Germany Funds Work to Boost Trade in Honduras

By Bufete Mejia & Asociados

The German government has provided USD 485,000 to assist Honduras in implementing reforms to make trade more efficient by enhancing the capacity of their national trade facilitation committees (NTFCs).

The funds will support a United Nations Conference on Trade and Development (UNCTAD) project that aims to reinforce the role and capacity of the NTFCs to coordinate and monitor the implementation of the Trade Facilitation Agreement (TFA) of the World Trade Organization (WTO).

The project seeks to prepare the countries to tackle challenges that crises such as the COVID-19 pandemic pose to the implementation of the TFA by helping them improve appropriate procedures, transparency and communications tools.

It will deliver country-specific advisory services to the NTFCs in accordance with their needs and stage of development through face-to-face and virtual training sessions. Stakeholders will be involved in solving practical cases related to trade facilitation.

To ensure sustainability, the project includes a training-of-trainers module that will equip the best-performing participants to serve as future trainers in their countries.

The programme covers demand-driven topics such as needs assessments; ratification and notification of WTO TFA obligations; establishing and developing terms of reference for NTFCs; and working with governments to develop medium-term trade facilitation roadmaps with measurable key performance indicators.

It also addresses how NTFCs can improve consultations with various actors, teamwork, internal communication, knowledge management and public-private partnerships.

Recently, WTO members appreciated Honduras' open investment climate. They encouraged Honduras to continue its efforts aimed at creating a stable and transparent business environment to attract more foreign investment to promote development, while some recognized challenges such as existing governance issues and those related to the handling of foreign investment in the special economic zones (ZEDES). 

Members also welcomed the adoption of trade facilitation measures aimed at streamlining customs procedures, which reflect Honduras' commitments under the Trade Facilitation Agreement. As at the time of the previous Review in 2016, Honduras was encouraged to redress those tariff rates that appear to be over the bound rates.