WT/REG393/1  
11 October 2019 
(19-6583) Page: 1/45 
Committee on Regional Trade Agreements    
 
 
FACTUAL PRESENTATION  
FREE TRADE AGREEMENT  BETWEEN PERU  AND HONDURAS  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Free Trade Agreement  between Peru 
and Honduras , has been drawn up by the WTO Secretariat on its own responsibility and 
in full consultation with the Parties. The factual presentation reproduces as closely as 
possible the terminology used in the Agreement and in the comments provided and 
does not imply official endorsement or ac ceptance by the Secretariat of such 
terminology. The report has been drawn up in accordance with the rules and procedures 
contained in the Decision for a Transparency Mechanism for Regional Trade Agreements 
(WT/L/671) and thus does not imply any value judg ement by the Secretariat regarding 
the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Alberto Osnago  
(tel: +41 22 739 6969). Any statistical questions arising from this  report may be 
addressed to  Thakur Para juli (tel: +41 22 739 5 473). 
 
 
  WT/REG393/1  
 
- 2 - 
 
  TABLE O F CONTENTS  
Page 
1   TRADE ENVIRONMEN T ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in s ervices and investment  ................................ ................................ ..................  6 
2   CHARACTERISTIC E LEMENTS OF THE AGREE MENT  ................................ ......................  8 
2.1   Background Information  ................................ ................................ ...............................  8 
3   PROVIS IONS ON TRADE IN GOO DS ................................ ................................ .............  9 
3.1   Import duties and charges, and quantitative restrictions ................................ ...................  9 
3.1.1    General provisions  ................................ ................................ ................................ .... 9 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 11 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 11 
3.1.3.1    Honduras  ................................ ................................ ................................ ............. 11 
3.1.3.2    Peru ................................ ................................ ................................ .................... 13 
3.1.4    Tariff rate quotas  ................................ ................................ ................................ .....15 
3.2   Rules of origin  ................................ ................................ ................................ ............ 15 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 17 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 17 
3.4.1    Standards  ................................ ................................ ................................ ............... 17 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......17 
3.4.1.2    Technical barriers to trade  ................................ ................................ ..................... 18 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 19 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .19 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 19 
3.4.2.3    Balance of payments safeguards  ................................ ................................ ............. 20 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .20 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 20 
3.4.5    Customs -related procedures ................................ ................................ ...................... 21 
3.4.5.1    Trade facilitation  ................................ ................................ ................................ ...21 
3.4.5.2    Customs cooperation  ................................ ................................ ............................. 21 
3.4.6    Other regulations  ................................ ................................ ................................ .....21 
4   PROVISIONS ON TR ADE IN SERVICES  ................................ ................................ ....... 21 
4.1   Scope and definitions  ................................ ................................ ................................ ..21 
4.2   Denial of benefits  ................................ ................................ ................................ .......22 
4.3   General provisions on trade in services  ................................ ................................ ......... 23 
4.3.1    Market access  ................................ ................................ ................................ ......... 23 
4.3.2    National t reatment and MFN  ................................ ................................ ...................... 23 
4.3.3    Commercial presence  ................................ ................................ ............................... 23 
4.3.4    Movement of natural persons  ................................ ................................ .................... 23 
4.3.5   Performance requirements  ................................ ................................ ........................ 24 
4.3.6    Senior management and board of directors  ................................ ................................ .25 WT/REG393/1  
 
- 3 - 
 
  4.4   Liberalization commitments  ................................ ................................ ......................... 25 
4.4.1    Honduras  ................................ ................................ ................................ ................ 25 
4.4.2    Peru ................................ ................................ ................................ ....................... 28 
4.5   Regulatory provisions  ................................ ................................ ................................ ..31 
4.5.1    Domestic regulation  ................................ ................................ ................................ .31 
4.5.2    Recognition  ................................ ................................ ................................ ............. 31 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 32 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 32 
4.5.5    Other investment -related provisions ................................ ................................ ........... 32 
5   GENERAL PROVISIO NS OF THE AGREEMENT  ................................ .............................  32 
5.1   Transparency  ................................ ................................ ................................ ............. 32 
5.2   Current payments and capital movements  ................................ ................................ .....33 
5.3   Exceptions  ................................ ................................ ................................ ................. 33 
5.4   Accession and Withdrawal ................................ ................................ ............................ 33 
5.5   Institutional framework  ................................ ................................ ............................... 33 
5.6   Dispute settlement  ................................ ................................ ................................ .....33 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 35 
5.8   Government procurement  ................................ ................................ ............................ 37 
5.9   Intellectual property rights  ................................ ................................ .......................... 38 
5.10   Competition policy  ................................ ................................ ................................ ....39 
5.11   Environment  ................................ ................................ ................................ ............ 39 
5.12   Labour  ................................ ................................ ................................ .................... 39 
5.13   Electronic commer ce ................................ ................................ ................................ .39 
ANNEX 1  ................................ ................................ ................................ ........................  40 
ANNEX 2  ................................ ................................ ................................ ........................  45 
 
  WT/REG393/1  
 
- 4 - 
 
   
Key Facts  
 
Parties to the Agreement:  Peru and Honduras  
 
Date of Signature:    29 May 2015 
 
Date of Entry into Force:  1 January 2017 
 
Date of Notification:   11 October 2018  
 
Full implementation:   1 January 2031 
 
1  TRADE ENVIRONMENT  
1.1.  The Free Trade Agreement between Peru and Honduras (hereinafter the Agreement) is Peru's 
18th RTA and Honduras 11th RTA in force and notified to the WTO.1 
1.1  Merchandise trade  
1.2.  With a GDP of USD 22.98 billion and a population of nine million, in 2017, Honduras' total 
merchandise trade was valued at USD 20 billion (exports of USD 8.6 billion and imports of 
USD 11.4 billion). In the same year , Peru had a population of 32 million, while its total trade was 
USD 84.8 billion (exports of USD 44.9 billion and imports of USD 39.9 billion) and a GDP of 
USD 215.2  billion.2 
1.3.  Honduras exports mostly manufactured goods followed by agricultural products while Peru 
exports mostly fuels and mining products followed by agricultural products. Manufactured goods 
account for the largest share of both Parties' imports. For Honduras, the United S tates, the 
European  Union and El Salvador are its top three export destinations  for goods while the 
United  States, China and Guatemala are the main import sources.  China, the United States and the 
European Union are the main destinations and sources of goo ds for Peru.  
1.4.  In 201 7, Honduras' shares in world trade were 0. 05% for exports and 0.06% for imports  while 
Peru's shares in world exports and imports were 0.25% and 0.22% respectively . Honduras  ranked 
66th in the world as an exporter of goods and 65th in ter ms of imports compared to Peru's rankings 
at 35th for exports and 40th for imports.  
1.5.  Chart 1.1 summarize s the trends in global trade of the Parties as well as bilateral trade relations 
between them. From 2002, Honduras' total imports and exports rose with imports outpacing exports, 
resulting in a widening trade deficit. Imports have grown from around USD 3 billion in 2002 to almost 
USD 9 billion in 201 7, while exports grew from USD 1 billion to USD 5 billion over the same period. 
Peru's merchandise trade has expanded, with imports rising from USD 7.3 billion in 200 1 to 
USD 39 billion in 201 7, and exports from USD 6.8 billion to USD 44.2 billion. Peru ran a global 
merchandise trade surplus  between 2002 and 2012 and in 2017 . Throughout the period under 
consideration, Honduras recorded a bilateral trade deficit with Peru mirrored by a bilateral trade 
surplus of Pe ru. Peru's imports from Honduras generally expanded between 2001 and 2012 but they 
dropped in 2013, partly recovering in 2014 and remaining stable since. Honduras' imports from Peru 
tended to increase between 2001 and 2010 but they decreased in 2011 and af ter 2014.  
                                                
1 Peru is also a Party to the Comprehensive and Progressive Agreement for Trans -Pacific Partnership 
but, as of 03 April 2019, it is not yet into force.  
2 Figures in this section , unless indicated otherwise, are from the WTO Trade Profiles 2018 as of 
April 2019 and the UNSD/Comtrade database. Export figures are calculated f.o.b. and imports c.i.f. World trade 
rankings exclude intra -EU trade. Population data is from the World Bank Development Indicators.  WT/REG393/1  
 
- 5 - 
 
  Chart 1.1 Honduras and Peru:  Merchandise bilateral trade and with world  
 
Note:  Data not available for Honduras in 2008 and 2013.  
Source:  UNSD Comtrade database . 
 
1.6.  The product composition of trade among the Parties, as well as of their imports and exports to 
the world in the period 201 5-2017, is shown in Chart 1.2 on the basis of  Harmonized System (HS) 
sections. Over the period, the five largest export product categories from Honduras – vegetables, 
machinery , live animals, prepared foodstuffs  and animal or vegetable fats and oils – made up 75% 
of its total exports but accounted fo r 24% of Peru's imports from  Honduras.  Over the same period, 
Peru's five largest export product categories – minerals, natural and cultured pearls, vegetables, 
base metals and prepared foodstuffs – made up 87% of its total exports and accounted for 75% of 
Honduras' imports from Peru. 
050100150200250300350400450500550
05,00010,00015,00020,00025,00030,00035,00040,00045,00050,000
2001 2003 2005 2007 2009 2011 2013 2015 2017B. Peru 2001 -2017
(USD millions)
Imports from Honduras (Right Axis)
Export to Honduras (Right Axis)
Total Imports
Total Exports
050100150200250300350400450500550
01,0002,0003,0004,0005,0006,0007,0008,0009,00010,000
2001 2003 2005 2007 2009 2011 2013 2015 2017A. Honduras 2001 -2017 
(USD millions)
Imports from Peru (Right Axis)
Export to Peru (Right Axis)
Total Imports
Total ExportsWT/REG393/1  
 
- 6 - 
 
  Chart 1.2 Honduras  and Peru: Product composition of merchandise trade, annual 
average (2015 -2017)  
 
 
Source:  UNSD Comtrade database . 
 
1.2  Trade in services and investment  
1.7.  In 201 7, Honduras ' share of total world commercial services exports and imports were 0.05 % 
and 0.04 % respectively . Peru's share represented 0. 14% and 0. 17% of world exports and imports, 
respectively. Honduras had exports of USD 2.8 billion and imports of USD 1.9 bi llion while Peru's 
total commercial services exports amounted to USD 7.2 billion and its imports to USD 8.6 billion .3 
1.8.  Chart 1.3 shows Honduras' global imports and exports of services for the period 2005 -2016. 
Transport services, travel, and other business services accounted for the largest share of Honduras' 
services imports over the period, while manufacturing services, travel services and 
telecommunications, computer and information services account ed for the largest share of its 
services exports.  
1.9.  Chart 1.4 shows Peru's global imports and exports of services for the period 2005 -2016. 
Trans port, travel and other business services accounted for the largest share of Peru's services 
                                                
3 WTO Trade Profiles 201 8. 
41
16151363223Honduras's imports from Peru (%)
17
15
14
11876543326Honnduras's Global Imports (%)
35
14
10885444224Honduras's Global Exports (%)
36
15 1210775431Peru's imports from Honduras (%)
25
13
1110875552226Peru's Global Imports (%)
42
1810983225Peru's Global Exports (%)Total: USD 0.07 billion Total: USD 8.30 billion
Total: USD 37.98 billion Total: USD 38.07 billionTotal:  USD 4.42 billion
Total: USD 0.01 billion
WT/REG393/1  
 
- 7 - 
 
  imports over the period. The same four categories and insurance and business services accounted 
for the largest share of its services exports.  
Chart 1.3 Honduras: Trade in commercial services with world, 2005 -2016  
 
Note:  No exports data recorded for the categories Construction (2006 -2012 and 2014) , insurance and 
pension  services (2012 -2016) and charges for the use of in tellectual property n.i.e. (2005 -2016).  
 No imports data recorded for the categories manufacturing services on physical inputs owned by 
others (2005 -2016) and construction (2006 -2009). 
Source:  WTO Statistics database based on BPM6.  
Chart 1.4 Peru: Trade in commercial services with world, 2005 -2016  
 
Note:  No exports data recorded for the categories manufacturing services on physical inputs owned by 
others  (2005 -2016), maintenance and repair services n.i.e. (2009 -2016), construction (2005 -2016) 
and personal, cultural, and recreational services (2005 -2006). 
 No imports data recorded for the categories manufacturing services on physical inputs owned by 
others (2005 -2016), construction  (2005 -2006 and 2013) and personal, cultural, and recreational 
services (2005 -2006). 
Source:  WTO Statistics database based on BPM6.  
 
1.10.   Honduras' and Peru's FDI stock and flow with the world for the period 2005 -2016 is shown in 
Chart 1.5 and Chart 1.6 respectively. Over the period surveyed, Honduras and Peru have been net 
recipient s of FDI in terms of both stock s and flows.  
0.00.51.01.52.02.53.03.5
2005 2007 2009 2011 2013 2015A. Honduras imports from world 
2005 -2016
(USD billion)
0.00.51.01.52.02.53.03.5
2005 2007 2009 2011 2013 2015B. Honduras exports to world
2005 -2016
(USD billion)
0.01.02.03.04.05.06.07.08.09.0
2005 2007 2009 2011 2013 2015A. Peru imports from world 
2005 -2016
(USD billion)
0.01.02.03.04.05.06.07.08.09.0
2005 2007 2009 2011 2013 2015B. Peru exports to world
2005 -2016
(USD billion)
WT/REG393/1  
 
- 8 - 
 
  Chart 1.5 Honduras: FDI stock and flow with world, 2005 -2016  
 
Source:  UNCTAD . 
Chart 1.6 Peru: FDI  stock and flow with world, 2005 -2016  
 
Note:  No data available for outward flows in 2005 and 20 06. 
Source:  UNCTAD . 
2  CHARACTERISTIC ELEME NTS OF THE AGREEMENT  
2.1  Background Information  
2.1.  In 2010, negotiations aiming at the establishment of free trade agreement s between Peru on 
one side, and  Costa Rica, El Salvador, Guatemala, Honduras and Panama on the other side were 
launched . While negotiations were conducted jointly by all Parties, it was agreed that they would 
result in separate bilateral agreements. As of April 2019, agreements between Peru and Panama, 
Costa Rica , Guatemala  and Honduras  had been signed, of which the former t wo are in force. The 
Free Trade Agreement between Peru and Honduras was signed in 2015  and it entered into force on 
1 January  2017. The Agreement  was notified by the Parties to the WTO on 11 October 2018  under 
Article XXIV:7(a) of the GATT 1994 and Article  V:7(a) of the GATS. The text of the Agreement, along 
with its schedules and annexes, are avail able on the Parties' websites:   
Peru:  
http://www.acuerdoscomerciales.gob.pe/index.php?option=com_content&view=category&la
yout=blog&id=137&Itemid=160   
Honduras: https://sde.gob.hn/tratados -de-libre-comercio -honduras -peru 
0246810121416
2005 2007 2009 2011 2013 2015Honduras FDI stock with world
2005 -2016 (USD billion ) 
Inward Outward
0.00.20.40.60.81.01.21.41.6
2005 2007 2009 2011 2013 2015Honduras FDI flow with world
2005 -2016 (USD billion) 
Inward Outward
0102030405060708090100
2005 2007 2009 2011 2013 2015Peru FDI stock with world
2005 -2016 (USD billion ) 
Inward Outward
0.02.04.06.08.010.012.014.0
2005 2007 2009 2011 2013 2015Peru FDI flow with world
2005 -2016 (USD billion) 
Inward OutwardWT/REG393/1  
 
- 9 - 
 
  2.2.  The Agreement  is composed of 19 chapters, two annexes  and various article-specific Annexes . 
Box 2.1 below summarizes the structure of the Agreement.  
Box 2.1 Structure of the Agreement  
Chapters  and Annexes  Title 
Preamble   
Chapter 1  Initial Provisions  
Chapter 2  Market Access of Goods  
Chapter 3  Rules of Origin and Procedures of Origin  
Chapter 4  Trade Facilitation and Customs Procedures  
Chapter 5  Cooperation and Mutual Assistance in Customs Issues  
Chapter 6  Sanitary and Phytosanitary Measures  
Chapter 7  Technical Barriers to Trade  
Chapter 8  Trade Defence  
Chapter 9  Intellectual Property  
Chapter 10  Government Procurement  
Chapter 11  Competition Policy  
Chapter 12  Investment  
Chapter 13  Cross -Border Trade in Services  
Chapter 14  Temporary Entry of Business Persons  
Chapter 15  Dispute Settlement  
Chapter 16  Transparency  
Chapter 17  Administration of the Agreement  
Chapter 18  Exceptions  
Chapter 19  Final Provisions  
  
Annex I  Non-conforming Measures (Honduras and Peru)  
Annex II  Non-conforming Measures ( Future Measures, Honduras and Peru)  
Source:  WTO Secretariat based on the Agreement.  
 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  The Agreement establishes a free trade area to be formed within a maximum transition period 
of 15 years . The first tariff reduction took place in 2017 and future reductions will take place on 
1 January of each year. The base tariff is specified in the individual schedules of the Parties and 
corresponds, in Peru's case, to the MFN rate in 2010 (except for a group of tariff lines for which the 
applied MFN tar iff in January 2008 was used) and, for Honduras, to the MFN rate in 2017 .  
3.2.  The Parties confirm the rights and obligations in force between them under the WTO Agreement 
and other agreements to which they are Party . In cases of incompatibility, the Agreement 's 
provisions take precedence  (Article 1.3) . The Parties are to ensure that all necessary measures are 
adopted to ensure the Agreement's application by all levels of Government  (Article 1. 4). WT/REG393/1  
 
- 10 - 
 
  3.3.  Regarding tariff elimination, each Party shall eliminate its cus toms tariffs in accordance with  
the Tariff Elimination Programme (TEP)4 in Annex 2.3 (Article 2.3). For greater certainty, a Party 
may: 
i. increase its tariff up to the level foreseen in the TEP  following a unilateral reduction , or 
ii. maintain or increase the tariff if authorized under a WTO dispute settlement  ruling . 
3.4.  No automatic rendezvous clause is provided for with respect to trade liberalization. However, 
upon a Party's request, consultations w ill take place to consider the improvement of market access 
tariff conditions in accordance  with the TEP (Article  2.3). If agreed, the new tariff will apply once it 
is approved by the Parties , in accordance with its applicable legal procedures . The Parties  have 
indicated that no consultations have yet taken place on this matter.  
3.5.  National treatment on trade in goods applies except with respect to the measures indicated in 
Annex 2.2  (Article 2.2) .  
3.6.  Article 2.8 includes a general prohibition on restrictions on  imports and exports from the 
Parties, including quantitative restrictions (QRs) with the e xception  of QRs explicitly all owed 
elsewhere in the Agreement, QRs authorized under Article XI of the GATT 1994 and its interpretative 
notes , price undertakings agre ed in the context of du mping and subsidies proceedings and the 
measures listed in Annex 2.2 . Article 2.8 also prohibits the Parties from subjecting an authorization 
to import, to any type of contractual relation ship with a distributor  in their territory . 
3.7.  The Agreement authorizes Peru to maintain specific duties resulting from its price -band system 
(Sistema de Franjas de Precios  or SFP) for certa in products  identified in Peru's list  (Annex  2.3).5 
Under the SFP, a product is subject to a  specific custom duty in addition to its ad-valorem  customs 
duty if a c.i.f. reference price is lower than a "floor" price. A tariff reduction can also apply if the c.i.f. 
price is higher than a "ceiling" price. The customs duties applicable to products su bject to the price 
band system are composed of a fixed ad valorem  component (subject or not to the liberalization 
programme established by the Agreement) and a specific component.  
3.8.  The Parties allow for a special duty-free regime for three types of goods: goods imported on a 
temporary basis (Article 2.5),6 goods that re -enter after repair or alteration (Article 2.6) and  
commercial samples of negligible value and printed advertising materials (Article 2.7).   
3.9.  Article 2.9 incorporates the WTO Agreement on Import Licensing Procedures. The Parties shall 
notify any existing import licensing procedures  at the Agreement's entry into force and any new 
procedures or changes to existing ones at least 60 days prior to th eir entry into force .7 In the absence 
of such notifications, the licensing scheme cannot be applied.  
3.10.   The Parties reaffirm the rights and obligations of Article VIII of the GATT 1994  (Article 2.10) . 
They also agree to a mutual exemption of consular transact ions or requirements, including fees and 
charges connected with importation, on imports from the other Party. They are to make available 
through the Internet information on fees and charges imposed in relation to importation and 
exportation.  
3.11.   Article 2.16 establishes the Committee on Trade in Goods.  The functions of the Committee 
include the following: monitoring the implementation and administration of  this Chapter ; reporting 
to the Commission on the implementation and administration of this Chapter, where appropriate ; 
promoting trade in goods  between the Parties , including through consultations on speeding up tariff 
                                                
4 The TEP does not apply to u sed goods or recycled goods (footnote 1 to Article 2.3, paragraph  3). 
5 Table A2. 1 lists the lines subject to the SFP for Peru and summarizes their liberalization under t he 
Agreement.  
6 Goods temporally admitted are professional equipment, including equipment for scientific research, 
medical activities and press or television, computer software, and broadcasting and cinematographic 
equipment, that is necessary for carrying  out the business activity, trade or profession of a person who 
qualifies for temporary entry pursuant to the legislation of the importing Party, goods intended for display or 
demonstration at exhibitions, fairs, meetings or similar events, commercial samp les and advertising films and 
recordings, and goods imported for sports purposes.  
7 The WTO Agreement requires notification 60 days after publication.  WT/REG393/1  
 
- 11 - 
 
  elimination under th e Agreement  and on other relevant issues;  dealing with obstacles to trade  in 
goods between the Parties , in particular those related to the application of non -tariff measures and, 
where appropriate, submit ting these issues to the Commission for its consideration; providing advice 
and recommendations to the Commission regarding technical assistance needs in areas pertaining  
to this Chapter ; reviewing future amendments to the Harmonized System so as to ensure that each 
Party's obligations under this Agreement remain unchanged; and establishing ad hoc  working groups  
with specific mandates . 
3.1.2   Liberalization of trade and  tariff lines  
3.12.   Annex 2.3 provides for four categories of immediate (category A) or gradual (categories B5, 
B10 and B15 ) tariff elimination  in equal instalments  over a maximum transition period of 15 years . 
An additional c ategory (E) identifies products excluded from tariff elimination , which will continue to 
receive  most-favoured -nation treatment .  
3.1.3   Liberalization schedule  
3.1.3.1   Honduras  
3.13.   Table 3.1 shows Honduras' tarif f elimination commitments with respect to Peru.8 Before the 
entry into force of the Agreement, 3,456  lines were duty free  on an MFN basis , representing  51.5% 
of Honduras' tariff, and corresponding to 70% of its imports from Peru during 2014-2016. At the 
entry into force of the Agreement, an additional 2,109 lines ( 29% of the tariff) became duty -free for 
imports from Peru under which 7.1% of its imports from Peru entered . After 10 years of liberalization, 
an additional 20% of Honduras' tariff will be liberal ized, accounting for 22.7% of its imports from 
Peru. At the end of the transition period in 2031, 98.7% of Honduras' tariff will become duty free for 
imports from Peru, corresponding to 100% of imports by value. 93 tariff lines (corresponding to 
1.3% of Honduras' tariff) will remain dutiable  or subject to the price -band system .9 
Table 3.1 Honduras - Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Number  of 
lines  % of total 
lines in 
Honduras's 
tariff 
schedule  Value of Honduras's 
imports from Peru  
(2014 -2016)a 
USD million  % of Honduras's 
total imports from  
Peru  
(2014 -2016)  
2017 (MFN)  3,456  48.0 51.5 70.0 
2017 2,109  29.3 5.2 7.1 
2021 528 7.3 2.1 2.9 
2026 944 13.1 14.6 19.8 
2031 76 1.1 0.2 0.3 
Remain dutiable  93 1.3 0.0 0.0 
TOTAL  7,206  100.0  73.6 100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Honduras.  
 
3.14.   Table 3.2 shows Honduras' tariff elimination, by HS section with regard to Peru. The 93 lines 
that rema in subject to duties are found in HS Sections I-IV and XV, with final average tariffs of 
between 12.5% and 33.9%. 
                                                
8 Honduras' applied tariff in 2017 consisted of 7,206 lines at the HS ten -digit level (HS 2017), 99.9% of  
which were ad valorem  and 7 were subject to a price -band system.  
9 Two lines (i.e. 1005902000, yellow corn and 1007900000, other grain sorghum) remained subject to 
the price -band system under the Agreement.  WT/REG393/1  
 
- 12 - 
 
  Table 3.2 Honduras: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
Average  
% No. of 
lines  Duty -free 
lines 
under the  
MFN 2017  Number of duty -free lines 
under the Agreement  Remain 
dutiable  Avg. Final 
Tariff  
(Dutiable)  2017  2021  2026  2031  
I 13.6 508 48 351 5 38 11 55 33.9 
II 8.9 431 151 120 66 60 19 15 27.3 
III 8.2 57 11 2 11 20 10 3 15.0 
IV 12.4 302 37 100 29 89 29 18 26.4 
V 2.6 187 119 59 1 8    
VI 1.7 1,179  966 120 43 49 1   
VII 4.3 340 157 35 51 97    
VIII 8.3 108 19 14 30 45    
IX 7.9 172 44  29 99    
X 5.1 294 150 44  100    
XI 9.6 928 118 810      
XII 12.8 64 3 32 18 11    
XIII 6.5 181 81 18 62 20    
XIV 6.9 54 15 39      
XV 3.1 702 471 22 64 138 5 2 12.5 
XVI 2.1 1,005  828 52 98 27    
XVII 6.0 246 56 80 1 109    
XVIII 3.8 234 150 84      
XIX 15.0 21  21      
XX 10.6 184 32 97 20 34 1   
XXI 7.8 9  9      
Total  5.9 7,206  3456  2109  528 944 76 93 30.4 
Note:  Duties of tariff line subject to price -band system are excluded in the computation of averages.  
 Based on the HS 2017 nomenclature . 
Source:  WTO estimates based on data provided by Honduras.  
 
3.15.   Chart 3.1 shows the average remaining dutiable rates by HS Chapter for Honduras' imports 
from Peru. The MFN tariff rates remain applicable for Honduras tariff lines excluded from tariff 
elimination  in several HS Chapters . Only in HS Chapter 10 (cereals) and 22 (beverages)  is the 
average preferential tariff of the remaining dutiable lines lower than the MFN average, providing 
additional market access for imports from Peru . The highest average tariffs are found in Chapters  02 
(meat and edible meat offal ), 16 (preparations of meat, fish, etc. ) and 10 at 46% (24 lines), 
45% (5 lines) and 42% (8 lines) respectively . WT/REG393/1  
 
- 13 - 
 
  Chart 3.1 Hondu ras: Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 2017 nomenclature . 
 For the calculation of averages, tariff lines subject to price band system are excluded.  
Source:  WTO estimates based on data provided by Honduras  . 
3.1.3.2   Peru  
3.16.   Table 3.3 shows Peru's tariff elimination commitments with respect to Honduras.10 Before the 
entry into force of the Agreement, 5,441 lines were duty free  on an MFN basis , representing 69.9% 
of Peru's tariff, and corresponding to 72.5% of its imports from Honduras during 2014 -2016. At the 
entry into force of the Agreement, an additional 1,120 lines (14.4% of the tariff) became duty -free 
for imports from Hon duras. After ten years of implementation Peru would have liberalized a further 
13.8% of its tariff, corresponding to 13.5% of its imports from Honduras. At the end of the transition 
period in 2031, 99% of Peru's tariff will be duty free for imports from Ho nduras, corresponding to 
100% of imports by value. 78 tariff lines (corresponding to around  1% of Peru's tariff) will remain 
dutiable.11 
Table 3.3 Peru : Tariff elimination commitments under the Agreement and co rresponding 
average trade  
Duty phase -out 
period  Number of 
lines  % of total 
lines in Peru 's 
tariff schedule  Value of Peru 's imports 
from Honduras  
(2014 -2016 )a 
USD million  % of Peru 's total 
imports from  
Honduras  
(2014-2016) 
2017 (MFN)  5,441  69.9 5.5 72.5 
2017 1,120  14.4 1.1 14.0 
2021 516 6.6 0.6 8.0 
2026 561 7.2 0.4 5.5 
2031 73 0.9 0.0 0.0 
Remain dutiable  78 1.0 0.0 0.0 
Total 7,789  100.0  7.6 100.0  
a Import coverage is from HS chapters 1 -97. 
Note:  Based on the HS 201 7 nomenclature.  
Source:  WTO estimates based on data provided by Peru and WTO -IDB.  
                                                
10 Peru's applied tariff in 2017 consisted of 7, 789 lines at the HS ten -digit level (HS 2017), 99.4% of 
which were ad valorem  while 48 lines had specific duties.  
11 Of the excluded lines, 30 lines remain subject to ad-valorem  tariffs while 34 remain subject to the 
price-band system only.  
WT/REG393/1  
 
- 14 - 
 
   
3.17.   Table 3.4 shows Peru's tariff elimination, by HS section with regard to Honduras. The  78 lines 
that remain subject to duties are found in HS Sections I, II, III, IV and VI.  
Table 3.4 Peru: Tariff elimination under the Agreement, by HS Section  
HS 
Section  MFN 
average  
% No. 
of 
lines  Duty -free 
lines 
under  
MFN 2017  Number of duty -free lines under the 
Agreement  Remain 
dutiable  Avg. final 
tariff  
(dutiable)  2017  
2021  
2026  
2031  
I 1.6 460 335 43 3 19 24 36 7.4 
II 2.9 432 228 51 99 28 12 14 6.0 
III 1.7 70 50 3 3 10 3 1 6.0 
IV 3.1 322 155 21 25 67 28 26 6.0 
V 0.2 213 207  6     
VI 0.8 1,554  1,345  30 109 69  1 * 
VII 1.8 311 220 2 15 74    
VIII 2.1 79 52   27    
IX 2.3 149 93  19 37    
X 2.2 241 152 10 25 53 1   
XI 7.5 972 249 723      
XII 7.9 55 8 9 25 12 1   
XIII 1.5 174 130 2 18 24    
XIV 1.4 59 45 9 5     
XV 0.8 698 605 2 61 27 3   
XVI 0.7 1,207  1,087  28 45 47    
XVII 1.5 267 202 2 4 59    
XVIII 1.5 288 218 68 2     
XIX 4.2 69 21 48      
XX 4.6 162 39 62 52 8 1   
XXI 6.0 7  7      
Total  2.2 7,789  5,441  1,120  516 561 73 78 6.7 
Note:  * Tariff l ines only subject to the price -band system .                                                                              
Duties of tariff line subject to price -band system are excluded in the computation of averages.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Peru and WTO -IDB.  
 
3.18.   Chart 3.2 shows the average remaining dutiable rates by HS Chapter for Peru's imports from 
Honduras. The MFN tariff rates remain applicable for Peruvian tariff lines excluded from tariff 
elimination. Average tariff rates are highest in HS Chapters 02 ( meat and edible meat offal ) at 7.7% 
covering 12 lines. The average tariff  rate, excluding  the tariff lines subject to the price -band system , 
in HS Chapters 04  (dairy) , 07 (edible vegetables ), 15 (animal or vegetable fats and oils ), 
16 (preparations of meat, fish, e tc.), 19 (preparations of cereals ) and 22 (beverages ) is 6% covering  
a total of  18 lines.  Of the 27 excluded lines in Chapters 04 (dairy) and 19 (preparations of cereals), 
24 lines are subject to the price -band system12. Eight lines in Chapter 17 (sugar) ar e subject to the 
price-band system13. The 16 excluded lines in HS Chapters 10 ( cereals ), 11 (products of the milling 
industry ), 21 (miscellaneous edible preparations), 23 (prepared animal fodder) and 35 (starches)  
remain subject  to the price -band system  only. 
                                                
12 Two of the 24 excluded lines in Chapter 04 and one of the three in Chapter 19 are subject to 
ad valorem duties.  
13 Three lines in Chapter 17 are excluded, but are already duty -free on an MFN basis.  WT/REG393/1  
 
- 15 - 
 
  Chart 3.2 Peru: Average of dutiable rates, by HS Chapter  
 
Note:  * Tariff lines only subject to the price -band system.  
 Based on the HS 2017 nomenclature.  
 For the calculation of averages, tarif f lines subject to price -band system are excluded.  
Source:  WTO estimates based on data provided by Peru.  
3.1.4   Tariff rate quotas  
3.19.   The Parties do not maintain any tariff rate quotas between each other.  
3.2  Rules of origin  
3.20.   Rules of origin are set out in Section A o f Chapter 3  of the Agreement . The basic requirements 
for a good to be considered originating are  (Article 3.1 ): 
a. it is wholly obtained or produced entirely in the territory of one or both Parties , 
b. it is produced in the territory of one or both Parties from originating materials only , or 
c. it is produced in the territory of one or both Parties by using non -originating materials 
which comply with the specific rules of origin contained in Annex 3 .1.  
3.21.   The specific rules of origin contained in Annex 3 .1 include change s in tariff classification (CTC), 
regional value content (RVC) or a combination of both. For Chapters 27 -29, an alternative rule is 
established for origin compliance  through a  chemical react ion rule, and for apparel in 
Chapters  61-63, specific processing requirements  have been introduced . In all cases, g oods shall 
also meet all other applicable criteria contained in Chapter 3.   
3.22.   The main criterion for a good produced using non -originating mate rials to acquire originating 
status is a CTC. The CTC applies generally at the HS heading level, but requirements at the chapter 
and subheading levels are also frequent (the former in particular for agricultural products). 
Article  3.4 provides a  list of minimal  operations that do not confer origin.  
3.23.   Article 3.3 provides that the RVC is the difference between the f.o.b.  value of the good and 
the c.i.f. value of the non -originating materials divided by the f.o.b.  value  multiplied by 100 .14 The 
RVC threshold is 50% . Few exceptions to the threshold apply : for s ausages and similar products  
(origin quota 100  MT) and for some medicaments containing penicillin or antibiotics  put up for retail 
                                                
14 The v aluation of goods is done on the basis of  the WTO Agreement on Implementation of  Article VII of 
the GATT 1994.  
0123456789
02
04
07
10
11
15
16
17
19
21
22
23
35Average Duty Rate
HS Chapters Preferential MFN
* * * * * *WT/REG393/1  
 
- 16 - 
 
  sale, the threshold is 30%, while for some other medicaments, also put up for retail sale, and 
motorcycles, bicycles, seats and toys , the threshold is 40%.  
3.24.   Non-originating materials included in an intermediate material are not taken into account in 
the determination of origin of the final good (Article 3.5) . An inter mediate material is an originating 
material that is produced by the producer of a good and used in the production  of that good.  
3.25.   Bilateral cumulation applies between the Parties (Article 3.6). Diagonal cumulation with 
Costa  Rica, El Salvador, Guatemala and Panama is allowed  if: 
i. a trade agreement is in force between Peru and the above -mentioned countries, and 
the corresponding rules of origin are fulfilled according to the Agreement , 
ii. the material being cumulated is not excluded from the tariff liberalization programme 
under the agreement  between the importing Party and the country supplying the 
originating materials, and 
iii. for textiles in HS 50 -63, both the material and the good are duty -free under the 
Agreement and all other agreements between th e importing Party and the country 
supplying the originating materials . 
3.26.   Subject to negotiation of the conditions that the Parties deem necessary for its application, 
cumulation could be also extended to goods  and materials from countries  or a group of count ries 
with whom both Parties have a trade agreement .  
3.27.   A de minimis  rule applies so that a good is considered originating if the value of all 
non-originating materials that do not comply with the required CTC is less than 10% of the 
f.o.b. value  (Article 3.7 ). For textiles in HS Chapters 50 to 63, the de minimis  rule is modified so 
that the good is considered originating if the weight of  the non-originating fibres and yarns used in 
the production of the component that defines the tariff classification of the good , which do not comply 
with the CTC requirements, does not represent more than 10% of the component's  total weight.  
3.28.   In the case of sets or assortments (Article 3.10), each part of the set has to fulfil the origi n 
requirements. According to the tolerance rule, a set or assortment will be considered originating if 
the value of all non -originating elements does not exceed 15% of its f.o.b. value.  
3.29.   Direct  transport is required. Transit through non -Parties is authoriz ed, with or without 
transhipment  or temporary storage , only if the goods remain under the surveillance of the customs 
authorities and no processing takes place outside the territory of the Parties other than loading, 
unloading or any other operation necess ary to preserve it in good condition or to transport it 
(Article  3.14) . Proof of compliance with those requirements is required.   
3.30.   Proof of origin is granted either by a Certificate of Origin or a Declaration of Origin, both of 
which are valid for one year (Articles 3.16 and 3.17, respectively). While the former is to be filled in 
by the exporter and submitted to the entity competent to issue it, the latter is a self -declaration by 
an "authorized exporter". The conditions and requirements for being designate d as such by the 
exporting Parties' competent authority or, when applicable, by its authorized entity are included in 
Article 3.18. Future use of digital certificates of origin are envisaged . Both documents can only be 
issued for originating goods prior to  or at the time of loading for export; in exceptional cases, a 
Certificate of Origin can be issued after the exportation.15 In cases where the exporter is not the 
producer, the former may request the issuing of a Certificate of Origin on the basis of either  
information provided by the producer or of a Declaration of Origin supplied by the producer. When 
the good is not originating, the exporter to whom  a Certificate of Origin was issued shall promptly 
notify the competent authority in the importing Party, wi th copies to the exporting Party's authorized 
entity and competent authority , as well as the importer .  
3.31.   Proof of origin is not required when the import value is under USD 1,000 or when the importing 
Party exempts a good from the proof of origin requiremen t unless such imports are aimed at 
                                                
15 In case of errors or involuntary omissions or for any other justified circumstance.  WT/REG393/1  
 
- 17 - 
 
  circumventing obligations under the rules of origin chapter  (Article 3.25).  Rules relating to verifying 
the origin of a good are contained in Articles 3.26 -3.30.  
3.32.   Chapter 3  finally  provides for the creation of a Committee on Rules of Origin (Article 3.33)  
and a Committee on Bilateral Integration of Inputs (Article 3.35) . The Committee on Rules of Origin 
is in charge of, among others, the monitoring and administration of Chapter 3 an d the revision of 
any specific rule of origin. The Committee can also propose to the Parties, through the Free Trade 
Commission, modifications to the Chapter. The Committee on Bilateral Integration of Inputs 
evaluates, following a request of a Party, the p resence of shortages of inputs . If a shortage is 
established, the Committee can authorize the consideration of a specific material as originating. 
According to the Parties, there have as yet been no meetings of the Committee on Rules of Origin 
or Committee  on Bilateral Integration of Inputs.  
3.3  Export duties and charges, and quantitative restrictions  
3.33.   Article 2.8 includes a general prohibition on restrictions on exports from the other Party, 
including quantitative restrictions (QRs) . the exceptions are as follo ws: 
a. QRs explicitly allowed elsewhere in the Agreement , 
b. QRs authorized under Article XI of the GATT 1994 and its interpretative notes, which are 
made an integral part of the Agreement ,  
c. price undertakings agreed in the context of dumping and subsidies proce edings , and 
d. measures listed in Annex 2.2 – i.e. controls imposed by Honduras on  export s of wood , 
imports of arms and ammunitions , imports of vehicles and buses, imports and use of ozone 
depleting substances , imports of  petroleum products , imports and use o f asbestos  
products  and measures imposed by Peru on worn clothes and shoes, used vehicles and 
engines (including part of the vehicles), used tyres, used goods and machinery and 
equipment using radioactive energy . 
3.34.   Article 2.9 provides that a Party shall notify in due time the other Party of the establishment 
of export licensing procedures.  Article 2.11 imposes a general prohibition on export taxes and 
charges connected to exports.  
3.4  Regulatory provisions on trade in g oods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.35.   Through Chapter 6, the Parties reaffirm t he rights and obligations of the WTO Agreement on 
Sanitary and Phytosanitary (SPS) Measures  (Article 6.3 ) and engage themselves to further its 
implementation .  
3.36.   The Parties may establish, apply or maintain sanitary or phytosanitary  measure s offering a 
level of protection that is higher than that deriving from a measure based on an i nternational 
standard, guideline or  recommendation, whenever scientific justification e xists, provided they do not 
constitute a disguised restriction on international trade or create unnecessary obstacles to trade.  
3.37.   Article 6.5 promotes the equivalence of sanitary standards and provide s that the Parties are 
to define within the Committee on S PS Measures  mechanisms for evaluating and accepting 
SPS measures as equivalent. According to the Parties, the first meeting of the SPS Committee has 
not yet taken place.  
3.38.   Article 6.6 provides that SPS measures applied by a Party are based on an assessment, as 
appropriate to the circumstances, of the risks to human, animal or plant life or health, including to 
products and by -products, taking into account the pertinent stand ards, guidelines and 
recommendations  of the relevant international organizations, which may guide the Parties in taking 
measures to facilitate the evaluation of SPS services, whenever such a request is made . Building on WT/REG393/1  
 
- 18 - 
 
  the WTO SPS Agreement, Article 6.7 p rovides inter alia that the Committee on SPS Measures  is to 
develop appropriate procedures to grant recognition of pest - or disease -free areas and areas of low 
pest or disease prevalence , taking into account international standards, guidelines or 
recommend ations .  
3.39.   Transparency provisions are contained in Article 6.9 . In this regard, each Party must inform 
each other about the adoption or application of SPS measures in accordance with the  WTO SPS 
Agreement. Besides, notification is also due with respect to:  
a. emergency measures or their modification  which  are to be notified within 3 days, in 
accordance with Annex B of the WTO SPS Agreement , and a sanitary alert to control food 
traded between the Parties, whenever a human health risk exists in relation to its 
consumption, in accordance with the relevant Codex Alimentarius health standard in force 
at the time , 
b. non-compliance detected vis-à-vis certification of export products subject to the 
application of sanitary and phytosanitary  measures , including the reasons for rejection ; 
c. exotic or unusual cases of pests or diseases , and 
d. upon request by a Party, updated information on import requirements for specific 
products, and details concerning the status  of ongoing processes and formalities in respect 
of request s for access for products , within the framework of the  SPS Agreement.  
3.40.   A Committee on SPS Measures is established under Article 6.11, which details its functions. 
Any dispute shall be first referred to the Committee  and only if a solution cannot be found in  the 
Committee can the dispute be subject to the dispute settlement mechanism of Chapter 15.  
3.4.1.2   Technical barriers to trade  
3.41.   Chapter 7 applies with respect to the preparation, adoption and application of technical 
barriers to trade (TBT), defined to include st andards, technical regulations and conformity 
assessment procedures, including those relating to metrology, that may affect, directly or indirectly, 
trade in goods between the Parties . The Chapter does not apply to SPS measures nor to government 
procuremen t. The WTO's TBT Agreement is incorporated into the Agreement , mutatis  mutandis  
(Article 7.3).  
3.42.   International standards shall generally be used as a basis for the Party's domestic standards 
and conformity assessment procedures (Article 7.5). Cooperation between the Parties' domestic 
standardization bodies is encouraged.  
3.43.   In the Agreement , TBT is also dealt with from a trade facilitation angle. Beyond highlighting 
some areas of work, Article 7.4 states that in cases where imports from the other Party have been 
blocked at an entry point due to non -compliance with a technical regulation, the importer shall be 
immediately notified of such blockage.  
3.44.   The TBT Chapter aims at encouraging recognition and equivalence of technical regulations 
and/or confo rmity assessment procedures, as well as the conclusion of mutual recognition 
agreements. If recognition of technical regulations is not provided, or if there is  a refusal to initiate 
negotiations on mutual recognition , the Party shall, upon request by the other Party, explain the 
reasons (Articles 7.6 and 7.7). The application of national treatment for accreditation, authorization 
or recognition of conformity assessment entities in the territory of the other Party is reaffirmed; any 
deviation from that prin ciple shall also be duly justified upon request by the other Party.  
3.45.   Transparency provisions are contained in Article 7.8  and provide for the electronic 
transmission of notifications regarding proposals  of technical regulations and conformity assessment 
procedures at the time that these are notified to the WTO's Central Registry of Notification s. 
Notification 60 days prior to publication (as in the WTO) is required for any proposals to adopt new 
technical regulations and conformity assessment procedures. Tec hnical regulations and conformity 
assessment procedures with a technical content that conform with international regulations, 
principles and recommendations are to be made available on the website of the competent national WT/REG393/1  
 
- 19 - 
 
  authority. The Parties agreed on an interval of six months between publication and entry into force 
of technical regulation s and conformity assessment procedures (exceptions may apply ).16 The 
disciplines on transparency are to be implemented within three  years. 
3.46.   Technical cooperation  measur es are contained in Article 7.9. Article 7.10 establishes 
a Committee on Technical Barriers to Trade, consisting of representatives from each Party's 
competent authorities. The Committee is responsible for, inter alia , monitoring the implementation 
of and administering the TBT Chapter, fostering cooperation between the Parties as regards the 
development and improvement of standards, regulations and conformity assessment procedures, 
and responding to queries regarding a ny issue that relates to  this Chapter. To date, no meetings 
have been held within the framework of the Committee.  Technical consultations may be held either 
in the Committee, or in the context of a dispute.  
3.47.   Information to be supplied upon the request of a Party is to be provided in printed or electronic 
format within 30 days from the request. Otherwise, the exchange of information is to be in 
accordance with the recommendations of the WTO TBT Committee.  
3.4.2   Safeguard mechanisms  
3.48.   Chapter 8 on trade remedies autho rizes the use of bilateral and global safeguard measures 
(respectively Sections A and B). Simultaneous application (on the same good under the same period) 
of a global and a bilateral safeguard is prohibited (Article 8.8 ). Beyond that, a general balance -of-
payments (BOP)  safeguard clause is also provided for  in Article 18.5 . Section D (Article 8.10) 
establish es a cooperation mechanism between the Parties' investigating authorities  relating to all 
trade defence measures (safeguards, anti -dumping and countervailing measures).   
3.4.2.1   Global safeguards  
3.49.   The Agreement stipulates that  the Parties  retain their  rights and obligations under  the 
WTO Agreement on Safeguards and Article XIX of the GATT 1994  (Article 8.8 ). The Agreement  does 
not confer new rights or obligations in respect of global safeguard  actions , except that the Party 
taking the global safeguard measure may exclude the other Party's originating imports if they are 
not the "substa ntial cause" of the serious injury or threat thereof.  
3.50.   The Agreement's dispute settlement process cannot be applied for global safeguard actions  
unless for the simultaneous application of a bilateral and global safeguard . 
3.4.2.2   Bilateral safeguards  
3.51.   Bilateral safe guard measures (Articles 8.1 -8.6) are authorized as exceptional measures during 
the transition period  only. For the application of bilateral safeguard measures, the transition period 
lasts 5 years from the entry into force of the Agreement  for products for which tariffs are eliminated 
in less than 5 years . For products for which tariffs are eliminated in 5 or more years, the transition 
period , for the purpose of the adoption of safeguard measures, expires two years after the product's 
full liber alization. Bilateral safeguards may take the form of a temporary suspension of further tariff 
reductions or of a tariff rate increase  to a level that will not exceed the lesser of  the MFN applied 
rate in effect at the time the action is taken and the base rate as provide d in the schedule of duty 
elimination set out in Annex 2.3 . TRQs or quantitative restrictions are explicitly prohibited.  
3.52.   Subject to an investigation, a bilateral safeguard  may be imposed in cases where imports of 
an originating product for which tariffs had been reduced or eliminated according to the tariff 
elimination programme have increased in absolute terms or relative to domestic production and 
under such conditions that they constitute a substantial cause of serious injury, or threat t hereof, to 
the domestic industry of like or directly competitive goods , provided this is necessary to prevent or 
counter the injury, and to facilitate adjustment by the domestic industry. Article 3 and 
paragraph  2(c) of Article 4 of the WTO's Safeguards Ag reement (procedures of investigation and 
                                                
16 The same time -frame applies in the WTO for technical regulations, as per the 2001 Ministerial Decision 
on Implementation -Related Issues and Concerns, WT/MIN(01)/1 7. Subsequently, the WTO TBT Committee 
encouraged an interval of more than six months, see G/ TBT/1/Rev.10, p.  26. WT/REG393/1  
 
- 20 - 
 
  transparency) are integrated into the Agreement  and the definitions are those  of the Agreement .17 
The time-frames related to investigations are those of the relevant national legislation. Additional 
transparency provision s require prompt written notification of the initiation  of a bilateral safeguard 
proceeding, the imposition of a provisional bilateral safeguard measure and the adoption of a final 
decision for the application/extension of a bilateral  safeguard. The public version of a report by the 
investigating authority shall be transmitted to the other Party. Upon request by the affected Party, 
consultations shall be held to review notifications or public information regarding the case concerned 
(Article 8.5). 
3.53.   A bilateral safeguard measure may last a maximum of two years, with a possible extension 
of one year under certain conditions.  The maximum duration is in any case limited by the transition 
period  defined above for the purpose of bilateral safe guard measures . If the measure lasts more 
than a year, it shall be progressively liberalized. Re -application of safeguards is only authorized if 
an interval equal to the duration of the previous measures has elapsed. Upon termination of the 
safeguard measu re, the applied tariff will be that resulting from the normal application of the tariff 
elimination programme . 
3.54.   Compensation shall be provided upon the application of a bilateral safeguard measure, and 
consultations to that end shall take place within 30 da ys after the imposition of the bilateral 
safeguard . The compensation, of equivalent trade effect, is to be mutually agreed with the exporting 
Party within 30 days from the beginning of the consultations . If no such agreement is reached within  
this period retaliation is authorized (Article  8.6). 
3.55.   Provisional measures of a maximum duration of 200 days are allowed in critical circumstances 
upon a preliminary determination of injury or threat thereof  to the domestic industry . This time is 
to be included in the d uration of the definitive safeguard measure ( Article 8.4). F ollowing a negative  
determination,  the guarantees or funds received from the imposition of provisional measure s will be 
refunded  without delay.  
3.4.2.3   Balance of payments safeguards  
3.56.   A BOP safeguard to the general freedom of capital movement, applying to trade in goods and 
services alike, is included in Article 18.5. It provides that temporary, non -discriminatory safeguard 
measures with respect to payments and capital movements may be adopted or maintained by a 
Party in the event of serious balance -of-payments and external financial difficulties, or threat 
thereof, or if payments and capital movements cause, or threaten to cause, macroeconomic 
difficulties, in particular regarding monet ary and exchange rate policy.  
3.4.3   Anti-dumping and countervailing measures  
3.57.   Section C of Chapter 8 addresses anti -dumping and countervailing measures. The Agreement  
stipulates that the Parties retain their rights and obligations under Article VI of the GATT 199 4 and 
the WTO Agreements on Anti-Dumping and  on Subsidies and Countervailing Measures. Article 8.9 
provides that w ithout prejudice to WTO Agreements, the investigating authority will disclose all 
essential information used for the determination of an antid umping or countervailing measure. This 
information shall be sent in writing to the interested parties, who shall be given enough time to 
provide their comments in writing and orally .  
3.4.4   Subsidies and State -aid 
3.58.   The Agreement prohibits the granting of export  subsidies on intra -trade in agricultural 
products, and , in this respect, consultations with the other Party may be requested under Chapter  15 
(Dispute Settlement). There are no other disciplines on  subsidies and State -aid. 
                                                
17 "Substantial cause" is defined as an important cause and no less important than any other and "serious 
injury" means a general damage to a domestic industry. No definition or numeric benchmark is provided as 
regards "domestic industr y". WT/REG393/1  
 
- 21 - 
 
  3.4.5   Customs -related procedures  
3.4.5.1   Trade f acilitation  
3.59.   Chapter 4 of the Agreement  deals with trade facilitation  and customs procedures . Clearance 
of goods shall take place  within 48 hours whenever possible and directly from the entry point unless 
additional controls are needed from the customs auth orities or for infrastructure reasons  
(Article  4.2). With the application of r isk management , goods shall be inspected on the basis of 
selectivity criteria  (Article 4.4). S pecial customs procedures shall be implemented to deal with 
expedite d shipment, so t hat clearance  can take place  within 6 hours in normal circumstances  
(Article  4.6). The Parties commit to establish "authorized economic operators" in accordance with 
the World Customs Organization framework in order to facilitate the clearance of goods  (Article 4.7). 
The Parties shall promote the creation of a single window for foreign trade (Article 4.8). Access by 
natural and juridical persons to administrative and judicial review of administrative acts related to 
customs  is granted by the Parties (Article 4.9). A dvanced rulings  on tariff classification, the 
application of customs valuation  criteria , originating statu s, whether a good  qualifies for duty 
exemption when  reimported after repair or alteration , or any other agreed issue, shall be provided 
within 150 days of request by an importer in a Party's territory or by an exporter or producer in the 
territory  of the o ther P arty (Article 4.11).  
3.60.   Article 4.12 establishes a Committee on Trade Facilitation and Customs Procedures . The 
Committee monitors the implementation and administration of the Chapters on trade facilitation , 
customs procedures,  and customs mutual assista nce and cooperation. It also promotes cooperation 
among the Parties for the development, application and improvement  of all issues related to the 
aforementioned Chapters, in particular in respect of customs procedures, customs valuation and free 
zones, and  provides a forum for the discussion of these issues and others . According to the Parties, 
no meetings have yet taken place within the context of th e Committee . 
3.4.5.2   Customs cooperation  
3.61.   The Chapter provides the framework for facilitating cooperation and mutual assistance 
between  the Parties ' authorities on subjects related to customs , covering issues such as technical 
and administrative assistance for the appropriate implementation of customs legislation , prevention, 
investigation and sanction s on illicit customs activities and customs offenses an d the facilitation of 
customs procedures.  
3.62.   The Chapter provide disciplines related to the supply of information, including on national 
legislation and customs procedures, transparency, and verification.  
3.4.6   Other regulations  
3.63.   The Parties rights and obligations as regards State -trading enterprises are in accordance with 
Article XVII of the GATT 1994, its interpretative notes and the Understanding on the Interp retation 
of Article XVII of the GATT 1994 , which are incorporated into the Agreement (Article  2.12).   
4  PROVISIONS ON TRADE IN SERVICES  
4.1  Scope and definitions  
4.1.  Trade in services is governed by Chapter 13 on cross border trade in services . Chapter 12 deals 
with investment and Chapter  14 covers t emporary entry of business persons. The Agreement adopts 
a negative -list approach.  
4.2.  Chapter 13 applies to measures affecting trade in services by service suppliers of a Party, 
adopted or maintained by the other Party at t he central, regional or local level, and by 
non-governmental bodies in the exercise of powers delegated by Government authorities. Three out 
of the four GATS modes of supply - cross-border trade, consumption abroad and temporary 
movement of natural persons  - are covered by Chapter  13 (Article 1 3.15). M ode 3 on the right of 
establishment/commercial presence is covered in the investment Chapter  (Article 12.30) , though 
Chapter 13 disciplines on subsidies, market access , transparency and domestic regulation app ly also 
in the context of a covered  investment.  WT/REG393/1  
 
- 22 - 
 
  4.3.  Chapter  13 does not cover (i) air transport services, including traffic rights and services directly 
related to the exercise of traffic rights, except aircraft repair and maintenance services, the selling 
and marketing of air transport services and computer reservation systems services , (ii) government 
procurement , and (iii) subsidies and donations granted by a Party  (Article 1 3.1).  
4.4.  Financial services, as defined by GATS Article I:2 – i.e. all mode s of supply – are excluded f rom 
the Agreement's coverage (Article 13.1).  
4.5.  Article 13.1 also clarifies that Chapter 13  does not impose any obligation on the Parties with 
respect to a national of the other Party seeking access to its employment market or alre ady employed 
on a permanent basis in its territory  and it does not confer any right on that national with respect 
to that access or employment , nor does it apply to any measure relating to acquisition of citizenship, 
right of residence, or migration measur es. Also, Chapter 13 does not apply to services supplied in 
the exercise of governmental authority on a non -commercial basis and not in competition with 
another service supplier.  
4.6.  An annual review, unless otherwise agreed, of the implementation of Chapter 1 3 is foreseen in 
Article 13.14.  According to the Parties, no meeting has yet been held to review implementation.   
4.7.  Chapter 12 on investments consists of three  sections - substantive obligations, investor -State 
dispute settlement and definitions (Sections A,  B and C, respectively). It defines  investment as 
assets owned or controlled by investors of a Party and it provides a list of forms that investment 
may take  (Article 12.30 ). Covered investment s are defined as the investment in a Party's territory 
of an in vestor from the other Party existing at the time of the Agreement's entry into force or 
afterwards .  
4.8.  Chapter 12 covers measures adopted or maintained by a Party relating to (i) investors of the 
other Party , (ii) covered investments , and (iii) with respect to performance requirements and 
environment -related measures , all investments in the territory of the Party (Article 12.1 ). The 
substantive obligations of Chapter 12 are applied also to measures adopted by a State -trading 
enterprise or a person, wh enever any of them operate through a governmental delegation of 
authority.  However, measures maintained by a Party in relation to investors of the other Party, and 
their investment, in financial institutions in its own territory are not covered.  
4.9.  Beyond the  exclusion of investment measures related to financial institutions, Chapter 12 also 
does not oblige a Party to privatize any State -controlled investment , to protect investment with 
capital derived from illegal activities , nor to forbid a Party from taking measures needed to preserve 
public order or for national security  (Article 12.1) . 
4.2  Denial of benefits  
4.10.   Under Articles 13.13 and 12.12,  respectively, a Party can deny the benefits provided to a  
service -supplier or to an investor from the other Party that is an enterprise of the other Party and 
its investments , if: 
a. the enterprise is owned or controlled by persons of a third party  and the enterprise has no 
substantial business operations in the territory  of the other Party , or 
b. the enterprise is owned or control led by a person of the Party denying the benefit and the 
enterprise has no substantial business operations in the territory of the other Party.  
4.11.   Denial of benefits relating to trade in services require prior notification and consultations.  
4.12.   Denial of benefi ts as regards cross -border trade in services can be challenged through Chapter 
15 dispute settlement provisions . For investments, the applicable provisions are those of  Chapter 15 
on dispute settlement and  Section B of Chapter 12  (i.e. Investor -State dispute settlement) .  
4.13.   The Agreement  does not contain an explicit definition of the scope of the term "substantial 
business operations" or of the issues related to "control".  WT/REG393/1  
 
- 23 - 
 
  4.3  General provisions on trade in services  
4.3.1   Market access  
4.14.   The negative -list approach applies as regards market access for cross -border trade in services 
and right of establishment . The market access disciplines in Article 13.5 cover all the four modes of 
supply, since Article  13.1:4 extends to them the right of e stablishment in the context of an 
investment . However, according to the fo otnote included in Article 13.1: 4, the Investor -State dispute 
settlement mechanism does not apply for the market access obligation on the right of establishment 
(mode 3) . Any dispute  between a Party and an investor of the other Party is regulated by Section B 
of Chapter 12.  
4.15.   Market access disciplines and prohibited limitations generally mirror those of the GATS.  The 
GATS prohibition on foreign equity limitations regarding investment fr om the other Party is generally 
maintained  on investments and investors of the other Party  to which national treatment appl ies.  
4.3.2   National treatment and MFN  
4.16.   National and MFN treatment are granted across -the-board  with existing non-conforming 
measures constitut ing exceptions to these disciplines.  
4.17.   National treatment and MFN disciplines apply to cross -border services suppliers of the other 
Party (Articles 13.3 and 1 3.4) and  to investors of the other Party and their covered investments 
(Articles 12.2 and 12.3), in accordance with the "standard of treatment" as defined in Article 12.4 – 
i.e. in accordance with international customary law, including fair and equitable treatment and full 
protection and security. The dispute settlement provisions of t he investment Chapter are not subject 
to the MFN obligation.   
4.18.   Non-conforming measures affecting trade in services, investors and investments covered by 
the Agreement  that constitute  exceptions to these principles are as  follows  (Articles 12.7 and 13.7) : 
a. existing measures, as well as their continuation, renewal or modification, provided their 
level of non -conformity is not increased - i.e. a "ratchet" clause. The non -conforming 
measures applied by central or regional governments are listed in Annex I, those applied 
at the local level are not listed but also constitute derogations from the Agreement ;  
b. future measures applied on any sector, subsector or activities included in Annex II.  
Requirements to sell or use existing investments which are based on national ity cannot be 
applied to investments existing at the time when the measure enters into force 
(Article  12.7).  
4.19.   Amendments or modifications to any non -conforming measure under Annex I will be notified 
to the other Party as soon as possible . Measures adopted a s per Annex II will be notified to the other 
Party whenever possible (Article 13.8). None of these disciplines may be challenged through the 
Agreement's dispute settlement  provisions . 
4.20.   National and MFN treatment do not apply to foreign investments/investors in the context of 
(i) measures adopted in accordance with Articles 3, 4 and 5 of the WTO TRIPS Agreement , 
(ii) government procurement and (iii) subsidies or grants by a Party (Article 12.7) . 
4.3.3   Commercial presence  
4.21.   Under Article 13.6, a cross -border service supplier  of a Party will not be required by the other 
Party to set up or maintain a representative office or other form of enterprise or be resident in its 
territory in the context of cross -border supply of servi ce. Exceptions to this principle, such as those 
mentioned under national treatment and MFN above,  apply mutatis mutandis . 
4.3.4   Movement of natural persons  
4.22.   Chapter 14 lays out the conditions for the temporary entry of three categories of business 
persons in the Parties' territories and associated time -frames for such entry – subject to compliance WT/REG393/1  
 
- 24 - 
 
  with their immigration requirements.18 It aims at facilitating the temporary entry of business persons 
on the basis of reciprocity while considering the need to establish  transparent criteria and procedures 
in the area. It also reflects the need to ensure border security, and the protection of the domestic 
labour force and of permanent employment in their respective territories (Article 14.1).  
4.23.   Annex 14.3.2 sets the period  of stay for each category of natural persons. While for Peru, 
these are specific (183 days or 1 year maximum depending on the category), for Honduras the 
National Institute of Migration authorizes the initial stay (up to 90 day s), extensions (up to 120 da ys) 
and special permits (up to 1 or 5 years depending on the category) according to its laws.  
4.24.    According to Annex 14.3.1, each Party commits to authoriz e temporary entry to  business 
visitors engaged in certain business activities  (Section A) ; traders seeking to conclude an important 
deal relating to trade in goods or services between the Parties , and investors seeking to establish, 
develop or administer an investment to which the business person or its company has committed, 
or is in the process of com mitting, a substantial amount of capital , provided the person complies 
with the applicable immigration regulations  (Section B) ; and intra-company transferees who work 
in an executive  and managerial position, or requir ing specialized knowledge  (Section C) . Within three 
years of the entry into force of the Agreement, the Parties commit to initiate consultations with the 
objective to authorize temporary entry of professionals  (Section D) .  
4.25.   According to Article 14.7, a Party cannot initiate a dispute settlement  procedure under Chapter 
15 following the refusal of temporary entry, unless the case is a recurrent practice and the business 
person has exhausted all possible administrative remedies available.19 
4.26.   The transparency clauses in Articles 14.4 and 14. 9 include enhanced commitments regarding 
availability of information on measures related to Chapter 14 in general, as well as to individual 
requests so that each Party commit s to mechanisms for replying to consultations by interested 
persons on requests and procedur es for temporary entry for business persons and to inform the 
person concerned of the decision taken within a reasonable time -frame, and upon  request, 
endeavour to provide information without undue delay regarding the request.  
4.27.   The Agreement establishes  a Committee  on Temporary Entry  for Business Persons  which  will 
meet at least once every three years to examine the application of Chapter 14, charged inter alia  
with considering measures aimed at facilitating the temporary entry for business pe rsons  as well as 
establishing mechanisms for the exchange of information about these measures  (Article 14.5).  
4.3.5   Performance requirements  
4.28.   Article 12.6  prohibit s certain performance requirements or the conditioning of advantages 
upon their fulfilment . Such pr ohibitions apply to investments  of investors not only from the other 
Party, but also from any third party.20 These provisions  apply to the scope of investments per se  
rather than the GATS mode 3 "right of establishment".  
4.29.   Seven categories of performance requirements are prohibited . While some of them (i.e. those 
relating to goods) are in any case already prohibited under the WTO Agreement on Trade -Related 
Investment Measures (TRIMs), others are not – such as, for example, the prohibition of export 
obligations and technology transfer r equirements. In addition, it is forbidden to condition the grant 
or receipt of an advantage to investments of investors from the other Party or any other Party on 
the fulfilment of any of the four types of performance requirements listed in paragraph 5, in cluding 
domestic content and trade balancing.  
                                                
18 Article 14.10  defines "business person" as a national of a Party who is engaged in trade in goods, the 
supply  of services or investment activities.  As such, it goes beyond the GATS Annex on Movement of Natural 
Persons supplying services, as the latte r covers only persons who are service suppliers of a Member, and persons 
of a Member who are employed by a  service supplier of a Member.  
19 Administrative remedies are considered to be exhausted if a final determination on the matter has not 
been issued by the competent authority within one year  from the beginning of the administrative procedure, and 
that the failure to reach a verdict is not attributable to a delay caused by the business person.  
20 This applies to the establishment, acquisition, expansion, m anagement, conduct , operation , or sale  of 
an investment .  WT/REG393/1  
 
- 25 - 
 
  4.30.   Paragraphs 2, 3, 4 and 6 of Article 12.6, respectively, make clear that the following 
requirements are not prohibited: (i) the mandatory use of technology for complying with health, 
security or environment requ irements; (ii) an authorisation by a Party to use an intellectual property 
right in accordance with article 31 and measures compatible with article 39 of the WTO TRIPS 
Agreement; (iii) that the Chapter's advantages for a covered investment or an investment  by an 
investor from a non -party be made conditional on the training of employees; and (iv) linking the 
receipt of an advantage for an investment on the requirement to locate the production, supply 
services, employ and train employees, build or enlarge ins tallations, or conduct research and 
development activities in its own territory. Paragraph 9 allows the use of measures, including 
environmental measures, to ensure compliance with laws and regulations not in contradiction with 
the Agreement's disciplines , to protect human, animal or plant life or health  and to protect 
exhaustible natural resources, provided they are not applied in an arbitrary or unjustified manner, 
or do not constitute a disguised trade or investment restriction. In addition, specific e xceptions to 
this Article's disciplines , like those mentioned under national treatment and MFN above,  apply 
mutatis mutandis . 
4.31.   Other exceptions to the performance requirements prohibition are allowed for goods and 
services related to export promotion program mes and external aid or to qualify for preferential tariffs  
(Article 1 2.6:8).  
4.3.6   Senior management and board of directors  
4.32.   For an enterprise of a Party that is a covered investment , nationality requirements are 
prohibited  for senior management  while nationality and residency requirements are authorized for 
the majority of the members of the board of directors or its subsidiary bodie s, provided such 
requirements do not significantly impair the investor's capacity to control its investment 
(Article  12.5).  
4.33.   Other exceptions to the prohibition on nationality requirements are in Annexes I and II of the 
Agreement, as well as for Government procurement  and subsidies or grants by a Party (Article  12.7) . 
4.4  Liberalization commitments  
4.4.1    Honduras  
4.34.   In its GATS schedule, H onduras has made commitments in 25 out of 155 services sectors, 
leaving in particular most business services, postal and courier services, construction services, 
distribution services, educational services, health related and social services, recreational -related 
services and most transport services unbound.  
4.35.   Honduras' GATS MFN exemptions cover measures in all sectors, and legal instruments signed 
with Central American countries granting preferences for trade in services. Additional exemptions 
are also registered for financial services, telecommunications, prof essional services and land 
transport.  
4.36.   Under the Agreement, Honduras has listed 11 MFN reservations for current measures 
including investment measures on small scale trade and cooperatives, and sector -specific 
reservations in engineering services, educatio n services, some professional services and maritime 
and land transport. In the case of MFN reservations for future measures, Honduras retains 
reservations in some professional service s and social services. Honduras  also reserves the right to 
adopt or maint ain a measure that accords differential treatment to countries under a bilateral or 
multilateral international agreement in force or signed prior to the Agreement's entry into force  and, 
in the areas of aviation, fishing and other maritime matters,  under a ny bilateral or multilateral 
international agreement signed after the Agreement's entry into force .  
4.37.   Under the GATS, Honduras' horizontal limitations on mode 3 apply to criteria to be taken into 
account on establishment, training of Honduran personnel, res trictions on investment in small -scale 
industry, and limitations on the use of land in coastal areas and borders. Honduras also introduces 
horizontal limitations, with respect to investment and/or cross -border trade, related to, inter alia , 
commercial pres ence of foreign firms, maximum shares of foreign workers and their wage bills and 
residence requirements for foreign workers.  WT/REG393/1  
 
- 26 - 
 
  Table 4.1 Honduras : comparison between the GATS and the Agreement's specific 
commi tments in trade in services  
Sectors / Subsectors  GATS  RTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
1. Business services        
A. Professional  Services  --- New  ✓  ✓ 
B. Computer  and Related  Services  Partial  Improved      
C. Research  and Development  Services  --- New     
D. Real  Estate  Services  --- New     
E. Rental/Leasing  Services  without  Operators  --- New     
F. Other  Business  Services  Partial  Improved  ✓ ✓   
2. Communication services        
A. Postal  services  --- New  ✓   
B. Courier  services  --- New     
C. Telecommunication  services  Partial  Similar   ✓ ✓ ✓ 
D. Audiovisual services  --- New     
3. Construction and related engineering services        
A. General  construction  work for buildings  --- New     
B. General  construction  work for civil engineering  --- New  ✓   
C. Installation  and assembly  work  --- New     
D. Building  completion  and finishing  work  --- New     
E. Other  --- New     
4. Distribution services        
A. Commission  agents'  services  --- New     
B. Wholesale  trade services  --- New ✓  ✓ ✓ 
C. Retailing  services  --- New ✓  ✓ ✓ 
D. Franchising  --- New     
E. Other  --- New     
5. Education services        
A. Primary education services  --- New  ✓   
B. Secondary education services  --- New  ✓   
C. Higher education services  --- New     
D. Adult education  --- New     
E. Other education services  --- New     
6. Environmental services        
A. Sewage services  --- New  ✓   
B. Refuse disposal services  --- New  ✓   
C. Sanitation and similar services  --- New  ✓   
D. Other  --- New     
7. Financial services        
A. All insurance  and insurance -related  services  Partial  --- Excl. Excl. Excl. Excl. 
B. Banking  and other financial  services  Partial  --- Excl. Excl. Excl. Excl. 
8. Health related and social services        
A. Hospital services  --- New     
B. Other Human Health Services  --- New     
C. Social Services  --- New    ✓ 
D. Other  --- New     
9. Tourism and travel related services        
A. Hotels  and restaurants (including catering)  Partial  Improved      
B. Travel  agencies  and tour operators  services  --- New     
C. Tourist  guides  services  --- New     
D. Other  --- New     
10. Recreational and cultural and sporting 
services        
A. Entertainment  services  --- New  ✓   
B. News agency services  --- New     
C. Libraries, archives, museums and other cultural 
services  --- New     
D. Sporting and other recreational services  --- New  ✓   
E. Other  --- New     
11. Transport services        
A. Maritime Transport Services  --- New ✓ ✓   
B. Internal Waterways Transport  --- New ✓ ✓   WT/REG393/1  
 
- 27 - 
 
  Sectors / Subsectors  GATS  RTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
C. Air  Transport  Services  Partial  Improved  ✓    
D. Space  Transport  --- New     
E. Rail  Transport  Services  --- New ✓    
F. Road  Transport  Services  Partial  Improved  ✓ ✓   
G. Pipeline  Transport  --- New     
H. Services  auxiliary  to all modes  of transport  --- New ✓ ✓   
I. Other  Transport  Services  --- New     
12. Other services not included elsewhere  --- New     
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (unbound)  under GATS  or full exclusion of the whole sector under the 
Agreement . 
New: New commitments made under the Agreement  (full or partial, with or without market access 
commitments and/or limitations). "New" can always be seen as "improved".  
Improved: Overall improved commitments made under the Agreement as compared to those under the GATS.  
Excl.:  Sector excluded from the Agreement.  
✓: Existing non -conforming measures or reservations for future measures scheduled in Annex I and/or Annex  II 
of the Agreement.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ HND/Rev.1 ) and Honduras ' 
Schedules annexed to the Agreement.  
4.38.   Honduras ' sectoral liberalization under the Agreement goes beyond its GATS commitments. 
Construction and related engineeri ng services , distribution, education, environmental and 
recreational and cultural and sporting services  are liberalized with some restrictions. Health related 
services are  fully liberalized except for the possibility to impose future restrictions  in social  services . 
Reservations for future measures are also maintained for some distribution services.   
4.39.   In business services, Honduras expands coverage under the Agreement to all subsectors, 
listing no reservations for computer services, research and development services, real estate 
services, and rental/leasing services without operators. In professional services, for which it has no 
GATS commitments, Honduras has listed a number of reservations that apply to some engineering 
services, veterinary services, para -medical personnel, notaries, public accountants, architects, 
nurses, doctors , dentists,  psychologists,  pedagogists and journalists  as well as a blanket reservation 
under which foreigners are required to have legal residence in Honduras to provide a professional 
service.  In addition, Honduras reserves its right to adopt or maintain any future measure in relation 
to agronomists, chemists, pharmacists, and social workers.  
4.40.   In communication services, for which it has partial commitments under the  GATS, Honduras 
continues to reserve the supply of postal services to the government but broadens its commitments 
in the other subsectors. In public telecommunications, Honduras does not permit the direct 
participation of foreign governments in the provisi on of services and places equity limits on operators 
in the telecommunications sector under the Agreement. In audiovisual services, senior management 
positions in newspapers or radio and television are subject to a nationality by birth requirement. 
Hondura s also maintains a future measure reserving the right to adopt, maintain or modify the level 
of ownership in the national telecommunications company, as well as its affiliates or subsidiaries.  
4.41.   In construction and related engineering services, Honduras has made full commitments in all 
subsectors, except in construction or consulting services for civil engineering services which are 
subject to a reservation. Foreign firms must be organized and registered according to Honduran law 
to perform civil engineering projects in Honduras. Higher registration fees apply to foreign companies 
and authorization is also required for foreign workers in order to participate in such projects.  WT/REG393/1  
 
- 28 - 
 
  4.42.   In distribution services, Honduras maintains a nationality and equity restriction on the 
distribution of petroleum products . Under future measures, Honduras reserves the right to adopt or 
maintain any measure concerning the import and wholesale distribution of petroleum products and 
their derivatives. For commission agents' services and fr anchising, Honduras has listed no 
reservations.  
4.43.   In education services, Honduras places a nationality by birth requirement on school directors 
and supervisors (for private preschool, primary, and secondary educational services) and a 
reciprocity requirement  for the teaching of certain subjects.  
4.44.   Environmental services, not scheduled under the GATS, are subject to one reservation under 
the Agreement  which reserves  public water distribution, waste disposal, and sanitation and hygiene 
services for the State.  
4.45.   In recreational , cultural and sporting services, for which it has no GATS commitments, 
Honduras m aintains a few reservations. In entertainment services, foreign musicians must register 
with the competent authorities and pay performance fees. Licences to oper ate casinos are reserved 
for Honduran nationals by birth and Honduran companies. The national lottery is reserved for a State 
institution. In sporting services, foreign soccer players must be resident in Honduras and registered 
with the competent authority . Clubs can register up to four foreign players.  
4.46.   In transport services, Honduras has broadened its commitments but maintains reservations 
in air, maritime, internal waterways, land and rail transport  and services  auxiliary to all modes of 
transport . In pub lic air transport services, Honduras reserves cabotage for Honduran companies. 
Private air services are subject to authorization and must fulfil a nationality requirement. In maritime 
transport, coastal navigation for commercial purposes is reserved for Ho nduran merchant vessels, 
though foreign vessels might be authorized if no Honduran vessels are available. In land transport, 
public domestic land passenger and cargo transportation services may only be supplied by Honduran 
nationals and companies. Operatin g certificates are subject to an economic needs test. Public 
international land passenger and cargo transportation services may be supplied by foreign nationals 
and companies established under foreign law on the basis of reciprocity. In railways, the Hondu ran 
National Railway may sell its subsidiaries only to Honduran nationals and companies, while senior 
managers must be Honduran by birth. In services auxiliary to all modes of transport, only firms 
incorporated under Honduran law with fixed capital and for  the sole purpose of providing warehouse 
services shall be authorized to provide such services . 
4.4.2    Peru  
4.47.   In its GATS schedule, Peru has made commitments in 42 out  of 155 services sectors, 
essentially in mode 3, with some commitments in modes 1, 2, and – to a limited extent – 4, in 
telecommunications, and some insurance subsectors.  
4.48.   Peru's GATS MFN exemptions cover measures implementing its reciprocal labour agreements 
or on dual nationality , land and sea transport measures taken in the Andean context , land transport 
measures implementing the Convention on International Land Transport, the law promoting Latin 
American artists interpreting Latin American themes and certain measures designed to ensure 
reciprocity for certain financial intermediation servi ces.  
4.49.   Under the Agreement , Peru lists MFN non-conforming me asures  on radio transmission 
services within border areas, subject to authorization, for existing measures. Existing and future 
MFN reservations are also registered, in all sectors, that accord dif ferential treatment to countries 
under any bilateral or multilateral agreements in force on, or signed prior to, the date of entry into 
force of the Agreement . The granting of differential treatment is also reserved for future bilateral or 
multilateral agr eements involving aviation, fisheries  or maritime matters, including salvage.  
4.50.   As regards future measures, Peru reserves the right to adopt or maintain any measure 
according rights for the protection of indigenous, native and peasant communities and to dev iate 
from obligations as regards social services. Future non -conforming measures could also be adopted 
in matters related to fishing , cultural industries , handicraft , audiovisual industries , jewellery  design  
and other artistic activities , water and sewage services , certain education services , domestic and 
international land transportation of cargo or passengers , and public telecommunication services.  WT/REG393/1  
 
- 29 - 
 
  4.51.   Peru's horizontal limitations under the GATS are maintained in the Agreement . All employers 
in Peru, indepe ndent of their activities or nationality, shall give preferential treatment to nationals 
when hiring , at least 80% of the staff of a company established in Peru shall be Peruvian, and shall 
represent at least 70% of the total payroll of the company . Invest ments in a frontier area of 50 km 
are reserved for nationals. Further more, a horizontal limitation in Annex II (reservation 16) allows 
Peru to apply market access limitations in all services sectors, except for some sectors/subsectors 
for which modes 1, 2 and 3 are liberalized . Thus, only the sectors indicated in the reservation are 
subject to the market access commitment, to the  benefit  of Honduran suppliers . 
Table 4.2 Peru: comparison between the GATS and the Agreement's specific 
commitments in trade in services  
Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
1. Business services        
A. Professional  Services  Partial  Improved  ✓ ✓   
B. Computer  and Related  Services  --- New     
C. Research  and Development  Services  --- New  ✓  ✓ 
D. Real  Estate  Services  --- New     
E. Rental/Leasing  Services  without  Operators  Partial  Improved     ✓ 
F. Other  Business  Services  Partial  Improved   ✓ ✓ ✓ 
2. Communication services        
A. Postal  services  --- New    ✓ 
B. Courier  services  --- New    ✓ 
C. Telecommunication  services  Partial  Improved   ✓  ✓ 
D. Audiovisual services  --- New ✓ ✓ ✓ ✓ 
3. Construction and related engineering 
services        
A. General  construction  work for buildings  --- New    ✓ 
B. General  construction  work for civil Engineering  --- New    ✓ 
C. Installation  and assembly  work  --- New    ✓ 
D. Building  completion  and finishing  work  --- New    ✓ 
E. Other  --- New    ✓ 
4. Distribution services        
A. Commission  agents'  services  --- New     
B. Wholesale  trade services  --- New     
C. Retailing  services  Partial  Improved      
D. Franchising  Partial  Improved      
E. Other  --- New     
5. Education services        
A. Primary education services  --- New    ✓ 
B. Secondary education services  --- New    ✓ 
C. Higher education services  --- New    ✓ 
D. Adult education  --- New    ✓ 
E. Other education services  --- New    ✓ 
6. Environmental services        
A. Sewage services  --- New    ✓ 
B. Refuse disposal services  --- New    ✓ 
C. Sanitation and similar services  --- New    ✓ 
D. Other  --- New    ✓ 
7. Financial services       ✓ 
A. All insurance  and insurance -related  services  Partial  --- Excl. Excl. Excl. Excl. 
B. Banking  and other financial  services  Partial  --- Excl. Excl. Excl. Excl. 
8. Health related and social services        
A. Hospital services  --- New    ✓ 
B. Other Human Health Services  --- New    ✓ 
C. Social Services  --- New   ✓ ✓ 
D. Other  --- New    ✓ 
9. Tourism and travel related services        
A. Hotels  and restaurants (including catering)  Partial  Improved      
B. Travel  agencies  and tour operators  services  Partial  Improved      
C. Tourist  guides  services  --- New     WT/REG393/1  
 
- 30 - 
 
  Sectors / Subsectors  GATS  FTA 
Compared 
to GATS  Existing  
non-
conforming 
measure(s)  Reservation(s) 
for future 
measures  Investment  
Cross -border 
trade  
Investment  
Cross -border 
trade  
D. Other  --- New     
10. Recreational and cultural and sporting 
services        
A. Entertainment  services  Partial  Improved   ✓ ✓ ✓ 
B. News agency services  --- Improved      
C. Libraries, archives, museums and other cultural 
services  --- Improved    ✓ ✓ 
D. Sporting and other recreational services  Partial  Improved      
E. Other  --- New     
11. Transport services        
A. Maritime Transport Services  Partial  Improved  ✓ ✓  ✓ 
B. Internal Waterways Transport  Partial  Improved  ✓ ✓  ✓ 
C. Air Transport  Services  --- New ✓   ✓ 
D. Space  Transport  --- New    ✓ 
E. Rail  Transport  Services  --- New  ✓  ✓ 
F. Road  Transport  Services  --- New  ✓ ✓ ✓ 
G. Pipeline  Transport  --- New    ✓ 
H. Services  auxiliary  to all modes  of transport  --- New  ✓  ✓ 
I. Other  Transport  Services  --- New    ✓ 
12. Other services not included elsewhere  --- New     
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations not considered.  
Partial:  GATS commitments subject to some limitation(s) under market access or national treatment, under 
any of the three modes.  
---: No specific commitment (unbound) under GATS or full exclusion of the whole sector  under the 
Agreement.  
New: New commitments made under the Agreement  (full or partial, with or without market access 
commitments and/or limitations). "New" can always be seen as "improved".  
Improved: Overall improved commitments made under the Agreement as compared to those under the GATS.  
Excl.:  Sector excluded from the Agreement.  
✓: Existing non -conforming measures or reservations for future measures scheduled in Annex I and/or Annex  II 
of the Agreement.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/ PER), prepared by the 
Secretariat and Peru's Schedules annexed to the Agreement.  
4.52.   Peru's sectoral liberalization under the Agreement goes beyond its GATS commitments. 
Distribution services and tourism and travel related services  are fully liberalized as regards modes 
1-3 in market access and no reservation s have been taken. Construction and related engineering 
services , education , environmental and health related services are liberalized except that the 
possibility to imp ose any future restrictions remain s.  
4.53.   As regards business services, non -conforming measures under the Agreement  have been 
listed for notaries , auditing and architectural services, R&D services, advertising services, services 
incidental to fishing , energy, and investigation and security . Nationality requirements apply for 
notaries and personal and property security services providers. Architects , whether national or 
foreign , must be members of the Register of Architects.21 Auditing companies can be  constitute d 
only by registered public accountants  residing in Peru.  Foreign directors of archaeological programs 
and projects must be complemented by a Peruvian director with the same responsibilities. National 
artists and technicians must account for at least 80% o f commercial advertising and their payroll 
must be at least 60% of the total.  Various restrictions for foreign shipowners are scheduled. 
Restrictions to the conclusion of exploration contracts include r egistration, establishment of local 
subsidiaries and address requirements.  
                                                
21 Requirements for the membership differ between nationals and foreigners.  WT/REG393/1  
 
- 31 - 
 
  4.54.   Regarding communication services, market access commitments  have been taken for the 
additional subsectors of telecommunication as well as audiovisual services, subject however to 
limitations. These apply to existing m easures in telecommunication services, particularly on call -back 
services (as under the GATS) , audiovisual services (through a "cultural" reservation)  and radio 
diffusion . Market access limitations on telecommunications are restricted to the need for havin g a 
concession, authorization or registr ation. Postal and courier services are liberalized except for the 
possibility to impose  any future restrictions . 
4.55.   Recreational and cultural and sporting services are fully liberalized as regards modes  1-3 in 
market ac cess, but reservations apply to circus services and bullfighting shows with respect to the 
share  of nationals and their wages.  
4.56.   For transport services, non-conforming measures apply to freight transportation (for maritime 
and road transport services), suppo rt services for road transport services, and certain services 
auxiliary to all modes of transport (storage and warehouse services), and services related to 
passenger transportation (maritime transport services and internal waterways transport). Peru also 
reserves commercial national aviation to Peruvian natural and juridical persons.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.57.   The disciplines of Article 13.10 on domestic regulation, as well as enhanced transparency 
relating to them (Article 13.9) , cover all the four modes of supply, since Article 13.1:4 extends these 
disciplines to the right of establishment in the context of an investment . Any dispute settlement 
between a Party and an investor of the other Party is however regulated by Section B of Chapt er 12. 
The Parties commit themselves to ensure a reasonable, objective and impartial administration of 
measures of general application for cross -border trade in services, except for  the measures under 
Annexes I and II.  
4.58.   Services -specific transparency measur es (Article 13.9) commit each Party to (i) have 
mechanisms for replying to requests for consultations by interested persons on regulations applying 
to trade in services and domestic establishment of a covered investment, taking into account 
budgetary and r esource constraints , (ii) provide a written reply, whenever possible, to substantive 
comments made by interested persons regarding draft regulations , and (iii) whenever possible, 
provide for a reasonable time -frame between publication and entry into force of a regulation.  
4.59.   Article 13.10  provides that, whenever authorization is needed for the supply of a service, the 
Party's competent authorities will inform the interested person within a reasonable period of time of 
the decision made, and, upon request by th e latter, of the progress attained in the request without 
undue delay. These disciplines do not apply however to measures  in Annex II . 
4.60.   The Parties commit to ensure that any measure adopted or maintained on the licensing, 
certification, or technical standar ds of service suppliers of the other Party does not constitute an 
unnecessary barrier to cross -border trade in services (covered by Chapter 13) as provided in GATS 
Article VI . To this end, measures are to be based on objective and transparent criteria, suc h as 
competence and the ability to supply the services , not be more burdensome than necessary to 
ensure the quality of the services and not constitute a disguised restriction on the cross -border 
supply of the services.  Any progress achieved in the GATS wit h respect to these questions may 
require an adaptation of disciplines in this Article.  
4.5.2   Recognitio n 
4.61.   One of the aims of t he Agreement is recognition but there is no time -frame nor a specific plan 
or schedule to achieve it. 
4.62.   Article 13.11 foresees the possibility that a Party recognizes the training, experience, licence 
and/or certification obtained in another country towards the authorization, granting of licence or  
certification of services suppliers in its own territory. This may be achieved through harmonization 
or other means and may be autonomous or granted through  an agreement or convention concluded 
with the other country . In the latter case, the agreement could be open for accession by the other WT/REG393/1  
 
- 32 - 
 
  Party,  or the negotiation of a similar  instrument could be envisaged.  No regulation or criterion in 
that respect may constitute a disguised barrier to trade in services , nor constitute a way to 
discriminate among count ries. 
4.63.   Nothing in the Agreement  obliges a Party to grant to the other Party MFN treatment as regards 
recognition granted to a third -party (Article 13.11:2).  
4.64.   The Annex to Article 13.11 sets out procedures and criteria to grant licences or certificat es 
for suppliers of professional services, with the aim of harmonizing them so that mutual recognition 
can be applied. It is envisaged that working groups on professional services, reporting to the 
Commission, may be established to pilot such work . However, a ccordi ng to the Parties , working 
groups have not yet been established. For mutually agreed professional services of an individual 
nature, each Party shall encourage professional bodies to develop procedures for the granting of 
temporary licences for service supp liers of the other Party. An in -built clause provides for a review 
of the Annex every three years.  
4.5.3   Subsidies  
4.65.   There are no provisions regulating subsidies in services per se , but any progress achieved in 
negotiations related to GATS Article XV:1 that applies to both Parties may trigger a revision of the 
disciplines in the Agreement to incorporate such progress ( Article 13.2 ). 
4.5.4   Safeguards  
4.66.   As already mentioned, a  BOP safeguard to the general freedom of capital movement , applying 
to trade in goods and services alike,  is included in  Article 18.5 .  
4.5.5   Other investment -related provisions  
4.67.   Chapter 12 on investment includes provisions dealing with the granting of the minimum 
standards of treatment, including fair and equitable treatment, to investments of investors of 
another Party in accordance with customary international law (Article 12.4) , environment related 
concerns (Article 12.8) , compensation for losses (Article 12.9) , expropriation and compensation 
(Article 12.10) , transfers (Article 1 2.11) , special formalities and information requirements (Article 
12.13) , subrogation (Article 12.14) and a fully -fledged investor -State dispute settlement mechanism 
(Section B, Articles 12.15 -12.29).  
5  GENERAL PROVISIONS O F THE AGREEMENT  
5.1  Transparency  
5.1.  In addi tion to a number of transparency provisions disseminated throughout the Agreement 
and referred to elsewhere in the Factual Presentation, Chapter 16 is dedicated to transparency . It 
includes provisions regarding the Parties' focal points, the publication and provision of information, 
as well as those guaranteeing hearings, legality and due process.  
5.2.  Under Article 16. 1, each Party designate s a contact point to facilitate communication between 
the Parties on any matter covered by the Agreement wit hin 60 days from its entry into force . The 
contact points of both Parties were officially established in August 2019. At the request of a Part y, 
the contact point of the other Party will indicate the office or official responsible for the matter and 
assist , as necessary, in facilitating communication with the requesting Party.  
5.3.  The Parties shall also ensure that their laws, regulations, procedures and administrative rulings 
of general application with respect to any matters under the Agreement  are published promptly or 
made available to the other Party and to interested persons  (Article 16.2) . Each Party committed to 
the extent possible  to publish  any proposed law, regulation, procedure and administrative ruling of 
general application  that relates to the Agreement , and to provide the other Party and interested 
persons with the opportunity to make comments . Upon request by the other Party  and within the 
limits set out by domestic legislation , a Party shall provide information and promptly respond to 
questions p ertaining to any measure  that could substantially affect the Agreement, without prejudice 
to whether the measure is consistent with the Agreement  (Article  16.3). WT/REG393/1  
 
- 33 - 
 
  5.4.  The Parties confirm the guarantees provided for hearings, legality and due process in their 
respective legislation. They also commit to ensure that in any administrative and judicial proceeding 
related to any measure affecting the Agreement , reasonable opportunity will be guaranteed for 
persons to present their respective positions, and the motivat ion and legal grounds are established  
(Article 16.4).  
5.2  Current payments and capital movements  
5.5.  The Agreement  does not include a specific provision regarding payments and capital 
movements for goods, but it does for cross -border trade in services (Article 13.12) and investment 
(Article  12.11). The Parties shall permit all transfers relating to the cross -border su pply of a service, 
or to a covered investment, freely and without delays, in a currency benefitting from free circulation 
and under normal current exchange rate s. Limitations on transfers and payments are authorized 
(paragraph 3 of both Articles) when appl ying laws related to bankruptcy, insolvency or protection of 
the rights of creditors , securities , criminal or penal offences , reports of transfers of currency or other 
monetary instruments  and compliance with judgments in adjudicatory proceedings . Serious BOP 
difficulties or threat thereof  are also an exception to this freedom ( Article 18.5 ). 
5.3  Exceptions  
5.6.  Article 18.1 on general exceptions  incorporates Article XX of the GATT 1994 (and its 
interpretative notes ) and Article XIV of the GATS. Article 18.2  provide s that nothing in the Agreement 
shall be construed to require a Party to furnish any information the disclosure of which is considered 
to be contrary to its essential security and to prevent any Party from taking actions necessary to 
maintain international  peace or to protect its essential security interests.  
5.7.   Chapter 18 include s also  taxation  (Article 18.3)  and disclosure of information (Article 18.4)  
exceptions .  
5.4  Accession and Withdrawal  
5.8.  The Agreement  has no provision regarding accession by a third -party. Either Party can 
terminate the Agreement  and the termination takes effect 180 days after notification to the other 
Party unless otherwise agreed (Article 19. 6).  
5.5  Institutional framework  
5.9.  The Agreement' s main body is the Free Trade Commission, established in accordance with 
Article  17.1. The Commission consists of the representatives of Honduras ' State Secretary in the 
Economic Development Office and of Peru's Minister of Foreign Trade and Tourism, or th eir 
successors. It is responsible for enforcing and implementing the Agreement and considering and 
adapting decisions fulfilling  the Agreement's objectives, including improvements in market access , 
recommending amendments  and supervising the work of all bo dies established under the 
Agreement. The Agreement foresees that the Commission establishes its own rules and procedures  
and a ll its decisions are to be taken by mutual agreement. The Commission meet s at least once a 
year, unless otherwise decided . The fi rst meeting of the Agreement's Free Trade Commission was 
held in Tegucigalpa, Honduras, on 9 May 2017. On that occasion, the following Free Trade 
Commission Decisions were adopted: Decision No. 1, to adopt the rules and procedures under 
Chapter 17 (Agreeme nt Administration); Decision No. 2, to adopt the rules of procedure under 
Chapter 15 (Dispute Settlement); Decision No. 3, to adopt the code of conduct under Chapter 15; 
and Decision No. 4, to establish the re muneration and payment of expenses of panellists, assistants 
and experts in dispute settlement procedures under Chapter 15 . 
5.10.   Other bodies include the Committee s on SPS Measures , TBT, Trade in Goods, Rules of Origin,  
Temporary Entry for Business Persons  and Government Procurement . 
5.6  Dispute settlement  
5.11.   The Agreement  provides for a mechanism to settle disputes between the Parties (Chapter  15) 
and between a Party and an investor of the other Party (Chapter 12, Section B). Except as specified 
otherwise in the Agreement , Chapter 15 applies to any dispute between the Parties related to the WT/REG393/1  
 
- 34 - 
 
  interpretation or application of the Agreement  or wherever a Party considers that  an actual or 
proposed measure of the other Party may be inconsistent with its obligations  under th e Agreement 
or the other Party has otherwise failed to carry out its obligations  under the Agreement  
(Article  15.2) . 
5.12.   For disputes regarding any matter arising under the Agreement  and the WTO Agreement (or 
any other agreement of which both Parties are membe rs) the complaining Party may select the 
forum for the settlement of the dispute. Once the forum has been selected, it must be used to the 
exclusion of the other (Article 15.3).  
5.13.   The dispute settlement mechanism , summarized in Chart 5.1, provides for consultations and, 
except for proposed  measures, the establishment of a Panel (composed of three members) which 
will examine the case and present a  final report to the disputing Parties. Only a single report is 
foreseen. Following receipt of the report, the Parties will agree on the resolution of the dispute, 
including wherever possible, the removal of the measure not conforming to the Agreement. Fai lure 
to agree within 30 days of the report will trigger negotiations between the Parties to agree on a 
compensation to be granted until the dispute is resolved (Article 15.10).  
5.14.   If the Parties fail to agree on a solution or compensation or if the complaini ng Party believes 
that the other Party has failed to observe the terms of the Agreement, the complaining Party can 
suspend, previous notice, benefits to the other Party of equivalent effect. The Party should first 
consider suspending  benefits in the same s ector(s) as those affected by the measures or other 
matter that the Panel has found to be inconsistent with the obligations under the Agreement; if it 
considers that suspending benefits in the same sector is not practicable or effective it may do so in 
other sectors. The suspension of benefits shall be temporary and only applied until the disputed 
measure has been brought into conformity with the Agreement or the dispute has been resolved or 
until the Party complained against has complied (Article 15.11)   
5.15.   A Party can request to reconstitute the original panel to determine whether the suspension of 
benefit s is excessive or if there is a disagreement on the existence of the measures taken to comply 
with the panel report and their compatibility with the Agreeme nt (Article 15.12) . Provision is made 
for the possibility of suspending the work of the Panel by mutual agreement at any time (Article 
15.16).  
5.16.   In accordance with  Article 15.8 , Free Trade Commission Decision No. 2 was a pproved  at the 
first meeting of the Ag reement's Free Trade Commission in order to adopt the rules of procedure 
under Chapter 15 . 
5.17.   Each Party shall, i nsofar as is possible, encourage and facilitate the use of arbitration and 
other alternative means of dispute resolution for settling internationa l trade disputes between private 
parties in the free trade area (Article 15.15).  E ach Party shall provide appropriate procedures to 
ensure observance of agreements to arbitrate and for the recognition and enforcement of arbitral 
awards in such disputes . 
5.18.   The settlement of investment disputes between a Party and an investor of the other Party are 
covered by Section B of Chapter 12. Under this mechanism, the contending parties shall first try to 
resolve a dispute through consultations and negotiations within six months (Article 12.15). If an 
investor considers that a resolution cannot be reached by consultation or negotiation, it can make a 
complaint and seek redress for damages resulting from a breach of the host Party's obligations 
(Article 12.16). An invest or may not make a claim if more than three years have elapsed from the 
date on which the investor first acquired, or should have first acquired, knowledge of the alleged 
breach and knowledge that the investor has incurred loss or damage (Article 12.18). Th e conduct of 
arbitration and transparency in arbitration proceedings are regulated by Article 12.21 and 12.22 
respectively. If the arbitral tribunal rules against the Party complained against, it may award 
monetary damages and any applicable interest, and the restitution of property (Article 12.27). An 
award made by a tribunal shall have no binding force except between the disputing parties and in 
respect of the particular case and each Party shall provide for the enforcement of an award in its 
territory (A rticle 12.28).  WT/REG393/1  
 
- 35 - 
 
  Chart 5.1 Dispute Settlement Provisions of the Agreement  
 
Source:  Chapter 15 of the Agreement.  
5.7  Relationship with other agreements concluded by the Parties  
5.19.   The Parties confirm  their existing rights and obligations with respect to each other under the 
WTO Agreement and other agreements to which they are party  (Article 1.3). In case of 
incompatibility, the provision of this Agreement will prevail to the extent of the incompatibil ity, 
unless otherwise provided for in the Agreement.  
5.20.   Other regional trade agreements  in force  (notified and not notified) to which Honduras and 
Peru are part y are listed in Table 5.1.  
WT/REG393/1  
 
- 36 - 
 
  Table 5.1 Peru and Honduras: Participation in other RTAs (notified and non -notified in 
force), as at 24 September  2019.  
RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Peru  
EU - Colombia and Peru - Accession 
of Ecuador  01-Jan-17 Goods & Services  2017 GATT Art. XXIV & GATS Art. V  
Pacific Alliance  01-May-16 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Costa Rica - Peru 01-Jun-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
EU - Colombia and Peru  01-Mar-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Panama - Peru 01-May-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Japan - Peru 01-Mar-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Mexico  01-Feb-12 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
EFTA - Peru 01-Jul-11 Goods  2011 GATT Art. XXIV 
Peru - China  01-Mar-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
Peru - Singapore  01-Aug-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Canada - Peru 01-Aug-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Peru - Chile 01-Mar-09 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
United States - Peru 01-Feb-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Latin American Integration 
Association (LAIA) - Accession of 
Cuba 26-Aug-99 Goods  1999 Enabling Clause  
Global System of Trade Preferences 
among Developing Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
Andean Community (CAN)  25-May-88 Goods  1990 Enabling Clause  
Latin American Integration 
Association (LAIA)  18-Mar-81 Goods  1982 Enabling Clause  
Protocol on Trade Negotiations (PTN)  11-Feb-73 Goods  1971 Enabling Clause  
LAIA - Accession of Panama  03-May-12 Goods  Not notified  
Peru - Thailand  31-Dec-11 Goods  Not notified  
Andean Community  14-Dec-06 Services  Not notified  
MERCOSUR - Peru 
[LAIA, AAP,CE N°58]a 02-Jan-06 Goods & Services  Not notified  
Peru - Cuba  
[LAIA, AAP.CE N°50]a 09-Mar-01 Goods  Not notified  
LAIA - Seeds [AAP.AG N°2]a 18-Jun-93 Goods  Not notified  
Honduras  
Canada - Honduras  01-Oct-14 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
EU - Central Americab 01-Aug-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
Central American Common Market 
(CACM) - Accession of Panama  06-May-13 Goods  2017 GATT Art. XXIV  
Mexico - Central America  01-Sep-12 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Colombia - Northern Triangle  
(El Salvador, Guatemala, Honduras)  12-Nov-09 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Panama - Honduras  
(Panama - Central America)  09-Jan-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Chile - Honduras  
(Chile - Central America)  19-Jul-08 Goods & Services  2011 GATT Art. XXIV & GATS Art. V  
El Salvador - Honduras - Chinese 
Taipei  01-Mar-08 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central 
America - United States Free Trade 
Agreement (CAFTA -DR) 01-Mar-06 Goods & Services  2006 GATT Art. XXIV & GATS Art. V  
Dominican Republic - Central 
America  04-Oct-01 Goods & Services  2012 GATT Art. XXIV & GATS Art. V  
Central American Common Market 
(CACM)  04-Jun-61 Goods  1961 GATT Art. XXIV  WT/REG393/1  
 
- 37 - 
 
  RTA Name  Date of 
entry into 
force  Coverage  GATT/WTO Notification  
Year WTO Provision  
Honduras - Venezuela  
[LAIA, AAP.A25TM N°16]a 22-Sep-86 Goods  Not notified  
a  For those agreements negotiated under the LAIA framework, the LAIA  reference is included in 
brackets. Details of these agreements can be found at: http://www.aladi.org . Please note however 
that this table does not take into account a communication received on 1 November 2018 from the 
Delegation of Uruguay addressed to the Committee on Trade and Development which has not yet been 
circulated.  
b The notifications made in February 2013 (see WT/REG332/N/1 and S/C/N/680) stated that: 
"Provisional application of the Agreement by all signatory  parties is expected in the course of the 
second quarter 2013"; Further notifications to confirm the dates of entry into force between the EU  and 
Central American countries are awaited.  
Source:  WTO Secretariat. Further information may be found in the WTO Database on RTAs: 
http://rtais.wto.org .  
 
5.8  Government procurement  
5.21.   Honduras and Peru are neither Members nor observers in the WTO Government Procurement 
Agreem ent.  
5.22.   Chapter 10 and related annexes contain disciplines on government procurement. The 
Agreement  covers procurement of goods and services by central and subcentral Government entities 
and other public entities listed in Annex 10.1 . Goods and services whose coverage is excluded are 
also listed in the Annex which  states that any covered service remain s subject to the list of 
non-conforming measures related to services and investment.  
5.23.   Thresholds are specified in terms of the IMF special drawing rights (SDR).  For central 
government entities, the threshold is at 130,000 SDRs  while for other entities  the threshold is 
200,000 SDRs . For construction services, a single threshold at SDRs 5 ,000,000 applies for any 
procurement .22 Modification of coverage, and the provi sion of compensation, is addressed in 
Article  10.16  while Article 10.18 foresees the possibility for extending the Chapter's scope upon 
request by either  Party.  
5.24.   National treatment and non -discrimination principles for goods and services from the other 
Party are contained in Article 10.3. Non -compliance with rules of origins , as provided for in the 
relevant Chapters, allows the denial of the Agreement 's benefits (Article 10.3) . 
5.25.   Tendering procedures are described in Article 10.10 -10.12 . Open tendering shall be the norm, 
but other tendering forms may to be applied under certain circumstances, provided they are not 
used as a way of distorting competition and discriminate between domestic and foreign suppliers 
(Article 10.10). Each Party must  establish and maintain a domestic challenge procedure for 
procurement activities covered under the Agreement  and they are to establish or designate at least 
one impartial administrative or judicial authority, independent from the contracting authorities, to 
receive and review any complaint  (Article 10.15) .  
5.26.   Numerous provisions (Articles 10.4 -10.6, 10.13 -10.14) deal with the dissemination of 
information relating to procurement, emphasizing the importance of the use of electronic means to 
that end. Neither P arty is required to provide information contrary to its public interests.  
5.27.   The Parties endeavour to cooperate to achieve a better understanding of their public 
procurement systems and to facilitate access for their respective suppliers . To this end, each P arty 
will provide the other Party and its suppliers information on training and guidance programmes on 
public procurement (Article 10.20).  
5.28.   The Commi ttee on Government Procurement  is established under Article 10.21 . Its functions 
include the monitoring of t he implementation and the administration of the rules on Government 
                                                
22 In the WTO Government Procurement Agreement, for a number of Parties the thresholds are set at 
130,000 SDR for goods and  services procured by central government, and at 5,000,000 SDR for construction 
services.  WT/REG393/1  
 
- 38 - 
 
  procurement under the Agreement, the consideration of conducting additional negotiations to widen 
the coverage of Chapter 10 and the evaluation and follow -up of cooperation activities on t he matter. 
According to the Parties, the Committee has not yet met . 
5.9  Intellectual property rights  
5.29.   In its Chapter 9, t he Agreement  reaffirms the Parties' rights and obligations under inter alia  
the WTO Agreement on Trade -Related Aspects of Intellectual Property Rights (TRIPS) and its related 
instruments, including the 2001 Ministerial Declaration on TRIPS and Public Health.  National 
treatment and MFN are provided for  and exceptions to such princ iples are in accordance with 
Articles  3, 4 and 5 of the TRIPS Agreement (Article 9.2). The Parties remain free to provide , in 
accordance with domestic legislation, wider protection than that under Chapter 9, as long as the 
protection does not violate the provisions  in it. 
5.30.   The Chapter includes provisions on trademarks, geographical indications, biodiversity and 
traditional knowledge, copyrights and related rights, enforcement of IPRs, cooperation and science 
and technology.  
5.31.   The Parties commit to protect trad emarks and well -known marks in accordance with the TRIPS 
agreement (Article 9.3). They also extend the protection given in Article 16.3 of the TRIPS to well -
known marks for dissimilar goods and services, irrespective of whether they are registered or not .23 
Further, t he Parties  commit to developing a system for the registration of trademarks  in which (i) the 
applicant shall be notified in writing of the reasons for a refusal to register a trademark , (ii) interested 
people will be given an opportunity to oppose a registration request , (iii) decis ions regarding 
registration and nullity be explained in writing and (iv) a right of appeal  is provided for . 
5.32.   Honduras  recognizes eight Peruvian geographical indications  (GIs) and Peru  recognizes 
six Honduran GIs .24 The Parties commit to protect each other's GIs, and thus to prohibit imports, 
production or sale of such products unless they are produced following the  regulations governing 
their manufacture. The Parties remain however free  to maintain or adopt, in their national legislation, 
measures related to homonymic GIs (Article 9.4). They may grant protection to other GIs protected 
in the Parties, including denominations of origin, upon notification by one of the Parties of the 
protection, in accordance with the ir regular domestic  procedures . No time -frame is specified for 
when such protection will become effective.  
5.33.   The Parties are free to determine the conditions  of access to their genetic and biological 
resources in accordance with domestic and international rules  (Article 9.5).  Access wil l be subject to  
previous consent  by the Party  based on mutually agreed terms. They a lso commit to respect, 
preserve and maintain the traditional knowledge , innovations and practices of their indigenous and 
local communities . Access to traditional knowledge associated with biological and genetic resources  
will also be subject to previous consent by their holders also on  mutually agreed terms.  Any IPR 
granted in connection with these will be in accordance with relevant domestic and international rules . 
Proof of legal access to such resources or knowledge and the disclosure of their origin sh all be 
required in the context of a patent application, if domestic legislation so requires. The Parties are 
encouraged to cooperate for the exchange of  available  public information in the context of an 
investigation of illegal access to genetic resources  and traditional knowledge in their territories .  
5.34.   Compared to the TRIPS Agreement, the Agreement  widens the protection of authors and 
performers by providing for the protection of an author's/performer's moral rights after protection 
has expired, and also after death and at least until the expiry of the economic rights (as under 
Article  6bis of the Berne Convention), which are not included under the TRIPS Agreement  
(Article  9.6). Further, e ach Party shall ensure that  a broadcasting organization within its territor y 
will at least have the exclusive right to authorize the fixation, reproduction and retransmission of its 
broadcasts.  
                                                
23 A mark is considered to be well -know n if it has such reputation among the public dealing with the 
relevant goods or services.  
24 Honduras recognizes the fo llowing Peruvian GIs: "Pisco", "Cusco's giant white corn", "Chulucanas", 
"Pallar de Ica", "Café Villa Rica", "Loche de Lambayeque", "Café Machu -Picchu -Huadquiña" and 
"Maca  Junin-Pasco". Peru recognizes the following Honduran GIs:  "Café Marcala", "Cafés del Occidente 
Hondureño", "Café  Congolón", "Café Cangual", "Café Camapara" and "Café Opalaca".  WT/REG393/1  
 
- 39 - 
 
  5.35.   Regarding enforcement, the Parties may develop in their national legislation measures, 
procedures and remedies to ensure the enforce ment of  IP rights  (Article 9.7) . Right holder s shall  
present  "adequate evidence" to ask for the suspension of the release of suspected infringing 
merchandise. This adequate evidence must prove , to the satisfaction of the competent authority, 
that under the importing party 's legislation there is a presumption of IPR infringement of the rights 
of the right holder . Sufficient information reasonably known by  the right holder  shall also be provided 
so that the merchandise  can be easily identified by the competent authorities .25 The requirement to 
present such information shall not unreasonably deter recourse to these procedures. In addition, the 
Parties ' competent authorities have the authority to inform t he right holder of the names and 
addresses of the consignor, the importer and the consignee and of the quantity of the goods when 
goods are counterfeit or pirated . The Agreement  also allows the Party's competent authorities to 
initiate ex officio  border me asures if there are reasons to suspect that trade in counterfeit or pirated 
goods is taking place.  
5.10  Competition policy  
5.36.   Chapter 11 provides disciplines regarding competition policy, aim ed at ensuring that benefits 
under the Agreement  are not nullified throug h anti -competitive practices . The Chapter provides for , 
inter alia , the adoption or maintenance by each Party of competition policy legislation, and a 
responsible authority , notification of any competition -related activity applied in a Party that may be 
of interest to the other Party, at an early stage if possible , cooper ation among responsible 
competition authorities on the enforcement of their respective legislation , exchange of information 
according to its domestic legislation and the possibility for consultations.  
5.37.   Any issue under the Chapter  is excluded from both the dispute settlement mechanisms 
between the Parties and the Investor -State dispute settlement mechanism established under the 
Agreement (Article 11.7) . 
5.11  Environment  
5.38.   The Parties recognize that it is inappropriate to promote investment by relaxing or reducing 
protection afforded by their environmental legislation (Article 12.8). Moreover, nothing in Chapter  13 
shall be construed to prevent a Party from applying or adopting any measure (consistent with the 
Agreement) to ensure that investments in its territory ta ke into account environmental concerns.  
5.12  Labour  
5.39.   There are no specific provisions on labour in the Agreement.  
5.13  Electronic commerce  
5.40.   There are no specific provisions on electronic commerce in the Agreement .
                                                
25 These requirements are more specific than those under Article 43 of the TRIPS Agreement , while the 
Agreement's requirement for the prov ision of a security or equivalent  is similar to that under the TRIPS.  WT/REG393/1  
 
- 40 - 
 
  ANNEX 1  
1. Table A1. 1 and Table A1. 2 present the Parties' tariff elimination schedule overall an d by 
agricultural and industrial  products.  The average applied MFN tariff at the date of entry into force of 
the Agreement serves as comparison.  
2. In the case of Honduras, the share of duty -free tariff lines applied on all products rose from 
48% to 77% upon the Agreement's entry into force and the overall average applied tariff fell from 
6% on an MFN basis to 2.5% for imports from Peru . For agricultural goods, Peruvian exporters faced 
in Honduras an average tariff rate of 5.7% instead of the MFN average rate of 11.5%, and 1.8% 
instead of 4.7% for industrial  goods. Peruvian exporters benefited from a relative margin of 
preference of 57.6% overall, 50.4% for agricultural products and 61.7% for industrial  goods. 
Following ten years of liberalization, the share of duty -free lines for imports from Peru is expected 
to rise to 97.7% overall, and 87.7% and 99.8% for agricultural and industrial products. At the end 
of liberalization,  the share of duty -free lines for imports from Peru is expec ted to increase to 98.7% 
overall, 93% for agricultural products and 100% for industrial  products.  
Table A1. 1 Honduras: Indicators of MFN tariff rates and preferential rates for imports 
from Peru  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  
Share of 
duty-free 
tariff 
lines (%)  Average applied 
tariff  
Share of 
duty-free 
tariff 
lines (%)  Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 5.9 11.4 48.0 11.5 14.3 19.0 4.7 10.3 54.3 
Peru 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  2017 2.5 11.1 77.2 5.7 15.5 63.2 1.8 9.3 80.3 
2018 2.2 9.7 77.2 5.2 14.2 63.2 1.5 7.8 80.3 
2019 1.9 8.3 77.2 4.7 12.8 63.2 1.3 6.4 80.3 
2020 1.6 6.8 77.2 4.2 11.5 63.2 1.0 4.9 80.3 
2021 1.2 8.0 84.6 3.7 13.2 71.7 0.7 5.4 87.4 
2022 1.1 6.9 84.6 3.4 12.2 71.7 0.5 4.3 87.4 
2023 0.9 5.9 84.6 3.2 11.3 71.7 0.4 3.3 87.4 
2024 0.8 4.9 84.6 2.9 10.3 71.7 0.3 2.2 87.4 
2025 0.6 3.8 84.6 2.6 9.4 71.7 0.1 1.1 87.4 
2026 0.4 18.7 97.7 2.4 19.4 87.7 0.0 6.1 99.8 
2027 0.4 18.2 97.7 2.3 19.0 87.7 0.0 5.4 99.8 
2028 0.4 17.8 97.7 2.3 18.6 87.7 0.0 4.8 99.8 
2029 0.4 17.4 97.7 2.2 18.2 87.7 0.0 4.1 99.8 
2030 0.4 17.0 97.7 2.2 17.8 87.7 0.0 3.4 99.8 
2031 0.4 30.4 98.7 2.1 30.8 93.0 0.0 12.5 100.0  
Note:  Duties of Tariff line subject to price band system are excluded in the computation  of averages . 
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Honduras.   
 
3. In the case of Peru, the share of duty -free tariff lines applied on all products rose from 69.9% 
on an MFN basis  to 84.2% upon the Agreement's entry into force and the overall average applied 
tariff fell from 2.2% to 1% for imports from Honduras . For agricultural goods, Honduran exporters 
faced in Peru an average preferential tariff rate of 1.8% instead of 2.4%, and 0. 8% instead of 2. 2% 
for industrial  goods. Honduran exporters benefited from a relative margin of preference of 54.5% 
overall, 25% for agricultural products and 63.6% for industrial  goods. Following ten years of 
liberalization, the share of duty -free tariff lines is expected to rise to 98. 1% overall, and 8 8.8% and 
99.9% for agricultural and industrial products. At the end of liberalization,  the share of duty -free 
lines is expected to increase to 9 9% overall, 9 4% for agricultural products  and 100% for industrial  
products.  WT/REG393/1  
 
- 41 - 
 
  Table A1. 2 Peru: Indicators of MFN tariff rates and preferential rates for imports from 
Honduras  
Origin of 
goods  Year  ALL PRODUCTS  HS Chapters 1 -24 HS Chapters 25 -97 
Average 
applied tariff  
Share of duty -
free tariff lines 
(%) Average 
applied tariff  
Share of duty -
free tariff lines 
(%) Average 
applied tariff  
Share of duty -
free tariff lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2017 2.2 7.5 69.9 2.4 6.3 59.8 2.2 7.8 71.8 
Honduras  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  2017 1.0 6.3 84.2 1.8 6.4 69.0 0.8 6.3 87.2 
2018 0.9 6.1 84.2 1.7 6.1 69.0 0.8 6.0 87.2 
2019 0.8 5.2 84.2 1.5 5.4 69.0 0.7 5.2 87.2 
2020 0.6 4.1 84.2 1.3 4.5 69.0 0.5 4.0 87.2 
2021 0.4 5.1 90.9 1.0 5.6 79.1 0.3 4.8 93.2 
2022 0.4 4.3 90.9 0.9 5.1 79.1 0.3 3.9 93.2 
2023 0.3 3.4 90.9 0.8 4.4 79.1 0.2 2.9 93.2 
2024 0.2 2.5 90.9 0.7 3.7 79.1 0.1 2.0 93.2 
2025 0.1 1.7 90.9 0.5 3.0 79.1 0.1 1.0 93.2 
2026 0.1 4.9 98.1 0.4 5.0 88.8 0.0 3.4 99.9 
2027 0.1 4.3 98.1 0.3 4.4 88.8 0.0 2.8 99.9 
2028 0.0 3.7 98.1 0.3 3.8 88.8 0.0 2.1 99.9 
2029 0.0 3.1 98.1 0.3 3.3 88.8 0.0 1.4 99.9 
2030 0.0 2.5 98.1 0.2 2.7 88.8 0.0 0.7 99.9 
2031 0.0 6.7 99.0 0.2 6.7 94.0 0.0 0.0 100.0  
Note:  Duties of Tariff line subject to price-band system are excluded in the computation  of averages . 
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Peru. 
 
4. Table A1. 3 shows market access opportunities for Peru's top 25 exported goods in Honduras. 
These exports accounted for 45.5% of Peru's  global exports during 2014-2016 and involved 53 tariff 
lines in Honduras' schedule, of which 27 were already duty -free on an MFN basis . A further 20 lines 
were liberalized in 2017. One and three lines are due to be liberalized in 2021 and 2026. By the end 
of the liberalization period in 2031, 2 lines on imports of maize will remain dutiable ; the average 
applied MFN rate on these lines was 7.5% in 2017 . 
Table A1. 3 Honduras: Market access opportunities under the agreement for Peru's 
top 25 exports to the world  
Peru's top export products  
in 2014 – 2016  Access conditions to Honduras' import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty -free 
lines under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of 
duty- free 
lines  
No. of 
dutiable 
lines  
2017  
2021  
2026  
260300  Copper ores and concentrates  9.9 0.0 1      
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary 
purposes  8.1 5.0  1 1    
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, 
not containing biodiesel  4.1 3.1 8 5 5    
270900  Petroleum oils and oils obtained 
from bituminous minerals, crude  3.1 0.0 2      
740311  Copper, refined, in the form of 
cathodes and sections of cathodes  2.1 0.0 1      WT/REG393/1  
 
- 42 - 
 
  Peru's top export products  
in 2014 – 2016  Access conditions to Honduras' import markets  
HS number and description of the product  Share in 
global 
exports 
(%) MFN 2017  No. of duty -free 
lines under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of 
duty- free 
lines  
No. of 
dutiable 
lines  
2017  
2021  
2026  
271012  Light oils and preparations, of 
petroleum or bituminous minerals 
which >= 90% by volume "incl. 
losses" distil at  
210°c "astm d 86 method"  2.0 2.9 3 4 4    
260800  Zinc ores and concentrates  1.6 0.0 1      
230120  Flours, meals and pellets of fish or 
crustaceans, molluscs or other 
aquatic invertebrates, unfit for 
human consumption  1.6 2.5 1 1 1    
851712  Telephones for cellular networks 
"mobile telephones" or for other 
wireless networks  1.5 0.0 1      
260700  Lead ores and concentrates  1.5 0.0 1      
090111  Coffee  0.9 13.8  4 4    
080610  Fresh grapes  0.9 15.0  1 1    
271111  Natural gas, liquefied  0.8 0.0 1      
100590  Maize  0.8 7.5 1 3   1 2 
870340  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons  0.7 5.0  1   1  
870360  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons  capable of being 
charged by plugging to external 
source of electric power  0.7 5.0  1   1  
230400  Oilcake and other solid residues, 
whether or not  ground or in the form 
of pellets, resulting from the 
extraction of soya -bean oil  0.6 2.5 1 1 1    
261610  Silver ores and concentrates  0.6 5.0  1 1    
100199  Wheat and meslin  0.6 0.0 1      
260111  Non-agglomerated iron ores and 
concentrates (excl. roasted iron 
pyrites)  0.6 0.0 1      
847130  Data-processing machines, 
automatic, portable,  
weighing <= 10 kg  0.6 0.0 1      
070920  Fresh or chilled asparagus  0.5 15.0  1 1    
800110  Unwrought tin, not alloyed  0.5 0.0 1      
852872  Reception apparatus for television, 
colour  0.5 7.5 1 1  1   
610910  T-shirts, singlets and other vests of 
cotton, knitted or crocheted  0.5 15.0  1 1    
Total  45.5 4.2 27 26 20 1 3 2 
Note:  Duties of Tariff line subject to price band system are excluded in the computation  of averages . 
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Honduras . 
5. Table A1. 4 shows market access opportunities for Honduras' top 25 exported goods in Peru. 
These exports accounted for 43% of Honduras' global exports during 201 4-2016 and involved 
117 tariff lines in Peru's schedule, of which 84 were already duty -free on an MFN basis . Following 
entry into force of the Agreement, Peru liberalized 7 lines in 2017. Further liberalization is scheduled 
in 2021 (2 lines) and 2026 (17 lines). At the end of implementation , 7 lines will remain subject to 
the price -band system ; these rela te to imports  of food preparations (2 lines), maize (4 lines) and 
preparations of a kind used in animal feeding  (1 line) from Honduras . WT/REG393/1  
 
- 43 - 
 
  Table A1. 4 Peru: Market access opportunities under the agre ement for Honduras' top 25 
exports to the world  
Honduras' top export products  
in 2014 –2016  Access conditions to Peru's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2017  No. of duty -free 
lines under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of 
duty-free 
lines  
No. of 
dutiable 
lines  
2017  
2021  
2026  
271019  Medium oils and preparations, of 
petroleum or bituminous 
minerals, not containing 
biodiesel  8.0 0.0 22      
090111  Coffee  6.9 11.0  2 2    
854430  Ignition wiring sets and other 
wiring sets for vehicles, aircraft 
or ships  4.5 0.0 1      
271012  Light oils and preparations, of 
petroleum or bituminous 
minerals which >= 90% by 
volume "  3.2 0.0 18      
030617  Frozen shrimps and prawns, 
even smoked, whether in shell 
or not, incl. shrimps and prawns 
in shell, cooked by steaming or 
by boiling in water  2.3 0.0 7      
080390  Fresh or dried bananas  2.0 6.0  4 2  2  
151110  Crude palm oil  1.6 6.0  1 1    
210690  Food preparations  1.1 1.4 10 5   3 2 
300460  Medicaments containing 
antimalarial active principles  1.1 6.0  1   1  
300490  Medicaments consisting of mixed 
or unmixed products for 
therapeutic or prophylactic 
purposes, put up in measured 
doses  1.1 6.0  7 2 2 3  
851712  Telephones for cellular networks 
"mobile telephones" or for other 
wireless networks  1.1 0.0 1      
870421  Motor vehicles for the transport 
of goods, with compression -
ignition internal combustion 
piston engine "diesel or semi -
diesel engine" of a gross vehicle 
weight <= 5 t  0.9 0.0 3      
854140  Photosensitive semiconductor 
devices, incl. photovoltaic cells  0.9 0.0 2      
100590  Maize  0.9 0.0* 3 4    4 
190590  Bread, pastry, cakes, biscuits 
and other bakers' wares  0.8 0.0 2      
710812  Gold, incl. gold plated with 
platinum, unwrought, for non -
monetary purposes  0.8 0.0 1      
230400  Oilcake and other solid residues 
from the extraction of soya -bean 
oil 0.7 0.0 1      
730890  Structures and parts of 
structures, of iron or steel  0.7 0.0 3      
230990  Preparations of a kind used in 
animal feeding  0.7 0.0* 3 1    1 
481910  Cartons, boxes and cases, of 
corrugated paper or paperboard  0.7 6.0  1   1  
340119  Soap and organic surface -active 
products and preparations  0.7 6.0  2   2  
481159  Paper and paperboard, surface -
coloured, surface -decorated or 
printed, coated, impregnated or 
covered with artificial resins or 
plastics, in rolls or in square or 
rectangular sheets, of any size  0.5 3.3 4 5   5  
711291  Waste and scrap of gold  0.5 0.0 1      WT/REG393/1  
 
- 44 - 
 
  Honduras' top export products  
in 2014 –2016  Access conditions to Peru's import markets  
HS number and description of the 
product  Share in 
global 
exports 
(%) MFN 2017  No. of duty -free 
lines under the 
agreement  
Remain dutiable  
Average 
MFN 
applied 
rate (%)  
No. of 
duty-free 
lines  
No. of 
dutiable 
lines  
2017  
2021  
2026  
030431  Fresh or chilled fillets of tilapia 
"oreochromis spp."  0.5 0.0 1      
151190  Palm oil and its fractions, 
whether or not refined  0.5 0.0 1      
Total  42.9 2.1 84 33 7 2 17 7 
* MFN rates for dutiable tariff lines are only specific rates ( price-band system ). 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Peru, WTO -IDB, and UNSD, Comtrade database.  
 
  WT/REG393/1  
 
- 45 - 
 
  ANNEX 2  
Table A2. 1 Peru: Products subject to the price -band system  
Product  HS 2017  
nomenclature  MFN 
(2017)  Tariff at the end of implementation  
Rice 1006109000  0 + SFP  Exclu ded 
1006200000  0 + SFP  Exclu ded 
1006300000  0 + SFP  Exclu ded 
1006400000  0 + SFP  Excluded  
Sugar  1701120000  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
1701140000  0 + SFP  Excluded  
1701999000  0 + SFP  Excluded  
1702600000  0 + SFP  Zero ad valorem  as of 2031. SFP is maintained.  
1702902000  0 + SFP  Excluded  
1702903000  0 + SFP  Excluded  
1702904000  0 + SFP  Excluded  
Dairy products  0401100000  0 + SFP  Excluded  
0401200000  0 + SFP  Excluded  
0402101000  0 + SFP  Excluded  
0402109000  0 + SFP  Excluded  
0402211100  0 + SFP  Excluded  
0402211900  0 + SFP  Excluded  
0402219100  0 + SFP  Excluded  
0402219900  0 + SFP  Excluded  
0402291100  0 + SFP  Excluded  
0402291900  0 + SFP  Excluded  
0402299100  0 + SFP  Excluded  
0402299900  0 + SFP  Excluded  
0402991000  0 + SFP  Zero ad valorem  as of 2031. SFP is maintained.  
0404109000  0 + SFP  Zero ad valorem  as of 2021. SFP is maintained.  
0405100000  0 + SFP  Excluded  
0405902000  0 + SFP  Excluded  
0405909000  0 + SFP  Excluded  
0406300000  0 + SFP  Excluded  
0406904000  0 + SFP  Excluded  
0406905000  0 + SFP  Excluded  
0406906000  0 + SFP  Excluded  
0406909000  0 + SFP  Excluded  
1901902000  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
1901909000  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
2106907900  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
2106909000  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
Yellow maize (corn)  1005901100  0 + SFP  Excluded  
1005901200  0 + SFP  Excluded  
1005901900  0 + SFP  Excluded  
1005909000  0 + SFP  Excluded  
1007900000  0 + SFP  Excluded  
1103130000  0 + SFP  Zero ad valorem  as of 2031. SFP is maintained.  
1108120000  6 + SFP  Zero ad valorem  as of 2021. SFP is maintained.  
1108130000  6 + SFP  Zero ad valorem  as of 2021. SFP is maintained.  
1702302000  0 + SFP  Zero ad valorem  as of 2026. SFP is maintained.  
2309909000  0 + SFP  Zero ad valorem  as of 2017. SFP is maintained.  
3505100000  6 + SFP  Zero ad valorem  as of 2021. SFP is maintained.  
Note: SFP stands for Sistema de Franjas de Precios . 
__________