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

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TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS XII. A. FLOW OF PEOPLE INTRODUCTION After Costa Rica, Honduras has the greatest flow of people across its borders in the region. Annua l visitors to the country numbered more than 886,000 in 2003, up from 672,000 in 2001, a 32 percent rise. According to officials, a great number of these visitors (i.e., 276,000, or approximately one-third of travelers) are on single-day excursions from cruise ships. The greatest share of cross-border traffic (58 percent) comes from residents of other Central Americ an countries. North American visitors account for 30 percent of total visitors; Europeans, 7 percent; and others, the remaining 5 percent. In total, arrival by air constitutes the largest portion of cross-border traffic, with Honduras’s two airports receiving roughly 44 percent of Honduras’s arrivals (29 percent arriving at San Pedro Sula and 20 percent arriving in Tegucigalpa), according to immigration agency sources. Approximately 34 percent of travelers cross the land borders; 2 percent travel by sea. Among land crossings, El Amatillo (El Salvador) and Guasule mark the major entry points, with 21 percent each of crossings. Las Manos ranks third, with 15 percent of overall traffic. As noted previously, tourism is one of Honduras’s largest “exports” (the highest export after maquilas), and significant money flow results from the flow of people. Revenue from tourism provided $373 million in 2003, up from $274 million in 2001 (a 36 percent rise). Overall, Honduran laws and public and private institutions facilitate the flows of trade-related people. Honduras is streamlining processes at land border crossings, upgrading its automation, and am ending its laws. However, as with other Honduran public institutions, Honduran peopleflow institutions are not professional and are overly politicized. Also, Honduras could do more to simplify its system for handling highly skilled visitors seeking longer stays. Work permits require more than 12 pieces of paperwork and involve five or more government agencies. Further, Honduras can do more to address illegitimate people flows, which remain a significant problem. Honduras’s borders with Guatemala, El Salvador, and Nicaragua are long and porous, and Honduras now serves as a key origin and transit country for illegal immigration to the United States. B. LEGAL FRAMEWORK The legal framework generally supports core trade facilitation intraregional movements of traderelated persons such as business travelers and transporters. There are no undue restrictions. However, the law presents a legal maze for highly skilled workers seeking longer stays. 1. Laws and Regulations That Support Trade Facilitation Laws and regulations further trade facilitation through the following measures: ♦ The law does not require a visa for visitors from the United States, the EU, Canada, Mexico, and the CAFTA countries. ♦ With regard to regional harmonization, the CA-4 requirements provide a model in the immigration area. These new requirements allow CA-4 members to travel freely without XII-1
TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004 HONDURAS a passport, and will eventually allow the non-CA-4 international traveler to move within the CA-4 with only one immigration review at the point of entry. 2. Legal and Regulatory Issues to Address Honduras can further support trade facilitation and its development through the following measures: ♦ There are frequent changes in legal and regulatory requirements for immigration. understandably, are seeking predictability and clarity. XII-2 Users, ♦ Further support and encouragement are needed for the CA-4 process regarding immigration. Although the CA-4 countries wish to facilitate movement of people within the union, the goal is not near realization. Harmonizing laws and regulations regarding visa requirements, and especially issues regarding criminal activity must be addressed. ♦ Laws and enforcement of human trafficking should be supported and improved. C. IMPLEMENTING INSTITUTION Overall, the major implementing institution for people flows, the Dirección General de Población y Política Migratoria (hereinafter “Immigration Agency”) has a clear mission, and active leadership that has made numerous changes in the past year. However, the lack of a professionalized service, common to many public agencies, and funding problems have led to serious staffing and equipment shortfalls. 1. Immigration Operations That Support Trade Facilitation The Immigration Agency aids trade facilitation through the following measures: ♦ Border crossings with Guatemala and El Salvador have been streamlined, with the countries sharing offices on one side of the border so that travelers are processed at a single point. Currently, travelers into Honduras are handled on the Salvadoran side of the border, whereas travelers exiting are handled on the Honduran side. In 2004 the Honduran-Salvadoran sites were further streamlined with establishment of a single office on one side of the border. ♦ Officials posted at border crossings, ports, and airport have basic computer equipment for documenting persons. Before this computerization, files were handled manually, and researching a single file could take 1–6 months. ♦ Documents and fee requirements for those entering the country are not overly burdensome. Regulations require no visa for U.S. travelers and travelers from many other nations on arrival. For those departing by air, there is an airport tax on departure. However, the fee is nominal ($29). ♦ Honduran immigration officials use watch lists from the INTERPOL, the United Nations (UN), the United States, and other sources to check for entry and exit of dangerous persons. This procedure is executed electronically.
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