On 2 April 2014, Honduras and Peru agreed to resume bilateral free trade negotiations. They were reissued from the first week of August. On 29 May 2015, Honduras and Peru signed a free trade agreement. Canadian Prime Minister Stephen Harper`s visit to the city of San Pedro Sula for the signing of the first ceremonial convention in 2011 was the first time a foreign leader visited Honduras since the 2009 coup.  Mr. Harper has been criticized for conducting negotiations with the government of Honduran President Pepe Lobo, with Canadian observers saying that Lobo`s country is “an impoverished quasi-dictatorship” and criticizing Canada`s lack of response to human rights concerns in the country.  On July 24, 2016, the Peruvian government ratified the free trade agreement. The Honduras-Peru Free Trade Agreement entered into force on 1 January 2017. The Canada-Honduras Free Trade Agreement is a free trade agreement between Canada and Honduras that entered into force on October 1, 2014.  From 2000 to 2010, Canada concluded multilateral negotiations with Honduras, Guatemala, El Salvador and Nicaragua (together the Central American Four or CA4) for a proposed free trade agreement between Canada and the Four Central Americas. In the absence of an agreement between Canada and 4 4A after twelve rounds of negotiations, Canada and Honduras began separate bilateral negotiations in 2010. The Republic of Honduras is a low-middle-income country that faces great challenges: more than two-thirds of the country`s population lives in poverty and about 46 per cent live in extreme poverty. Honduras ranks 78th out of 132 countries in the World Economic Forum`s (WEF) Trade Index (2012), which measures institutions, policies and services to facilitate trade within countries.
The Honduran trade regime is very open. Worldwide, the country`s exports have very good access to foreign markets. In return, the country is open to imports; However, the weak business environment (especially cumbersome and tedious bureaucratic rules) and poor performance on important business infrastructure services significantly hamper business activities. It is believed that the implementation of many free trade agreements in recent years has led to some modernization and liberalization of the country`s trade and investment regimes. The Honduran trade regime is relatively open, with an average tariff rate of about 6% in 2012 (relatively stable at this rate for more than 10 years), modest use of non-tariff barriers and without recourse to emergency measures. Average tariffs are 10.5% for agricultural products and 5.0% for non-agricultural products. Dairy products are subject to a relatively high average customs duty of 22.5% and some animal products are subject to a high maximum duty of 165%. Not only has Honduras concluded free trade agreements with Colombia, Mexico, Chile, Taiwan and Panama, but it also participates in the Central American Common Market (CACM), which includes Guatemala, El Salvador, Nicaragua and Costa Rica. . .