Honduras is attempting to re-engage with the Taiwan market after experiencing a severe decline in shrimp exports. The country shifted alliances from Taiwan to China in March 2023, expecting economic growth, but faced unforeseen challenges instead. As a result, the Honduran government is now exploring opportunities with Taiwan to revive its economy and shrimp industry, which has suffered over 14,000 job losses and a 67% decrease in exports since the diplomatic change.

Honduran Foreign Minister Enrique Reina announced on Monday that the government aims to re-establish connections with the Taiwan market following a significant decline in shrimp exports. In March 2023, Honduras severed ties with Taiwan to form a partnership with China, expecting economic benefits from a Free Trade Agreement. Contrary to these expectations, Honduras experienced a detrimental trade imbalance as Chinese goods flooded their market.

In a conversation with Radio America, Reina acknowledged the challenges faced in accessing the Chinese market. He stated that the Honduran government is actively engaging with Taiwan to explore alternative opportunities. Prior to the diplomatic change, Taiwan and Honduras shared over 80 years of collaboration in military, educational, and economic domains, with Taiwan providing crucial agricultural and technical support.

In 2022, Taiwan accounted for nearly 40% of Honduran shrimp exports. Following the severance of diplomatic relations with Taiwan, the Honduran Association of Aquaculturists reported a staggering 67% decline in shrimp exports within two years, resulting in over 14,000 job losses. The repercussions of this decline have severely impacted the economic stability of production areas, leading to business closures and diminished incomes for countless families.

In conclusion, Honduras is seeking to renew its relationship with Taiwan in light of economic challenges resulting from its prior diplomatic shift to China. The loss of export markets and jobs in the shrimp farming sector highlights the consequences of this decision. Taiwan’s historical partnership with Honduras significantly contributed to its economy, and rekindling this relationship could provide much-needed support for the struggling industry.

Original Source: www.taiwannews.com.tw

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