Concluding remarks by the Chairperson

This fourth Trade Policy Review of Honduras was an excellent opportunity for the membership to understand Honduras' main achievements and challenges regarding its trade and related policies since its previous Review in 2016. I would like to thank the Honduran delegation led by His Excellency Mr. Fredis Alonso Cerrato Valladares, Minister of Economic Development, for its active and constructive commitment throughout the Review process. I would also like to thank H.E. Ambassador María Luisa Pagán of the United States, our discussant, for her comments, which have greatly contributed to our two-day discussion, as have the comments and issues raised by the 20 delegations that took the floor during this meeting. More than 180 questions were submitted within the established deadline. Members greatly appreciated the written responses provided by Honduras and look forward to receiving outstanding replies within one month, at which time this Review concludes.

Members acknowledged the resiliency of the Honduran economy and noted that it had recovered quickly from the pandemic and the natural disasters that took place in 2020. Members highlighted that trade played a major role in Honduras' rapid and strong recovery. Members noted Honduras' greater integration into the global economy, and they stressed that regional trade agreements remained a key component of Honduras' integration strategy. In this context, some Members encouraged Honduras to continue its efforts at diversifying exports. Remittances, which in 2022 accounted for some 27% of GDP, had also greatly supported economic recovery, and were in general a main source to finance consumption.

Members strongly valued Honduras' constructive engagement in the WTO, including in the MC12 and the reform process. They also praised Honduras strong commitment to the rules-based multilateral trading system. In this regard, Members looked forward to working closely with Honduras on joint initiatives and other discussions to consider new trade issues. At the same time, a number of  Members encouraged Honduras to engage further by joining the Multi-Party Interim Appeal Arbitration Arrangement, the Government Procurement Agreement and accepting the Agreement on Fisheries Subsidies. Members appreciated Honduras' notification record and encouraged efforts toward greater transparency. Members also showed appreciation regarding Honduras' measures to make trade more inclusive and sustainable. In this regard, Members recognized that climate change poses a major challenge to Honduras as a small, vulnerable economy.

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). In addition, questions were raised regarding the recent reform of the electricity market that some considered may restrict private participation and impede finding a solution to the energy crisis that continues to affect the economy.

Members 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. Some Members noted new requirements to import certain agriculture products and invited Honduras to increase transparency. Clarification on these measures' compliance with the Agreement on Import Licensing was sought.

Regarding other trade-related measures, some Members were of the view that efforts to increase transparency in government procurement would have a positive impact on economic development, trade, and investment.

Members noted that agriculture remained a key sector to GDP, contributing over 12% and to employment, accounting for 22% of the workforce. They welcomed Honduras' policies aimed at diversification, value addition, and innovation to reduce the sector's vulnerability to climate change and ensure food security.

I would like to highlight that during this meeting, many Members extended their appreciation for the invaluable dedication of Ambassador Dacio Castillo and his positive contributions made in leading several bodies in this house, especially his excellent chairmanship of the General Council, which led to a critical outcome at MC12.

In general, Members expressed their commitment to support Honduras' efforts towards building a more inclusive, and secure society, key to creating a more favourable climate to facilitate investment and growth.

To conclude, let me thank the delegation of Honduras headed by H.E. Mr. Fredis Alonso Cerrato Valladares, Minister of Economic Development, both here and in capital, the discussant, all delegations that participated and the Secretariat for achieving a successful Trade Policy Review of Honduras.