The formalization of the agreement between the two countries will imply major alternatives to foreign trade and advantages for local firms.
The free trade agreement (FTA) that Peru and Honduras signed in Lima in May 2015 (link in Spanish) entered into force on January 1, 2017. This FTA is part of Peru’s trade strategy to improve market access conditions. It also establishes rules and procedures to enable the promotion of trade in goods and services and investments.
The country’s minister of foreign trade and tourism, Eduardo Ferreyros, stressed that Peruvian exports will now enjoy major advantages, as approximately 84% of these will enter Honduras tariff free (link in Spanish) immediately or within a maximum of five years.
This will benefit exports of Peruvian products such as asparagus, artichokes, grapes, pineapples, mangoes, avocados, quinoa, kiwicha (Amaranthus caudatus), qañiwa (Chenopodium pallidicaule), paprika, coffee, corn, and more.
It will also be a positive tool for encouraging bilateral trade between the two countries, which mainly stands to benefit small and medium-sized enterprises (SMEs). “Small Peruvian companies will find it easier to access regional markets and begin the export process. These markets are close to one another, we speak the same language, we have the same customs, so we are easier to reach. Honduras opens up huge possibilities for Peruvian SMEs,” Mr. Ferreyros argued (link in Spanish).