Why Trade or Invest in Honduras?

A decade ago the North American Free Trade Agreement sparked a huge surge in trade between the United States and Mexico. More recently, the free trade agreement between Chile and the U.S. spurred a dramatic 75% increase in trade in its first year.

Developing countries that sign free trade agreements with the U.S. typically enjoy a significant increase in trade and investment in their nations, which over time fosters the development of a middle class by improving standards of living and reducing poverty. A growing middle class in turn drives consumer demand for increased imports of U.S. products. Over the next 5 to 10 years, the CAFTA countries will undergo a similar transition.

The CAFTA nations share several structural and cultural advantages that make them natural trading partners with the U.S., including geographical proximity, significant cultural cross-integration, and similar forms of government.

However, some countries will attract a disproportionate share of the new trade. For the following reasons, we believe Honduras is uniquely poised to grow faster than any of its neighbors in the free trade era:

Location: Honduras is the center of Central America. Our ports and excellent road network provide quick and reliable access for U.S. importers and exporters.

The Port of Cortes: Honduras boasts the largest and most modern port in Central America. Miami is just 48 hours away by ship.

In March, 2006 the Port of Cortes became the first Central American (and third Latin American) port certified under the U.S. Customs Container Security Initiative, which allows for pre-clearance of low risk containers and expedited trade. Read the U.S. Customs Press Release here.

Business climate: The Honduran government and business community have actively embraced CAFTA, and view increased trade with the U.S. as a crucial engine for economic growth.

Demand for U.S. products: Honduran consumers and business owners view U.S. products very positively compared to imports from other countries. Historically, tariffs have impeded the export to Honduras of numerous products that will now be duty free under CAFTA.

New Investor Protections: CAFTA provides for significant new legal protections for investors, which will spark a surge in U.S. direct investment in Honduras, a nation which is eager to develop its infrastructure and industrial base.

Together, these advantages spell explosive growth for Honduras.

And we want your company to grow with us.

The following pages will introduce you to the Honduran economy and government, as well as provide key industry contact information for each productive sector of the Honduran economy.

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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