WT/TPR/M/336  
1 July 2016  
(16-3556)  Page: 1/36  
Trade Policy Review Body 
2 and 4 May 2016  
 
  TRADE POLICY REVIEW 
HONDURAS  
MINUTES OF THE MEETING 
Chairperson: Ms Irene Young (Hong Kong, China) 
CONTENTS 
 
1  INTRODUCTORY REMARKS BY THE CHAI RPERSON ....................................................... 2  
2  OPENING STATEMENT BY THE RE PRESENTATIVE OF HONDURAS ................................. 4  
3  STATEMENT BY THE DISCUSSANT ................................................................................ 9  
4  STATEMENTS BY MEMBERS ........................................................................................ 12  
5  REPLIES BY THE REPRESENTATIVE OF HONDURAS AND ADDITIONAL 
COMMENTS ..................................................................................................................... 31  
6  CONCLUDING REMARKS BY THE CHAI RPERSON ......................................................... 35  
 
 
Note: Advance written questions and additional questions by WTO Members, and the replies 
provided by Honduras are reproduced in document WT/TPR/M/336/Add.1 and will be available 
online at http://www.wto.org/englis h/tratop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/336 • Honduras 
 
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  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The third Trade Policy Review of Honduras was held on 2 and 4 May 2016. The Chairperson, 
Ms. Irene Young (Hong Kong, China), welcomed the delegation of Honduras headed by Mr. Melvin 
Redondo, Under-Secretary for Economic Integration and Foreign Trade; the rest of the delegation 
of Honduras; and the discussant, Dr. Shin-Yuan Lai (the Separate Customs Territory of Taiwan, 
Penghu, Kinmen and Matsu) (hereinafter referred to as Chinese Taipei). As agreed by Members earlier, the United Nations Industrial Development Organisation was attending this meeting as 
observer on an ad hoc basis. 
1.2.  The Chairperson recalled the purpose of the Tr ade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Honduras was contained in document WT/TPR/G/336 and that of the WT O Secretariat in WT/TPR/S/336. 
1.3.  Questions by the following delegations had been  submitted in writing before the deadline and 
had been transmitted to the delegation of Honduras: Mexico; European Union; Australia; Canada; China; Peru; Brazil; Chinese Taipei; Guatemala; Dominican Republic; and Chile. The following 
delegations submitted written questions after the deadline: Colombia; United States; Ecuador; 
Argentina; El Salvador and Thailand. These questions had also been transmitted to the delegation of Honduras. 
1.4.  At the previous TPR meeting in 2010, Members had praised Honduras for its strong economic 
growth and achievements in reducing inflation, fi scal deficit, and external debt burden. Members 
had encouraged Honduras to continue its structur al and trade reforms, so as to strengthen its 
resilience to external shocks, reduce widespread  poverty, and achieve social progress. It was 
encouraging to see that, during this review period, Honduras' economy had been able to recover 
from the aftermath of the global financial crisis and the fall in demand for its main exports such as coffee and bananas. Nevertheless, its GDP growth had not been sufficient to mitigate the huge 
deficit in its balance of payments, and indeed some development indicators had worsened. 
Reforms to increase competitiveness, attract investment and improve governance were necessary to bring about more fundamental changes, and th is was precisely what Honduras had done. Key 
initiatives during this review period included a tax reform, and new or revised trade-related laws - 
two of which seemed to have attracte d Members' attention in particular.  
1.5.  The first one was the new legislation in 2013 to create Employment and Economic 
Development Zones (ZEDEs), which aimed at, inter alia , developing the services sector. These 
were independent customs zones, which could help their own internal policies and regulations, 
including fiscal and monetary policy. 
1.6.  The second one was the Investment Promot ion and Protection Law, which had been 
introduced in 2011 to provide greater protection to investors and streamline investment 
procedures. Members recalled that at the last review, there had been questions about Honduras' 
future initiatives to eliminate restrictions to foreign investment and improve its business 
environment. So, the new legislation was most we lcome and, the Chairperson believed, would be a 
topic of great interest in the discussion. 
1.7.  As an economy largely dependent on international trade, Honduras had to maintain strong 
and mutually beneficial economic relationships with its trading partners. In the last review, 
Members had acknowledged Honduras' strong commitment to the multilateral trading system and 
had noted its efforts in regional economic integration. How it had since then reached out to negotiate or implement free trade agreements with  other trading partners such as the EFTA and 
Canada was a matter of interest to some Members. To sustain economic growth in the longer 
term, it was crucial that Honduras diversify both the products and the markets for its exports, but changes had not been apparent so far. Members wished to know what strategies Honduras had 
developed to further promote this cause.  
1.8.  With regard to specific trade measures, in 2010 Members had expressed appreciation for the 
improvements that Honduras had made in areas such as SPS and TBT, competition policy, and government procurement, and they had encouraged Honduras to remove the price band system 
and to reduce tariffs on a handful of products fo r which the applied tariff exceeded bound rates. 
They were pleased to note that Honduras had made further progress in competition policy and WT/TPR/M/336 • Honduras 
 
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  government procurement. However, judging from the advance questions, it seemed to the 
Chairperson that those issues relating to the ta riff regime were yet to  be fully addressed.  
1.9.  Other issues that continued to feature in Members' advance questions included customs 
procedures and customs valuation, export suppor t regimes, and intellectual property rights. It 
would be helpful to hear from Honduras the policy actions that it had taken in these areas.  
1.10.  This meeting would be a good opportunity for Members to discuss in greater detail issues of 
interest to them and of systemic importance to the multilateral trading system. The Chairperson 
looked forward to a fruitful exchange. WT/TPR/M/336 • Honduras 
 
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  2  OPENING STATEMENT BY THE REPRESENTATIVE OF HONDURAS 
(MR. MELVIN REDONDO) 
2.1.  Honduras is particularly pleased this morning to be presenting the third review of its trade 
policies. I would especially like to thank Dr Shin Yuan Lai, Permanent Representative of the 
Customs Territory of Taiwan, Penghu, Kinmen and Matsu, for agreeing to serve as the discussant 
in this review. 
2.2.  We thank Argentina, Australia, Brazil, Canada, Chile, China, Colombia, the Dominican 
Republic, the European Union, Ecuador, El Sa lvador, Guatemala, Mexico, Peru, the Customs 
Territory of Taiwan, Penghu, Kinmen and Matsu, and the United States for their questions. Our 
thanks also go to the WTO Secretariat for its report on the trade policies of Honduras and for assisting our Government with the preparation of  the review. We have replied to the questions 
posed by Members and have requested the Secretaria t to circulate them for the purposes of this 
review. However, as some of the questions were received at a late stage, the relevant institutions are still responding to them, so the answers will be submitted at the second review session. We 
were interested to note some of the questions ra ised by Members concerning recent aspects of our 
economic policy, such as those relating to the Employment and Economic Development Zones (ZEDE), public private partnerships, and matters pertaining to Central America's regional economic 
integration. We have also noted the interest expressed by Members in topics relating to our 
country's experience in implementing its preferenti al trade agreements and in specific issues being 
discussed in the agreements' joint administrative  bodies. These questions have been addressed 
and replies given in a spirit of transparency, on  the understanding that the bodies concerned will 
be able to provide further details. 
2.3.  For Honduras, this third trade policy review provides an opportunity to describe the progress 
made in the conduct and performance of its economic and social policies since the second review 
in 2010 and to highlight Honduras' commitment, within a long term policy framework, to raising 
living standards for all Hondurans. Honduras still faces a number of social and economic challenges, which are growing as global economic recovery gathers pace following the 2009 
economic and financial crisis, as well as challenges arising from the effects of climate change, to 
which Honduras is particularly vulnerable. 
2.4.  Since its second review, Honduras has undertaken to maintain a series of policies geared 
towards setting the country back on the path to economic growth, remedying fiscal imbalances, 
promoting job creation, modernizing infrastruc ture, improving social security, combating 
corruption and impunity, and fighting crime. 
2.5.  In terms of macroeconomic policy, the prim ary feature of the review period is the 
consolidation of macroeconomic stability, as illustrated by the improvement in macroeconomic 
variables and recovery in growth. This has helped Honduras regain trust and credibility at international level, as evidenced by the improved risk profiles published by the principal 
international ratings agencies and the upswing in  the country's global competitiveness indices. 
2.6.  Honduran GDP grew at an annual averag e rate of 3.5% between 2010 and 2014. 
Nonetheless, the behaviour of the Honduran econom y in recent years has been partly influenced 
by the impact of climate change and its disruptive effects on production in key economic activities, 
particularly in the agricultural sector. Between 2010 and 2015, the average annual inflation rate 
was 5.1%, lower than the rate for the period 2003 2009, when it reached 7.4%. The aim of fiscal policy over that same period was to achieve stability in public finances by focusing on reducing the 
fiscal deficit. 
2.7.  As regards fiscal policy, in addition to the measures listed in the Government report, this year 
saw the introduction of a Fiscal Responsibility Law, whose objective is to lay down the guidelines 
for more effective public finance management by ensuring the consistency of budget policy over 
time as well as fiscal consolidation, debt sustainability and poverty reduction, underpinned by a responsible, prudent and transparent fiscal framework. There is also talk of a new Tax Code to encourage voluntary compliance with tax obligations by establishing clear rules and setting out 
taxpayers' rights and obligations. The country's  exchange rate policy has helped to anchor 
expectations of inflation, going some way to ensure that inflation has remained relatively low and contributing to the accumulation of international reserves. WT/TPR/M/336 • Honduras 
 
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  2.8.  Honduras is aware of the challenges before it in the social and poverty reduction spheres. 
One of the key social measures being implemented is the "Better Life" programme, which benefited more than 900,000 families in 2014 and 2015. Over the period 2014 2018, social measures are expected to reduce the percentage of households living in extreme poverty from 
42.6% to 38.6%, while that of poor households is due to decline from 64.5% to 60.5%. 
Nonetheless, a great deal obviously still remains to be done. 
2.9.  The Framework Law for Social Protection was adopted during the current government 
administration. Its objective is to establish the legal framework for public social protection policies 
aimed at achieving proper coverage in a dignif ied, gradual and financially sustainable manner, 
through social promotion, prevention and management of risks to human life, and securing of medical care, livelihood protection and other social rights necessary to achieve individual and 
collective wellbeing. 
2.10.  The creation of jobs and opportunities is one of the three key aims of the current 
Government. This involves measures covering th e agrifood sector and socially responsible and 
community based micro, small and medium sized enterprises. The Government's goal is to 
generate sources of employment all over the country. To that end, it has launched the Presidential Employment and Opportunities Programme, under which the main features as far as job creation is 
concerned are the hourly employment programmes; the socially responsible micro enterprise 
programmes; the employment for a better life programme; the community employment programme; the youth employment programme; solidarity loans; and the Let's Develop Honduras programme. 
2.11.  Investment in infrastructure over the coming years is expected to reach US$2.2 billion. The 
infrastructure investment portfolio includes projects in strategic areas for sustainable development such as urban road infrastructure, ports, airports, and the energy sector. Activities in this sphere 
will enable Honduras to make the most of its pr ivileged geographic location. The development of 
infrastructure works benefits from initiatives such as public private partnerships (PPPs), which promote national and foreign investment as a means of boosting the country's economy by 
creating new business opportunities for all national development actors. 
2.12.  In order to facilitate investment in the country, since its previous review Honduras has 
adopted a new Investment Law, the Law on the Promotion of Public Private Partnerships and the Law on Employment and Economic Development Zones (ZEDE), which are modern and innovative 
instruments aimed at attracting, encouraging and protecting investment. Measures to enhance the 
investment climate have made Honduras one of the main recipients of investment in Central America. 
2.13.  The Government of the Republic recently launched the Honduras 20/20: Our Vision for 
Development Programme. This is the most important economic growth initiative in Honduran history, the result of an alliance between the pu blic and private sectors. The 20/20 Programme will 
promote investment in four priority sectors driving economic growth; it is expected to generate 
600,000 jobs over a five year period and to attract US$13 billion in investment. 
2.14.  Honduras expects the Programme to generate high levels of national growth by attracting 
investment, boosting the export sector and creating a vast number of jobs by 2020. The 20/20 
initiative prioritizes activities in the four sect ors of the economy with the greatest potential for 
accelerated growth, that is, tourism, textiles and clothing, intermediate manufacturing, and business support services. The plan is also to include food production and housing construction to 
take advantage of the economic boom that will ensue from strengthening these priority sectors. 
2.15.  Aware as it is of the effects of climate change, Honduras is fostering projects and 
programmes to prevent environmental pollution and reduce greenhouse gas emission. Although 
Honduras is one of the countries most severely affected by global warming, the facts show that it 
is among those that make the greatest contribution to combating climate change by promoting clean energy projects and new forms of agriculture,  for example. Honduras is taking the lead in 
terms of investment in renewable energy at continental level; it is the American continent's largest 
investor in renewable energy sources in relation to GDP and is moving towards an energy matrix 
chiefly based on renewables. Though a small country, Honduras makes a global contribution and WT/TPR/M/336 • Honduras 
 
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  assumes its responsibility in helping to preserve the environment for future generations. It fully 
demonstrated its commitment by signing th e recent COP21 agreements last December. 
2.16.  In order to boost government efforts to combat corruption and impunity, a national dialogue 
has been established in conjunction with the Un ited Nations and the Organization of American 
States (OAS). These endeavours recently led to the establishment of the Mission to Support the 
Fight against Corruption and Impunity in Honduras  (MACCIH), aimed at ensuring an effective, 
transparent and fair judicial system. With support from friendly governments and international 
cooperation, the government procurement system is  also being strengthened and action has been 
taken to overhaul a number of government institutions. Honduras is also spearheading the fight against money laundering and has adopted a law for the purpose. It is the only country in the world to have signed an agreement with Transp arency International with a view to raising 
standards of integrity in public management. 
2.17.  As regards trade policy, Honduras continues to apply a policy based on three pillars: active 
participation in the multilateral trading system under the WTO; deepening of Central American 
economic integration; and expansion of its network of preferential trade agreements with strategic 
partners. Additionally, actions to facilitate trade and increase competitiveness have been prioritized, as have trade promotion and the a ttraction of investment. Between 2010 and 2015, 
Honduras made significant progress with its institutional and legal framework, adopting a set of 
trade related regulations in order to pursue the trade policy set out by the Honduran Government in the Country Vision and National Plan. 
2.18.  The Sectoral Strategic Plan for Economic Development provides that the objective of 
external sector policy is to promote national and international investment, tourism, diversification 
and placement of Honduran exports on international markets in order to help boost investment inflows, exports and tourism. 
2.19.  Honduras maintains its open foreign trade regime, with an average MFN tariff of 5.9% in 
2015, well below the current bound ceilings, as well as minimal use of non tariff barriers and an absence of contingency measures. 
2.20.  Since its second trade policy review in 2010, Honduras has continued to participate actively 
in the efforts to improve and deepen Central American economic integration, and especially in those needed to make headway in establishing the Central American Customs Union, which is one of Honduras' strategic priorities. The regional economic area is our country's second trading 
partner. According to 2015 figures from the Central Bank of Honduras, 22.5% of goods exports 
were bound for Central American markets, and 18. 9% of imports originated in Central America. 
2.21.  The key elements of the Central American ec onomic integration endeavours driven by 
Honduras are the Central American Strategy fo r Trade Facilitation and Competitiveness with 
Emphasis on the Coordinated Management of Bo rders and the Regional Mobility and Logistics 
Policy Framework, which will be supplemented by the Aid for Trade Programme currently under 
discussion at regional level. 
2.22.  The Regional Trade Facilitation Strategy adopted includes measures to help reduce export 
and import formalities, the aim being to stimulate trade flows and increase the competitiveness of Central American and Honduran businesses, especi ally micro and small businesses in the region. 
An ECLAC study anticipates that when fully implemented, the impact in Honduras of the trade 
facilitation measures is likely to produce a rise of up to 5% in GDP, an increase in tax revenue (through sales and excise taxes) of up to 0.7%  of GDP, and up to 24% growth in exports. 
2.23.  Honduras and Guatemala have taken a key step towards establishing a customs union 
between the two countries that will be based on the objectives and principles set out in the legal instruments governing regional economic integration. The model adopted for this customs union is 
in line with the provisions of Article XXIV of th e GATT 1994, which is part of the WTO Agreement; 
and Article 15 of the Guatemala Protocol establis hing the Central American economic integration 
subsystem. Both countries have accordingly undertaken to work on a bilateral basis to move towards the free movement of goods and natural persons between their territories. When the 
customs union between Honduras and Guatemala becomes operational, it is likely to create the WT/TPR/M/336 • Honduras 
 
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  largest economy in Central America, covering 52% of its territory, 58% of its population and 46% 
of its GDP (excluding Panama). 
2.24.  As regards developments concerning regional trade agreements since the previous review, 
Honduras has implemented agreements with the European Union and Canada, and the Single Free 
Trade Agreement between Central America and Mexico has entered into force. Honduras' free 
trade agreement with Peru is expected to come into effect in 2016. This will bring to ten the number of preferential trade agreements in force.  For Honduras, the foregoing means that almost 
all of its exports will be covered by preferential agreements. 
2.25.  Thus, there is an advanced legal framework for trade that guarantees the transparency and 
predictability of the trading environment and the promotion and protection of investment. It is worth mentioning that Honduras is aware of the trend towards mega free trade areas, such as 
those provided for by the Trans Pacific Partnership Agreement (TPP) and the Pacific Alliance 
Initiative, both of which Honduras has asked to join. 
2.26.  In the multilateral trading system administered by the WTO, Honduras has done its utmost 
since it acceded to the former GATT to comply wi th its obligations under the various agreements 
that form the basis for the multilateral trade disciplines, harmonizing its legislation with the substantive provisions and invoking special and differential treatment as a developing country. 
2.27.  Honduras considers that the Doha Development Round should be completed, taking into 
account the principles that gave rise to this multilateral round; it believes in the multilateral trading system and regards the dispute settlement system as crucial for a small and vulnerable economy. Over the review period, Honduras has participated in a number of cases as a third party 
and in two cases as a complainant, and a case concerning Honduras is currently before a panel. 
We see the WTO as an evolving organization, as evidenced by the Agreement on Trade Facilitation 
(TFA), and we have notified our Category A commitments. As regards the TFA, only the publication 
of the decree approving the agreement is still pending before Honduras can deposit its instrument 
of acceptance and thus contribute to the development of the multilateral trading rules. 
2.28.  Aware of its multilateral obligations, Honduras has accepted the 2005 Protocol Amending 
the TRIPS Agreement, submits the requisite notifi cations under the various agreements and, as a 
co sponsor of various relevant proposals both before and after the period under review, it has endeavoured to secure effective special and diffe rential treatment, seeking solutions to protect 
sensitive economic sectors with a view to better integration in world trade. Honduras is a member 
of various informal groups such as the Group of Small, Vulnerable Economies and the G 33. 
2.29.  Lastly, Honduras will continue to duly comply with its international commitments, thereby 
promoting a stronger national and multilateral trading system. It will also strive to take advantage 
of the foreign trade platform by promoting exports and investment. 
2.30.  Honduran trade policy will retain its principal objectives of generating employment, 
attracting investment, and taking advantage of the opportunities provided under regional trade 
agreements and the multilateral trading system, with a view to generating sustainable and 
equitable economic growth. 
2.31.  Trade policy will continue to be implemented in line with the objectives and actions set out 
in the Country Vision, the National Plan and th e "Everyone for a Better Life" plan. Honduras will 
also continue to promote action to improve the business climate; increase competitiveness and 
productivity, particularly in strategic sectors; achieve macroeconomic stability; foster and attract investment; generate sources of employment; boost economic recovery; modernize infrastructure 
by encouraging projects that will help turn the co untry into a regional logistics hub; modernize the 
State; make socially sustainable and environmentally responsible use of natural resources; increase transparency; combat corruption and imp unity; fight crime; and improve public safety. 
The underlying aim is to ensure better living conditions for Honduran society and lead Honduras 
towards social reform and changes in production patterns that will set it on the road to development. 
2.32.  In the policies outlined, Honduras will continue to give priority to international trade and to 
promoting, attracting and protecting investment as engines for growth. WT/TPR/M/336 • Honduras 
 
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  2.33.  We are aware of the complexity of administerin g a trade regime based on preferential trade 
agreements in coexistence with multilateral disciplines and the challenges posed by improving Honduras's position in international trade as a tool for poverty reduction; we therefore continue to attach great importance to the Aid for Trade initiatives carried out by both multilateral and 
bilateral partners, urging them to pursue and intensify the measures taken to improve the 
situation of countries such as Honduras, which have limited capacity to participate in the global economy. 
2.34.  As a founding Member of the WTO, Honduras reiterates its commitment to continue making 
an active contribution to the work of the Doha Round, whose outcome we hope will be fair and balanced and will meet the country's development needs. 
2.35.  To conclude, and as indicated in the Secretariat report, despite Honduras' positive economic 
performance and the major shift towards turning the country into a modern, efficient and 
productive State, a large proportion of the popula tion is living in poverty. The great challenge 
facing Honduras today is to continue framing its policies with a view to reducing the scourge of 
poverty and the inequity gap so that it can embark on the right path to sustainable, fair and 
balanced development – the kind of development that empowers people. That is the ultimate goal of the policies we are pursuing. 
2.36.  All that remains is for me to thank you, Madam Chair, as well as the Secretariat, and to 
apologize for the length of this presentation. We are eager to hear the comments of our discussant, Ambassador Lai. Thank you. WT/TPR/M/336 • Honduras 
 
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  3  STATEMENT BY THE DISCUSSANT 
INTRODUCTION 3.1.  I am most honoured to be the Discussant for Honduras's third Trade Policy Review. One of 
the benefits of being the Discussant at a TPR is the unique opportunity it gives you to take an 
unusually close look at the economic and social development of the country under review. In doing 
so, I feel I have acquired, in a short period of time, a much better understanding of the social and economic development of Honduras than I co uld have hoped to do in any other way. 
3.2.  Let me first extend my very warm welcome to  the Honduran delegation led by Mr. Redondo 
today. I would like to thank both Mr. Redondo and the Chair for their opening statements, which have set the tone for today's discussion. 
3.3.  And here is a thought, just to begin with. Most of us are probably more closely linked to 
Honduras than we might think. Many of us drink coffee every day, which could easily have come 
from Honduras, because it is one of the world's top ten coffee exporters. 
3.4.  In my discussion, I shall first focus on Hond uras's recent economic environment, which 
includes the positive developments and the challenges faced. Then, I shall share with you my 
observations on some areas of its trade and investment policies. 
ECONOMIC ENVIRONMENT, DEVELOPMENTS AND CHALLENGES 
3.5.  Honduras is the second largest country in Central America. It enjoys the privileged 
geographical advantage of being situated in the middle of Central America, conveniently close to 
the important markets of the U.S. and other Latin American countries. 
3.6.  Since coming through the global financial crisis  of 2008 and the political instability of 2009, 
Honduras's economy has experienced what could be described as a moderate recovery, growing at 
an average of 2.5% per year between 2009 and 2014.  Last year, it grew faster, by 3.5% and, 
according to the World Bank, a similar rate of growth is expected this year. It is a noteworthy 
achievement compared with some other countries in the region. 
3.7.  Also, rather impressively, the average annual rate of inflation in Honduras came down to 
5.1% over the period under review, from 7.4% in the previous period. And, last September, 
inflation actually fell to 2.76%, the lowest for more than 25 years. This is due largely to the 
Government's sound monetary policy, which is vigorously targeted at controlling inflation.   
3.8.  It is pleasing to see, as well, that the fiscal deficit has dropped significantly, from 7.9% of 
GDP in 2013 to 4.4% in 2014, even better than the Government's own target of 4.7%. This would 
indicate that the Honduran government's tax reform actually works. Not an easy task, this is. In 
the past, the huge long-term fiscal deficit had seriously constrained the Government's ability to implement sound social and economic policies. 
3.9.  What is also very encouraging to see is the positive progress made towards fiscal 
sustainability, supported by the International Mone tary Fund (IMF) with its Stand-By Arrangement 
in 2014. I believe this will cont inue to benefit Honduras, by he lping to maintain macroeconomic 
stability, and to improve the conditions needed  for sustainable economic growth and poverty 
reduction. 
3.10.  Despite the favourable economic outlook, however, there is still a great deal of room for 
improvement, as there is for many other countries. Honduras faces some big challenges on the 
path to materializing its "Country Vision". For ex ample, its high trade deficit, fiscal deficit and 
external debt are still present. In particular, two of the greatest challenges are the continued 
existence of severe poverty and of income inequality, both of which must be tackled actively by 
the Honduran Government as top policy priorities. It is also important that the Government, as a 
matter of urgency, combats the rampant crime and viol ence that currently prevails, if it is to build 
a solid foundation for a better economic environment. WT/TPR/M/336 • Honduras 
 
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  3.11.  There is also one other economic structural problem, which is common to many developing 
countries - that of export concentration. Honduras's exports are concentrated on just a handful of items, such as coffee, bananas, shrimps, palm -oil and processed goods. This makes its economy 
particularly vulnerable to natural disasters and external shocks. In manufacturing, the industrial 
infrastructure is limited to that of simple assembling. It is imperative that Honduras re-adjusts its 
economic structure over the long-term by further diversification of its exports, and increasing its productivity and competitiveness. 
3.12.  The programme of institutional reform initiated by the Government is extremely important, 
and needs to continue and to succeed. For example, a more efficient market-oriented mechanism should be established, administrative efficiency  could be improved, judicial systems must be 
strengthened, and there's a great need to raise the quality of the labour force. 
REVIEW OF TRADE AND INVESTMENT POLICIES 
3.13.  Now, I would like to turn to the subject of tr ade policies, and some of the areas that have 
particularly attracted my attention. 
3.14.  As clearly indicated by its trade-ratio to GDP of 103%, international trade has always been 
important to Honduras's economy. And, not surprisingly, Honduras has for long been an active participant in all forms of multilateral, regional and bilateral trade negotiations. 
3.15.  On the multilateral front, Honduras is a strong supporter of the WTO multilateral trading 
system. It maintains a relatively open trade regime , with a low applied tariff rate averaging around 
5.9%. 
3.16.  Honduras seldom uses non-tariff barriers and trade remedy measures. Moreover, it has 
bound all of its tariff lines. About 85% of them are bound at 35%. Seven of its tariff lines, 
however, have applied rates that are beyond the bound rates.  
3.17.  I am very aware, from my own experience, of the significant benefits that can be gained 
from the streamlining of a country's customs procedures. Honduras should therefore be 
encouraged to continue its efforts to modernize its own customs procedures and to include use of the single window. We also look forward to the Honduras's ratification of the Trade Facilitation 
Agreement (TFA) in the near future.  
3.18.  And, we welcome the further improvements contained in Honduras's various notifications in 
the areas of import licensing, safeguard measures and SPS measures. 
3.19.  Undoubtedly, RTAs must have played an import ant role in Honduras's foreign trade. Around 
80% of its exports with the U.S., Central Americ a and the EU are under its free trade agreements. 
Honduras would be well advised, however, to diversify its markets. 
3.20.  On the investment front, the Honduran Governme nt is generally open to foreign investment, 
and, in fact, provides various incentives, for example tax exemptions. During the period under 
review, certain Employment and Economic Development Zones, the so-called ZEDEs, were created to serve as extraterritorial fiscal and customs zones. The ZEDEs are designed to allow various 
degrees of autonomy. Although they may not yet be in operation, we should be very interested in 
having more details of the ZEDEs. 
3.21.  I should also add that we are delighted to see, as emphasized by the Under-Secretary 
Mr Redondo just now that Honduras has modernized its investment regime, including the 
amendment of its regulatory and legal system, the creation of a new institution for promotion, and 
the setting-up of a single window to facilitate the approval procedures.  
CONCLUSION 
3.22.  In summary, the period under review shows that Honduras is undertaking all the necessary 
reforms to better integrate into global trading system and to contribute to its economic and social development. The Honduran Government's decisions to prioritize its policy objectives into WT/TPR/M/336 • Honduras 
 
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  improving sustainable economic growth, job creation, poverty reduction, better income 
distribution, cracking down on crime, and reducing unemployment are widely welcomed. 
3.23.  Of course, we all know that reform takes time and needs long-term commitment. We look 
forward to hearing about the realization of Honduras's policy objectives in its next trade policy 
review. 
3.24.  Before I conclude, I would just like to thank Ambassador Dacio Castillo for his excellent and 
constructive contribution to the WTO forum. He neve r seems to tire of the significant roles that he 
plays in many WTO activities. He has chaired many  important WTO bodies and is currently Chair of 
the Special Session on TRIPS. He promotes and defends the interests of Honduras relentlessly, 
especially within the group of SVEs, the G-33 and the IGDC. 
3.25.  Finally, I wish Mr Redondo and the delegation of Honduras a very successful trade policy 
review. Thank you very much. WT/TPR/M/336 • Honduras 
 
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  4  STATEMENTS BY MEMBERS 
MEXICO 4.1.  We acknowledge the efforts made by Honduras to address the consequences of the global 
financial crisis and the slump in the price of its main exports. However, these endeavours have not 
been sufficient to either increase its per capita GD P or reduce poverty. In rural areas, six out of 
ten households live in extreme poverty. Nor has Honduras managed to reduce its high levels of economic inequality. As stated by Mr Redondo, these are the two main challenges facing the 
country. 
4.2.  We also recognize the major efforts Honduras has made to improve a number of aspects of 
its economic and trade policies; these include the following, as has already been mentioned: 
 The introduction of a tax reform aimed at boosting tax revenue and reducing the fiscal 
deficit, in addition to measures geared towards putting the public debt on a sustainable 
path. 
 The reforms undertaken to increase the transparency of the civil service, including an 
evaluation of government bodies. 
 The large scale constitutional reforms, such as  the amendment providing for the creation of 
Employment and Economic Development Zones (ZEDE) and the enactment of various laws 
relating to investment, public finances and the energy sector. The Investment Promotion 
and Protection Law will protect ownership rights and provide more extensive guarantees for foreign investors. 
 The implementation of a single window for investment. 
 The streamlining of various customs procedures by means of electronic systems; Honduras 
does not have a single window for foreign trad e, however. We would be interested to know 
whether a date has been set for ratifying the TFA and whether practical steps are being 
taken to introduce a single window for foreign trade. 
 Lastly, Mexico expresses congratulations to Honduras since it appears that it will comply 
with around 65% of the TFA's provisions when the agreement enters into force. 
4.3.  Despite all its efforts, Honduras still faces major challenges in terms of logistics performance, 
particularly in improving the quality of trade and transport infrastructure. In 2014, the World 
Bank's Logistics Performance Index ranked Honduras 103rd among 160 countries. We hope that some of the reforms undertaken by the Honduran Government will enhance the country's 
performance in this regard. 
4.4.  Honduras is not an economy with high trade barriers. The average applied tariff is 5.9%. 
Agricultural products are subject to an average rate of 10.7%, while that for non agricultural 
products is 5.1%   both below the average for WTO Members. Nonetheless, some products such as 
cigars and poultry meat are subject to rates of 55%. Honduras makes little use of non tariff barriers and has not imposed any anti dumping or countervailing measures to date. 
4.5.  Mexico and Honduras have a close historical relationship and in fact were part of the same 
country for some years. We have long standi ng preferential trade relations, which were 
consolidated by a single free trade agreement th at entered into force in 2013 and achieved the 
convergence of Mexico's agreements with Costa Rica, El Salvador, Guatemala, Honduras and 
Nicaragua. 
4.6.  Mexico is the fifth largest destination of Honduran exports on the American continent and 
Honduras' third largest trading partner in import terms. As regards foreign direct investment, 
Mexico has been a major investor in Honduras: it was the top foreign investor in 2014 and the 
fourth largest in 2015. WT/TPR/M/336 • Honduras 
 
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  4.7.  As regards agriculture, coffee and bananas still account for close to 40% of Honduran 
exports. This concentration of production makes the sector highly vulnerable to the prices of these 
commodities. Diversifying output and exports calls for a series of measures to avoid the negative 
impact of export fluctuations on the overall performance of the Honduran economy. 
4.8.  With respect to services, the State still plays a significant role, especially in the electricity, 
telecommunications and maritime transport subsectors. On the other hand, it is worth mentioning that a concession has been granted for the operation and modernization of Puerto Cortés, the 
country's largest port. 
4.9.  All of these measures will undoubtedly help to improve the performance of the Honduran 
economy. The IMF in fact forecast real GDP growth of 3.5% for 2016 and inflation remaining at 4%. We are convinced that economic growth will lead to a better standard of living for the 
Honduran people. 
EUROPEAN
 UNION 
4.10.  Honduras is a lower-middle-income country with one of the highest poverty rates in Latin 
America. As presented in the Secretariat's repo rt, an average annual GDP growth rate of 2.5% 
between 2009 and 2014 has not been sufficient to improve living conditions or reduce poverty - it is estimated that more than 40% of the popula tion lives in conditions of extreme poverty, 
particularly in rural areas. 
4.11.  Nevertheless, the EU acknowledges the efforts of the Government for launching ambitious 
reforms, which also contain a set of trade-related regulations. The EU notes that these reforms are 
a step in the right direction.  
4.12.  The Honduran economy's dependence on international trade is amongst the highest in 
Central America. The ratio of trade (exports an d imports) to GDP increased during the review 
period up to 103% in 2014.  
4.13.  Therefore, Honduras has still a long way to go  to boost and diversify fully its economy as 
already highlighted during the previous trade po licy review. The Government of Honduras should 
maintain its strong engagement in improving its institutional and business environment to sustain 
better its economic development. In this respect,  the EU encourages Honduras to pursue further 
the opening and the diversification of its economy while, at the same time, reinforcing its institutions to ensure a fair, transparent and predictable legal environment, which is crucial to attract FDI. 
4.14.  As a small economy that is highly dependent on foreign trade and investment, Honduras has 
a lot to gain from a freer, more stable and more open trading environment. In this respect, while the EU acknowledges that Honduras promptly notified its Category A commitments, the ratification 
of the Agreement is still outstanding and I woul d therefore encourage the Government to proceed 
with final steps without further delay. 
4.15.  The EU also follows with interest the political initiative of the customs union between 
Honduras and its neighbouring country Guatemala, which should constitute a milestone towards a 
closer and deeper economic integration. 
4.16.  A word on our bilateral relationship. Honduras is an important economic market for many 
European companies. The EU is the second largest trading partner of Honduras globally. According 
to the latest data from 2014, the EU is the 4th main source of imports (6.7% market share) and 
second largest export destination (21.8% of Honduras's sales). The bilateral trade flow proved to be very dynamic as it increased by 21% in 2014. 
4.17.  The trade relations between Honduras and th e EU take place in the framework of the 
comprehensive EU-Central America Association Agreement signed in 2012 and which includes political dialogue, development cooperation and trade.  
4.18.  Honduras benefits from the EU support for development cooperation. The bilateral EU 
cooperation for the period 2014–2020 provides an al location of €235 million concentrating on food WT/TPR/M/336 • Honduras 
 
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  security, employment and rule of law as main sectors. In addition, Honduras will continue 
benefiting from the EU sub-regional cooperatio n programme for Central America (€120 million) 
during 2014-2020.  
4.19.  The EU would like to raise two specific issues of concern. 
4.20.  Firstly, the EU would like to recall the impo rtance attached by the EU to GIs and full 
implementation of TRIPS, in particular as regards the recent declaration of genericity of certain GI 
names after these had been protected in Honduras . Therefore, the EU invites the government of 
Honduras to submit information on this matter. 
4.21.  Second, the EU would like to underline the importance to avoid the creation of new barriers 
to trade. In this respect, the EU is concerned about the establishment of a new licensing system 
for the importation of onions in Honduras and would invite Honduras to submit detailed 
information on this scheme.  
4.22.  On behalf of the EU, I look forward to a constr uctive exchange of views during this review 
and wish Honduran delegation the utmost success during its Trade Policy Review. 
AUSTRALIA 
4.23.  As noted in the Secretariat's report, the Honduran economy is largely dependent on 
international trade and, as a consequence, Hondur as is a beneficiary and strong supporter of the 
rules and norms underpinning the multilateral trading system. 
4.24.  Australia applauds the ongoing economic refo rm agenda adopted by Honduras during the 
period of review, and we encourage the Governme nt to continue to promote economic growth 
through further reforms. 
4.25.  Australia commends Honduras' recent efforts to attract foreign investment, including 
simplifying its investment formalities and introducing new guarantees for investors, such as stability contracts and property protection regimes. 
4.26.  A s  p a r t  o f  t h i s  r e v i e w ,  w e  h o p e  t o  g a i n  a greater understanding of the Employment and 
Economic Development Zones (ZEDE), particularly how such zones may develop their own internal policies and regulations, including fiscal and monetary policies. 
4.27.  Australia looks forward to continuing to work cooperatively with Honduras in forums in 
which we have a shared interest. This includes the Central American Integration System (SICA), of which Australia became an extra-territorial observer in 2011. Australia supports the trade agenda of SICA and is interested in future steps Honduras and other Central American economies have 
planned to progress the Central American integration process. In particular, we are interested in 
any moves to coordinate regional trade facilitation measures in the context of the WTO Trade Facilitation Agreement. 
4.28.  We congratulate Honduras on notifying its Category A commitments under the WTO 
Agreement on Trade Facilitation and encourage Honduras to progress its domestic approval processes to allow it to accept the Agreement in a timely manner. The Agreement on Trade 
Facilitation when implemented will deliver practical measures to strengthen global trade and 
economic growth, bringing substantial development and job creation benefits for WTO Members including Honduras. 
CANADA 
4.29.  The reports from the Honduran Government and the WTO Secretariat have furnished an 
interesting picture of developments in Honduras' trade and investment regime. 
4.30.  Canada recognizes the improvements made by  the Government of Honduras in its trade 
performance in 2015. But we consider that there is still much that the Government of Honduras 
could do to improve the business environment in the country. We note that Honduras has slipped WT/TPR/M/336 • Honduras 
 
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  by 6 places in the World Bank's Doing Business rankings, from 104 in 2015 to 110 in the current 
(2016) report. Moreover, Honduras slipped one place (to 88th) in terms of global competitiveness 
between 2014/15 and 2015/16, according to the World Economic Forum. That being said, we applaud efforts by the Government of Honduras aimed at strengthening Central American 
Economic Integration, as well as its efforts towards seeking admission to both the Trans Pacific 
Partnership (TPP) and the Pacific Alliance. Honduras rightly recognizes that increased integration into the global economy, including through bilateral and regional trade agreements and increased 
participation in global value chains, supports economic growth, which in turn contributes toward 
poverty reduction. 
4.31.  Having said that, we are very concerned about the increasing insecurity in the Northern 
Triangle region of Central America, including Honduras. Fear for personal safety, local corruption, 
organized transnational crime and the lack of faith in local institutions to combat these and other 
challenges will continue to limit economic growth and development in the region. They will also undermine the confidence of current and potential foreign investors. 
4.32.  Indeed, Honduras consistently ranks among the poorest in the hemisphere as well as being 
one of the most violent countries in the world, riva ling countries that are in active civil war. We are 
pleased that the Government of Honduras and the OAS signed an agreement to establish the 
Mission to Support the Fight Against Corruption and Impunity in Honduras (MACCIH) in January 
and that it was ratified by the Honduran Congress at the end of March. This agreement should have a positive impact in the fight against corruption and impunity in Honduras and could significantly reinforce the rule of law. Accompanying this, we acknowledge recent Government of 
Honduras' efforts in addressing security and impunity challenges. 
4.33.  In terms of our bilateral trade relations, Honduras increased its rank among Canada's 
trading partners in recent years, moving from 85
th position in 2010 to 68th in 2015. The entry into 
force of the Canada-Honduras Free Trade Agreement in October 2014 was an important milestone 
in our relationship with bilateral merchandise trade between our nations increasing by 30% last year. In this regard, I would like to note that Canada looks forward to the opportunity to present 
the Canada-Honduras Free Trade Agreement Fact ual Presentation to WTO Members at the 
Committee on Regional Trade Agreements meeting next month. 
4.34.  A number of Canadian companies play an important role in the manufacturing, services and 
extractive sectors of the national economy of Honduras. In fact, the largest private sector 
employer in Honduras, among both local and fore ign employers, is a Canadian company with a 
workforce of 24,000 people. 
4.35.  Accompanying our FTA, we continue in our efforts to assist Honduras to strengthen the rule 
of law and the capacity of government institutio ns and oversight bodies to protect human rights, 
with special attention given to the rights of children, youth, women, workers and marginalized groups. We provide substantial development assistance to Honduras, our largest recipient in 
Central America. 
4.36.  In conclusion, Honduras increasingly recognizes that prosperity, security and democratic 
governance, including full respect for human rights , are interconnected and mutually reinforcing. 
Canada will continue to work with Honduras as both a bilateral trading and development partner to 
support the Government and people of Honduras in its pursuit of better governance in the 
economic, political and social fields. In this way, the foundations can be laid for sustainable economic growth and development. 
PERU 
4.37.  I would like to begin my statement on this re view by highlighting the excellent relations 
between Peru and Honduras, which were further e nhanced by the official visit to Peru of the 
President of the Republic of Honduras, His Excell ency Mr Juan Orlando Hernández Alvarado, in May 
2015. The President was accompanied by various Mi nisters of State and a delegation of senior 
government officials, who had important meetings with their Peruvian counterparts in order to strengthen high level dialogue and review the main issues on the bilateral agenda. This official visit 
provided an unquestionable opportunity to reaffirm the two countries' determination to boost their WT/TPR/M/336 • Honduras 
 
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  economic and trade relations, expand business and investment opportunities, and open up new 
areas of cooperation, including social and educational aspects. 
4.38.  Peru and Honduras are complementary economies, and there is considerable potential for 
expanding trade. Over the past ten years, bilateral trade has increased almost fourfold, from 
around US$12 million in 2005 to close to US$48 million in 2015. 
4.39.  In this connection, the aforementioned official visit to Peru by the President of the Republic 
of Honduras led to the signing of important bila teral agreements, including a free trade agreement 
to improve market access conditions and establish clear rules and disciplines to promote trade in 
goods and services, as well as investment between the two countries. This agreement will allow duty free access to Honduras for approximately 81% of Peru's exports, either immediately or within a maximum period of five years. Likewise, Honduras' leading export products will enter Peru 
free of duty within ten years at the most. 
4.40.  The free trade agreement between Peru and Honduras will give further impetus to bilateral 
trade and will essentially benefit small and medium sized businesses seeking markets for value 
added products. 
4.41.  Turning to the Secretariat report for this review, I wish to highlight the Honduran 
Government's efforts to carry out reforms aimed at restoring fiscal discipline, putting the public 
debt onto a sustainable path, increasing the tr ansparency of the civil service, enacting and 
amending laws relating to trade development and the promotion and protection of investment, and 
implementing measures to facilitate trade an d streamline customs procedures by introducing 
electronic systems, particularly for exports. 
4.42.  It should also be noted that Honduras has a relatively open trade regime, as evidenced by 
the high foreign trade to GDP ratio. The report emphasizes that there have been no major changes to the regime, that Honduras has made little use of trade barriers, and that it did not impose any 
anti dumping or countervailing duties during the review period. The report also states the 
development of technical standards and regulation s and sanitary and phytosanitary measures is 
governed by the principles of consensus and tr ansparency, and generally follows international 
standards. 
4.43.  According to the Secretariat report, the Honduran economy has recovered from the negative 
consequences of the international economic situation of recent years and the country's economic outlook is favourable. On the other hand, economic growth has not been sufficient to improve the 
population's living conditions or to reduce poverty levels. Honduras thus faces major challenges in 
driving its economic development forward; these in clude addressing one of the highest levels of 
economic inequality in Latin America, raising per capita income that is among the lowest in the 
region, reducing its vulnerability to the adverse impact of the international economic situation, 
diversifying its exports, and expanding its markets. 
4.44.  Peru regards this trade policy review of Honduras as a significant opportunity to obtain 
valuable information of benefit to all, and it therefore wishes Honduras a successful outcome of 
this exercise. 
4.45.  Peru submitted some questions for this review and would like to take this opportunity to 
thank the Honduran delegation for its replies, which will be forwarded to our competent authorities 
in the capital for evaluation and follow up. 
BRAZIL 4.46.  First of all, I would like to extend a warm welcome to the Honduran delegation, led by Under 
Secretary Melvin Redondo, whom I thank for his comprehensive, clear and transparent 
presentation at our opening session. As you know, despite differences in scale, among other things, Latin American countries share many challenges, as we diplomats and bureaucrats call 
problems. Overcoming these challenges or problems, in your case, in our case, and in the case of 
many others here, is critical if we are to succeed in raising living standards for our populations. WT/TPR/M/336 • Honduras 
 
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  4.47.  It is a matter of great satisfaction for Brazil to take part in the third TPR of Honduras, a 
sister Latin-American nation with which Brazil has maintained diplomatic relations for precisely 110 years. On the macroeconomic area, the Secretariat report informs that the Honduran economy has recovered from the effects of the global financial crisis although the growth rate has yet to 
improve to allow for more welfare gains, combat poverty and increase employment, another 
challenge that many of us face. It is, however, worth noting that Honduras reoriented its fiscal 
policy to keep public finances in balance and increase expenditures in areas such as education, 
health, social security and economic and social infrastructure. To deal with the many challenges 
that Honduras is confronted with, the Govern ment adopted a 2014-2018 Strategic Plan which 
seems to be very comprehensive and should help to boost the economy. 
4.48.  We salute the reforms to increase the transp arency of the civil service and government 
procurement that have also been undertaken during the period under review. We positively note 
that citizens can now evaluate the performance of Government bodies and submit complaints regarding their poor performance. With regard to government procurement, the adoption of 
streamline procurement procedures will save money and increase society's grasp of government 
expenditure. 
4.49.  Regarding trade, the Secretariat report informs that while there have been no major 
changes in the trade regime since 2010, certain measures were introduced to facilitate trade. 
Honduras has streamlined its customs procedures by introducing a variety of electronic systems, particularly for exports. New guarantees were established for foreign investors such as stability contracts and property protection regimes. Certai n requirements were also eliminated such as 
prioritization for investment in Honduras. 
4.50.  At the bilateral level, Brazil and Honduras share a number of common challenges related to 
enhancing economic growth and reducing social  inequality and promoting their populations' 
welfare. We maintain a fruitful cooperation in areas such as education, science and technology, 
humanitarian assistance and renewable energy. 
4.51.  On the trade front, the partnership is yet to develop from very modest current flows. Trade 
is mostly composed of manufactured products wh ich represented 83.6% of Brazilian exports to 
Honduras and 58% of our imports. Our exports to  Honduras are mainly of mechanical machines, 
paper, cereals, ceramic products and automobiles. Honduras' exports to us are concentrated in aluminium, garments, electrical machines and other textile products. 
4.52.  Brazil is convinced that there is much room from improvement in our bilateral trade 
relations with Honduras. A deeper integratio n between MERCOSUR and the Central American 
Integration System (SICA), which encompasses not only a political dialogue and cooperation but 
also trade, will certainly contribute to the thickening of our economic ties. 
4.53.  With respect to investment, Brazil has more than tripled its foreign direct investment in 
Honduras in the last three years. Brazil is involved in important infrastructure products such as the 
construction of a logistic corridor that would link the Gulf of Fonseca, in the Pacific, to Puerto 
Cortés on the Caribbean Coast. Brazil hopes to further strengthen its participation in the development of Honduras' infrastructure in the near  future, especially in the projects of ports, 
airports and gas pipelines. 
4.54.  Let me conclude, Madam Chairperson, Señor Subsecretario, by wishing to Honduras a very 
successful Trade Policy Review. 
GUATEMALA 
4.55.  Guatemala highly values its close relationship with Honduras in all areas. Honduras is a 
fellow country with which we not only share a border but also important development and regional integration objectives. We have been working together for more than 60 years in favour of Central 
American integration. As a result, we have managed to build and gradually strengthen the Central 
American Common Market (CACM), and have made headway, under a harmonized approach, towards development for our peoples and the strengthening of our economies. WT/TPR/M/336 • Honduras 
 
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  4.56.  Looking beyond the region, Honduras and Guatemala have coordinated their trade policies 
to negotiate and implement major trade agreements  signed, as a Central American bloc, with the 
United States, the European Union, Mexico and Chile, among others. In order to build even closer ties, Guatemala and Honduras agreed, in 2015, to establish a customs union providing for the free 
movement of goods and people between the two countries, a reduction in customs processing 
times and the elimination of some customs procedures. Our countries' legislative bodies have already approved the enabling protocol needed to implement the customs union, and the 
remaining technical and administrative procedures required for its entry into effect are expected to 
be completed in the coming months. It should be noted that this will be the first customs union on the American continent and an important step on the way to a Central American customs union   an essential building block for regional development. 
4.57.  In 2015, bilateral trade between Honduras and Guatemala exceeded US$1,269 million and 
covered over 6,000 products, according to their tariff classification. In percentage terms, this figure represents an increase of more than 300% over total bilateral trade in goods (US$392 
million) in 2002. Guatemala's leading exports to Honduras are plastics and plastic products, cereal 
preparations, and pharmaceuticals. Honduras' ma in imports into Guatemala are propane gas, 
detergent and soap, and cereal preparations. 
4.58.  Turning to the review that brings us here today, we highlight the efforts made by the 
Honduran authorities to keep inflation within the band established by the Central Bank, and the tax reform implemented to reduce the fiscal deficit and increase tax revenue. The country's relatively open trade regime is a sign of strength, in that foreign trade accounts for a significant 
share of Honduran GDP. During the review period, Honduras implemented major structural 
reforms to bolster its institutional framework and increase the efficiency of public administration. One example is the State Secretariat for Economic Development (PROHONDURAS), which replaced 
the State Secretariat for Trade and Industry, and another is the introduction of new government 
procurement procedures by means of an electronic  system that helps streamline procedures and 
foster greater transparency. Honduras has also provided a stronger framework for protecting 
investors and introduced new guarantees, such as property protection regimes. As regards foreign 
direct investment (FDI) in Honduras, it is wort h mentioning that, according to data from the 
Central Bank of Honduras, US$64.5 million of total incoming FDI in 2015 was invested by Guatemala. 
4.59.  Among the short  and medium term challenges ahead, we note that it is important for 
Honduras to continue diversifying its economy in order to reduce the impact of external shocks, such as the 2009 global financial crisis and its effects on the country's leading exports. This is a 
challenge that Honduras shares with all Central American countries, and we are convinced that our 
growing relations and integration through the Central American Common Market and the customs union will help generate further opportunities and bolster our region's position in world trade. 
4.60.  We commend Honduras for its efforts and achievements during the period covered by this 
trade policy review, and we believe that its endeavours will contribute to strengthening both the country itself and our region across the world. Our thanks to Honduras for its replies to Guatemala's questions in the context of this review. 
DOMINICAN
 REPUBLIC   
4.61.  The Secretariat report shows that the Honduran economy, as indeed almost all of the 
world's economies, has suffered from the global fi nancial crisis and the slump in external demand 
and in the price of its main exports, in particular  coffee and bananas. On the other hand, it is most 
encouraging to note that growth has resumed, even though it has not yet been sufficient to 
improve living conditions or reduce poverty, with  GDP rising at an average annual rate of 2.5% 
between 2009 and 2014. The estimated GDP grow th rate for 2015 is 3.5% and the economic 
outlook is positive. We therefore commend the Ho nduran authorities for the way in which they 
have handled the financial crisis. 
4.62.  We cannot but acknowledge the positive impact of the tax reform implemented by Honduras 
in 2013 and the 2014 2017 Reform Programme, which seeks to restore fiscal discipline and put the 
public debt onto a sustainable path. Although th e economic outlook is favourable, Honduras is 
faced with the highest level of economic inequality in Latin America and is vulnerable to external WT/TPR/M/336 • Honduras 
 
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  shocks. We therefore urge the Honduran authorities to implement further social measures to 
reduce poverty and inequality among the population. 
4.63.  We note that the country's economic structure has not changed substantially since the 
previous review in 2010. The agricultural sector continues to play a major role as a source of 
employment. The Honduran economy also continues to rely heavily on family remittances from 
abroad, which accounted for 17.2% of GDP in 2014 and played a key part in sustaining domestic demand. These features are common to a number of countries in the region. 
4.64.  Moreover, the Honduran economy is largely dependent on international trade, and the 
Secretariat report emphasizes that the ratio of  trade (exports and imports) to GDP increased 
during the review period from 99.6% in 2010 to 103% in 2014. However, in spite of policies aimed at promoting exports and diversifying markets fo r Honduran products, neither the composition of 
Honduran exports nor the markets have varied substantially since 2010, since Honduras remains 
an exporter of agricultural products and clothing, manufactured under the maquila regime, to the United States, Central America and Germany. We accordingly urge the Honduran authorities to 
continue working towards greater diversification of the economy. 
4.65.  It is interesting that during the period und er review Honduras introduced government 
reforms to increase the transparency of the civil service. At the same time, efforts were made to 
enhance citizen participation in public management and in the legislative process by allowing 
citizens to file complaints regarding poor perfor mance of a public duty, and since 2011, they have 
been able to submit draft laws. Honduras also introduced a number of amendments to the Constitution, the most significant of which wa s the amendment providing for the creation of 
Employment and Economic Development Zones (Z EDE). Other trade related laws were enacted 
and amended during the review period, includ ing the Law on Fiscal Consolidation, the new 
Investment Law, the new Law on the Protection of New Varieties of Plants and the Law on the 
Energy Sector. We welcome these reforms, whic h will help improve the legal and regulatory 
framework and be of benefit to the Honduran population. 
4.66.  We are pleased to note that Honduras has a relatively open trade regime, with a low applied 
MFN tariff of 5.9%, and that it makes little use of non tariff barriers. It also implemented trade 
facilitation measures during the review period, streamlined customs procedures by introducing a variety of electronic systems, particularly for exports, improved the legal framework for intellectual property, and enacted a law to protect new varieties of plants. 
4.67.  Lastly, we submitted questions to Honduras concerning, among other things, its investment 
regime, the services sector, employment and econ omic development zones, and the application of 
tariffs. We appreciate receiving its replies and will examine them with interest. 
CHILE 
4.68.  We submitted five questions for this review. We  appreciate the work done by the Secretariat 
and the Honduran Government to produce their resp ective reports, and congratulate Dr Shin Yuan 
Lai, Permanent Representative of Chinese Taipei, for her contributions as discussant. 
4.69.  Honduras and Chile have had diplomatic rela tions for 150 years. We have strengthened 
these relations by seeking diverse opportunities for mutual cooperation in areas such as trade and investment, science and technology, defence, justice, security and policing. We also have a high 
degree of convergence on regional topics. 
4.70.  We have close bilateral ties with Honduras, based on a relationship of friendship, 
cooperation and exchange, as proven by the offi cial visit to Chile of President Juan Orlando 
Hernández last May, which also aimed to broade n and diversify foreign investment and trade. 
4.71.  The current Chile Honduras Cooperation Progra mme seeks to support two of the four goals 
of the Honduras Country Vision: "a nation that is growing in democracy and security, without 
violence" and "a productive country that generates opportunities and decent jobs, sustainably 
exploits its resources and sustainably reduces its environmental vulnerability". WT/TPR/M/336 • Honduras 
 
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  4.72.  Our economic and trade relations are governed  by the Free Trade Agreement between Chile 
and Central America, concluded in 2002, and th e 2008 Chile Honduras bilateral protocol. Trade 
between our two countries grew 12% between 2014 and 2015. Since the entry into force of the 
bilateral protocol, Honduran exports to Chile have increased by a factor of six. Honduras is our 
third largest export market in Central America. 
4.73.  Since the latest meeting of the Central American Free Trade Commission in December 2014, 
we have emphasized our interest in upgrading our trade agreement in order to liberalize the lists 
of products still outstanding and include chapters on investment, the environment and labour. 
4.74.  We would also like to take this opportunity to ask Honduras to disseminate our bilateral 
agreement more widely given the low level of utilization of the tariff quotas granted. This would also contribute to diversifying the trade basket. 
4.75.  Turning to the report, we are very interested to note the Honduran Government's efforts, 
set out in the Strategic Plan 2014 2018, to improve welfare and social inclusion levels, modernize and simplify the State and foster competitiven ess and good use of the country's human and 
material resources. In particular we welcome the goals to reduce extreme poverty, improve the 
quality of education and health services, increase employment, promote investment and vitalize foreign trade. 
4.76.  On the same note, we believe that the following are positive signs: (a) the 2013 tax reform 
aimed at reducing the fiscal deficit and boos ting tax revenue; (b) the reforms to public 
administration to make public se rvices more transparent; and (c) the pursuit of a monetary policy 
which has kept the inflation rate within the fluctuation band established by the Central Bank. 
4.77.  Specifically, we consider that it was appropriate to enact and amend the following trade 
related laws during the period under review: the Law on Fiscal Consolidation, the new Investment Law, the new Law on the Protection of New Variet ies of Plants and the Law on the Energy Sector. 
We know that these reforms are not easy and we encourage Honduras to continue driving them 
forward. 
4.78.  We hope that Tegucigalpa will take advantage of its positive economic prospects to reduce 
social inequality and address the country's exte rnal vulnerability. We wish PROHONDURAS every 
success in defining and implementing trade policy. 
4.79.  We note from the report that Honduras makes little use of non tariff barriers, and that it 
generally follows international standards with respect to the development of technical standards 
and regulations and sanitary and phytosanitary measures. 
4.80.  The country has made important advances in order to facilitate investment formalities. For 
example, it is establishing a Single Window for investments and has streamlined and digitalized a 
number of procedures. 
4.81.  The report also shows us that Honduras must continue to, inter alia, strengthen its 
institutions, develop human capital, implement reforms that promote investment, and modernize 
its services and public services sectors. 
4.82.  Nonetheless, we would like to point out that, as a small economy, Honduras attaches high 
importance to its participation in the multilateral trading system. 
COLOMBIA 
4.83.  The economy of Honduras saw more stable growth in the period under review than in the 
preceding period, when it was affected by the global economic crisis. Nevertheless, and as the review documents show, the recent growth has occurred in a context of low productivity and fiscal 
deterioration which led to a rise in poverty over the period. The Government's response is directed 
at dealing with those problems that limit the po tential for growth through the Strategic Plan 2014 
2018, which was approved and supported by the IMF and multilateral banks. WT/TPR/M/336 • Honduras 
 
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  4.84.  We would like to highlight the Investment Promotion and Protection Law as one of the most 
ambitious reforms carried out in the review period. This law gives favourable treatment to national and foreign investors, provides some of the guar antees already granted under the old investment 
regime, and introduces new ones such as stability contracts and protection regimes. One of the 
most significant changes is that prior authorization is no longer required in order to invest in 
Honduras, with some exceptions. This marks a departure from what occurred previously, when there were tighter controls on the main sectors of the economy. 
4.85.  As for the tariff structure, the average MFN a pplied duty remained at almost the same level 
in 2015 as it was in 2010 (5.9%). However, as the Secretariat reported in the previous review, there remain seven tariff lines where the applied rates exceed the bound rates. As in many other 
Members, the agricultural sector benefits from greater tariff protection than that accorded to 
industrial products. 
4.86.  Honduras' strategies prioritize economic de velopment through trade. According to the 
Government report, "the signing of preferential trade agreements caused the country to improve 
its services platform and its facilities for production and export". Honduras is investing heavily in 
various sectors such as infrastructure and energy, which has led to the expansion of exports and diversification of export destinations. To date, the country has preferential access for its exports to 
more than 40 countries around the world. It faces a challenge experienced by many, namely how 
to make the most of this access and translate the benefits into a more balanced distribution of wealth and better living conditions for its citizens. 
4.87.  As regards trade relations between our countries, we share similar trade objectives and 
some export products such as coffee, bananas and palm oil. At the recent presidential meeting in 
early April this year, President Hernández of Honduras and President Santos of Colombia reiterated the commitments made in 2015 to intensify our bilateral Free Trade Agreement. We are seeking to 
promote synergies that will lead to stronger an d more effective integration in global trade by 
conquering third markets such as the European  Union through cumulation of origin between 
countries and by promoting production linkages. We are also looking to strengthen government 
procurement and customs cooperation, and are expl oring the possibility of including a chapter on 
financial services in the Agreement in order to promote, among other things, information exchange. 
4.88.  To conclude, we wish Honduras every success in this third review of its trade policies and 
encourage Ambassador Castillo and his Permanent Mission to continue playing an active role in the 
WTO with a view to improving the function ing of the multilateral trading system. 
UNITED
 STATES 
4.89.  Since Honduras' last review in 2010, we recognize the economy suffered the challenges of 
the global financial crisis and the slump in bo th demand and price for bananas and coffee, key 
Honduran export products. Nonetheless, Honduras has continued on a path toward integration into 
the global economy with a focus on active participation in multilateral, regional and bilateral 
negotiations and implementing policies to attract investment in strategic sectors and to promote and facilitate trade. We look forward to learning more about Honduras' trade policies and its engagement through various regional and bilateral trade agreements, during the course of this 
TPR. We would also like to thank our discussant, Dr. Lai, for providing helpful and insightful 
contributions to this review. 
4.90.  The United States and Honduras continue to enjoy a strong trade and economic relationship. 
The United States is Honduras' leading partner in both exports and imports. Our bilateral trade in 
goods was US$10 billion in total (two-way) trade in 2015. Trade and economic integration between the United States and Honduras is an important element of our bilateral relations and generates 
important benefits for both countries and the region. 
4.91.  The United States and Honduras are partners under a regional free trade agreement, the 
Dominican Republic-Central America-United Stat es Free Trade Agreement (DR-CAFTA), among the 
Dominican Republic, the United States and five Central American countries (Costa Rica, El 
Salvador, Guatemala, Honduras and Nicaragua). Over the last ten years, since the implementation WT/TPR/M/336 • Honduras 
 
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  of the DR-CAFTA, our trade relationship with Hondur as has transitioned to one based on reciprocal 
free trade. 
4.92.  In general, the United States commends Honduras on the positive direction of its trade 
liberalization strategy, as it continues to pursue greater integration in the global economy by 
opening markets with partners around the globe, stimulating domestic production and promoting 
national efficiency, diversification and competitiveness. 
4.93.  Honduras is an active participant in various WTO groups, and we are particularly pleased to 
hear that it has introduced domestic legislation to accept the Trade Facilitation Agreement. We 
encourage the Government to work closely with its legislature towards rapid approval. 
4.94.  It is clear that regional and bilateral economic  integration and preferential trade agreements 
have been increasingly important elements of Ho nduran trade liberalization. Honduras has focused 
on improving and deepening Central American Economic Integration and harmonizing regulatory 
frameworks and renegotiating, updating, and consolidating old agreements with the other Central American countries and Mexico. Honduras implem ented the agreement with the European Union 
with its Central American Common Market partners, and bilaterally with Canada, to add to its list 
of bilateral agreements in force with Colombia, Panama, Chinese Taipei and Chile. This year, Honduras will enter into a free trade agreement with Peru and will continue negotiations with the 
Republic of Korea and Ecuador. Finally, negotiations on a Customs Union with Guatemala are also 
addressing movement of goods and natural persons. The United States would appreciate further explanation about the Customs Union approach with  Guatemala, any plans for expanding that to 
the rest of Central America and how Honduras' Customs Union approach differs from its other 
regional trade agreements. We also encourage Honduras to notify any non-notified FTAs, including 
its agreement with Venezuela. 
4.95.  In intellectual property (IP) rights, the Secretariat raised, and the United States strongly 
supports, ongoing Honduran efforts to improve compliance. The Secretariat further notes the 
enactment in 2012 of a Law on the Protection of New Varieties of Plants. The United States would 
appreciate more details on the status of Honduras' accession to the International Convention for 
the Protection of New Varieties of Plants (UPOV) and if Honduras' law fully complies with UPOV 
1991. 
4.96.  The Secretariat and the Honduran Government highlight the importance to the Honduran 
economy of traditional and new niche market agricu lture. And, as such, the Secretariat notes the 
importance of technical standards and regulation s and sanitary and phytosanitary (SPS) measures 
and import controls. The United States urges Honduras to ensure that issuance of imports permits is fully transparent and consistent with its trade commitments and that SPS measures are 
transparent. According to the Secretariat, Honduras has notified 20 SPS measures from early 2010 
to mid-2015. But, the United States questions why we have not seen any SPS measures notified by Honduras since May 2014. 
4.97.  In closing, we would like to reiterate our appreciation for Honduras' active participation in 
the work of the WTO and efforts on the TFA. 
4.98.  We also thank the delegation of Honduras for its willingness to consider these points and 
welcome the opportunity to engage with Honduras and other delegations in a discussion of 
Honduras' trade policy regime. 
ECUADOR 4.99.  We are participating with great interest in this trade policy review, since relations between 
Ecuador and Honduras have been growing stronger in recent years, as evidenced by the signing of 
the agreement to launch negotiations for a Partial Scope Economic Complementarity Agreement on 18 August 2014. On this occasion, an action plan was agreed to make progress on tariffs and to 
deepen economic links through a bilateral framework which would promote the expansion and 
diversification of trade, cooperation and economic partnerships. 
4.100.  According to data from the Central Bank of Ecuador, the value of Ecuadorian exports to 
Honduras exceeded US$105 million in 2013. WT/TPR/M/336 • Honduras 
 
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  4.101.  The first round of trade negotiations was held in Tegucigalpa in November 2015; the 
second round took place in Quito in February  2016 and involved six working groups: Market 
Access, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Dispute Settlement, Trade Defence and Origin. 
4.102.  With the launching of trade relations the two countries will be in a position to generate 
greater opportunities for trade and investment, and in the case of Ecuador, to secure tariff preferences, especially for non traditional products in sectors such as metalworking, white goods, 
construction, plastics and agroindustry. 
4.103.  The third round of negotiations is expected to take place by June 2016, when the final 
offers relating to products should  be reviewed and a final revision made of the complete text of the 
Agreement. 
4.104.  In addition, a cooperation framework agreement between PRO ECUADOR and PRO 
HONDURAS has been signed with the aim of putting together, harmonizing and setting out the full set of institutional commitments to support and implement a variety of activities, processes and 
initiatives for non financial export and foreign investment promotion and institutional development. 
4.105.  As regards the Secretariat report, we note that the Honduran economy suffered from the 
global financial crisis and the slump in external demand and in the price of its main exports, in 
particular coffee and bananas. 
4.106.  On the positive side, it is important to emphasize that a cautious monetary policy has 
enabled Honduras to keep its inflation rate within the fluctuation band established by the Central Bank. The average annual inflation rate in 2010  2014 was 5.6%, while for the third quarter of 
2015 the rate was 3.2%. 
4.107.  Ecuador also recognizes the contribution made by the maquila regime, which has enabled 
Honduras to continue to be an exporter of agricultural products and manufactured clothing. The 
country's leading exports are coffee, bananas, palm  oil, shrimp, vegetables and fruit, which shows 
that the objective of Honduran agricultural polic y has been to increase productivity and promote 
exports, without neglecting production for the dome stic market in order to ensure food security. 
4.108.  Among the successes achieved by Honduras, the Secretariat report highlights the 
amendments made to the Constitution during the review period, one of the most significant being the amendment that provides for the creation of Employment and Economic Development Zones 
(ZEDE), which, as extraterritorial fiscal and customs zones, may develop their own internal policies 
and regulations, including fiscal and monetary policies. This new incentive scheme constitutes one 
of the most pronounced changes to Hondur an trade policy since the previous review. 
4.109.  As regards the regulatory framework for government procurement, various legislative 
amendments have also been adopted to establish a new electronic government procurement 
system with a view to streamlining procedures  and fostering transparency and economies. 
4.110.  It should be acknowledged that Honduras accords high importance to its participation in 
the multilateral trading system, which it considers fundamental for small, vulnerable economies. 
Under the Doha Development Agenda, Honduras ha s advocated the implementation of special and 
differential treatment provisions along with other flexibilities that help to protect the most sensitive sectors of developing economies. 
4.111.  To conclude, we thank the delegation of Hondur as for its replies to the questions we have 
raised on some specific aspects of the country's trade policy. These answers will provide important 
information for strengthening bilateral and multilateral foreign trade relations. 
ARGENTINA 
4.112.  Argentina notes with interest the development of Honduras' economy and trade. The 
efforts made by Honduras to strengthen its economic base, consolidate an orderly fiscal policy, 
encourage investment in infrastructure and promote institutional transparency are worthy of 
mention. WT/TPR/M/336 • Honduras 
 
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  4.113.  In 2015, Argentina's leading exports were goods transport vehicles, medicines and protein 
concentrates and substances. The main imports were ignition wiring sets, T shirts and shirts, and plates, rods, profiles and the like for use in construction. 
4.114.  We believe that bilateral economic relations have ample potential for development. In 
particular, we note the project on tax informat ion exchange; the Memorandum of Understanding 
on Cooperation between the Ministry of Agricult ure, Livestock and Fisheries of the Argentine 
Republic and the Ministry of Agriculture and Livestock of the Republic of Honduras; and the 
Framework Agreement on Cooperation between  our country and the Honduran National 
Telecommunications Commission (CONATEL). 
4.115.  At the same time, Argentina considers that trade can be increased and diversified, and 
believes that the best path forward is to tighte n linkages between the regional blocs to which our 
countries belong – the Southern Common Market (MERCOSUR) and the Central American 
Integration System (SICA). 
4.116.  Lastly, we reiterate our appreciation of this renewed opportunity to exchange information 
and comments on the trade policies and practices of  Honduras. We would like to draw attention, 
once again, to the importance of this exercise in transparency from every point of view, and we 
wish the Honduran authorities a successful a conclusion to this review. 
EL
 SALVADOR 
4.117.  We are pleased to participate in this review of the trade policies of Honduras, with which 
we share historical, economic, cultural and trade ties. We are fellow countries with common goals both in the framework of the Central American inte gration process and at bilateral and multilateral 
level. 
4.118.  The Secretariat report highlights that despite suffering from the global financial crisis, 
particularly the slump in external demand and in the price of its main exports, the Honduran 
economy grew at an average rate of 2.5% per year in the period under review. However, efforts 
are still being made to address various social challenges and reduce poverty. 
4.119.  It is also important to recognize Honduras' work in preparing fiscal measures geared 
towards reducing the deficit and boosting tax reve nue in order to promote stability in this area. 
4.120.  Likewise, it should be emphasized that Honduras has a relatively open trade regime, as 
evidenced by the high foreign trade to GDP ratio, which rose during the review period from 99.6% 
in 2010 to 103.0% in 2014. While there have been no major changes to the regime since 2010, 
measures have been introduced to facilitate trade. For example, Honduras has streamlined its 
customs procedures by introducing a variety of electronic systems, particularly for exports. 
4.121.  Agriculture continues to be a major source of foreign exchange in Honduras: in 2014, 
agriculture accounted for 33.8% of the foreign ex change generated by merchandise exports. We 
acknowledge the policy objectives in this important sector of the Honduran economy, such as increasing productivity, promoting exports and undertaking efforts to ensure food security for the 
population. 
4.122.  As regards bilateral trade, Honduras is El Salvador's second largest export destination and 
its fourth largest source of imports. Trade between El Salvador and Honduras totalled US$1,349 million in 2015, making Honduras one of our country's main trading partners, not only in the 
Central American region but also in the world. 
4.123.  In 2015, El Salvador's exports to Honduras totalled US$760 million, headed by cotton T 
shirts, fabrics, toilet paper, bakery products and maize flour. Imports from Honduras totalled 
US$589 million, consisting chiefly of cotton T shirts, dyed knitted fabrics, cleaning products, palm 
oil and wheat flour. 
4.124.  Trade figures underscore ever more clearly the importance of maintaining tight 
coordination between the two countries' trade authorities. In the last few months, major joint 
trade facilitation initiatives have been driven forward, which will help reduce the costs of trade WT/TPR/M/336 • Honduras 
 
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  transactions and boost competitiveness. On this point, it is worth highlighting the consolidation of 
production chains between the two countries in recent years, the most obvious examples being industries such as the clothes manufacturing industry. 
4.125.  As regards the multilateral sphere, El Salvador acknowledges the active participation of the 
Honduran delegation in the day to day work of the WTO, as well as in the negotiations and the 
Dispute Settlement Body, in which Honduras has participated as a complainant or third party. 
4.126.  In addition, El Salvador and Honduras share similar interests in various negotiating topics, 
encouraging initiatives in favour of small, vulnerable economies with the aim of promoting greater 
integration of their countries in global trade. They also work together closely in the agriculture negotiations, pushing items such as Special Products and the Special Agricultural Safeguard, as part of the G 33. 
4.127.  Lastly, we praise Ambassador Castillo for his outstanding work in promoting Honduran 
interests in the multilateral framework as well as for his leadership and contribution as Chairman of the TRIPS Council in Special Session. 
SINGAPORE 
4.128.  Honduras and Singapore's economies share several similarities. Both are small, open and 
heavily dependent on international trade. Sing apore welcomes a number of trade facilitative 
measures that Honduras put in place during the review period. These include the new Investment 
Promotion and Protection Law, which eliminated investment requirements and restrictions, such as the prior authorization for investment in Honduras. We also welcome efforts to streamline customs procedures. We note that Honduras has started internal processes for ratifying the Trade 
Facilitation Agreement (TFA) and we look forward to its early completion. 
4.129.  On tariffs, Honduras has a relatively low average applied MFN rate. This is especially so for 
non-agriculture products, with an average applied MFN rate of 5.1% in 2015. However, we note 
that there are seven tariff lines for which Hond uras' applied MFN rates exceeded its WTO bound 
rates. We also strongly encourage Honduras to consider joining the Information Technology Agreement (ITA) Expansion, to build on its participation in the ITA. 
4.130.  With regard to non-tariff measures, we are pleased to note that Honduras' TBT and SPS 
measures are generally aligned with international standards. Honduras also did not impose any anti-dumping or countervailing duties during the review period. The only use of trade remedy action was a safeguard measure concerning certain iron and steel products in February last year. 
However, this measure was not notified to the WTO. We hope Honduras will abide by its WTO 
notification obligations in its future imposition of trade remedy measures. 
4.131.  In concluding, there is certainly potential for Singapore and Honduras to deepen our 
bilateral economic engagement, given our common pro-trade orientation. Finally, the Singapore 
delegation in Geneva has always enjoyed warm working relations with Ambassador Dacio Castillo and his team in Geneva. We look forward to continuing this excellent working relationship towards 
our common goal of upholding the multilateral trading system. 
PANAMA
  
4.132.  Panama and Honduras have strong diplomatic and trade relations, bolstered by the Central 
American Integration System (SICA) and our Free Trade Agreement, which entered into force in 
2009. 
4.133.  These frameworks are tools that foster market access and trade in goods and services 
between our two countries, while promoting trade facilitation in respect of investment and financial 
services. 
4.134.  Starting with the entry into force of our agreement in 2009, trade between our two 
countries has increased considerably. For example, in 2015, 37% of bilateral trade in goods 
between Panama and Honduras was covered by tariff preferences granted under the agreement. WT/TPR/M/336 • Honduras 
 
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  4.135.  Panama's re exports and imports in its trade with Honduras through the Colon Free Zone 
increased by 14.5% over the previous year. Hondur an foreign direct investment in Panama grew 
by 189%. 
4.136.  The entry into force of the protocol consolidat ed the presence of branches of Panamanian 
financial institutions in Honduras, in sectors such as insurance, reinsurance, and insurance of risks 
relating to international and maritime shipping, which are obviously highly important for Panama. 
4.137.  The Secretariat report highlights measures ad opted by Honduras to address significant 
challenges. One example is the Government Strategic Plan 2014–2018. The Under Secretary has 
provided details of the Plan and other programmes which will undoubtedly contribute to the country's economic growth. 
4.138.  Honduras is providing for a set of laws and regulations to achieve more efficient and 
transparent public administration, reduce poverty and public expenditure and overcome structural 
impediments that generate macroeconomic instability. Its commitment to the environment is to be commended. 
4.139.  The efforts of the Honduran Government are noteworthy, the economic outlook positive. 
Undoubtedly, there is still room for improvement in some areas, specifically by building up physical and human capital and infrastructure, which will lead to better living conditions, reduce poverty 
and curb economic inequality. 
4.140.  The discussant and other speakers have emphasized a number of priority areas which I will 
not repeat. We urge Honduras to give careful consideration to the questions, recommendations 
and comments put forward today. 
4.141.  We have not submitted any questions to Honduras during this review, largely because, 
owing to our close relationship, we tend to deal with enquiries in a bilateral manner. 
4.142.  I conclude by congratulating Honduras on its commitment to and participation in the 
multilateral trading system and its role in the trade negotiations, as evidenced by the excellent 
work of its Permanent Mission to the WTO. I also commend Ambassador Castillo for his commitment and outstanding work as Chairman of the TRIPS Committee in Special Session and in 
other posts that he has held. 
INDIA 4.143.  During the period under review, Honduras posted an average annual GDP growth of over 
3.0% notwithstanding weak import demand and the turbulence in the global economy, which is 
commendable. Honduras maintains a generally open economy and we note the continued focus of 
the Honduras Government to make its trade policy regime more transparent and predictable. International trade clearly plays an important part in the economy of Honduras as evident from the 
high foreign trade to GDP ratio of over 103%.  
4.144.  During the period under review, Honduras has undertaken several institutional reforms in 
areas such as customs procedures, fiscal management, transparency in public services, investment 
promotion and protection, government procurement,  and framework of protection of intellectual 
property. As part of Government's "2014-2018 strategic plan" and country's vision document, Honduras is attempting to foster competitiveness, stimulate external trade, consolidate public finances, supporting the development of small and rural enterprises, increased focus on social 
sector spending and job creation and investment in programmes to reduce the incidence of 
poverty and inequality. We commend the Government of Honduras in their continued efforts to boost economy, overcome its vulnerabilities to economic shocks and to reduce poverty and 
economic inequality. We are confident that as a result of the initiatives taken by Honduras and 
with the support of its international partners, it will gain meaningfully from the regional integration processes and the multilateral trading system. 
4.145.  At the bilateral level, India and Honduras enjoy cordial relations and a close trade and 
development partnership. Our bilateral trade has been growing steadily from a level of about US$75 million in 2010 to about US$200 million last year. India has been a close development WT/TPR/M/336 • Honduras 
 
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  partner of Honduras and has undertaken capacity building, infrastructure development and 
technical assistance programmes. While our trade ties have expanded in recent years, there is immense scope for further expansion in our bilateral trade and we look forward to working with the Government of Honduras in realizing these objectives. 
4.146.  Finally, we applaud the commitment of Honduras to the multilateral trading system and 
the positive contribution of Ambassador Dacio Castillo and his entire team here in Geneva. Honduras has been an active voice in the WTO, particularly in promoting the interest of small and 
vulnerable economies in the ongoing work in the WTO. We look forward to working closely with the 
Honduras delegation in Geneva. 
COSTA
 RICA 
4.147.  Costa Rica and Honduras are countries with close historical and cultural links. It is no 
wonder: on 15 September 2016 the two countries, together with El Salvador, Guatemala and 
Nicaragua, will celebrate 195 years of Central American independence. Honduras is also an important strategic and trade partner for Costa Rica: in the last ten years our bilateral trade
1 has 
grown at an average annual rate of 4.4%, reaching US$448 million in 2015. 
4.148.  Costa Rica acknowledges the importance that Honduras attaches to the multilateral trading 
system, and applauds its active participation in the work agenda to improve and deepen 
Central American economic integration, especially with regard to the action needed to make 
headway in establishing the Central American customs union. 
4.149.  Honduras has also been making noteworthy efforts since 2010 in developing and 
implementing short-, medium- and long-term polic ies and work plans geared towards eradicating 
poverty, improving levels of education, reviving the production sector to generate employment, 
sustainably exploiting its resources and reducing environmental vulnerability. Costa Rica invites Honduras to pursue its efforts to open up markets and further its integration in international trade 
through this multilateral forum, the Central American regional integration process, and its ongoing 
trade negotiations. 
4.150.  The Secretariat report shows Honduras' progress in opening up trade as well as the 
significant improvements it has made to its institutional and legal framework for international 
trade and foreign investment. Costa Rica encourages Honduras to pursue its endeavours to streamline customs procedures through the use of electronic systems and to move forward with the process of implementing a Single Window. 
4.151.  Specifically, we welcome the establishment of guidelines for the promotion of investment; 
tourism; and the diversification and placement of Honduran exports on international markets through the Sectoral Strategic Plan for Economic  Development (PES-DE). We invite Honduras to 
continue to inform the Membership of the progress made on these important topics. 
4.152.  On the other hand, there is still much r oom for improvement in combating poverty, 
reducing violence and boosting economic growth. In  particular, we are struck by the existence of a 
number of tariff lines where Honduras applies rate s above the bound rates, as was already noted 
in the 2010 review. 
4.153.  Although Costa Rica did not submit questions on this occasion, we have an ongoing 
interest in the trade policies of a partner as close and important as Honduras, and in particular in 
the development of its policies to diversify production, attract investment and increase regional 
integration. We therefore appreciate the replies Honduras has provided in the framework of this review. 
                                               
1 Trade measured as the sum of exports and im ports. Source: PROCOMER and Central Bank of 
Costa Rica. WT/TPR/M/336 • Honduras 
 
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  PARAGUAY 
4.154.  We welcome Honduras' participation in this exercise at a time when its economy is 
performing well and overcoming the obstacles created by the recent international financial crisis. 
4.155.  As all of us here know, Honduras may be a small economy, but it is one of the most 
dynamic in the region, with an export oriented production platform. Thanks to this and to the 
country's sound economic policy, real GDP grew at an average annual rate of 3.5%. 
4.156.  I would like to highlight the fact that Honduras continued to implement trade facilitation 
measures during the period under review, as show n by the streamlining of customs procedures for 
some customs purposes, and the introduction of various measures contained in the Trade Facilitation Agreement (TFA). Another point worthy of mention is that the delegation of Honduras 
takes an active part in the TFA negotiations. 
4.157.  Honduras has also adopted the Law on the Promotion of Public–Private Partnerships and 
the Law on Employment and Economic Development Zones (ZEDE), both of which will undoubtedly increase investors' interest in the country. 
4.158.  While there are many positive points to high light, we also see challenges, such as the 
elimination of the price band system, applied tariffs exceeding the bound rates, and import licensing procedures, which must be addressed in order to ensure that the measures taken are 
consistent with the country's WTO commitments. We are sure that the Honduran Government is 
working in that direction. 
4.159.  I also wish to emphasize the excellent bi lateral relations between my country and 
Honduras, not only here at the WTO but also in the various regional forums to which we both 
belong. 
4.160.  Nonetheless, we must acknowledge that our bilateral trade relationship is well below 
potential. Honduras' leading goods exports to Paraguay include construction materials, polishes 
and creams for footwear, and made up articles, wh ile its main imports from Paraguay are made up 
articles, textiles, medicines, active ingredients, and footwear. 
4.161.  In conclusion, Paraguay and Honduras share the same vision for the future of the 
multilateral trading system. We support the ea rly implementation of the Trade Facilitation 
Agreement and a post Nairobi programme focusing on development. 
JAPAN 4.162.  Although Japan and Honduras are located very far apart from each other geographically, 
we have enjoyed a friendly and growing bilateral relation for years. What is fresh in our minds is 
that last year we celebrated the 80
th anniversary of the establishment of diplomatic ties between 
us. 
4.163.  Based on this friendly relationship, we have cooperated with each other and have 
discussed and tackled various issues including common challenges, such as cyclones. Japan will make continuous efforts to maintain and further develop the good relationship between our two 
nations. 
4.164.  Despite the positive GDP growth at an aver age annual rate of 2.5% during the review 
period, the GDP per capita income has been steady since the last review, and has remained the lowest in Latin America. 
4.165.  Honduras continues to face a number of challenges, including a vulnerable economy to 
exogenous shocks as a result from high dependency on international trade and agriculture; a huge economic inequality among people, as well as a deteriorating condition of public safety, among 
other matters. Frequent natural disasters further in tensify the already severe challenges Honduras 
is facing. WT/TPR/M/336 • Honduras 
 
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  4.166.  We were glad to read the Secretariat's report that explained Honduras' national strategy 
2014-2018 Strategic Plan, where the appropriate course to address those challenges were outlined, and which are highly commendable. Th e Strategic Plan was followed by other more 
concrete plans such as the 2014-2017 Economic Programme, which we also commend. Japan 
would like to reiterate its support to the efforts made by the Honduran people and its Government. 
4.167.  In this regard, Japan, as one of the largest donors, has supported Honduras to improve its 
social and economic situation for years. In particular, we believe that improvements in the quality 
of education, health services and vulnerable infras tructure are the top priorities, since all of those 
are fundamental elements to improve the situat ion and eventually unleash the country's full 
potential. Last year, for instance, Japan decided to assist/support the Cañaveral and Rio Lindo Hydropower Strengthening Project. 
4.168.  We hope that Honduras will make continuous efforts to tackle the challenges that it is 
facing. Japan is ready to support these efforts. 
4.169.  In conclusion, I would like to express our strong wish to continue to cooperate with 
Honduras. 
OMAN 4.170.  We recognize the significant progress made by Honduras in relation to its institutional and 
legal framework, adopting an important set of tr ade-related regulations in order to pursue the 
trade policy objectives set out by the Honduran Government's Country Vision and National Plan. Moreover, as noted by the World Economic Forum,  Honduras was ranked up 12 places in State 
competitiveness reflecting the progress made in the infrastructure, falls in crime and violence, 
among others.  
4.171.  We note in their report the measures taken by the Honduran Government to strengthen 
the security system and the arrangements it ha s made to promote investment, which has enabled 
foreign investors to regard Honduras as an important destination for investment in the region. We 
note, in particular, the Law on the Promotion of Public-Private Partnerships, the Law on Employment and Economic Development Zones (ZED E), and the National Intellectual Property 
Strategy which we consider to be useful instruments that are conducive to attracting foreign 
investment. 
4.172.  We welcome the Honduras 20-20 initiative, which was recently launched by President 
Hernandez and considered the most important and ambitious economic growth initiative in the 
c ountry' s  his tory. I t aims  to c re ate  more  than half a mil l ion jo b s  ove r a 5 -ye ar p e riod  throug h 
various economic sectors like tourism, textiles, se rvices and others. We wish Honduras all the best 
in its implementation of this programme. 
4.173.  We would be remiss if we did not acknowledge the positive role of the Geneva-based team 
of Honduras in WTO affairs. Ambassador Daci o Castillo and his team have been actively 
participating in the various WTO committees, including as Chairpersons of a number of important 
councils and committees. We thank Ambassador Castillo and his team for their positive 
engagement and contribution in the WTO. 
PAKISTAN 4.174.  Since the last review in 2010, the Honduran economy has performed reasonably well 
despite suffering from the effects of global financial crisis and the slump in demand and the price 
of its main exports: average annual GDP growth  rate was 2.5% between 2009 and 2014, and for 
2015 it is estimated at 3.5%.  
4.175.  Similar to Pakistan's economy, Honduran economy continues to depend heavily on family 
remittances from abroad, which accounted for 17.2% of GDP in 2014 and played a key role in sustaining domestic demand. The Honduran economy is largely dependent on international trade. 
The ratio of trade (exports and imports) to GDP increased during the review period from 99.6% in 
2010 to 103% in 2014. As with exports, the compos ition of imports remained stable between 2010 
and 2014, and they grew at an  annual average rate of 8.9%. WT/TPR/M/336 • Honduras 
 
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  4.176.  Since its last Trade Policy Review (TPR) in 2010, Honduras initiated a number of measures, 
which are aimed at improving the profile of Honduras in international trade. Honduras adopted the Law for the Optimization of Public Administ ration, Improvement of Citizen Services and 
Strengthening of Government Transparency, aime d at improving the legal framework for better 
governance. During the review period, Honduras in troduced reforms to increase the transparency 
of the civil service. Honduras also introduced a number of amendments to the Constitution during 
the review period, notably the amendment providin g for the creation of Employment and Economic 
Development Zones (ZEDE). 
4.177.  It is very heartening to note that the World Economic Forum in its 2016 report ranked 
Honduras at 88th position in its competiveness ranking, up 12 places from its previous position. 
4.178.  Pakistan appreciates Honduras' effort to prioritize the country's effective integration into 
the world economy based on a strategy that combines participation in multilateral trade fora, 
regional integration and strategic alliances with full awareness of new trade-related trends such as the establishment of trading mega-blocs, the formation of value chains and trade facilitation. 
4.179.  Pakistan hopes that Honduras will continue to coordinate its trade policy with the 
objectives and actions outlined in its Country Vision, National Plan and the "Everyone for a Better Life" Plan.  
4.180.  The overriding feature of the period under re view is that Honduras has achieved a fair 
degree of consolidation of macroeconomic stability as illustrated by the improvement in macroeconomic variables and the recovery in economic growth. This has helped the country regain trust and credibility at international level. Evidence of this can be found in the improved risk 
profiles published by the principal international ra tings agencies and the upswing in the country's 
global competitiveness indices. It follows theref ore that Honduras is on the road to economic 
recovery and to equitable and sustainable economic growth commensurate with the country's 
social needs. 
4.181.  P a k i s t a n  s e e s  a s  a  p o s i t i v e  s t e p  t h e  n o t i f i c a t i o n  b y  H o n d u r a s  o f  i t s  C a t e g o r y  A  
commitments under the Agreement on Trade Faci litation (TFA) and its starting work and 
formalities to ratify the TFA. Pakistan hopes Honduras will ratify the TFA soon. 
4.182.  In the light of several reforms and the pro-growth policies carried out by the Honduran 
Government, Honduras is in the right track towards stable economic growth. We therefore encourage Honduras to stay on that track to achieve its economic growth. WT/TPR/M/336 • Honduras 
 
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  5  REPLIES BY THE REPRESENTATIVE OF HONDURAS AND ADDITIONAL COMMENTS 
5.1.  On behalf of the Government of Honduras, I would like to thank all the delegations that have 
participated in this third trade policy review of Honduras. Their input and questions have played a 
significant role in enriching this meeting. I would also like to thank the WTO Trade Policies Review 
Division for its work; you, Madam Chair; and of course, our discussant. 
5.2.  Honduras has taken due note of the comments made by the delegations in the first session of 
this review. I would like to state that most of the questions have already been answered in my 
country's responses, which are available in electr onic format. We welcome the additional questions 
submitted by Argentina, El Salvador, Singapore, Ecuador and Chile. We will reply to these additional questions in accordance with the relevant procedures. 
5.3.  We note with special attention the statements expressing interest in topics such as the 
Employment and Economic Development Zones (Z EDE); the process for a customs union with 
Guatemala; the entry into force of the Agreemen t on Trade Facilitation (TFA); the safeguards 
applied by Honduras; the Single Window for foreign trade; topics relating to tariff lines with duties 
above the bound levels; geographical indications; the price band; and issues relating to the 
structure of exports and the ensuing challenges for an economy such as Honduras. I will now 
briefly discuss these topics. 
5.4.  Regarding the ZEDEs, Article 329 of the Constituti on of the Republic of Honduras stipulates 
that they are an inalienable part of the Honduran State, subject to the Constitution of the Republic 
and the national Government in matters relating to  sovereignty, application of justice, territory, 
national defence, foreign relations, elections, an d the issuing of passports and official documents. 
The ZEDEs have legal personality, are authorized to establish their own policies and regulations in 
various areas of the economy, and are created for the purpose of accelerating achievement of the 
goals set out in the National Plan and facilitating conditions to further the country's integration into 
global markets under highly competitive and stable rules. The ZEDEs aim to implement best 
practices for doing business. Over the last few months, a series of domestic regulations have been developed to enable ZEDEs to operate, as well as  a set of requirements for their approval and 
implementation. The creation of ZEDEs depends entirely on private investors and not on the 
Government. It should be mentioned that there are currently four groups in different parts of the country and it is hoped that they will begi n their work in the course of this year. 
5.5.  Regarding the customs union between Guatemala and Honduras, the process was launched in 
December 2014 and is based on the objectives and principles laid down in the legal instruments 
governing regional economic integration and on the WTO rules, as mentioned in my opening statement. Both countries have accordingly undertaken to work on a bilateral basis to move 
towards the free movement of goods and natural persons between their territories. I am pleased 
to announce that today, 4 May 2016, the Enabling Protocol for the process of deep integration towards the free movement of goods and natural persons between the Republics of Guatemala and 
Honduras will be deposited with the General Secretariat of the Central American Integration 
System (SG SICA). The entry into force of the Protocol will enable gradual and progressive implementation of the customs union between the two countries. 
5.6.  The process has been developed by technical bodies which have examined customs 
procedures, conditions for the free movement of goods, sanitary procedures, harmonization of 
tariffs in respect of third countries, exceptions to free movement, and internal taxation aspects. It has been agreed that a working group will be established to examine issues relating to 
convergence of the various preferential trade ag reements to which Honduras and Guatemala are 
party. A roadmap of work has already been ag reed for 2016 with a view to implementing the 
process in the course of this year, and we hope  to approve the customs procedures by early 2017. 
5.7.  With the entry into force of the enabling protocol, ministerial, vice ministerial and technical 
bodies will be set up; the regulations required for the operation of the customs union will be 
adopted; a structural fund will be implemente d; and the rules and regulations necessary to 
implement, deepen and refine the bilateral customs union will be issued. WT/TPR/M/336 • Honduras 
 
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  5.8.  The process between Honduras and Guatemala do es not exclude the possibility of it being 
extended to the other Central American countries , which have been invited to join since the 
beginning. 
5.9.  Honduras will notify the relevant WTO Committee of the customs union between Guatemala 
and Honduras. Likewise, it will update its notifications in this respect as regards other regional 
trade agreements to which it is party. 
5.10.  In accordance with Honduras' commitments under the Decision on the Trade Facilitation 
Agreement within the framework of the Bali Package, under Decree No. 146 2015 of 14 December 
2015 the National Congress of Honduras adopted th e Protocol Amending the Marrakesh Agreement 
Establishing the World Trade Organization in order to incorporate the Trade Facilitation Agreement. Only the publication of the decree in the Official Journal is pending. Honduras hopes to deposit the 
instrument of acceptance with the WTO Secretariat before the end of the first half of 2016. 
5.11.  As regards the safeguard measures relating to certain iron and steel products, referred to by 
several Members, Honduras wishes to clarify that these measures do not concern actions under 
Article XIX of the GATT 1994 or the WTO Agreemen t on Safeguards. The measure adopted falls 
under the powers derived from the legal instruments governing regional economic integration, which allow Central American countries to temporarily suspend import duties applied to third 
countries on a most favoured nation (MFN) basis. It must be stressed that the tariff levels adopted 
do not exceed the bound ceilings in place. Honduras will notify the applicable tariffs for entry into the WTO Integrated Data Base. 
5.12.  The Single Window for Foreign Trade was created through Executive Decree PCM 075 2015 
published in the Official Journal La Gaceta on 13 January 2016. Article 2 of the Decree establishes 
that the Foundation for Investment and Development of Exports (FIDE) is responsible for the implementation, administration and promotion of Honduras' Electronic Window for Foreign Trade 
(VECEH). Through the Single Window, domestic an d foreign companies will be able to carry out 
central and local government and private sector procedures electronically in order to obtain all the requisite registrations, permits and licenses for import and export. This includes the procedures for 
creating and running companies in the country. The VECEH is not yet operational. 
5.13.  As regards tariff lines with duties higher than the bound ceilings identified in the Secretariat 
report, the Honduran Government will work together with the WTO Secretariat after this review in order to remedy the problem, which stems from the process of transposing Honduras' schedule of 
commitments to the different versions of the Harmonized System. 
5.14.  Several delegations have referred to the issue of import licensing. Honduras is currently 
working on amending the regulations in question in order to simplify the applicable procedures, 
bearing in mind its commitments in this respect as a WTO Member. 
5.15.  A detailed response on geographical indications is available in the document containing the 
replies for this review. Nevertheless, Honduras would like to clarify that at no point did it approve 
26 generic indications corresponding to 23 of th ose registered by the European Union. What 
Honduras did was to publish an explanatory note  on the last paragraph of Article 128 of the 
Industrial Property Law, intended for the general pu blic, along with an illustrative table of typical 
cases; however, as 97% of registrations of geographical indications and appellations of origin in 
Honduras relate to the European Union, these are the reference cases used in the illustrative 
tables. Honduras would like to make it clear that the aforementioned publication does not in any way impair the scope of legal protection of geographical indications and appellations of origin 
protected in Honduras. We reiterate our willingness to engage in bilateral discussions with the EU 
on the subject, as already signalled to the authorities in Brussels. 
5.16.  Honduras believes that its price band system is consistent with its obligations under WTO 
law. It also considers that it has opted for a legitimate public policy to ensure the proper 
functioning of its market in accordance with the WTO legal system. We would like to clarify that although the price band mechanism is currently in force, it is not used for imports. 
5.17.  Honduras is aware of the challenges identified by the Secretariat and various Members as 
regards the need to diversify its export matrix in terms of both products and destinations. This is WT/TPR/M/336 • Honduras 
 
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  why it has launched the Honduras 20/20: Our Vision of Development Programme, which is the 
most important economic growth initiative in recent Honduran history, the result of a clear alliance between the public and private sectors. This init iative sets clear targets for export growth, job 
creation, the positioning of priority sectors and export diversification. All the above will have 
tangible effects on economic growth and poverty reduction, and will be buttressed by 
macroeconomic policies to consolidate stability and economic growth and adequately address social needs in Honduras. 
5.18.  Honduras has made significant progress in diversifying its exports since it initiated its 
policies of integration in the global economy. Although coffee and bananas continue to be the main agricultural exports, when you think of Honduras you should also think of it as the world's top exporter of fresh tilapia; the sixth largest global exporter of coffee; the second largest Latin 
American exporter of palm oil; the world's seventh largest exporter of cigars; the fourth largest 
exporter of frozen shrimp in the Americas; the fifth largest global exporter of cotton T shirts; the third largest exporter of electrical harnesses in th e Americas; and the regional leader in the export 
of oriental vegetables. As part of our endeavours to penetrate other markets, we are currently 
exporting Honduran melons as far as Hong Kong  and Singapore, and we are about to enter the 
Japanese market. We emphasize the efforts we are making to comply with sanitary regulations in 
order to put our poultry products on the United States market after a lengthy process of sanitary 
certification. 
5.19.  The challenges are not easy but Honduras is prepared to face them in order to secure better 
conditions for its population. We will continue working to substantially improve the business 
climate, generate opportunities, and continually enhance competitive conditions for Honduras. 
5.20.  As regards security, it is important to highlight that the current government administration 
has significantly reduced violence, and Honduras no longer figures in the list of the most violent 
countries in the world. The Government of President Hernández is committed and determined to 
restore peace for Honduran families. We would like to thank friendly governments that support the efforts of Honduras to combat insecurity. Special mention goes to the initiative known as the Plan 
for the Alliance for Prosperity in the Northern Tr iangle of Central America (Guatemala, El Salvador 
and Honduras), driven by the United States, which contains specific actions and support to improve the security climate in Honduras. We are nevertheless conscious that much remains to be done and will continue working to that end. 
5.21.  By way of a conclusion, we would like to stress that our Government remains committed to 
following the path that will consolidate Honduras as an efficient, modern State which generates opportunities and security, properly addresses the needs of its population, and integrates into the 
global economy through sound and sustainable policies. 
5.22.  All that remains is for me to once again thank you, Madam Chair, as well as the Secretariat 
and our distinguished discussant. We stand ready to work closely with Members to deal with 
specific questions resulting from this third review. Thank you. 
DISCUSSANT 5.23.  I would like to start by thanking Mr. Melvin Redondo and his team for their comprehensive 
responses to the issues raised in this trade policy review of Honduras which was just presented 
very well by Mr Redondo. I am of the view that the information provided today helps to clarify 
many concerns of the Members. 
5.24.  I would also like to acknowledge the interventions made by the Members on Monday. One of 
the purposes of the TPR is to collect comments and viewpoints of other Members as seen from 
their own perspectives, which may then serve as positive references for the country under review. 
5.25.  My impression is that Members generally ha ve commended the Honduran Government on 
the efforts it has been making to implement economic reforms, and on the various improvements 
made in certain aspects of government policy aimed at promoting trade and investment. However, despite the better macroeconomic prospects that have emerged over the period under review, it has also been commonly recognized by Members that some problems such as severe poverty, 
income inequality, unemployment, social crime and violence, corruption, and low-levels of WT/TPR/M/336 • Honduras 
 
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  education still remain although we also observed that under the period of this review these 
problems have also been improved. However, these problems are still big challenges that need to be tackled by the Honduran Government as a matter of urgency. 
5.26.  Members have acknowledged Honduras's strong commitment to the multilateral trading 
system. They have also noted that Honduras's important trade policy agenda on regional and 
bilateral trade agreements is a worthy part of its efforts to further integrate into the regional and global economy. Some Members have also expressed an interest in acquiring further details 
regarding the recent implementation of the cu stoms union between Honduras and Guatemala. 
5.27.  The modernization of the Honduras's legal system in trade-related areas, including the 
introduction of new investment guarantees for investors to ensure a fair and predictable environment, and the creation of ZEDEs as well, have all been welcomed by many Members. I 
personally believe that the full implementation of these policies will attract more FDI to Honduras. 
5.28.  Members have commented positively on the fact that Honduras maintains a relatively open 
trade regime and, in general, a comparatively low applied tariff rate. However, we have also heard 
many Members urging Honduras to swiftly review the 7 tariff lines that are still kept at levels 
beyond its maximum binding commitment. There we re concerns, too, over some agricultural 
products which are subject to higher tariffs. And some Members emphasized that it is important to 
eliminate the price band system. 
5.29.  Honduras has been congratulated by Members on the notification of its Category A 
commitments under the Trade Facilitation Agreement (TFA), and urged to speed up its domestic procedure to ratify the Agreement as soon as possible. Its early implementation will certainly 
benefit all Members, including Honduras itself. 
5.30.  Members have also pointed to areas where Honduras should continue its efforts to improve 
compliance and achieve greater liberalization, such as intellectual property rights, government 
procurement, import licensing, and SPS measures. 
5.31.  M a n y  w e r e  o f  t h e  v i e w  t h a t  H o n d u r a s  s h o u l d  c o n t i n u e  i t s  r e f o r m  p r o c e s s  t o  d i v e r s i f y  i t s  
economy in order to overcome its vulnerability to external shocks, improve its business climate, 
enhance competitiveness, and strengthen foreign investment attraction. 
5.32.  All in all, Mr Redondo, I believe that this TPR meeting has provided an excellent opportunity 
to review Honduras's trade policies by engaging Members in a constructive dialogue. My sincere h o p e  i s  t h a t  t h e  c o m m e n t s  a n d  o b s e r v a t i o n s  d i s c u s s e d  a t  t h i s  p o l i c y  r e v i e w  w i l l  g i v e  t h e  
Government of Honduras food for thought. In six years' time, Members will be very pleased to see 
that the reform policies of the Honduran Gove rnment are being implemented successfully, and its 
policy objectives are being realized for the benefit of the people of Honduras. 
5.33.  Finally, I would like to wish Mr Redondo and his delegation a very successful conclusion to 
this policy review, and a very safe trip back to Honduras tomorrow. Thank you. WT/TPR/M/336 • Honduras 
 
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  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  This third Trade Policy Review of Honduras has shed considerable light on its trade and 
investment policies and practices, and contributed to a better understanding of the institutional framework within which they are formulated and implemented. We owe this to the informative 
documentation prepared for the meeting, the active participation of the Honduran delegation led 
by Mr Redondo, and the constructive comments of the discussant and all Members.  
6.2.  In their interventions, Members acknowledged Honduras' ongoing economic, trade and 
institutional reform efforts, including trade and investment liberalization. They noted that 
Honduras had shown prudence in the conduct of monetary and fiscal policies, and had experienced moderate growth during the review period. This, ho wever, was insufficient to raise living standards 
and reduce poverty. To achieve faster growth , Members urged Honduras to redress the fiscal 
imbalance, improve regulatory transparency, an d persevere in its efforts to restructure the 
economy. In this regard, Members noted that, in 2013, Honduras had introduced a tax reform and other measures to improve governance and increase transparency.  
6.3.  Members welcomed Honduras' commitment to the multilateral trading system and 
acknowledged its statement that the system represented the main instrument to ensure non-discrimination for small vulnerable economies. Members congratulated Honduras on its active 
participation in the WTO; they noted that, under the Doha Development Agenda (DDA), Honduras 
had advocated the implementation of special an d differential treatment provisions and other 
flexibilities for developing economies, and had supp orted the elimination of agricultural distortions. 
While commending the steps taken by Honduras to implement its WTO obligations, they also took 
note of some pending issues, such as compliance with notification requirements, in particular with 
regard to import licensing, safeguard measures, SPS, and preferential trade agreements.  
6.4.  Members referred to Honduras' network of prefer ential trade agreements, some of which had 
become even more relevant in terms of trade flows since the last Review. The United States 
continued to be Honduras' main trading partner, as it had been the case since the entry into force of CAFTA-DR, followed by Central America, due to the continuous integration of the Region, and 
the European Union. Members noted that these agre ements should complement multilateral efforts 
and sought more information on the Customs Union with Guatemala. As Honduras became more closely integrated into the global economy, Member s encouraged it to diversify its production and 
export base, including by taking further advantag e of unilateral trade preferences and of those 
negotiated through the preferential trade arrangements. 
6.5.  Referring to the investment regime, many Members welcomed Honduras' reforms, in 
particular through the 2011 Investment Promotion and Protection Law, which aimed at promoting 
private sector cooperation in the execution, development, and management of major 
infrastructure and services projects. The new law provided the same guarantees as those granted 
under the old investment regime, and also introduced new ones such as those contained in legal 
stability contracts. It also introduced investment incentives, including fiscal incentives. A few 
activities were retained by the State, but no further restrictions or prohibitions were imposed on foreign investors. Members also noted with interest a new legislation in 2013 which allowed the establishment of Employment and Economic Deve lopment Zones (ZEDE) with their own internal 
policies and regulations, including fiscal and monetary policies.  
6.6.  Noting that Honduras had a relatively open  trade regime, Members commended it for not 
using anti-dumping and countervailing measures, for its low applied average MFN tariff, and for 
having bound its full tariff schedule. They were co ncerned, however, that, as had been the case in 
the previous Review, applied tariff rates for a few products remained above bound rates, and they encouraged Honduras to address this issue. Honduras was also invited to remove the price-band 
system which was applicable to certain agricultural products.  
6.7.  Members praised Honduras' efforts to moderniz e and streamline customs procedures through 
the implementation of a Single Window and the submission of customs declarations for exports in electronic format; and for engaging in a trade fac ilitation initiative at the regional level. To 
complement these efforts, Honduras was urged to promptly ratify the Trade Facilitation 
Agreement. WT/TPR/M/336 • Honduras 
 
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  6.8.  Interest was expressed in Honduras' application of other trade measures, including TBT/SPS 
measures, which Members noted were usually in line with international standards; the safeguard measure imposed on certain iron and steel products; and the new import licensing regime that applied to onions. Honduras' endeavours to enhance transparency in government procurement 
were commended. Members also noted Honduras' continued efforts to improve compliance with 
intellectual property rights both at the bo rder and within the country. They highlighted 
enforcement efforts such as the revision of the legal framework in order to impose more severe 
penalties, and the organization of campaigns to  promote awareness among civil society and to 
train government officials. In addition, Members sought clarification on the protection of GIs and on Honduras' accession to the International Conventions for the Protection of New Varieties of Plants (UPOV). 
6.9.  Honduras has provided answers to almost all advance written questions, and undertakes to 
reply to any outstanding ones within one month, which will bring us then to the successful conclusion of this Trade Policy Review. I hope Honduras will benefit from the deliberations in this 
Review, and will continue its good work in pursuing economic reforms and trade liberalization. 
__________