Apparel firms in Honduras are gearing up for the soon to be implemented Free Trade Agreement (FTA) with Canada.
The Canada-Honduras Free Trade Agreement was signed on November 5, 2013, and it would come into force once it is approved by the Canadian Parliament and Honduran Congress.
In view of the impending FTA, the Foundation for Investment and Development of Exports (FIDE) organized at lecture on “Export to Canada free of tariffs”, where Canadian experts explained in detail to Honduran apparel entrepreneurs and others on how to export to Canada taking advantage of the FTA.
The garment manufacturers were informed about the Canadian clothing market, trade and services facilitation office in Canada, as well as about the rules of origin and compliance requirements under the FTA.
The FTA would provide increased market access for goods, with almost 98 percent of tariff lines being duty-free once the agreement is fully implemented. The agreement includes enhanced provisions on cross-border trade in services, investment and government procurement.
Daniel Facussé, president of Association of Maquiladoras in Honduras (AHM), expects the FTA to pave way for Canada to become the largest market for Honduran goods, including garments.
Since 2007, there has been a 46 percent growth in merchandise trade between Canada and Honduras.