外交部 The Free Trade Agreement between the Republic of China and Honduras Comes into Effect

ROC Ambassador to Honduras Lai Chien-chung, on behalf of our government, and Honduran Foreign Minister Angel Edmundo Orellana Mercado signed the Certificate of Ratification by the ROC and Honduras Relating to the Republic of China-El Salvador-Honduras Free Trade Agreement (the FTA) on July 15, 2008 (local time). The two countries consented for the agreement to officially come into effect the same day. This is the fourth free trade agreement signed with our diplomatic allies to come into force.

To advance economic and trade relations and consequently strengthen our diplomatic ties with Honduras and El Salvador, our government started the first round of negotiations with these two countries in May 2006, and concluded an agreement last November after four rounds of intensive negotiations. The Minister of Economic Affairs at the time Chen Ruey-lung, El Salvadorian Minister of Economy Yolanda de Gavidia and Honduran Minister of Commerce and Industry Miriam Azcona together signed the Republic of China-El Salvador-Honduras Free Trade Agreement on May 8, 2007 in the capital city of San Salvador. Both Honduran and El Salvadorian presidents were present at the signing ceremony as honorary witnesses. El Salvador and the ROC exchanged ratification documents on March 1, 2007, which put the agreement into force between the two countries that same day.

The FTA may produce the following opportunities:
1. There is great potential for the export of our agro-processed goods and industrial products to El Salvador and Honduras. With the FTA, our products will attain a new level of competitive advantage in these two countries and open business opportunities.
2. Our industries are complementary to those of El Salvador and Honduras. By increasing the substance of the trade relationship, we can surely create a win-win situation for every country, and thus consolidate our diplomatic ties.
3. The FTA can serve as our springboard to North and South America, helping our industries to divide their work on a global scale.
4. The FTA prevents our trade and investments from being excessively concentrated, and contributes to our negotiations of free trade agreements with major international trade nations.（E）