Agreement between Honduras and EU

By Bufete Mejía

After six years of negotiations the Association Agreement between Central America and the European Union (EU) will be launched on August 1. Talks begun on 2007, the agreement was signed on June 29, 2012 in Tegucigalpa and was finally reviewed and ratified ten days ago. Guatemala, El Salvador, Honduras, Nicaragua, Costa Rica and Panama are the six Central American countries included in the treaty.

The National Congress of Honduras voted the agreement on January 18 through order N°2013, upholding the initiation of a new and expectedly affluent commercial period. The 28 EU state members will now provide equally treatment to Honduras imported products and EU locally-produced goods, gradually eliminate import tariffs and eliminate non-tariff barriers to trade of goods between the two regions.

The EU will also provide immediate access to 82.4% of Honduran agricultural products (50% of the country´s exports to Europe in 2012 were agricultural products), a huge stimulation for melon, citrus, coffee, shrimp and tilapia activities. In the case of industry, the immediate access to the EU will be for 99.2% of Honduran products, standing out textile and clothing industry.

Analysts expect that the EU will become Honduras second largest trading partner, after the United States, once the agreement is in full swing. The EU is already the largest importer of Honduran coffee.