/S/443 /Rev.1  • Honduras  
 
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  5  APPENDIX TABLES  
Table A1. 1 Merchandise exports by HS section , 2016 -2022 
(USD million and  %) 
Description  2016  2017  2018  2019  2020  2021  2022  
 (USD million)  
Exports  7,926  8,624  8,611  8,755  7,651  10,182  12,135  
 (% of exports)  
1 - Live animals; animal products  4.9 4.5 4.5 4.7 5.7 4.6 4.0 
 03. Fish and crustaceans, molluscs and other 
aquatic invertebrates  4.2 4.0 4.0 4.1 5.0 4.1 3.6 
 04. Dairy produce; birds ' eggs; products of 
animal origin  0.4 0.4 0.3 0.4 0.4 0.3 0.3 
 02. Meat and edible meat offal  0.1 0.1 0.2 0.2 0.3 0.2 0.2 
2 - Vegetable products  20.9 24.4 22.4 20.1 22.5 18.7 19.8 
 09. Coffee, tea, mat e and spices  11.6 15.4 13.1 11.0 11.5 12.4 11.7 
 08. Edible fruit and nuts; peel of citrus fruit or 
melons  7.6 7.3 7.5 7.3 8.7 4.5 6.5 
 07. Edible vegetables and certain roots and 
tubers  1.1 1.1 1.2 1.3 1.5 1.3 1.0 
3 - Animal or vegetable fats and oils  4.4 5.2 4.1 4.0 5.2 5.7 5.8 
4 - Prepared foodstuffs; beverages and tobacco  5.6 5.4 5.6 5.7 7.3 6.3 6.7 
 24. Tobacco and manufactured tobacco 
substitutes  1.9 1.7 2.0 1.7 2.2 1.9 1.8 
 20. Preparations of vegetables, fruit, nuts and 
plants  0.8 0.8 0.9 0.9 1.1 1.1 1.2 
 23. Residues from the food industries; animal 
fodder  0.5 0.5 0.5 1.0 1.2 1.2 1.1 
5 - Mineral products  0.7 0.8 1.2 1.1 1.1 1.2 1.1 
 26. Ores, slag and ash  0.5 0.6 1.0 0.8 0.8 0.9 0.7 
6 - Products of the chemical industries  2.9 2.7 2.8 3.2 3.7 3.1 3.0 
 34. Soap, organic surface -active agents, 
lubricating preparations  1.5 1.3 1.1 1.3 1.5 1.1 0.9 
 38. Miscellaneous chemical products  0.6 0.5 0.5 0.5 0.5 0.5 0.4 
 33. Essential oils; perfumery or cosmetic 
preparations  0.1 0.1 0.4 0.4 0.7 0.5 0.4 
7 - Plastics and articles thereof  1.2 1.3 1.4 1.4 1.4 1.7 1.7 
 39. Plastics and articles thereof  1.1 1.2 1.3 1.3 1.3 1.6 1.7 
8 - Raw hides and skins, leather, furskins and 
articles thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
9 - Wood and articles of wood; wood charcoal  0.8 0.7 0.8 0.6 0.5 0.6 0.5 
10 - Pulp of wood or of other fibrous cellulosic 
material; paper or paperboard  1.3 1.5 1.5 1.3 1.1 1.1 1.0 
 48. Paper and paperboard; articles of paper 
pulp 1.0 1.2 1.2 1.0 0.8 0.8 0.8 
11 - Textiles and textile articles  42.5 39.6 41.9 44.2 36.6 40.1 40.5 
 61. Articles of apparel and clothing 
accessories, knitted or crocheted  28.0 26.6 32.2 33.2 24.9 29.4 30.6 
 62. Articles of apparel and clothing 
accessories, not knitted or crocheted  9.3 8.1 6.1 7.2 6.4 6.4 6.1 
 60. Knitted or crocheted fabrics  1.4 1.4 1.3 1.6 1.5 1.5 1.3 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat -sticks; feathers 
and articles made therewith  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
13 - Articles of stone, cement, asbestos; ceramic 
products; glass 0.3 0.2 0.2 0.1 0.1 0.1 0.2 
14 - Natural or cultured pearls, precious or semi -
precious stones, precious metals  2.1 1.9 1.3 1.4 2.0 2.0 1.2 
15 - Base metals  2.3 2.6 2.9 2.8 3.1 4.2 3.5 
 72. Iron and steel  1.0 1.2 1.5 1.4 1.6 2.0 1.6 
 73. Articles of iron or steel  0.6 0.6 0.6 0.6 0.6 1.1 0.8 
16 - Machinery and mechanical appliances; 
electrical equipment  8.2 7.3 7.6 7.9 8.0 9.1 9.7 
 85. Electrical equipment; sound and image 
recorders and reproducers   7.8 6.9 7.2 7.3 7.6 8.7 9.3 WT/TPR/S/ 443/Rev.1  • Honduras  
 
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  Description  2016  2017  2018  2019  2020  2021  2022  
17 - Vehicles, aircraft, vessels and associated 
transport equipment  0.9 0.8 0.9 0.6 0.7 0.6 0.6 
18 - Optical, photographic, measuring, checking or 
precision instruments and apparatus  0.0 0.1 0.1 0.1 0.1 0.1 0.0 
19 - Arms and ammunition; parts thereof  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
20 - Miscellaneous manufactured articles  0.7 0.7 0.8 0.7 0.7 0.7 0.6 
21 - Works of art, collectors ' pieces and antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 
Source:  WTO Secretariat calculations based on data provided by the authorities.  
  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table A1. 2 Merchandise imports by HS section , 2016 -2022 
(USD million and  %) 
Description  2016  2017  2018  2019  2020  2021  2022  
 (USD million)  
Imports  11,480  12,407  13,649  13,296  11,223  16,565  19,544  
 (% of imports)  
1 - Live animals; animal products  1.4 1.4 1.6 1.5 1.8 1.8 1.6 
 02. Meat and edible meat offal  0.8 0.7 0.7 0.8 1.0 1.0 0.8 
 04. Dairy produce; birds ' eggs; natural 
honey; products of animal origin  0.4 0.4 0.6 0.5 0.6 0.6 0.7 
2 - Vegetable products  3.8 3.0 3.4 3.6 4.5 3.8 4.1 
 10. Cereals  2.2 1.6 2.1 2.1 2.7 2.3 2.7 
 11. Products of the milling industry; 
malt; starches; inulin; wheat gluten  0.5 0.4 0.4 0.4 0.5 0.4 0.4 
 08. Edible fruit and nuts; peel of citrus 
fruit or melons  0.4 0.4 0.4 0.4 0.6 0.5 0.4 
3 - Animal or vegetable fats and oils  0.6 0.6 0.6 0.6 0.7 0.7 0.7 
4 - Prepared foodstuffs; beverages and 
tobacco  8.8 8.5 8.4 8.9 10.6 9.1 9.0 
 21. Miscellaneous edible preparations  2.1 2.0 2.0 2.4 3.0 2.6 2.4 
 23. Residues from the food industries; 
animal fodder  1.9 1.8 2.0 1.8 2.4 2.0 2.1 
 22. Beverages, spirits and vinegar  1.0 1.1 1.1 1.4 1.4 1.4 1.3 
5 - Mineral products  10.6 12.1 12.9 12.8 9.9 12.3 15.5 
 27. Mineral fuels; bituminous 
substances; mineral waxes  10.4 11.7 12.7 12.5 9.6 11.8 15.2 
6 - Products of the chemical industries  12.6 11.7 11.9 12.0 14.1 11.7 11.4 
 30. Pharmaceutical products  4.1 3.4 3.7 3.8 4.7 4.1 3.3 
 31. Fertilisers  1.1 1.2 1.2 1.0 1.4 1.3 1.6 
 38. Miscellaneous chemical products  1.8 1.7 1.6 1.8 2.5 1.7 1.5 
 32. Tanning or dyeing extracts; 
pigments; paints  1.6 1.5 1.5 1.6 1.4 1.4 1.5 
7 - Plastics and articles thereof  5.6 5.4 5.3 5.2 5.9 6.2 5.7 
 39. Plastics and articles thereof  4.6 4.5 4.4 4.3 5.0 5.2 4.9 
8 - Raw hides and skins, leather, furskins 
and articles thereof  0.2 0.2 0.2 0.2 0.1 0.1 0.2 
9 - Wood and articles of wood; wood charcoal  0.3 0.4 0.4 0.3 0.4 0.5 0.4 
10 - Pulp of wood or of other fibrous 
cellulosic material; paper or paperboard  3.5 3.4 3.4 3.1 3.0 2.8 3.0 
 48. Paper and paperboard; articles of 
paper pulp  3.0 3.1 3.2 3.0 2.8 2.6 2.8 
 49. Printed books, newspapers, pictures  0.5 0.3 0.2 0.1 0.2 0.2 0.2 
11 - Textiles and textile articles  20.6 20.5 19.5 20.9 18.6 18.1 19.9 
 55. Man-made staple fibres  8.2 7.6 6.5 7.0 6.3 6.0 6.4 
 52. Cotton  2.9 3.7 3.5 4.0 2.5 3.4 4.8 
 61. Articles of apparel and clothing 
accessories, knitted or crocheted  2.2 2.5 2.9 3.4 2.9 3.3 3.9 
12 - Footwear, headgear, umbrellas, sun 
umbrellas, walking -sticks, seat -sticks; 
feathers and articles made therewith  0.9 0.8 0.7 0.7 0.5 0.6 0.6 
13 - Articles of stone, cement, asbestos; 
ceramic products; glass  1.1 1.1 1.1 1.0 1.0 1.1 1.2 
14 - Natural or cultured pearls, precious or 
semi-precious stones, precious metals  0.2 0.2 0.1 0.1 0.0 0.1 0.1 
15 - Base metals  5.6 6.2 6.1 5.8 6.0 7.8 6.9 
 72. Iron and steel  2.3 3.0 3.3 2.8 3.1 4.3 3.4 
 73. Articles of iron or steel  1.8 1.7 1.4 1.5 1.4 1.7 1.6 
 76. Aluminium and articles thereof  0.6 0.6 0.6 0.6 0.6 0.7 0.7 WT/TPR/S/ 443/Rev.1  • Honduras  
 
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  Description  2016  2017  2018  2019  2020  2021  2022  
16 - Machinery and mechanical appliances; 
electrical equipment  16.0 16.1 16.3 15.8 15.3 15.8 13.5 
 84. Nuclear reactors, boilers, machinery 
and mechanical appliances  7.1 7.3 7.5 7.3 6.7 7.3 7.1 
 85. Electrical equipment; sound and 
image recorders and reproducers  8.9 8.7 8.8 8.5 8.6 8.5 6.4 
17 - Vehicles, aircraft, vessels and associated 
transport equipment  5.3 5.3 5.1 4.8 4.2 4.8 4.1 
 87. Vehicles other than railway or 
tramway rolling  stock 5.2 5.2 5.0 4.8 4.1 4.7 4.0 
18 - Optical, photographic, measuring, 
checking or precision instruments and 
apparatus  0.8 0.9 0.8 0.8 1.1 0.7 0.6 
19 - Arms and ammunition; parts thereof  0.1 0.2 0.1 0.0 0.0 0.1 0.1 
20 - Miscellaneous manufactured articles  2.1 2.1 2.0 2.0 2.3 2.0 1.6 
21 - Works of art, collectors ' pieces and 
antiques  0.0 0.0 0.0 0.0 0.0 0.0 0.0 
 
Source:  WTO Secretariat calculations based on data provided by the authorities.  
  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table A1. 3 Merchandise exports by trading partner , 2016 -2022 
(USD million and  %) 
Description  2016  2017  2018  2019  2020  2021  2022  
 (USD million)  
Exports  7,926  8,624  8,611  8,755  7,651  10,182  12,135  
 (% of exports)  
America  84.4 78.7 81.4 83.4 81.3 81.9 83.3 
 United States  57.0 52.0 52.6 54.0 52.4 51.2 50.6 
 Other - America  27.4 26.7 28.8 29.4 28.9 30.7 32.7 
 Nicaragua  7.0 6.9 7.1 6.9 6.5 7.1 8.7 
 El Salvador  8.7 8.8 9.4 10.1 9.1 9.1 8.5 
 Guatemala  3.6 3.2 3.6 4.2 5.3 5.7 5.5 
 Mexico  2.2 1.7 1.7 2.5 1.8 2.4 2.6 
 Canada  0.5 1.5 1.9 1.1 1.0 1.1 2.0 
 Dominican Republic  1.1 1.0 1.2 1.1 1.4 1.5 1.4 
 Costa Rica  1.3 1.3 1.2 1.3 1.5 1.4 1.2 
 Haiti 0.6 0.3 0.4 0.6 0.7 0.6 0.9 
 Colombia  0.3 0.2 0.5 0.2 0.3 0.5 0.6 
 Panama  0.5 0.5 0.5 0.5 0.4 0.4 0.4 
Europe  13.2 18.4 15.5 13.2 15.0 15.1 13.2 
 EU-27 11.9 16.8 13.8 11.5 13.0 12.9 11.4 
 Germany  4.2 4.8 4.3 3.5 3.7 3.4 3.1 
 Italy 0.8 1.0 0.8 0.8 1.5 1.3 2.4 
 Belgium  1.5 4.3 3.5 1.9 1.8 2.2 1.7 
 Netherlands  3.3 3.8 2.4 2.4 3.1 3.7 1.7 
 Spain  0.5 1.1 1.3 1.2 0.9 0.5 0.7 
 EFTA 0.1 0.1 0.2 0.1 0.2 0.5 0.3 
 Switzerland  0.0 0.0 0.1 0.1 0.2 0.5 0.3 
 Other - Europe  1.3 1.6 1.5 1.6 1.8 1.7 1.5 
 United Kingdom  1.3 1.4 1.4 1.5 1.7 1.6 1.4 
 Türkiye  0.0 0.0 0.0 0.0 0.1 0.1 0.1 
Commonwealth of Independent States 
(CIS)a 0.1 0.2 0.2 0.2 0.1 0.1 0.1 
 Russian Federation  0.1 0.2 0.2 0.2 0.1 0.1 0.1 
Africa  0.1 0.1 0.1 0.2 0.1 0.1 0.0 
Middle East  0.1 0.1 0.1 0.1 0.1 0.1 0.1 
Asia 2.0 2.5 2.9 2.9 3.3 2.7 3.2 
 China  0.2 0.3 0.4 0.2 0.4 0.2 0.1 
 Japan  0.2 0.2 0.3 0.3 0.4 0.4 0.8 
 Other - Asia 1.6 2.0 2.2 2.4 2.5 2.1 2.3 
 Chinese Taipei  0.3 0.7 0.7 1.0 1.3 0.7 1.0 
 Korea, Republic of  0.6 0.2 0.3 0.3 0.3 0.6 0.7 
 Australia  0.1 0.3 0.5 0.4 0.4 0.2 0.3 
Memorandum  
EU-28 13.1 18.2 15.3 13.0 14.7 14.5 12.8 
a Commonwealth of Independent States, including certain associate and former member States . 
Sourc e: WTO Secretariat calculations based on data from  the authorities . 
  WT/TPR/S/ 443/Rev.1  • Honduras  
 
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  Table A1. 4 Merchandise imports by trading partner , 2016 -2022 
(USD million and  %) 
Description  2016  2017  2018  2019  2020  2021  2022  
 (USD million)  
Imports  11,480  12,407  13,649  13,296  11,223  16,565  19,544  
 (% of imports)  
America  74.8 77.3 74.3 74.7 73.5 70.8 72.8 
 United States  42.4 43.4 42.1 43.7 37.1 36.4 36.9 
 Other - America  32.4 33.9 32.3 30.9 36.4 34.4 35.9 
 Guatemala  7.5 8.4 8.0 8.3 10.4 9.8 9.4 
 El Salvador  7.2 7.7 7.3 6.6 8.5 7.7 7.7 
 Mexico  6.3 5.8 6.1 5.5 5.9 5.8 5.3 
 Costa Rica  3.0 3.4 3.4 3.4 3.7 3.4 3.2 
 Nicaragua  1.3 1.7 1.8 1.2 2.2 2.5 3.1 
 Brazil  1.3 1.2 1.2 1.1 1.3 1.3 1.7 
 Colombia  1.1 1.2 1.0 1.0 1.1 1.1 1.4 
 Bahamas  0.0 0.0 0.0 0.0 0.0 0.0 1.3 
 Argentina  0.3 0.6 0.6 0.6 0.5 0.6 0.6 
 Canada  0.4 0.3 0.5 0.5 0.5 0.4 0.4 
Europe  6.0 5.7 6.0 5.8 6.4 6.2 5.6 
 EU-27 5.5 5.1 5.3 5.2 5.1 5.3 4.9 
 Germany  1.7 1.6 1.9 1.7 1.6 1.8 1.4 
 Spain  0.9 1.0 0.8 0.8 0.8 0.8 0.7 
 Italy 0.7 0.6 0.8 0.7 0.7 0.9 0.7 
 France  0.4 0.3 0.4 0.6 0.4 0.4 0.4 
 Netherlands  0.4 0.3 0.3 0.3 0.3 0.3 0.3 
 EFTA 0.2 0.2 0.3 0.2 0.3 0.2 0.2 
 Switzerland  0.2 0.2 0.2 0.2 0.3 0.2 0.2 
 Other  - Europe  0.3 0.4 0.4 0.4 1.0 0.7 0.5 
 United Kingdom  0.2 0.2 0.2 0.2 0.2 0.2 0.3 
 Türkiye  0.1 0.2 0.2 0.2 0.7 0.5 0.2 
Commonwealth of Independent 
States (CIS)a 0.5 0.5 0.8 0.8 0.8 1.3 1.1 
 Russian Federation  0.5 0.5 0.8 0.8 0.8 1.2 1.0 
Africa  0.1 0.1 0.1 0.1 0.1 0.3 0.3 
 Nigeria  0.0 0.0 0.0 0.0 0.0 0.0 0.1 
 Tunisia  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
 Morocco  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
Middle East  0.3 0.3 0.3 0.2 0.2 0.3 0.3 
 Bahrain, Kingdom of  0.0 0.0 0.0 0.0 0.0 0.1 0.1 
 Israel  0.3 0.3 0.2 0.1 0.1 0.1 0.1 
 United Arab Emirates  0.0 0.0 0.0 0.0 0.0 0.0 0.1 
Asia 18.2 16.1 18.5 18.4 19.0 21.1 19.9 
 China  10.1 9.8 11.9 11.8 12.4 13.4 11.5 
 Japan  1.3 1.1 1.2 1.1 1.1 1.3 1.1 
 Other - Asia 6.8 5.2 5.3 5.5 5.5 6.4 7.3 
 India 1.7 1.4 1.5 1.7 1.6 2.1 2.4 
 Indonesia  0.2 0.2 0.3 0.3 0.4 0.6 1.2 
 Korea, Republic of  1.2 1.1 0.8 0.8 0.9 0.9 0.8 
 Thailand  1.1 0.6 0.6 0.6 0.6 0.7 0.7 
 Viet Nam  0.4 0.3 0.4 0.6 0.7 0.8 0.7 
Memorandum  
EU-28 5.7 5.3 5.5 5.4 5.3 5.5 5.1 
a Commonwealth of Independent States, including certain associate and former member States . 
Sourc e: WTO Secretariat calculations based on data from the authorities .  WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table A2. 1 Notifica tions to the WTO , 2016  to 20 22 (March ) 
  Type of measure 
notified  Frequency  WTO document  Date  
Agreement on Agriculture  
Articles 10 
and 18.2 – 
ES:1 Export subsidies - 
Budgetary outlay and 
quantity reduction 
commitments  On an annual 
basis G/AG/N/HND/56  05/01/2021  
Articles 10 
and 18.2 – 
ES:2 Export subsidies - Total 
exports  On an annual 
basis G/AG/N/HND/57  18/01/2023  
Article 18.2 – 
DS:1 Domestic support – Total 
Aggregate Measurement of 
Support  On an annual 
basis G/AG/N/HND/48  03/09/2018  
Article 18.3 - 
DS.2 Domestic support – New or 
modified exempt domestic 
support measures  Ad hoc  G/AG/N/HND/46  09/01/2018  
General Agreement on Trade in Services  
Articles III:4 
and IV:2  References of enquiry 
point Ad hoc  S/ENQ/78/Rev.23  10/02/2023  
Article V:7(a)  Conclusion of, or accession 
to, an economic 
integration agreement  Once only  S/C/N/1054  16/04/2021  
S/C/N/1026  08/01/2021  
S/C/N/918  17/10/2018  
Enabling Clause – Regional trade agreements  
Paragraph 
4(a) Conclusion of, or accession 
to, a regional or global 
arrangement entered into 
amongst contracting 
parties for the mutual 
reduction or elimination of 
tariffs and for the mutual 
reduction or elimination of 
non-tariff measures, on 
products imported from 
one another  Once only  WT/COMTD/RTA15/N/1/Add.133  20/03/2020  
WT/COMTD/RTA15/N/1/Add.128  19/03/2020  
WT/COMTD/RTA15/N/1/Add.126  19/03/2020  
WT/COMTD/RTA15/N/1/Add.112  19/03/2020  
GATT 1994  
Article 
XXVIII:5  Modification of schedules 
(reservation of the right to 
modify schedules during a 
three-year period)  Ad hoc  G/MA/386  18/11/2020  
G/MA/349  04/12/2017  
Article 
XVII:4(a)  State trading activities  Every two 
years  G/STR/N/19/HND  30/06/2022  
Article 
XXIV:7(a)  Economic integration 
agreements and any 
enlargement or significant 
modification thereof  Ad hoc  WT/REG452/N/1  16/04/2021  
WT/REG422/N/1  08/01/2021  
WT/REG393/N/1  17/10/2018  
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 
(Anti -Dumping Agreement)  
Article 16.4 – 
Semi-annual 
reports  Anti-dumping actions 
(taken within the 
preceding six months)  On a semi -
annual basis  G/ADP/N/370/Add.1  13/10/2022  
G/ADP/N/364/Add.1  11/04/2022  
G/ADP/N/357/Add.1  14/10/2021  
G/ADP/N/350/Add.1  15/04/2021  
G/ADP/N/342/Add.1  13/10/2020  
G/ADP/N/335/Add.1  04/05/2020  
G/ADP/N/300/Add.1  23/10/2017  
G/ADP/N/286/Add.1  20/10/2016  
G/ADP/N/280/Add.1  22/04/2016  
Agreement on Import Licensing Procedures  
Article 7.3  Replies to the annual 
questionnaire on import 
licensing procedures  On an annual 
basis G/LIC/N/3/HND/13  07/04/2022  
Agreement on the Application of Sanitary and Phytosanitary Measures  
Article 7, 
Annex B  Sanitary/phytosanitary 
regulations  Ad hoc  G/SPS/N/HND/65 - 
G/SPS/N/HND/53  06/03/2023 -
12/09/2016  WT/TPR/S/ 443/Rev.1  • Honduras  
 
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    Type of measure 
notified  Frequency  WTO document  Date  
Agreement on Rules of Origin  
Annex II, 
paragraph 4  Existing preferential rules 
of origin; judicial decisions 
and administrative rulings 
of general application 
relating to preferential 
rules of origin 
(comprehensive 
notification of all rules 
applied)  Ad hoc  G/RO/N/222  29/04/2021  
G/RO/N/225  29/04/2021  
G/RO/N/208  11/01/2021  
G/RO/N/181  15/04/2019  
G/RO/N/161  21/07/2017  
Agreement on Trade Facilitation  
Article 22.3  Members seeking 
assistance and support for 
capacity building: contact 
points of TACB -
coordinating agency  Once only  G/TFA/N/HND/2/Rev.2  15/09/2022  
Article 1.4  Notification of the official 
place(s) for items listed in 
Article 1.1.1, URLs for 
websites in Article 1.2.1, 
contact information for 
enquiry points in 1.3.1  Once only  G/TFA/N/HND/3/Rev.1  12/08/2020  
Article 10.4.3  Notification of details of 
the operation of the single 
window  Once only  
Article 10.6.2  Notification of measures 
on the use of customs 
brokers  Once only  
Article 12.2.2  Notification of contact 
point for the exchange of 
information, where there 
are doubts about the 
accuracy of the 
information provided in an 
import/export declaration  Once only  
Articles 15 
and 16  Designation of provisions 
in Section I of the TFA  to 
be implemented according 
to the categories set out in 
Article 13  Once only  G/TFA/N/HND/1  06/03/2018  
Agreement on Technical Barriers to Trade  
Article 2.9  Technical regulations  Ad hoc  G/TBT/N/HND/100 - 
G/TBT/N/HND/87  03/03/2023 -
06/04/2016  
Articles 2.9 
and 5.6  Technical regulations and 
conformity assessment 
procedures  Ad hoc  G/TBT/N/HND/91  21/02/2018  
Agreement on Subsidies and Countervailing Measures  
Article 25.1; 
GATT 1994, 
Article XVI:1  Any subsidy as defined in 
Article 1.1 of the SCM 
Agreement that is specific 
within the meaning of 
Article 2 of the SCM 
Agreement, as well as any 
other subsidy that causes 
increased exports or 
decreased imports within 
the meaning of Article 
XVI:1 of the GAT T 1994  Every two 
years  G/SCM/N/401/HND  10/.01/2023  
Article 25.11 – 
Semi-annual 
reports  Countervailing duty actions 
(taken within the 
preceding six months)  On a semi -
annual basis  G/SCM/N/392/Add.1  13/10/2022  
Sourc e: WTO Secretariat . WT/TPR/S/443 /Rev.1  • Honduras  
 
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  Table A3. 1 Summary analysis of the MFN tariff , 2022  
Product description  MFN 
Bound tariff 
rangea (%) Number 
of lines  Average 
(%) Range 
(%) Coefficient 
of variation 
(CV) 
Total  7,531  5.9 0 - 164 1.3 0 – 164.4  
HS 01 -24 1,328  11.6 0 - 164 1.0 5 – 164.4  
HS 25 -97 6,203  4.7 0 - 15 1.2 0 - 55 
By WTO category  
Agricultural products  1,069  10.8 0 - 164 1.2 5 – 164.4  
 - Animals and animal products  158 18.3 0 - 164 1.5 12 – 164.4  
 - Dairy products  35 22.6 0 - 35 0.5 8 - 35 
 - Fruit, vegetables and garden produce  307 11.2 0 - 30 0.6 10 - 45 
 - Coffee and tea  29 13.3 0 - 15 0.3 10 - 35 
 - Cereals and cereal preparations  134 10.1 0 - 50 1.1 5 - 55 
 - Oilseeds, fats and oils and their 
products  104 6.2 0 - 15 0.9 10 - 50 
 - Sugar and confectionery  21 11.4 0 - 40 1.0 30 - 40 
 - Beverages, alcohol and tobacco  80 12.3 0 - 55 0.6 15 - 60 
 - Cotton  5 0.0 0 n.a. 10 - 15 
 - Other agricultural products n.e.s.  196 4.1 0 - 15 1.3 10 - 35 
Non-agricultural products (including 
petroleum)  6,462  5.1 0 - 15 1.2 0 - 55 
 - Non-agricultural products (excluding 
petroleum)  6,434  5.1 0 - 15 1.2 0 - 55 
 - - Fish and fish products  349 11.7 0 - 15 0.4 20 - 35 
 - - Mineral products and metals  1,127  3.6 0 - 15 1.5 0 - 35 
 - - Chemicals and photographic products  1,398  2.2 0 - 15 2.0 0 - 35 
 - - Wood, wood pulp, paper and furniture  520 6.6 0 - 15 0.9 5 - 50 
 - - Textiles  715 8.1 0 - 15 0.6 12 - 35 
 - - Clothing  228 14.8 0 - 15 0.1 30 - 35 
 - - Leather, rubber, footwear and travel 
articles  212 7.6 0 - 15 0.7 5 - 55 
 - - Non-electrical machinery  653 1.4 0 - 15 2.8 0 - 35 
 - - Electrical machinery  369 2.8 0 - 15 1.9 0 - 35 
 - - Transport equipment  309 5.6 0 - 15 0.9 10 - 35 
 - - Non-agricultural products n.e.s.  554 7.2 0 - 15 0.9 0 - 35 
 - Petroleum  28 3.8 0 - 15 1.2 5 - 35 
By HS section  
 01 Live animals; animal products  511 13.6 0 - 164 1.1 8 – 164.4  
 02 Vegetable products  442 9.1 0 - 50 0.9 8 - 50 
 03 Fats and oils  63 8.7 0 - 15 0.7 10 - 50 
 04 Prepared foodstuffs, etc.  312 12.4 0 - 164 0.9 5 – 164.4  
 05 Mineral products  186 2.6 0 - 15 1.5 5 - 35 
 06 Products of the chemical or allied 
industries  1,235  1.8 0 - 15 2.3 0 - 35 
 07 Plastics and rubber  351 4.3 0 - 15 1.1 5 - 35 
 08 Raw hides and skins, and leather  108 8.3 0 - 15 0.7 35 - 35 
 09 Wood and articles of wood  192 8.2 0 - 15 0.7 25 - 35 
 10 Pulp of wood, paper, etc.  295 5.1 0 - 15 1.1 5 - 35 
 11 Textiles and textile articles  923 9.6 0 - 15 0.5 10 - 35 
 12 Footwear and headgear  64 12.8 0 - 15 0.3 35 - 55 
 13 Articles of stone  194 6.2 0 - 15 1.1 0 - 35 
 14 Precious stones, etc.  56 7.1 0 - 15 0.8 20 - 35 
 15 Base metals and articles of base 
metal  719 3.0 0 - 15 1.6 5 - 35 
 16 Machinery and mechanical 
appliances  1,070  2.1 0 - 15 2.3 0 - 35 
 17 Vehicles, aircraft, vessels and 
associated transport equipment  322 5.5 0 - 15 0.9 10 - 35 
 18 Precision instruments  236 3.9 0 - 15 1.5 0 - 35 
 19 Arms and ammunition  21 15.0 15 - 15 0.0 35 - 35 
 20 Miscellaneous manufactured articles  206 10.9 0 - 15 0.5 15 - 50 
 21 Works of art, etc. 25 7.4 5 - 10 0.3 35 - 35 
a As the bound rates correspond to the HS 2017 classification and the applied rates to HS 2022,  there 
may be a difference in the number of lines included in the analysis.  
Source:  WTO Secretariat estimates based on data provided by the authorities.  
__________