Beijing, 31 August 2024 (TDI): China and Honduras are set to implement the early harvest arrangement of their Free Trade Agreement (FTA) on Sunday.
The agreement will allow some imported goods from Honduras to enter China at preferential tax rates, according to the Customs Tariff Commission of the State Council.
This arrangement marks a significant step in deepening economic and trade relations between the two nations.
Chinese experts believe that the early harvest arrangement will provide a boost to bilateral economic ties, offering Honduras access to the vast Chinese market, which is expected to benefit its economic development.
Notably, products such as tobacco, coffee, and chocolate are projected to gain greater entry into China.
Under the new arrangement, China will also impose zero tariffs on frozen shrimp originating from Honduras.
#China and #Honduras will implement the early harvest arrangement of free trade agreement (#FTA) starting from Sunday, a move experts said will inject fresh impetus into China-Honduras economic and trade ties. More quality Honduran products such as tobacco, coffee and chocolate… pic.twitter.com/p3cv3vC6p8
— Global Times (@globaltimesnews) August 30, 2024
This follows the establishment of diplomatic relations between China and Honduras in March 2023, the start of bilateral FTA negotiations in July 2023, and the signing of an early harvest agreement in February 2024.
To date, the two countries have held six rounds of FTA negotiations, the latest being in July 2024.
The Ministry of Commerce of China has reported substantial progress in comprehensive consultations on trade in goods and services, investment, and regulatory frameworks.
Cooperation to Bring Devlopment
According to Dong Jingsheng, Deputy Director of Peking University’s Latin America Research Center, the cooperation is set to foster economic and social development in Honduras, which will benefit its people by leveraging the complementary resources of both countries.
Trade relations have already seen significant growth, with the total trade volume between China and Honduras reaching $1.14 billion in the first seven months of 2024, reflecting a 9.2% increase year-on-year.
Notably, China’s imports from Honduras surged by 35.3% during this period. In July, Honduras exported its first batch of 36 tons of whiteleg shrimp to China, demonstrating the tangible benefits of diplomatic ties.
The China-Honduras Enterprise Trade Matchmaking Conference held on August 23 in Tegucigalpa witnessed the signing of multiple trade agreements worth $18 million, further strengthening bilateral ties.
Chinese Ambassador to Honduras Yu Bo expressed China’s willingness to complete FTA negotiations swiftly, expanding opportunities for Honduran products in the Chinese market.
