Honduras is actively seeking new international markets for its struggling whiteleg shrimp industry, with Taiwan and South Korea emerging as potential buyers. Foreign Minister Enrique Reina revealed these efforts in an interview with Honduran media outlet Radio América on March 28. This move comes as the country faces a sharp decline in shrimp exports following its diplomatic shift from Taiwan to China in 2023.
The Honduran shrimp industry, once thriving under preferential trade agreements with Taiwan, has suffered a 67% drop in exports in the past two years. With China yet to fulfill its trade promises, the Honduran government is now working to regain access to Taiwan’s market and address regulatory issues with South Korea to revive its seafood exports.
Honduras’ Shrimp Industry Faces Decline After Diplomatic Shift
Whiteleg shrimp, or Litopenaeus vannamei, has been a major export product for Honduras, contributing significantly to the country’s economy. Before Honduras severed ties with Taiwan in favor of China, Taiwan was the largest buyer of Honduran shrimp, accounting for nearly 40% of exports in 2022. The trade relationship was bolstered by a free trade agreement (FTA) signed in 2008, which allowed tariff-free exports of Honduran shrimp to Taiwan.
However, after Honduras formally ended its FTA with Taiwan in December 2023, the industry suffered a severe blow. Honduran shrimp exports plummeted from 20.7 million pounds in 2022 to just 6.6 million pounds in 2024, according to the Asociación Nacional de Acuicultores de Honduras (ANDAH).
China Fails to Deliver on Trade Expectations
Despite switching diplomatic ties to China in March 2023, Honduras has not yet secured a strong market presence in China. The country had high hopes of boosting shrimp exports, but as of 2024, China has only imported four containers of Honduran shrimp—a fraction of what was expected.
According to La Prensa, another major Honduran media outlet, Honduras recorded a $2.5 billion trade deficit with China in 2024. Furthermore, ongoing free trade agreement (FTA) negotiations between Honduras and China, which began in July 2023, have yet to reach a conclusion.
Honduras Turns to Taiwan and South Korea for Market Revival
Recognizing the economic setbacks, the Honduran government is now re-engaging with Taiwan and negotiating market access with South Korea. Foreign Minister Enrique Reina confirmed that discussions are underway to resume shrimp exports to Taiwan, despite the absence of a formal trade agreement.
Additionally, South Korea has been identified as a new potential market, but Honduras must first comply with sanitary and regulatory standards required by the South Korean government. The Honduran government is actively working with Korean authorities to meet these requirements and open up export channels.
Challenges & Future Outlook
- Regaining Taiwan’s Market Without a Trade Agreement
- Without the FTA, Honduras faces potential higher tariffs and regulatory hurdles to exporting shrimp to Taiwan.
- Taiwan’s domestic shrimp production and imports from other countries could pose stiff competition.
- Regulatory Barriers in South Korea
- South Korea has strict sanitary regulations for seafood imports, which Honduras must address to gain approval.
- Delayed FTA with China
- The uncertainty surrounding the Honduras-China trade agreement is a major challenge. If finalized, the agreement could open new export opportunities, but delays have weakened confidence in China as a reliable trade partner.
- Restoring Industry Growth
- To recover from the 67% drop in exports, Honduras must diversify its markets, improve shrimp quality standards, and strengthen trade negotiations.
FAQs
Why did Honduras’ shrimp exports drop so drastically?
Honduras’ shrimp exports declined by 67% after the country ended its free trade agreement with Taiwan in 2023, which had previously allowed tariff-free shrimp exports. China, which Honduras now has diplomatic ties with, has not significantly increased its shrimp imports, leading to a sharp drop in exports.
Can Honduras resume shrimp exports to Taiwan?
Honduras is exploring the possibility of re-entering the Taiwanese market, but without an FTA, it may face higher tariffs and competition from other suppliers. The government is currently in discussions with Taiwan to find a solution.
What challenges does Honduras face in exporting to South Korea?
Honduras must comply with South Korea’s strict sanitary regulations for seafood imports before it can begin exporting shrimp to the country. The government is currently working with Korean authorities to address these requirements.
Has China fulfilled its trade promises to Honduras?
Despite expectations of increased trade, China has only imported four containers of Honduran shrimp since 2024. Additionally, Honduras recorded a $2.5 billion trade deficit with China, and an FTA between the two countries has yet to be finalized.
What steps is the Honduran government taking to support the shrimp industry?
The government is actively seeking new markets, negotiating with Taiwan and South Korea, and working on regulatory approvals to expand shrimp exports.
