Free Trade Agreement by and between Central America and Mexico Comes into Effect on November 22

2011-11-25

The Free Trade Agreement by and between Central America, with Honduras inclusive, and Mexico was officially signed in Tuxla, Mexico, on November 22. Previously, Mexico was in Free Trade Agreement with Nicaragua and Costa Rica. Starting from November 22, additional Central American nations, i.e., Honduras, Guatemala and El Salvador joined the Free Trade Agreement which becomes a FTA between an entire region and a single country. With Mexico, Honduras has huge trade deficit. In January~August, 2009, for instance, Honduras imported US$270 million from Mexico but exported US$36 million to Mexico. During the correspondent period 2010, Honduras imported US$276 million from Mexico and exported US$65 million to Mexico. In the correspondent period 2011, Honduras imported more than US$300 million from Mexico but its export to Mexico reduced to US$63 million. The trade deficit of Honduras with Mexico seems to rise tremendously. Under the newly signed FTA, Honduras is entitled to an 8,000-ton sugar quota to be exported to Mexico. The FTA is to bring significant benefits to Honduras farmers.