2008
Post Date : 97-08-01
Following the Taiwan-El Salvador-Honduras FTA went into effect between Taiwan and El Salvador on March 1, 2008, the FTA also went into effect between Taiwan and Honduras on July 15 after Taiwan and Honduras completed their respective domestic legal procedures and exchanged instruments of ratification between the two countries. This not only symbolizes the close economic and trade cooperation between us, but shows that Taiwan's international trade arena has moved a step forward. So far Taiwan has signed FTAs with diplomatic allies such as the Taiwan-Panama FTA, Taiwan-Guatemala FTA, Taiwan-Nicaragua FTA and Taiwan-El Salvador-Honduras FTA, all of which are in effect.

Our government started the negotiations with these two countries in May 2006, and concluded an agreement in November 2006 after four rounds of intensive negotiations. The former Taiwan Minister of Economic Affairs Chen Ruey-long, the El Salvadorian Minister of Economy and the Honduran Minister of Commerce and Industry together signed the Taiwan-El Salvador-Honduras Free Trade Agreement on May 7, 2007 in San Salvador. Both Honduran and El Salvadorian presidents were present at the signing ceremony as honorary witnesses.

When the FTA between Taiwan and Honduras took effect, 3,881 items from Taiwan (61.9% of Honduras’ total tariff lines) now enjoy tariff-free entry into the Honduran market, while 6,135 items from Honduras (69.4% of Taiwan’s total tariff lines) now enjoy the same treatment in Taiwan. After 10 years, these figures will jump to 70.3% and 93% respectively. Both Taiwan and Honduras will benefit greatly from the FTA by improving their international competitiveness, and Taiwan and Honduras will be able to respond more effectively response to the challenges of globalization and liberalization.
The FTA will remove trade barriers for both sides, pursue economic reciprocity and strengthen trade, investment and technical cooperation which will increase more trade opportunities for Taiwan’s goods. For Honduras, the FTA with Taiwan will facilitate the entry of their goods into the Asia-Pacific market. At the same time, it will also facilitate the entry of Taiwan’s products to the Latin American market and establish a more convenient channel. In terms of investment, the FTA between Taiwan and Honduras will promote bilateral investment. In addition, the government and the private sectors of both Taiwan and Honduras can also explore the North American market by taking advantage of the Central American Free Trade Agreement (CAFTA) which has been signed between Honduras and the United States. Implementation of the above-mentioned FTA is expected to create a win-win situation in terms of industry, agriculture, services and investment sectors.