WT/TPR/S/336/Rev.1 1 August 2016 (16-4080) Page: 1/116 Trade Policy Review Body TRADE POLICY REVIEW REPORT BY THE SECRETARIAT HONDURAS Revision This report, prepared for the third Trade Policy Review of Honduras, has been drawn up by the WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing the World Trade Organization), sought clarification from Honduras on its trade policies and practices. Any technical questions arising from this report may be addressed to Mr Angelo Silvy (022 739 52 49) and Mrs Eugenia Lizano (022 739 65 78). Document WT/TPR/G/336 contains the policy statement submitted by Honduras. Note: This report was drafted in Spanish. WT/TPR/S/336/Rev.1 • Honduras - 2 - CONTENTS SUMMARY ........................................................................................................................ 7 1 ECONOMIC ENVIRONMENT ........................................................................................ 11 1.1 Economic structure and structural adjustment .............................................................. 11 1.2 Production and employment ....................................................................................... 14 1.3 Fiscal policy ............................................................................................................. 14 1.4 Monetary and exchange-rate policy and prices .............................................................. 17 1.5 Balance of payments and external debt ....................................................................... 18 1.6 Goods trade and investment flows .............................................................................. 20 1.6.1 Composition of trade .............................................................................................. 20 1.6.2 Geographical distribution ........................................................................................ 21 1.6.3 Trade in services ................................................................................................... 24 1.6.4 Foreign direct investment........................................................................................ 25 1.7 Outlook ................................................................................................................... 27 2 TRADE AND INVESTMENT REGIME ............................................................................ 28 2.1 General framework ................................................................................................... 28 2.2 Trade policy objectives .............................................................................................. 31 2.3 Trade agreements and arrangements .......................................................................... 32 2.3.1 WTO .................................................................................................................... 32 2.3.2 Regional and preferential agreements ....................................................................... 33 2.3.2.1 Regional trade agreements ................................................................................... 33 2.3.2.1.1 Central American economic integration and trade relations with Panama .................. 34 2.3.2.1.2 Association Agreement with the European Union ................................................... 35 2.3.2.1.3 Free Trade Agreement with Mexico ..................................................................... 35 2.3.2.1.4 Free Trade Agreement with Canada..................................................................... 36 2.3.2.2 Other agreements and preferential arrangements .................................................... 36 2.4 Investment regime ................................................................................................... 36 3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 41 3.1 Measures directly affecting imports ............................................................................. 41 3.1.1 Procedures, documents and registration .................................................................... 41 3.1.2 Customs valuation ................................................................................................. 42 3.1.3 Rules of origin ....................................................................................................... 42 3.1.4 Tariffs .................................................................................................................. 43 3.1.4.1 Structure and levels ............................................................................................ 43 3.1.4.2 Price band system ............................................................................................... 45 3.1.4.3 Preferential tariffs ............................................................................................... 46 3.1.4.4 Tariff concessions ................................................................................................ 47 3.1.5 Other charges affecting imports ............................................................................... 47 3.1.6 Prohibitions, licensing and other restrictions .............................................................. 48 3.1.7 Contingency measures ........................................................................................... 50 WT/TPR/S/336/Rev.1 • Honduras - 3 - 3.1.7.1 Anti-dumping and countervailing measures ............................................................. 50 3.1.7.2 Safeguard measures ............................................................................................ 52 3.1.8 Standards and technical regulations ......................................................................... 53 3.1.9 Sanitary and phytosanitary measures ....................................................................... 55 3.2 Measures directly affecting exports ............................................................................. 60 3.2.1 Procedures, documents and registration .................................................................... 60 3.2.2 Export taxes and charges ........................................................................................ 60 3.2.3 Prohibitions, licensing and other restrictions .............................................................. 61 3.2.4 Export support ...................................................................................................... 61 3.2.5 Export promotion ................................................................................................... 63 3.2.6 Financing, insurance and guarantees ........................................................................ 64 3.3 Measures affecting production and trade ...................................................................... 64 3.3.1 Incentives ............................................................................................................ 64 3.3.1.1 Employment and Economic Development Zones ...................................................... 65 3.3.1.2 Financing of production sectors and MSMEs ............................................................ 65 3.3.2 Competition policy and price controls ........................................................................ 66 3.3.2.1 Competition policy and consumer protection ........................................................... 66 3.3.2.1.1 Competition policy ............................................................................................ 66 3.3.2.1.2 Protection of consumers .................................................................................... 69 3.3.2.2 Price controls ..................................................................................................... 69 3.3.3 State trading and State-owned enterprises ................................................................ 70 3.3.4 Government procurement ....................................................................................... 71 3.3.5 Intellectual property rights ...................................................................................... 74 3.3.5.1 New varieties of plants ......................................................................................... 75 3.3.5.2 Other industrial property rights ............................................................................. 75 3.3.5.3 Copyright and related rights ................................................................................. 76 3.3.5.4 Enforcement ....................................................................................................... 77 4 TRADE POLICIES BY SECTOR ..................................................................................... 78 4.1 Agriculture .............................................................................................................. 78 4.1.1 Main features ........................................................................................................ 78 4.1.2 Agricultural policy .................................................................................................. 79 4.1.2.1 General policies .................................................................................................. 79 4.1.2.2 Measures affecting imports ................................................................................... 82 4.1.2.3