The governments of Honduras and China have initiated negotiations for a Free Trade Agreement (FTA) between the two nations.
The launch of the trade initiative follows the recent state visit of Honduran President Xiomara Castro to China, where 17 agreements were signed to enhance exchanges across various socioeconomic sectors.
This visit also marked Honduras’s inclusion in China’s Silk Road and Belt project.
The FTA negotiations were officially launched through a virtual ceremony attended by the Secretary of State in the Office of Economic Development of Honduras, Fredis Cerrato, and China’s Minister of Commerce, Wang Wentao.
Wentao expressed that these negotiations would enhance bilateral trade and foster investments in multiple sectors.
Chinese Vice Minister of Commerce is scheduled to visit Tegucigalpa, the capital of Honduras, where an initial meeting will take place to discuss the FTA.
During the visit, both parties will also review a list of priority projects for potential financing from China, including energy infrastructure projects such as dams (El Tablón, Llanitos, Jicatuyo, Patuca II, and Morolica) aimed at improving the national energy matrix.
There is also an expressed interest in exploring the idea of an inter-oceanic railroad connecting the Pacific Ocean and the Caribbean Sea through Honduran territory and establishing a container terminal for the country.
Honduras and China established diplomatic relations on March 26, during which Tegucigalpa recognized the principle of one China and ended its ties with Taiwan.
The FTA negotiations mark an important step towards strengthening economic cooperation and trade relations between Honduras and China.