"For the industries that require the import of raw material, flexible rules "were agreed".
On June 18th, 2015, six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) announced the launching of free trade negotiations with South Korea. Currently, the FTA is in the approval process in the Honduras National Congress. Once approved, this treaty shall enter into force and the main objective is that of promoting the expansion of the national market and creating opportunities for national producers of melon, shrimp, lobster, vegetables, sugar, textile and automobile harness' by obtaining preferential access to the Korean market. On the other part, the Republic of Korea would obtain preferential tariffs for the import of aloe vera beverages, high-tech products, vehicles and electrical appliances.
Reciprocal benefits granted between the Republic of Korea and Honduras are as follows:
- In the agricultural sector, the Republic of Korea grants an immediate access for 9.0% of the universe of agricultural products; and Honduras grant a 27.5% free of tariffs.
- In the manufacturing sector, the Republic of Korea grants 94.8% in immediate access and the Republic of Honduras 72.0% respectively.
This translates into a real access to the Korean market of 98.7% of Honduran exports.
For the industries that require the import of raw material, flexible rules were agreed that allow the importation of raw materials from any part of the world, without the exported product losing its preference in the Republic of Korea.
With a population of around 50.6 million people, a per capita gross domestic product (GDP) of US $ 27,513 and a high Human Development Index (HDI) (17/188), the Korean market becomes very attractive for flourishing economies such as the one in Honduras.