Honduras Foreign Minister Enrique Reina announced efforts to reconnect with Taiwan amid a drastic decline in shrimp exports following Honduras’ diplomatic shift to China in 2023. This change led to a trade imbalance as Chinese goods flooded the market, negatively impacting local economies and resulting in significant job losses.

Honduran Foreign Minister Enrique Reina announced on April 2, 2025, that Honduras aims to re-establish connections with the Taiwanese market following significant declines in shrimp exports. The diplomatic shift in March 2023, which severed ties with Taiwan in favor of China, was intended to facilitate a Free Trade Agreement. Nevertheless, this move resulted in a flood of Chinese goods into Honduras, causing a critical trade imbalance instead of the anticipated economic advantage.

In an interview with Honduran media, Reina acknowledged the difficulties in accessing the Chinese market, stating that the government is now focused on collaborating with Taiwan to explore alternative economic opportunities. Prior to the diplomatic change, Taiwan and Honduras had enjoyed over 80 years of diplomatic relations, which was characterized by mutual military, educational, and economic cooperation. Taiwan was significantly beneficial, providing assistance and serving as a vital market for Honduran shrimp exports.

Before the shift in relations, nearly 40% of Honduras’ shrimp exports were directed to Taiwan. However, as a consequence of the diplomatic decision made by President Xiomara Castro, the Honduran Association of Aquaculturists reported a dramatic 67% drop in shrimp exports within just two years, leading to over 14,000 job losses. The shrimp farming sector’s contraction has severely impacted the local economy, resulting in business closures, job losses, and diminished incomes for thousands of families affected by this crisis.

The Honduran government’s renewed focus on re-engaging with Taiwan reflects its recognition of the economic challenges faced since its pivot to China. The severe decline in shrimp exports and its detrimental effects on the local economy underline the importance of stable trade relationships. As Honduras explores this renewed partnership, the hope is to restore jobs and stabilize the economy for affected communities.

Original Source: www.taiwannews.com.tw

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