Honduras committed to expanding trade with Spain: Minister

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By LatAm Reports Editor

Honduras is actively seeking to broaden its trade relationships with Spain, moving beyond its traditional exports of food and tobacco, as stated by Miguel Medina, the Honduran Minister of Investment Promotion. Medina’s remarks came during his visit to Madrid, where he engaged in discussions aimed at fostering new trade agreements and expanding investment opportunities.

During his visit, Minister Medina participated in a meeting with Spanish businesses at the Spanish Confederation of Business Organizations (CEOE). He highlighted Honduras’ potential for investment in various sectors, including energy, medical tourism, and business tourism. This initiative aligns with the goals of President Xiomara Castro’s administration, which is keen on pursuing an active investment-seeking agenda with countries that share common values with Honduras.

Medina expressed optimism about the growth of relations between Spain and Honduras. At a business meeting titled “A new vision for private investment in Honduras,” the focus was on evaluating and strengthening the economic ties between the two nations. Medina emphasized Honduras’ current investment opportunities, noting that the country exports nearly $100 million worth of products to Spain, predominantly coffee and cigars.

Honduras is also looking to promote investments in its agro-industrial sector and infrastructure development, including a railway corridor that is part of a larger project proposed by four countries to connect several Honduran ports. Medina pointed out that Honduras, in collaboration with other Central American nations, represents a significant market of about 60 million people, making it an attractive destination for foreign investment.

The Castro government has implemented laws to encourage investment, including legal regimes and incentive laws for tourism, aiming to draw more investors to Honduras. Medina highlighted the country’s status as a producer of raw materials and expressed a desire for investment from countries with more substantial industries to add value to these products.

Despite the complex governance context in some Central American countries, Medina noted progress in regional integration, particularly with Guatemala and El Salvador. He observed that businesses from countries like Nicaragua are increasingly choosing to invest in Honduras due to the perceived greater opportunities.

Regarding the changing political landscape in Latin America, such as the election of right-winger Javier Milei in Argentina, Medina took a cautious stance. He suggested waiting to see Milei’s short-term results and their potential impact on the Central American economy and the broader region. Medina’s visit to Spain and his discussions with Spanish businesses represent a significant step in strengthening Honduras’s global trade and investment ties.