How CAFTA Benefits Your Company

Over the next few years, CAFTA will have a significant impact on 98% of the products and services that are manufactured in, exported to, or imported from Honduras. If you are a U.S. company engaged in international trade, it is probable that CAFTA will prove advantageous to your company.

Most U.S. companies will benefit from the elimination of tariffs on 80% of export products currently subject to tariff. These tariff reductions will be coupled with improved transparency, streamlined customs procedures, and wide-ranging enhancements to protections for investors. CAFTA will lock in democratic reforms, improve labor law enforcement, and boost economic growth throughout the region.

The elimination of barriers to trade and investment with the world's largest economy will spark a major wave of investment and increased trade by U.S. companies in the rapidly modernizing Honduran economy.

Based on the NAFTA experience, the biggest winners in the CAFTA era will be U.S. small and medium sized companies (SME's), who stand to benefit most from the streamlined customs procedures CAFTA will cultivate. In the first 10 years of NAFTA, U.S. SME's increased their market share of exports to Mexico from 24% to 30%, at the expense of larger U.S. companies.

To learn more about specific opportunities for your company, visit our sections tailored to the needs of exporters to, importers from, or investors in Honduras.

To learn more about the business sectors of the Honduran economy, and how to contact Honduran representatives in your line of business, visit our section on Key Honduran Industry Contacts.

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