Business
Honduras and China launch free trade agreement negotiations
China approved Honduran imports of bananas, coffee, and shrimp. However, other export goods that are still under discussion include Honduran beef, melon, and cigars
July 5, 2023 7:49am
Updated: July 5, 2023 7:50am
Honduras and China began talks to discuss a free trade agreement on Tuesday, as the two countries continue to grow closer after the Central American country switched its recognition of Taiwan.
The negotiations were launched by the Honduran Secretary of State in the Office of Economic Development, Fredis Cerrato, and the Minister of Commerce of the People's Republic of China, Wang Wentao.
Wentao said that the negotiations will give an incentive "to improve the quality and level of bilateral trade and strengthen investment in various fields," according to local press. The Central American country’s economy ministry said it was a “historic” day.
Honduran Foreign Minister Eduardo Reina said the negotiations open up "a range of possibilities" in the areas of trade, infrastructure, finance, energy, technology, science, education, and culture, among others.
The two parties hope that the FTA negotiations can be concluded within a year, according to the Honduran deputy minister of economic development Melvin Redondo.
Last month, China approved Honduran imports of bananas, coffee, and shrimp. However, other export goods that are still under discussion include Honduran beef, melon, and cigars.
In March, Honduras announced it was breaking diplomatic ties with Taiwan and establishing a relationship with China. China and Taiwan have been fighting over influence in Latin America since 1949, with China claiming that Taiwan is part of its territory. Beijing does not allow a country to maintain relationships with both Taiwan and China at the same time, making countries choose to support only one of them.
Honduras is the latest country to switch its recognition to China, following the footsteps of El Salvador, Nicaragua, Costa Rica, and Panama. Taiwan currently has only 13 official diplomatic partners, half of which are small countries in Latin America and the Caribbean: Guatemala, Belize, Haiti, Paraguay, Saint Lucia, Saint Kitts and Nevis, and the Grenadines.
