In the 2021 presidential elections, the Honduran people strongly demonstrated their commitment to democracy, the fight against corruption and a preference for a new era of freedom, justice and economic prosperity. President Xiomara Castro’s historic victory and her commitment to development with equity, economic prosperity and the fight against corruption encourage our country with optimism and hope. This exclusionary juncture laid the foundation for decisively changing the course of the country by marrying our closest allies. Honduras has the prospect of being the forerunner of economic prosperity in the region, especially in the current state of global affairs. As our largest business spouse and host of this week’s Summit of the Americas, the United States can play a key role in this era of national regeneration.
Months ago, our government and personal sector leaders began working with their U. S. counterparts on methods to capitalize on proximity trends brought on by the global supply chain crisis. This initiative has the valid prospect of being a major component of President Castro’s efforts to ensure economic stability and encourage the creation of tasks through investment.
The concept of nearshoring is simple: bringing goods closer to the United States. For example, the port of Cortés, located in northern Honduras, is only 3 days by boat from Houston and 3 hours by plane. The proximity to the United States, a professional workforce, and the strong economic benefits Honduras provides are cause for anger for U. S. corporations investing in Honduras.
By contrast, the elongated chains of clothing and products from customers in China and Asia have collapsed, driven by the global pandemic, emerging transport prices and a shortage of hard work.
These pressures have forced corporations to recalibrate their supply chains outside of Asia and produce more for Honduras and the entire Western Hemisphere through the Dominican Republic-Central America Free Trade Agreement, also known as the U. S. -Central America-Dominican Republic Free Trade Agreement. . (CAFTA-DR), which allows the duty-free import of thousands of products.
Basically, CAFTA-DR guarantees that the closing of the offshoring is mutually favorable for the United States, Honduras and the personnel of either country. The agreement’s regulations ensure that primary textile and apparel industries will have to use regional and US inputs to take advantage of the tariffs. free access to the US, making sure task creation is symbiotic. Similarly, the agreement enshrines protections for staff in both countries and strengthens their right to operating conditions, unionization and strike action.
For years, Honduras has been a primary exporter of textiles and apparel in the hemisphere due to its proximity to the United States, CAFTA-DR’s origin textile regulations and import benefits, and the power of our workers. Honduras is the 5th largest manufacturer in the global with USD 2. 78 consistent per unit (measured in equivalent to square meters), according to the World Bank.
Honduras is a quick option for the chain of origin. For example, in a matter of days, US cotton harvested through farmers in Texas, a state that has produced 40% of US cotton in recent years, can become a T-shirt through Honduran personnel hired through US companies, generating thousands of jobs in our country. In addition, this finished product can be sold at retail in a store in California in a few days and in a few weeks.
Although it has so far been achieved modestly, nearshoring is already taking hold. Along with Vice President Kamala Harris, President Castro and our personal sector leaders have secured significant investments from several U. S. corporations in recent months. For example, Parkdale Mills and Intradeco Holdings have invested heaps of millions of dollars to expand regional co-production with our textile, yarn and apparel industry, which is one of the most powerful in the region and a convenient domain for initial offshoring. Nearly a billion dollars of investment in textiles and apparel are expected in Central America this year – a historic level.
These recent investments offer an entirely new opportunity for Honduras, whether for global prowess and national prosperity in the textile and apparel production sector, while ensuring that U. S. personnel enjoy the same gains.
Experts say more investments and adjustments in lines to Latin America can be expected as corporations struggle to manage chain problems in Asia.
The convergence of those macrofactors, the election of President Castro, and recent investments through major U. S. corporations have brought a breath of air to the U. S. -Honduran partnership.
President Castro, Vice President Harris, and those forward-thinking U. S. corporations have laid a solid foundation for a generational outreach effort. Everyone expects the leaders of the administration, Congress, and the U. S. personal sector to be able to do so. Program of dissemination and expansion of economic solidarity with other Hondurans.
About the author: Pedro José Barquero Tercero is Secretary of Economic Development of Honduras. Previously, he was President and Executive Director of the Chamber of Commerce and Industries of Cortés, a business organization that brings together the personal sector of the northern region of Honduras.
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