The Honduran Economy & Government

Honduras is a democratic constitutional republic slightly larger than Tennessee, with a population of 7 million. In contrast to its Central American neighbors, Honduras' government has been a stable democracy for more than 20 years. The current president, Manuel “Mel" Zelaya, will serve until 2010. The president and the 128 member National Congress are very supportive of CAFTA, and in March 2006 approved the new laws necessary for CAFTA to take effect on April 1.

Honduras' annual GDP is $8 billion. Total annual trade is about $6 billion (imports $4 billion, exports $2 billion).

Imports from Honduras: Major exports include agricultural products, coffee, textiles, shrimp, bananas, palm oil, gold, fruit and lumber. Honduras is the third largest exporter of apparel and textile products to the U.S. market (behind China and Mexico). Honduras’ largest trading partner is the United States, which purchases more than half of total Honduran exports. (To learn about new opportunities to import from Honduras in the CAFTA era, please follow this link.)

Exports to Honduras: U.S. exports to Honduras historically included industrial chemicals, plastic materials, paper and related products, electrical materials, equipment and medical supplies, oils and lubricants. Under CAFTA these industry sectors stand to enjoy significant continued growth.

However, CAFTA will cause the pace of modernization in Honduras to accelerate, providing new opportunities for U.S. exporters in a variety of sectors, such as food processing, auto parts and service equipment, telecommunications, safety and security equipment, computers and peripherals, computer services, franchising, textiles and textile equipment, and electric power generation equipment.

Investment in Honduras: Honduras is very open to foreign investment to develop its infrastructure and generate employment. New CAFTA regulations protecting investors will spark a substantial increase in investment as the country grows. (learn more)

To learn more about how to contact Honduran trade associations in the key industry sectors, visit our section on Key Honduran Industry Contacts.

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


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