00:00On the other hand, the government of Honduras has announced that it is putting negotiations for a free-trade agreement
00:16with China on hold, following two years of talks and despite the fact that the process had reached its sixth
00:21and final round.
00:23Herodotus Aracelaya reports from Tegucigalpa.
00:30Began negotiations with China for a free-trade agreement in 2023.
00:34Over the course of two years, six rounds of negotiations were held, three in Beijing and three in Tegucigalpa, resulting
00:42in the approval of more than 90% of the text, which compromises 22 chapters.
00:47The new government has announced that it is putting the agreement on hold and will not sign it, without providing
00:53further details as to why.
00:54Relations reached a very high level.
01:01In the short time since establishing diplomatic ties, we had managed to secure what was known as an early harvest
01:09agreement with the Chinese regarding trade.
01:15This allowed Honduras' key export products, such as shrimp, coffee, beef, melons and tobacco, to gain rapid initial access to
01:26the Chinese market.
01:28All of this was achieved based on the understanding that we would be granted zero tariff access while negotiations for
01:35a free-trade agreement proceeded.
01:38Although the general rule is that free-trade agreements are signed with tariff liberalizations of at least 95%, Honduras had
01:46managed to get China to agree to an average of between 80% to 85%, which allowed for the protection
01:53of strategic products that could be affected by the Asian giant's economic size and commercial capacity.
01:59These chapters cover a wide range of topics.
02:07The agreement addresses issues such as free-trade percentages, access to highly specific markets, and tariff classifications for particular goods,
02:20while also including matters of investment, cooperation, and highly technical details regarding rules of origin and specific product-related points.
02:32It is a comprehensive agreement, the result of extensive work by the technical teams of both nations and high-level
02:41negotiations, with only the final signing by both countries remaining.
02:50Another agreement between the treaty involved increasing China's cooperation in Honduras.
02:55This included an initial sum of $250 million allocated for the creation of six agricultural schools, the repair of 200
03:04schools, and the purchase of 298 ambulances, one for each municipality in the country,
03:10as well as a soft loan for the construction of a massive hydroelectric dam known as Batuka 2A.
03:17All of these projects have also been halted.
03:19Relations with China were in very good shape.
03:24However, the decision this administration has made, linked to other domestic and international political interests, is what has held up
03:31progress.
03:32And as far as I know, none of the cooperation initiatives have moved forward.
03:39Even without having signed a treaty, Honduras participated in various international trade fairs in Shanghai, Beijing, and other Chinese cities,
03:48successfully placing over 10,000 tons of coffee and some 500 tons of shrimp in just two years.
03:54While securing future purchase commitments for melons, beef, tobacco, and other products, the government's decision has taken the relevant business
04:03community by surprise.
04:05In all likelihood, halting the treaty's approval or closing diplomatic missions in that country will not slow down this rapidly
04:12growing trade relationship, but rather render it more unstable and devoid of clear rules.
04:18Reporting for Telesurian English from Tegucigalpa, Honduras, Gerardo Torres Zelaya.
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