China-Honduras Free Trade Agreement Negotiations Launched

On Tuesday, China and Honduras began negotiating a Free Trade Agreement (FTA) after the Central American country established diplomatic relations with Beijing in March.

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Wang Wentao, China's Minister of Commerce, stated that the negotiations will boost "the quality and level of bilateral trade and strengthen investments in various fields."

The establishment of diplomatic ties opens up "a range of possibilities" in areas such as trade, infrastructure, finance, energy, technology, science, education, and culture, according to Honduran Foreign Affairs Minister Eduardo Reina.

Shrimp, bananas, melons, cigars, and beef are some of the products that Honduras plans to export to China, as stated by Reina, although he emphasized that coffee will be the first product that this Central American nation will send to the Asian country.

On March 26, Honduras and China announced the establishment of diplomatic relations. This occurred after Honduras officially severed diplomatic ties with Taiwan, which it had maintained since 1941.

Honduras and Taiwan had a relationship of military, educational, and economic cooperation, and the island funded technical and agricultural aid projects while also hosting hundreds of Honduran scholarship recipients in its universities.

Honduras' termination of relations with Taiwan reduces the number of countries with which Taipei maintains official diplomatic ties to 13, and makes Honduras the ninth country - and fifth in Latin America - to cut ties with the island and establish relations with China since 2016.

Honduras joins its neighbors Panama, El Salvador, the Dominican Republic, and Nicaragua, which in recent years have severed ties with Taiwan in favor of China.