CAFTA-DR Facilitates Trade Between Honduras and the United States

 


Before performing her residency in neurology at the Medical College of Wisconsin, Dr. Melissa Macias earned her MD there. Dr. Melissa Macias was once a medical volunteer with MEDICO on a mission to Honduras.

In 2004, Honduras signed the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR) along with Honduras, Nicaragua, Guatemala, El Salvador, Costa Rica, and the Dominican Republic. Designed to substantially reduce tariffs on both products and services, the agreement stipulates that most of the goods covered under CAFTA may be exported to the United States free of import taxes or a merchandise processing fee (MPF), and when the agreement goes into full effect in 2025, almost all merchandise will enter duty-free.

Currently, Honduras ranks Number 42 among United States trading partners, at $10 billion in combined trade in 2015, which saw $5.2 billion worth of goods sent to Honduras and $4.8 billion of imports to the US. According to the Commerce Department, in 2014, exports to Honduras contributed to 27,000 US jobs.