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Trade and Commercial Law Assessment - Honduras - Economic ...

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004<br />

HONDURAS<br />

XII.<br />

A.<br />

FLOW OF PEOPLE<br />

INTRODUCTION<br />

After Costa Rica, <strong>Honduras</strong> has the greatest flow of people across its borders in the region.<br />

Annua l visitors to the country numbered more than 886,000 in 2003, up from 672,000 in 2001,<br />

a<br />

32 percent<br />

rise. According to officials, a great number of these visitors (i.e., 276,000, or<br />

approximately<br />

one-third of travelers) are on single-day excursions from cruise ships. The<br />

greatest<br />

share of cross-border traffic (58 percent) comes from residents of other Central<br />

Americ an countries. North American visitors account for 30 percent of total visitors; Europeans,<br />

7 percent;<br />

<strong>and</strong> others, the remaining 5 percent.<br />

In total, arrival by air constitutes the largest portion of cross-border traffic, with<br />

<strong>Honduras</strong>’s two<br />

airports receiving roughly 44 percent of <strong>Honduras</strong>’s arrivals (29 percent arriving at San Pedro<br />

Sula<br />

<strong>and</strong> 20 percent arriving in Tegucigalpa), according to immigration agency sources.<br />

Approximately 34 percent of travelers cross the l<strong>and</strong> borders; 2 percent travel by sea. Among<br />

l<strong>and</strong> crossings, El Amatillo (El Salvador) <strong>and</strong> Guasule mark the major entry points, with 21<br />

percent each of crossings. Las Manos ranks third, with 15 percent of overall traffic. As noted<br />

previously, tourism is one of <strong>Honduras</strong>’s largest “exports” (the highest export after maquilas),<br />

<strong>and</strong> significant<br />

money flow results from the flow of people. Revenue from tourism provided<br />

$373 million<br />

in 2003, up from $274 million in 2001 (a 36 percent rise).<br />

Overall, Honduran laws <strong>and</strong> public <strong>and</strong> private institutions facilitate the flows of trade-related<br />

people. <strong>Honduras</strong> is streamlining processes at l<strong>and</strong> border crossings, upgrading its automation,<br />

<strong>and</strong> am ending its laws. However, as with other Honduran public institutions, Honduran peopleflow<br />

institutions are not professional <strong>and</strong> are overly politicized. Also, <strong>Honduras</strong> could do more to<br />

simplify<br />

its system for h<strong>and</strong>ling highly skilled visitors seeking longer stays. Work permits<br />

require more than 12 pieces of paperwork <strong>and</strong> involve five or more government agencies.<br />

Further, <strong>Honduras</strong> can do more to address illegitimate people flows, which remain a significant<br />

problem. <strong>Honduras</strong>’s borders with Guatemala, El Salvador, <strong>and</strong> Nicaragua are long <strong>and</strong> porous,<br />

<strong>and</strong> <strong>Honduras</strong> now serves as a key origin <strong>and</strong> transit country for illegal immigration to the United<br />

States.<br />

B. LEGAL FRAMEWORK<br />

The legal framework generally supports core trade facilitation intraregional movements of traderelated<br />

persons such as business travelers <strong>and</strong> transporters. There are no undue restrictions.<br />

However, the law presents a legal maze for highly skilled workers seeking longer stays.<br />

1. <strong>Law</strong>s <strong>and</strong> Regulations That Support <strong>Trade</strong> Facilitation<br />

<strong>Law</strong>s <strong>and</strong> regulations further trade facilitation through the following measures:<br />

♦ The law does not require a visa for visitors from the United States, the EU, Canada,<br />

Mexico, <strong>and</strong> the CAFTA countries.<br />

♦ With regard to regional harmonization, the CA-4 requirements provide a model in the<br />

immigration area. These new requirements allow CA-4 members to travel freely without<br />

XII-1

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