From now on, Honduras has tariff preferences for export to the European Union (EU) in the framework of the association agreement between Central America and the European bloc, which has just come into force.
This agreement will make it possible to have duty-free access to the EU for Honduran non-traditional products, such as the shrimp and tilapia, among others.
"As of 1 August, 2013, the EU on one side and Honduras, Nicaragua and Panama on the other will begin to implement the business part of the association agreement signed in 2012," the European Commission (EC) reported.
"The agreement will open markets and create a business and stable investment relationship between the EU and our partner countries in Central America," it was added.
The European bloc is composed of 28 Member States that share a common market with free movement of goods, capital, services and people.
The EU is the second largest trading partner in Central America: a market with 500 million consumers -- about 7 per cent of the world population – who have high purchasing power.
In 2012, the total trade flows of goods amounted to EUR 14,000 million, which included nearly EUR 1,400 million from trade with Honduras, EUR 1,200 million with Panama and EUR 400 million with Nicaragua, according to the newspaper La Prensa.
The Central American countries export mainly agricultural and fishery products.
Until the 28 EU Member States do not complete the ratification procedures, only the trade pillar will be implemented.
The agreement also includes a component of political dialogue and another one related to cooperation.
However, during the period of provisional implementation, the firms will be able to benefit from all the trade preferences provided, pointed out the EC.
It is expected that Honduras, Nicaragua and Panama enter the Community market with a slight competitive advantage due to the delay in the inclusion of Costa Rica and El Salvador.
The president of the Honduras-Mexico Business Chamber, Eduardo Ramos, considers that the semi-processed shrimp (pre-cooked) will offer added value to the exports of Honduran non-traditional products.