Honduras: CAFTA-DR manufacturing hub for US importers

Honduras, the second-largest country in Central America by area, has a diversified economy anchored by agriculture, manufacturing, and a growing services sector. With a GDP of approximately $32 billion in 2023, the country benefits from a strategic geographic position and strong trade ties with the United States, its largest trading partner. The U.S.-Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) underpins much of this bilateral trade, providing preferential access for a wide range of goods. In 2023, two-way trade between the United States and Honduras exceeded $12 billion, with the U.S. running a modest trade surplus. For businesses looking to expand into Central America, Honduras offers a compelling mix of export opportunities, competitive labor costs, and a growing consumer market.

Top Import Sectors from the United States

Honduras relies heavily on U.S. imports to fuel its manufacturing and agricultural sectors. The top import categories from the United States include machinery and mechanical appliances, mineral fuels and oils, electrical machinery, plastics, and optical and medical instruments. In 2023, Honduras imported over $1.5 billion worth of machinery and mechanical appliances from the U.S., reflecting the country's ongoing industrialization and infrastructure development. Mineral fuels and oils, including refined petroleum products, accounted for approximately $1.2 billion in imports, as Honduras lacks significant domestic energy resources. Electrical machinery and equipment, such as transformers and switchgear, are also critical inputs for the country's expanding power grid and telecommunications networks. Additionally, U.S. exports of plastics and plastic articles, used extensively in packaging and construction, totaled around $400 million. The agricultural sector also depends on U.S. imports of fertilizers, pesticides, and animal feed, which together represent hundreds of millions of dollars annually. These imports are essential for maintaining Honduras's position as a leading exporter of coffee, bananas, and palm oil.

Top Export Opportunities to the United States

Honduras's exports to the United States are dominated by apparel and textiles, coffee, bananas, and other agricultural products. Apparel and textile products, primarily assembled in Honduran maquiladoras, are the largest export category, with shipments to the U.S. valued at over $2.5 billion in 2023. This sector benefits from duty-free access under CAFTA-DR and the Caribbean Basin Trade Partnership Act. Coffee is the second-largest export, with Honduras being the leading coffee producer in Central America. In 2023, Honduran coffee exports to the U.S. reached approximately $1.1 billion, driven by high-quality arabica beans. Bananas, a traditional staple, contributed around $600 million in exports to the U.S. market. Other promising export opportunities include palm oil, melons, pineapples, and shrimp. The U.S. market also shows growing demand for Honduran processed foods, such as frozen vegetables and fruit juices. For U.S. importers, sourcing from Honduras offers competitive pricing, reliable logistics, and preferential tariff treatment.

Business Entry and Regulatory Overview

Entering the Honduran market requires navigating a regulatory environment shaped by CAFTA-DR, local laws, and customs procedures. Foreign investors are generally treated equally to domestic investors, with no prior approval needed for most investments. However, certain sectors such as telecommunications, energy, and insurance require government concessions or licenses. The Honduran Agency for Investment and Exports (Invest-Honduras) provides facilitation services for foreign companies. Import duties in Honduras are based on the Central American Tariff System (SAC), with rates ranging from 0% to 15% for most goods. Under CAFTA-DR, over 80% of U.S. exports enter duty-free, with remaining tariffs phased out. Customs clearance is handled by the Servicio de Administración de Rentas (SAR), and electronic data interchange (EDI) systems are increasingly used to expedite processing. Companies should register with the Honduran Tax Registry (RTN), obtain an importer/exporter license, and comply with labeling and sanitary requirements for food and agricultural products. Intellectual property protection is governed by Honduran law and international treaties, though enforcement can be inconsistent. Engaging a local customs broker or legal advisor is strongly recommended to ensure compliance and smooth operations.

Key Ports and Logistics Infrastructure

Honduras's logistics network is centered on its Caribbean and Pacific coastlines, with the primary ports being Puerto Cortés, Puerto Castilla, and San Lorenzo. Puerto Cortés, located on the Caribbean coast, is the largest and busiest port in the country, handling over 80% of Honduras's maritime cargo. It offers modern container terminals, roll-on/roll-off facilities, and direct connections to major U.S. ports such as New Orleans, Houston, and Miami. The port is also a key hub for apparel exports, with dedicated facilities for textile products. Puerto Castilla, also on the Caribbean side, primarily handles bulk cargo such as bananas, palm oil, and minerals. On the Pacific coast, the port of San Lorenzo serves agricultural exports like coffee and sugar, though its capacity is smaller. Road infrastructure connecting ports to production centers is generally adequate, with the main highway linking Puerto Cortés to San Pedro Sula, the industrial heartland, and Tegucigalpa, the capital. Air freight is handled by Ramón Villeda Morales International Airport in San Pedro Sula and Toncontín International Airport in Tegucigalpa, both offering cargo services. For U.S. exporters, shipping times from Gulf Coast ports to Puerto Cortés are typically 2–3 days, making Honduras a highly accessible market.

Coppermont Advisory for Honduras

Coppermont provides end-to-end trade advisory services for companies looking to import from or export to Honduras. Our team of trade specialists helps clients identify market opportunities, navigate regulatory requirements, and optimize supply chains. For U.S. exporters, we offer market entry strategies, distributor and partner searches, and compliance support for CAFTA-DR rules of origin. For U.S. importers sourcing Honduran coffee, apparel, or agricultural products, we provide supplier verification, quality assurance, and logistics coordination. Our advisory covers key sectors including textiles, coffee, bananas, palm oil, and processed foods. We also assist with customs classification, duty optimization, and risk management. Whether you are a first-time trader or an established multinational, Coppermont's Honduras trade desk delivers actionable intelligence and hands-on support to help you succeed in this dynamic market.

Ready to start trading with Honduras? Contact our trade advisory team today to schedule a consultation. We will analyze your product, map the regulatory landscape, and build a tailored plan to maximize your opportunities in Honduras and beyond.