Chongqing - Chongqing enterprises can leverage Honduras' trade policy to access U.S. and Central American markets following the U.S. tariff hike on Chinese goods, said Liu Peng, the Honduran industrial and commercial representative in China, at the Chongqing-Honduras Economic and Trade Cooperation Conference on March 27.
Liu added that Honduras provides a crucial advantage for Chinese companies looking to bypass these tariffs, thanks to its zero-tariff policy on exports to the U.S., offering a significant market opportunity for Chinese enterprises.
Jhoiner Fernández, Consul of the Honduran Embassy in China. (Photo/Huan Ran)
"The Honduran market radiates throughout Central America, where 90% of the industry relies on imports, except for some agricultural products," Liu said.
Given these opportunities, Chongqing is set to hold the Honduras Chongqing Brand Commodities Exhibition in Tegucigalpa, the capital of Honduras, this July. The event will mark the first comprehensive trade exhibition organized by Chongqing in Central America, paving the way for local enterprises to break into the Central American market.
More than 40 Chongqing enterprises will participate, representing key industries such as automobiles, motorcycles, construction machinery, hardware, and electromechanical products. Among these exhibitors is Kaicheng, the commercial vehicle brand under Changan Automobile, which is focusing on the Honduran market for pickup trucks and commercial vehicles.
Jhoiner Fernández, Consul of the Honduran Embassy in China, welcomed Chinese companies to invest in Honduras while emphasizing the strong demand for Chinese products.
He also pointed out that the Honduran motorcycle market is experiencing rapid growth. "As per capita income rises, motorcycles have become the preferred choice for many families," Jhoiner noted, adding that electric motorcycles are gaining attention in the market, with some manufacturers already introducing electric models.
Chongqing, known as China's motorcycle manufacturing hub, is home to 43 motorcycle manufacturers and over 400 parts suppliers. Its annual production capacity is 10 million vehicles and 20 million engines. In 2024, Chongqing exported 5,027,000 motorcycles worth 20.45 billion yuan (about USD 2.82 billion), a 22% increase in volume and a 25.9% rise in value, making it the third-largest motorcycle exporter in China.
Since the establishment of diplomatic relations between China and Honduras in March 2023, both countries have strengthened economic ties. Chinese enterprises actively participate in investment projects in hydropower, infrastructure, and urban construction in Honduras.
In addition, trade between the two countries has flourished, with six rounds of negotiations for a free trade agreement almost complete. Under this agreement, products like South American white shrimp have benefited from a zero-tariff policy, further boosting bilateral trade.
Yang Xuchao, vice chairman of the CCPIT Chongqing and CCOIC Chongqing, praised the efficiency of trade facilitation between China and Honduras, highlighting the streamlined logistics, customs clearance, and inspection processes. "The trade costs are lower than those of neighboring Mexico, and the trade facilitation process is already at a higher stage," Yang said.
He encouraged Chongqing enterprises to pay closer attention to international settlement and trade credit as they expand into these emerging markets.
"I hope that more 'Made in Chongqing' products enter Central America’s 'ultra-emerging markets,'" said Yang.