flag Honduras Honduras: Trade Profile

Foreign Trade in Figures

According to the World Bank, foreign trade represents 86% of the Honduran GDP. The country's strengths include top quality port infrastructure and a relatively open business environment friendly to trade. Tariffs and non-tariff barriers are relatively low, although tariffs for the agricultural sector are considerably higher. On the other hand, outdated labour regulations, a lack of qualified workforce and inefficient financial management inhibit the country's trade and economic development. Honduras imports goods with very high added value, but exports low added value products. The country's main imports include petroleum oils (17%), medicaments (4.7%), motor vehicles (4.5%), electrical apparatus for line telephony (2.7%), and food preparations (1.9%), while its main exports are coffee (30.9%), bananas (7.7%), crustaceans (5.9%), palm oil and its fractions (4.6%), and insulated enamelled or anodised wires (4.5%). According to IMF Foreign Trade Forecasts, the volume of exports of goods and services decreased by an estimated 0.07% in 2021 and is expected to increase by 7% in 2022, while the volume of imports of goods and services decreased by an estimated 4.9% in 2021 and is expected to increase by 8.3% in 2022.

Honduras' main trade partners include the United States, China, El Salvador, Guatemala, Germany, Mexico, Belgium, and the Netherlands. Increased Brazilian efficiency in coffee production has plummeted international arabica coffee prices to a 13-year low, preventing growers from harvesting all their crops due to their inability to pay wages or acquire fertilisers. Taiwanese businesses have invested or set up branches in Honduras since 2015, and Honduras' sugar exports to Taiwan should increase from 60,000 to 70,000 tonnes per year. Honduras is a member of the CACM, and has trade agreements with the EU, Peru, Canada, Mexico, Colombia, Taiwan, Panama, Chile, the Dominican Republic, Venezuela, South Korea, and the United Kingdom.

Honduras has a substantial trade deficit, which reached USD 2.5 billion in 2020, when exports of goods totalled USD 7.6 billion and imports amounted to USD 10.2 billion. Due to the depreciation of the local currency, exports are expected to become more competitive. The country will also benefit from the recovery in demand from the U.S. and neighbouring countries. Concerning the trade of services, the imports amounted to USD 1.8 billion in 2020, while the exports were equal to USD 1.9 billion over the same period.

 
Foreign Trade Indicators 20162017201820192020
Imports of Goods (million USD) 10,54011,32412,46212,14910,241
Exports of Goods (million USD) 7,8108,6478,6448,7887,683
Imports of Services (million USD) 1,7871,8742,2992,3881,819
Exports of Services (million USD) 2,7392,8162,7632,9171,941
Imports of Goods and Services (Annual % Change) -275-2-18
Exports of Goods and Services (Annual % Change) 1512-20
Trade Balance (million USD) -4,226-4,213-5,145-4,891n/a
Foreign Trade (in % of GDP) 1001021049886
Imports of Goods and Services (in % of GDP) 5759625851
Exports of Goods and Services (in % of GDP) 4343414035

Source: WTO – World Trade Organisation ; World Bank - Latest available data.

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Main Partner Countries

Main Customers
(% of Exports)
2019
United States 33.3%
Germany 6.8%
El Salvador 6.3%
Nicaragua 4.4%
Guatemala 3.9%
See More Countries 45.3%
Main Suppliers
(% of Imports)
2019
United States 36.2%
China 16.1%
Mexico 7.9%
Guatemala 5.3%
El Salvador 4.7%
See More Countries 29.7%

Source: Comtrade, Latest Available Data

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Main Products

3.1 bn USD of products exported in 2019
Coffee, whether or not roasted or decaffeinated;...Coffee, whether or not roasted or decaffeinated; coffee husks and skins; coffee substitutes containing coffee in any proportion 30.9%
Bananas, incl. plantains, fresh or driedBananas, incl. plantains, fresh or dried 7.7%
Crustaceans, fit for human consumption, whether in...Crustaceans, fit for human consumption, whether in shell or not, live, fresh, chilled, frozen, dried, salted or in brine, incl. crustaceans in shell cooked beforehand by steaming or by boiling in water; flours, meals and pellets of crustaceans, fit for human consumption 5.9%
Palm oil and its fractions, whether or not refined...Palm oil and its fractions, whether or not refined (excl. chemically modified) 4.6%
Insulated incl. enamelled or anodised wire, cable...Insulated incl. enamelled or anodised wire, cable incl. coaxial cable and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made-up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors 4.5%
See More Products 46.3%
9.2 bn USD of products imported in 2019
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 17.0%
Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006) 4.7%
Electrical apparatus for line telephony or line...Electrical apparatus for line telephony or line telegraphy, incl. line telephone sets with cordless handsets and telecommunication apparatus for carrier-current line systems or for digital line systems; videophones; parts thereof 2.7%
Motor vehicles for the transport of goods, incl....Motor vehicles for the transport of goods, incl. chassis with engine and cab 2.3%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 2.2%
See More Products 71.1%

Source: Comtrade, Latest Available Data

 

To go further, check out our service Import Export Flows

 

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Commercial Policy

International Economic Cooperation
Member of World Trade Organisation
Member of Free Trade Areas of the Americas (FTAA)

Member of Association of Caribbean States (ACS)

Member of Central American Common Market (CACM)

Member of Central American Four (CA-4) .

Assessment of Commercial Policy
Country’s commercial policy
Barriers to exchanges
Average Customs Duty (Excluding Agricultural Products)
5.89%
 
 

Trade Compliance

International Conventions
Member of World Trade Organisation
International Economic Cooperation
Member of Free Trade Areas of the Americas (FTAA)

Member of Association of Caribbean States (ACS)

Member of Central American Common Market (CACM)

Member of Central American Four (CA-4) .

Useful Resources
National Organisation of Intellectual Property
The Directorate General of Intellectual Property.
 
 
 

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Latest Update: May 2022