RESTRICTED  WORLD TRADE  
ORGANIZATION  TN/S/O/HND 
31 March 2005 
 (05-1348) 
Council for Trade in Services 
Special Session Original:   Spanish 
 
 
 
HONDURAS 
 
Initial Offer  
 
 
 The following communication, dated 21 March 2005,  is being circulated to the members of 
the Council for Trade in Services at the request of the delegation of Honduras.  
_______________ 
 
  Under paragraphs 47 and 49 of the Doha Ministerial Declara tion, Honduras submits its initial 
offer solely for the purpose of negotiation and not as a legal text, especially in light of the need to 
ensure overall balance in the outcome of all WTO negotiations.  This initial offer is conditional and 
the Republic of Honduras may therefore modify or withdraw it at any time during the course of the 
negotiations. 
  
The contents of this initial offer should be unde rstood as subject to any horizontal disciplines 
agreed upon in the framework of the ongoing nego tiations of the Working Party on GATS Rules and 
the Working Party on Domestic Regulation and may therefore be revised on the basis of the outcome 
of these negotiations.  
The Republic of Honduras is submitting this in itial offer as proof of its commitment to 
making a contribution to the progressive liberalization of trade in services, with the aim of meeting its 
economic development objectives and achieving in creasing participation in trade in services. 
  
 TN/S/O/HND 
Page 2 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
I. HORIZONTAL COMMITMENTS  
ALL SECTORS INCLUDED IN 
THIS SCHEDULE    
 (3) Authorization to establish a commercial 
presence may take into account the following criteria: 
 The effect of the commercial presence on national or local economic activity, its impact on employment, productivity, technological 
development, competition and market 
stability;  and its impact on the environment.
 (3) The commercial presence of foreign enterprises 
must contribute to the training of Honduran personnel in the specialized fields of activity 
concerned.
  
  Foreign investors may not engage in small-scale industry and commerce.
   
  A 40 km belt is reserved for companies 
consisting wholly of Honduran partners, 
Hondurans by birth or State institutions for 
land situated in border areas or along both coastlines as well as islands, keys, reefs, 
breakwaters, rocks, and sand banks.
   
 (4) Unbound, except for measures affecting the 
entry and temporary stay of senior and 
specialized personnel, associated with a commercial presence. 
 The supply of services by suppliers not resident in Honduras must contribute to the training of Honduran personnel in the 
specialized fields of activity concerned.
 (4) Unbound, except for measures related to the 
categories of natural persons indicated in the 
column on market access. 
 In order to obtain the necessary work permit, 
foreigners must be resident in Honduras.    
  TN/S/O/HND
 Page 3Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
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  A ceiling of 10 per cent is established for the 
number of foreign workers in an enterprise, who may not receive more than 15 per cent of 
total wages paid.   
  Managers and supervisors of the enterprise 
must speak Spanish.    
  A limit of 10 per cent is established on the 
total number of foreigners affiliated to trade unions, and no foreigner may be a member of 
the governing body of a trade union.
   
II. SECTOR-SPECIFIC COMMITMENTS  
1. BUSINESS SERVICES 
 
B. Computer and related 
services  
 
Consultancy services 
related to computers and data processing 
(CPC 84100-84390) 
(includes software 
implementation services, 
systems analysis, data 
processing, time-sharing, data preparation)  
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound  
 
 
  
(1) None 
(2) None (3) None 
(4) Unbound  
 Software development 
 (CPC 8420) (includes programming 
services) (1) None 
(2) None (3) None 
(4) Unbound (1) None 
(2) None (3) None 
(4) Unbound   
 TN/S/O/HND 
Page 4 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
F. Other business services     
 Advertising services 
 (CPC 87120) 
(includes planning, creating 
and placement services of 
advertising) (1) Unbound 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section.
 (1) Unbound (2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section.  
2. COMMUNICATION 
SERVICES 
 
C. Telecommunication 
services  
 
 All subsectors   
 
 
(1) (2) (3) Foreign governments may not 
participate directly in the supply of 
public telecommunication services. 
 (3) With the exception of the State of 
Honduras, no operator or any of its 
partners with at least a 10 per cent 
share or any affiliated company, 
subsidiary or individual belonging to the same economic group as the 
above may hold either a direct or an 
indirect share of more than 10 per cent of the capital of a company 
authorized to supply the 
aforementioned services.   Data transmission services are exempt 
from this measure. 
 (1) (2) (3) The practice of call-back using 
telephone services supplied within 
the national territory but which systematically originate from 
outside the country as a direct 
result of incomplete international calls from within the national 
territory is forbidden.
  
 
 
(1) (2) (3) To request the relevant authorization, 
foreign companies must establish 
domicile in Honduras and appoint a 
legal representative who is also domiciled there. 
  
 
 
Honduras adopts the obligations contained in 
the Reference Paper 
annexed to this Initial Offer. 
  
  TN/S/O/HND
 Page 5Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
(a)  Local and domestic long-
distance telephone services (1) Unbound 
 (2) None 
 
(3) The Honduran Telecommunications 
Company (HONDUTEL) has exclusive 
rights for the supply of these services until 25 December 2005.  Prior to this 
date, third parties may only supply 
these services under commercial 
contracts with HONDUTEL, acting as 
sub-operators.  After this date:  None. 
 
(4)  Unbound, except as indicated in the 
horizontal section. (1) Unbound 
 (2) None 
 
(3) None 
 
  
 
 
 
  
(4) Unbound, except as indicated in the 
horizontal section.  
(a) International telephone 
services  (1) The management and establishment of 
international long-distance calls will be handled exclusively through the 
HONDUTEL infrastructure until 
25 December 2005.  After this date, 
management and routing will be open 
to companies authorized by the relevant authority. 
 
(2)  None  
(3)  HONDUTEL has exclusive rights for 
the management and routing of international long-distance calls until 
25 December 2005.  After this date:  
None. 
 
(4) Unbound, except as indicated in the 
horizontal section. (1) Unbound 
  
 
 
 
  
 
(2) None  
(3) None 
  
 
  
(4) Unbound, except as indicated in the 
horizontal section.   
 TN/S/O/HND 
Page 6 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
(a) Public telephone services (1) Unbound 
 
(2) None 
 
(3) HONDUTEL has exclusive rights for 
the supply of these services and the 
management and routing of 
international long-distance calls until 25 December 2005.  Prior to this date, 
third parties may only supply public 
telephone services under commercial contracts with HONDUTEL, acting as 
sub-operators.  After this date:  None. 
 (4) Unbound, except as indicated in the 
horizontal section.
 (1) Unbound 
 
(2) None 
 
(3) None 
 
 
  
 
  
 
 (4) Unbound, except as indicated in the 
horizontal section.  
(b) and (c) Data 
transmission 
services  (1) Unbound 
 
(2) None  
(3) None 
 (4) Unbound, except as indicated in the 
horizontal section. (1) Unbound 
 
(2) None  
(3) None 
 (4) Unbound, except as indicated in the 
horizontal section.   
  TN/S/O/HND
 Page 7Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
(d) and( e) Telex and 
telegraph (1) Unbound 
 (2) None 
 
(3) HONDUTEL has exclusive rights for 
the supply of these services until 
25 December 2005. Prior to this date, 
third parties may only supply telex and telegraph services under commercial 
contracts with HONDUTEL, acting as 
sub-operators. After this date: None. 
 
(4) Unbound, except as indicated in the 
horizontal section. (1) Unbound 
 (2) None 
 
(3) None  
 
  
 
  
(4) Unbound, except as indicated in the 
horizontal section.  
(g)  Leased circuit services 
(carrier services1) (1) Unbound 
 
(2) None 
 (3) HONDUTEL has exclusive rights for 
the supply of these services until 
25 December 2005.  Prior to this date, third parties may only supply local and 
domestic leased circuit under 
commercial contracts with HONDUTEL, acting as sub-operators.  
After this date:  None. 
 (4) Unbound, except as indicated in the 
horizontal section.
 (1) Unbound 
 
(2) None 
 (3) None 
 
  
 
  
 
 (4) Unbound, except as indicated in the 
horizontal section.  
                                                      
1 Carrier services are services that provide only the capacity needed to transmit tel ecommunication signals between two or more d efined points in the 
telecommunications network.  
 TN/S/O/HND 
Page 8 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Other 
 
Mobile telephone services:2 
- Cellular mobile 
telephone services 
- Personal 
communications services 
(PCS);  
 
 (1) Unbound 
 (2) None 
 
(3) New mobile tele phone operators will 
not be authorized to begin operating 
before December 2005. 
  The management and establishment of 
international long-distance calls will be 
handled exclusively through the HONDUTEL infrastructure until 
25 December 2005. 
  No operator or any of its partners with 
a 10 per cent share or any affiliated 
company, subsidiary or individual belonging to the same economic group 
as the above may participate under 
agreements of any kind in the 
administration of a company 
authorized to supply mobile telephone services in Honduras.   After 
25 December 2005:  None. 
 (4) Unbound, except as indicated in the 
horizontal section. (1) Unbound 
 (2) None 
 
(3) None  
 
  
 
  
 
  
 
  
 
 
 
  
 
 (4) Unbound, except as indicated in the 
horizontal section.  
                                                      
2Does not include Global Mobile Pers onal Communications Service (GMPCS).  
  TN/S/O/HND
 Page 9Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
7. FINANCIAL SERVICES 
 A. All insurance and 
insurance-related services 
 Life insurance 
(CPC 81211) 
 
 General insurance 
(CPC 81291-81299) 
(includes:  sickness, 
accident, disaster, vehicle and freight, civil liability 
and professional risks, 
credit and transport, and other insurance services)  
 (1) Unbound 
(2) Unbound 
(3) The operation of insurance institutions is 
subject to approval by the Central Bank of 
Honduras, in accordance with general and 
local economic conditions and requirements.  This approval will take into consideration, 
inter alia , a market survey showing that the 
current and future conditions of the insurance market permit the satisfactory operation of the 
company to be set up.  This survey must be 
based on analysis of the principal economic and financial variables of the insurance system 
in Honduras or any other model demonstrating 
the economic feasibility of the institution to be set up.  
 (1) Unbound 
(2) Unbound 
(3) None   
 TN/S/O/HND 
Page 10 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
Reinsurance  Only public limited companies with share 
capital and mutual companies may engage in insurance activities.  In the case of public 
limited companies with share capital, the 
shares must be registered and at least 60 per cent of the share capital must belong to 
Honduran nationals. 
(4) Unbound  
  
 
  
 
(4) Unbound  
Services auxiliary to 
insurance (CPC 81402-
81409) (including insurance and pensions 
advisers, settlement of 
damages, actuarial services, management of 
salvage operations, and 
other auxiliary services) (1) Unbound 
(2) Unbound 
(3) None (4) Unbound (1) Unbound 
(2) Unbound 
(3) None (4) Unbound  
B. Banking services  
 
Deposit-taking 
(CPC 81116 and 81119) 
(Only sight deposits, savings deposits and term 
deposits in local and 
foreign currency)  
 
(1) Unbound 
(2) Unbound  
 
(1) Unbound 
(2) Unbound   
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 Page 11Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
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Granting of loans 
(CPC 81132) (Only loans in local and 
foreign currency) (Excluding 
mortgages)  
Factoring operations (3) The establishment of financial institutions is 
subject to approval by the Central Bank of Honduras following a recommendation by the 
National Banking and Insurance Commission 
in accordance with the economic conditions and needs of Honduras.  This approval will 
take into consideration, inter alia,  a market 
survey showing that under present and future conditions of supply and demand for financial 
services the market has room for the entry of a 
new institution.  The foregoing must be based on an analysis of the principal economic and 
financial variables contained in the national 
accounts, statistics and basic indicators of the real and financial sectors of the domestic 
economy, without prejudice to the submission 
and explanation of theoretical models that reasonably provide such a demonstration. (3) None, except that the branches of foreign 
financial institutions must domicile a minimum amount of capital in Honduras.  
Issue, acceptance, 
negotiation and confirmation 
of credit cards and 
documentary credit  Foreign financial institutions may operate in 
Honduras through legally established branches 
or through the establishment of agencies.  
Unbound with regard to the opening of branches of foreign banks. 
 
 The agencies of foreign financial institutions 
may not accept funds in Honduras.   
  All financial institutions must be established 
as a public limited company with share capital, which must be divided into ordinary 
registered shares. 
  The founding partners of financial institutions 
may only be natural persons.  
  
 
  
 
  
 
   
 TN/S/O/HND 
Page 12 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
  Financial institutions may only carry out the 
operations they are specifically authorized to undertake. 
 
 The operation, functioning, service and issue 
of a new financial product directly related to 
the professional exercise of banking and credit 
are subject to approval by the National Banking and Insurance Commission.   
  Finance companies (other than banks and 
savings and loan associations) may undertake the operations authorized subject to the 
amounts determined by the National Banking 
and Insurance Commission.   
  Branches of foreign banks must have at least 
two (2) representatives domiciled in 
Honduras.  These must have the requisite authorization to act in Honduras and to carry 
out and assume responsibility for the 
operations of the branch. 
 
 Authorization is required for granting credits 
to natural or legal persons domiciled abroad.   
 (4) Unbound, except as indicated in the horizontal 
section. (4) Unbound, except as indicated in the horizontal 
section.  
Supply and transfer of 
financial information, and 
processing of financial data and related software, by 
suppliers of other financial 
services (1) Unbound 
(2) Unbound 
(3) None (4) Unbound (1) Unbound 
(2) Unbound 
(3) None (4) Unbound   
  TN/S/O/HND
 Page 13Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
9. TOURISM AND 
TRAVEL-RELATED SERVICES 
 
 Hotels  (CPC 64110-64199) 
 (including hotels, motels, hostels and other lodging services)  
  
 
(1) Unbound
* 
(2) None 
(3) None 
(4) Unbound, except as indicated in the horizontal 
section.  
  
 
(1) Unbound
* 
(2) None 
(3) None 
(4) Unbound, except as indicated in the horizontal 
section.  
 Restaurants 
 (CPC 64210-64320) 
 (including food and 
beverage serving, with 
self-service or otherwise) (1) Unbound * 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
section.
 (1) Unbound * 
(2) None (3) None 
(4) Unbound, except as indicated in the horizontal 
section.  
11. TRANSPORT SERVICES 
 
 Car rental services  (CPC 71222)  
 
(1) Unbound
* 
(2) None 
(3) None 
(4) Unbound, except as indicated in the horizontal 
section.    
(1) Unbound
* 
(2) None 
(3) None 
(4) Unbound, except as indicated in the horizontal 
section.   
                                                      
*Due to lack of technical feasibility.  
 TN/S/O/HND 
Page 14 Modes of supply:  (1) Cross-border supply (2)  Consumption abroad (3)  Commercial presence (4)  Presence of natural persons 
Sector or subsector Limitations on market access Limitations on national  treatment Additional commitments 
C. Air transport services  
 
    
a) Maintenance and repair 
services3 (1) Unbound* 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section.
 (1) Unbound * 
(2) None 
(3) None (4) Unbound, except as indicated in the horizontal 
section.  
b) Sale or marketing of 
transport services1 
(CPC 74710-74712) 
(including travel agencies, 
tour operator and tourist 
guide services) (1) Unbound 
(2) None 
(3) Unbound (4) Unbound (1) Unbound 
(2) None 
(3) Unbound (4) Unbound  
c) Computerized reservation 
services1 (1) None (2) None 
(3) Unbound (4) Unbound (1) None 
(2) None 
(3) Unbound (4) Unbound  
 
 
                                                      
3 As defined in the Annex on Air Transport, paragraph 6. 
*Due to lack of technical feasibility.  TN/S/O/HND 
 Page 15 
 
 
  
ANNEX  
 
REFERENCE PAPER  
 
 
Scope  
  The following are definitions and principl es on the regulatory framework for the basic 
telecommunications services. 
 
Definitions
 
  Users
 mean service consumer s and service suppliers. 
 
 Essential facilities  mean facilities of a public teleco mmunications transport network or 
service that  
(a) Are exclusively or predominantly provided by a single or limited number of 
suppliers;  and 
 
 (b) cannot feasibly be economically or tec hnically substituted in order to provide a 
service. 
  A major supplier
 is a supplier which has the ability to  materially affect the terms of 
participation (having regard to price and supply) in the relevant market for basic 
telecommunications services as a result of: 
  (a) control over essential facilities;  or   (b) use of its position in the market.  
1. Competitive safeguards
 
 1.1 Prevention of anti-competitive practices in telecommunications
 
  Appropriate measures shall be maintained for the purpose of preventing suppliers who, 
alone or together, are a major supplier from engaging in or continuing anti-competitive 
practices.  1.2 Safeguards
 
  The anti-competitive practices referred to above shall include in particular: 
 
 (a) Engaging in anti-competitive cross-subsidization;   (b) using information obtained from compet itors with anti-competitive results;  and 
 
 (c) not making available to other servi ces suppliers on a timely basis technical 
information about essential facilities and commercially relevant information 
which are necessary for them to provide services. 
 TN/S/O/HND 
Page 16  
 
 2. Interconnection
 
 2.1 This section applies to linking with s uppliers providing public telecommunications 
transport networks or services in order to allo w the users of one supplier to communicate with 
users of another supplier and to  access services provided by anot her supplier, where specific 
commitments are undertaken. 
 2.2 Interconnection to be ensured
 
  Interconnection with a major supplier will be en sured at any technically feasible point in 
the network.  Such interconnection is provided. 
  (a) Under non-discriminatory terms, condit ions (including technical standards and 
specifications) and rates and of a qualit y no less favourable than that provided 
for its own like services or for like serv ices of non-affiliated service suppliers or 
for its subsidiaries or other affiliates; 
  (b) in a timely fashion, on terms, co nditions (including technical standards and 
specifications) and cost-oriented rates th at are transparent, reasonable, having 
regard to economic feasibility, and sufficiently unbundled so that the supplier need not pay for network components or facilities that it does not require for the 
service to be provided;  and 
  (c) upon request, at points in addition to  the network termination points offered to 
the majority of users, subject to charges th at reflect the cost of construction of 
necessary additional facilities. 
 
2.3 Public availability of the procedures for interconnection negotiations
 
  The procedures applicable for interconnectio n to a major supplier will be made publicly 
available.  
2.4 Transparency of interconnection arrangements
 
  It is ensured that a major supplier will ma ke publicly available either its interconnection 
agreements or a reference interconnection offer.  
2.5 Interconnection:  dispute settlement
 
  A service supplier requesting interconnection with a major supplier will have recourse, 
either:   (a) At any time or 
 
 (b) after a reasonable period of time  which has been made publicly known 
 to an independent domestic body, which may be a regulatory body as referred to in paragraph 5 
below, to resolve disputes regarding appropriat e terms, conditions and rates for interconnection 
within a reasonable period of time, to the extent  that these have not been established previously. 
   TN/S/O/HND 
 Page 17 
 
 
 3. Universal service  
  Any Member has the right to define the ki nd of universal service obligation it wishes to 
maintain.  Such obligations will no t be regarded as anti-competitive per se , provided they are 
administered in a transparent, non-discrimina tory and competitively neutral manner and are 
not more burdensome than necessary for the kind of universal service defined by the Member. 
 4. Public availability of licensing criteria
 
  Where a licence is required, the following will be made publicly available: 
 
 (a) All the licensing criteria and the peri od of time normally required to reach a 
decision concerning an application for a licence;  and 
 
(b) the terms and conditions of individual licences. 
 
 The reasons for the denial of a licence will be made known to the applicant upon request.  5. Independent regulators
 
 
 The regulatory body is separate from, and not accountable to, any supplier of basic 
telecommunications services.  The decisions of an d the procedures used by regulators shall be 
impartial with respect to all market participants.   
6. Allocation and use of scarce resources
 
  Any procedures for the allocation and use of scarce resources, including frequencies, 
numbers and rights of way, will be carried out in an objective, timely, transparent and non-discriminatory manner.  The current state of a llocated frequency bands will be made publicly 
available, but detailed identification of frequenc ies allocated for specific government uses is not 
required. 
  
 TN/S/O/HND 
Page 18 HONDURAS - CONSOLIDATED LIST OF ARTICLE II MFN EXEMPTIONS  
 
Sector or subsector Descri ption of measure indicating 
its inconsistency with Article II  Countries to which the 
measure applies  Intended duration  Conditions creating the need for 
the exemption  
All sectors  Progressive integration of a range of services.
 Guatemala, El Salvador, Nicaragua, Costa Rica and Panama
 Indefinite  The General Treaty on Central American Economic Integration and its related instruments provide for 
progressive integration in a range of 
economic areas, including services of various kinds. 
Financial services Monetary and financial integration, free transfer of capital, facilitation of 
the establishment and operation of 
banks and insurance companies, branches and subsidiaries and other 
financial entities. Guatemala, El Salvador, 
Nicaragua, Costa Rica and 
Panama
 Indefinite  Central American integration of the 
financial sector.  
 The opening of branches or agencies 
of foreign banks may be subject to reciprocity. All countries
 Indefinite  To reflect current Honduran 
legislation.  
Telecommunication services
 Establishment, operation, maintenance, expansion and modernization of regional 
telecommunications systems. Guatemala, El Salvador, 
Nicaragua and Costa Rica  Indefinite
 Regional integration in the 
telecommunications sector.   
Professional services  Authorization to exercise a profession is granted on the basis of reciprocity. All countries
 Indefinite  Lack of reciprocity  
Land transport 
services  Licences and authorization are granted at the Honduran 
Government's discretion on the basis 
of reciprocity.
 Countries with which land transport is possible.
 Indefinite  Lack of reciprocity  
 
 
__________