Potential benefits and risks of increased trade between Honduras and China

By Bufete Mejía & Asociados

Honduras and China resumed diplomatic relations in March 2023. While some people in Honduras have welcomed the move, arguing that it will open up new economic opportunities for the country, others have criticized it.

In the past two months, China and Honduras have firmly delivered on their commitments to bring bilateral relations to a strong start. Since the two countries resumed diplomatic relations in March 2023 there have been a number of trade developments:

-In April 2023, China's Export-Import Bank (EXIM) announced that it would provide Honduras with a $300 million loan to finance infrastructure projects.

-In May 2023, China and Honduras signed a memorandum of understanding (MOU) on cooperation in the areas of agriculture, energy, and tourism.

-In June 2023, Chinese President Xi Jinping visited Honduras. During the visit, Xi Jinping announced that China would be willing to begin talks on a free trade agreement with Honduras.

Some of the potential benefits of increased trade between Honduras and China are:

-Honduras could benefit from increased access to Chinese markets for its agricultural products, such as coffee and bananas.

-China could benefit from increased access to Honduras's natural resources, such as oil and gas.

-Increased trade could create jobs and boost economic growth in both countries.

The trade developments between Honduras and China could also have a significant impact on intellectual property (IP) in Honduras. Overall, the impact of the trade developments between Honduras and China on IP is uncertain. However, there is a potential for both positive and negative impacts:

-Increased investment in IP: China is a major investor in IP, and it is possible that increased trade between Honduras and China could lead to more investment in IP in Honduras. This could benefit Honduran businesses by helping them to develop new IP and protect their existing IP.

-Increased counterfeiting and piracy: China has a long history of counterfeiting and piracy, and it is possible that this problem could worsen as trade between Honduras and China increases. Counterfeit goods and pirated software could flood the Honduran market, which could hurt local businesses and consumers.