Free Trade Zone

Honduras's maquila exports fell 8.0% year-over-year through July 2026 to $2.91 billion, driven by a $221.3 million decline in textile and apparel sales to the US and reduced electrical-harness shipments, with industry leaders warning of global trade reconfiguration.

Honduras's garment and assembly industry will lose an estimated $500 million in exports by year-end as a 10% decline reflects structural competitiveness challenges including high electricity costs, labor expenses, and shifts in global markets, the regional manager of the Honduran Maquiladora Association said.

New Land LLC, a foreign-controlled firm, announced plans for a "smart city" tech park in Honduras's Moskitia region without consulting indigenous communities, prompting local leaders to warn of similarities to controversial autonomous economic zones.

A labor confederation representative estimates that about 40% of Honduras's maquiladoras (assembly factories) have shut down, severely impacting employment and family incomes in the northern industrial zone.

Free-zones adviser Santos Roberto Peña reported that three new companies incorporated in Honduras during the first half of 2026 are expected to generate around 500 jobs.

Honduras's monthly trade deficit with China has surged to $256 million as of April 2026, with Chinese imports dominating the market while Honduran exports remain minimal, a deepening asymmetry since Honduras shifted diplomatic ties from Taiwan to mainland China in 2023.

Honduras's apparel-manufacturing sector has created roughly 2,000 new jobs in recent months and reported fewer mass layoff announcements, though unions warn that thousands remain jobless and call for dialogue to accelerate rehiring.

The cabinet approved an executive decree prohibiting the import of goods produced under forced labor, fulfilling Honduras's commitments to the International Labour Organization and the US free-trade agreement.