Honduras Us Free Trade Agreement
The Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR FTA) came into force in 2006 for the United States, El Salvador, Guatemala, Honduras and Nicaragua, 2007 for the Dominican Republic and 2009 for Costa Rica. Under the free trade agreement, 100% of U.S. exports of consumer goods and industrial goods to CAFTA-DR countries will no longer be subject to tariffs. Tariffs on almost all agricultural products in the United States will expire by 2020. To be treated duty-free under free trade agreements, products must comply with applicable rules of origin. Why has CAFTA, like U.S. trade agreements before and after, failed to reduce widespread labour abuses? Kim Elliot, a member of the U.S. Free Trade Agreements` U.S. Free Trade Agreements, recently proposed this statement bluntly: the working provisions of U.S.
trade agreements “are included because they are necessary to get congressional business.” She added: “This is really about policy, not how to raise labour standards in these countries.” Honduras` trading system is relatively open, with an average tariff rate of about 6% in 2012 (relatively stable at this rate for more than 10 years), a modest application of non-tariff barriers and without recourse to emergency measures. Agricultural products are subject to an average tariff of 10.5%, while the average tariff for non-agricultural products was 5.0%. Dairy products are covered by a relatively high average tariff of 22.5%, and some animal products are subject to a high maximum tariff of 165%. Honduras not only has free trade agreements with Colombia, Mexico, Chile, Taiwan and Panama, but also participates in the Common Market of the Americas (CACM), which includes Guatemala, El Salvador, Nicaragua and Costa Rica. As a member of the CMAC, Honduras applies a common external tariff (CET) for most items with a maximum rate of 15%, with a few exceptions. The CMAC also concluded free trade agreements with the United States and the Dominican Republic (CAFTA-DR) in 2004 and concluded a free trade agreement with the EU in 2011. The implementation of these free trade agreements has led to the modernization and liberalization of the country`s trade and investment systems. (WTO, 2012). Today, Donald Trump is the scapegoat for the economic insecurity faced by many Americans, for whom he is scapegoating with his racist attacks and xenophobic obsession with building a wall along our southern border. But it is the same U.S. trade policy that harms workers in the United States, which many in Central America have left no choice but migration, as they struggle to feed and support their families.
Each publication contains the United States Harmonized Customs Plan (HTSUS) General Note containing general and specific rules of origin, a list of all products that became duty-free upon entry into force, and the exemption plan for goods that have been released over time.