President Yamandú Orsi is leading an unprecedented delegation as part of the 38th anniversary of the restoration of diplomatic ties between China and Uruguay, underscoring the strategic importance of the bilateral relationship.

One out of every four dollars that enter Uruguay through goods exports comes from the same destination: China. For 14 years it has been the main buyer of Uruguayan products and has been a key player in the rise in living standards the country has experienced so far in the 21st century—a process closely and directly linked to the Asian country’s demand for raw materials such as beef, dairy products (which have seen a significant slowdown since 2022), pulp, wood, and soybeans.

The “commodities boom” spread across South America, and Uruguay was no exception. During the so-called “progressive era,” the region went through a cycle of prosperity closely tied to the “Chinese miracle,” driven by a profound shift toward openness in China’s economic and social policies following the 1959–1961 famine and the implementation of reforms launched in 1979—until then, China’s Constitution prohibited foreign investment. The modernizing reform involved the creation of special economic zones, the dismantling of state agricultural communes, the privatization of companies, and even the imposition of the one-child policy during those years (abandoned in 2015).

As international trade began to open up between the 1970s and 1980s, under the leadership of Deng Xiaoping, China offered the industrialized world an abundance of cheap labor. The “factory of the world,” while retaining authoritarian traits in its single-party system of government synonymous with the State (the Communist Party of China), lifted hundreds of millions of people out of poverty and, after 45 uninterrupted years of economic growth at an average annual rate of 9%, eliminated extreme poverty, as announced by President Xi Jinping in 2021.

In parallel, Uruguay multiplied its Gross Domestic Product (GDP)—from around US$20 billion to more than US$70 billion today—with the Asian power already consolidated as its main trading partner, a role it has held for more than a decade as the largest buyer of Uruguayan products and the second-largest supplier of goods. This transformation has placed China and Uruguay at the center of one of South America’s most stable and enduring trade relationships.

In 2025, according to the latest Uruguay XXI report, which includes free trade zones, exports to the Asian country totaled US$3.493 billion. Soybeans led the export basket to that market, followed by pulp and, in third place, beef, with shipments close to US$724 million.

“China consolidated its position as Uruguay’s main trading partner, now representing 26% of total exports, up from 24% the previous year,” the agency concluded in its latest foreign trade report.

After the restoration of diplomatic relations in 1988, during the first presidency of Julio María Sanguinetti, political and commercial ties with China grew uninterruptedly, especially during the three administrations of the Broad Front (2005–2020), and continued to do so under Luis Lacalle Pou, to the point that a Free Trade Agreement was pursued without success (a feasibility study was carried out).

A record-setting tour

Within this historical framework and the current context, the government of Yamandú Orsi—aware of China’s importance to Uruguay—is leading the largest delegation ever to travel to the Asian country: more than 150 people, including mayors, business leaders, union representatives, ministers, deputy ministers, and dozens of senior officials, with the aim of further deepening bilateral relations between China and Uruguay.

Ahead of the start of official activities, Foreign Minister Mario Lubetkin said that the official visit had been scheduled to take place within the first year of government. “There is a striking presence of business leaders in the delegation. No presidential foreign visit comes close to the number of private-sector actors on this trip. That alone is already a very strong signal. This is not just a public initiative; it is public-private. The government is seeking to hold business matchmaking rounds between Chinese and Uruguayan companies in order to move forward in economic and commercial development,” the foreign minister explained, illustrating the scale of the diplomatic mission.

President Yamandú Orsi will meet with President Xi Jinping on Tuesday, February 3, 2026 —a symbolic date marking the 38th anniversary of the resumption of diplomatic ties—in what will be the high point of the visit, which will run through Saturday, February 7, 2026.

Focus on innovation

With a large number of agreements set to be signed, according to official announcements, the government highlighted visits to companies and industrial plants, but placed particular emphasis on technology and innovation. The top authorities of the University of the Republic, including Rector Héctor Cancela, are part of the presidential mission that will visit Beijing and Shanghai, where agreements will be signed in biotechnology and artificial intelligence with seven universities and with the telecommunications giant Huawei.

In terms of purchases, the main products imported from China are closely linked to the technology sector. Mobile phones (Antel is one of the main importers), computers, Smart TVs, and, more recently, electric vehicles are among the products China sells most to Uruguay. In this context, Industry Minister Fernanda Cardona will remain one additional day beyond the official delegation to hold meetings with executives at BYD, a multinational known for the manufacture of electric vehicles and charging stations. Juan Salgado, president of Cutcsa, is also part of the mission, as the company advances the electrification of its bus fleet with Chinese-made units.

In 2025, imports from China exceeded US$3 billion, with electric vehicles at the forefront, according to data from the National Customs Directorate.

Business leaders consulted noted that beyond the roughly 30 protocols or agreements expected to be signed, the value of the visit also lies in strengthening personal and informal ties that often facilitate long-term cooperation.

The government also reported that, in addition to ongoing discussions on tariff improvements—at a time when Uruguay is preparing to implement the TEMU tax—the agenda includes academic exchange, cooperation in science and technology, dairy products, poultry, public broadcasting (Channel 5), the National Emergency System (Sinae), and the signing of an agreement with the Pasteur Institute related to a vaccine against ticks.

A visit by an adviser very close to Xi Jinping

In November, China’s Vice Premier Ding Xuexiang— the sixth member of the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China and a direct adviser to Xi Jinping—visited Uruguay. During that visit, the Chinese government expressed its intention to accelerate progress on several agreements signed in 2023 under former president Luis Lacalle Pou.

For China, the difficulties in advancing an agreement lie with the regional bloc

The Uruguayan delegation’s visit takes place amid growing tension in the global trade and technology dispute between the world’s two leading powers, following an escalation of tariff and geopolitical measures promoted by U.S. President Donald Trump in response to China’s expanding global influence, particularly in Latin America.

Within Mercosur—which recently concluded a historic agreement with the European Union—member countries hold divergent positions regarding relations with both China and the United States. As a result, the possibility of advancing a free trade agreement with China, whether bilaterally or as a bloc, appears distant.

Paraguay maintains diplomatic relations with Taiwan; Argentina aligns closely with the United States while preserving pragmatic ties with China; Brazil faces pressure from the Federation of Industries of the State of São Paulo; and, beyond the bloc’s structural asymmetries, the current Uruguayan government has shown little appetite for pushing forward a free trade deal.

China’s ambassador to Uruguay, Huang Yazhong, addressed the issue recently in an interview on Canal 10. “We are always willing to develop bilateral or multilateral free trade relations. But in this specific case, the difficulty is not in China. It is an issue that Mercosur must resolve among its member countries. China always maintains an open position,” the diplomat concluded.

Recent specialized calculations show that Peru has received around US$35 billion dollars in Chinese investment since 1992. These calculations come from a variety of sources and place China as the leading investor in Peru in terms of Foreign Direct Investment (FDI).

United Nations research showed that Peru had a total FDI stock of US$138 billion dollars by the end of 2024. In contrast, American Chamber of Commerce of Peru (AmCham Peru) showed that American investment reached US$7.544 billion dollars as of 2021.

Taking both studies into consideration places the United States in fourth place for Peru’s leading foreign investors.

Projects like the Port of Chancay have been what specialists say has grabbed worldwide attention about China’s position in Peru. The port will be operated and majorly owned by Cosco Shipping Ports Chancay Perú S.A., which is partially owned by Chinese State Enterprise Cosco Shipping Ports Limited (60%) and Peruvian mining company Volcan Compañía Minera (40%).

The discussion around the project’s expectations and feasibility has made it a hot topic when considering the future of foreign direct investment in Peru regarding big infrastructure projects.

Some analysts claim that this port will be considered the primary entrance to South America’s west coast. This could mean new opportunities for Brazil; a country interested in decreasing the time and resources it takes to ship its production to Asia. This discussion points to the Chinese port of Shanghai as Asia’s principal doorway.

This Chinese investment growth is taking place during an ongoing Chinese worldwide expansion phase that can be looked at as anti-thesis to the United States current policies towards Asia. During the second half of Donald Trump’s presidency, the United States took an isolationist stance when it came to Asia, showing interest in stopping Asia’s growth in this region of the world.

At least when looking at Peru, data shows the US falling behind. After analyzing previous figures, China represents close to 25% of all foreign direct investment in Peru.

How Did We Get Here?

Carlos Aquino, economist and director of the Center for Asian Studies at the Universidad Nacional Mayor de San Marcos (UNMSM), expressed how China was able to establish such a strong corporate presence in Peru starting from 1992, when Shougang purchased Hierro Perú.

“That was significant because at that time China had just opened its doors to the world back in 1978–1979. Hierro Perú was the first Chinese investment outside of Asia,” Aquino said.

This purchase allowed Shougang to become the number one iron producer in Peru with almost 99% of all national production.

Just two years later, China would make another large entrance when China National Petroleum Corporation, also known as CNPC, was granted concessions to several oil blocks in northern Peru. One of these blocks happened to be Block X.

Chinese investment wouldn’t start to pick up pace until after they joined the World Trade Organization (WTO) in 2001. This allowed China to exponentially grow its exports consisting mainly of manufactured goods. With this came an increased demand for raw materials, which China then went out and sourced from all over the world. The commodities boom starting around 2002-2003, when the price of copper and other metals started to soar, also played a key role in China’s weight in foreign direct investment in Peru.

“The largest purchase related to copper was made by Aluminum Corporation of China, also known as Chinalco, which acquired the Toromocho project located in the Junín region in 2005. Another large investment would be Las Bambas in Apurímac,” said Aquino. Las Bambas was bought from Glencore–Xstrata consortium.

“Between Toromocho and Las Bambas China represents close to 20% of Peru’s national copper production. Total investments between the two mine projects are close to US$15 billion dollars,” Aquino added.

Aquino went on to explain that until the early years of this century, China was mostly focused on acquiring and investing in Peru’s natural resources. As years went by, China started investing in infrastructure. The representative project Aquino uses is from the year 2020, when China Yangtze Power International (a subsidiary of China Three Gorges Corporation) acquired Luz del Sur.

“After that, in 2024, we saw China Southern Power Grid International, or CSGI, acquire Enel Distribution Perú for approximately US$2.9 billion dollars. The company changed names to Pluz Energía Perú after selling 83.15% of its shares,” Aquino explained.

State-Owned Enterprises

Aquino stressed that the majority of these Chinese companies, whether they invest in mining or infrastructure, are state-owned. Cosco Shipping, owner of the majority of the Port of Chancay, operates under that category as well. Aquino finished off by saying that the Chinese bank’s with operations in Peru (ICBC Ltd. and Bank of China Limited) also fall under that category.

When asked about the total amount of money that China has invested in Peru, Aquino said that it’s hard to calculate. “Las Bambas alone cost the Chinese-led consortium by MMG (Mineral Mines Group) US$6 billion. And then they invested close to US$4 billion dollars more,” Aquino stated.

Aquino finished off by saying that about three or four years ago, the Chinese ambassador to Peru stated that Chinese companies had invested over US$30 billion dollars in Peru. He also stated that there are over 200 Chinese companies with operations in Peru.

A research center based in the United States reported that from 2005 to January – June 2025, total Chinese investment in Peru amounted to US$31.8 billion dollars. Including construction.

“That tells me that maybe from 1992 to 2005, Chinese companies invested around US$3 billion dollars. So, if we reached US$31 billion by the middle of 2025. By now, we are close to US$35 billion dollars invested,” the economist concluded.

Aquino later went on to say that the United Nations, which publishes a yearly report on global foreign investment, showed that by the end of 2024, Peru had reached US$138 billion dollars of foreign investment. With that in mind, US$35 billion is around 25% or one-fourth of the total. “That makes China the country with the most investment in Peru,” Aquino concluded.

Where does the US fit in with all this?

The Economic Department of AmCham Peru recently sent a press release regarding Foreign Direct Investment in Peru. Citing data provided by ProInversión, the United States represents the fourth-largest foreign investor in Peru, representing approximately 11% of the total stock of foreign direct investment in Peru by the end of 2025.

According to the United States Bureau of Economic Analysis (BEA), the US is the only country with investments in all 15 sectors ProInversión maps. “The majority of this investment is in mining, representing 57% of total US investment in Peru.”

AmCham Peru went on to say that the US has investments in the financial sector, manufacturing (food production, chemical goods, electronic components), commerce, information technology, and professional services.

“Mining-wise, there are only three companies responsible for US investment. Cerro Verde (Freeport McMoRan), Yanacocha (Newmont), and Miski Mayo 75% due to a US company.”

When looking at just the inflows of investment, the United States was one of few countries that increased its share in 2024. According to ProInversión yearbook of statistics, US investment increased by US$17 million dollars in 2024. From January – November of 2025 Cerro Verde increased their investments by 8% totaling US$342 million dollars. Miski Mayo increased their investment by 75% to US$24 million dollars.

Lastly, AmCham Peru showed that as of 2021 Peru received US$7.544 billion dollars of direct investment from the United States. A 4% increase compared to last year, 2020. Although 2014 was the year with the highest amount of foreign investment in Peru at US$8.097 billion dollars. Peru has seen an exponential growth in investment since 2016.

Officials from El Salvador’s textile industry and representatives from the fashion sector convened in San Salvador recently to agree upon spaces for collaboration, spotlight national talent, and increase the presence of Salvadoran design in international markets with the goal of elevating both sectors’ economic contribution and long-term competitiveness. The meeting marks a convergence of interests between traditionally disconnected segments of the apparel value chain, highlighting the importance of tighter linkages between industry and creativity in driving innovation and reinforcing El Salvador’s competitive advantages as a source of apparel production within the Salvadoran textile and fashion sector.

CAMTEX – the Salvadoran Chamber of the Textile, Apparel, and Free Trade Zone Industry and the Haute Couture Institute hosted delegates from both industries for an event focused on aligning goals, promoting dialogue, and fostering concrete opportunities for creative-industrial alliances. By signaling greater interest in integration between these two poles of apparel production, designers will have the opportunity to work more closely with industry, while brands are encouraged to diversify production beyond maquila and into more complex, higher-value garments that strengthen the Salvadoran textile and fashion sector.

The dialogue “Connecting Industries: Salvadoran Innovation and Creativity” was held on January 29 at Haute Couture headquarters, gathering leaders from the textile sector, educators, fashion designers, entrepreneurs, and more to celebrate shared interests. The initiative stems from months of conversations led by El Salvador’s ambassador to Washington, Milena Mayorga, about projecting Salvadoran talent abroad as part of the country’s diplomatic strategy.

“The aim of this activity was to position national fashion as creative and innovative, generating spaces for contact between industry and designers to open concrete spaces for alliance,” organizers wrote in a statement. “We hope to increase opportunities for creators to position themselves in the local and international markets, retain talent, and generate production networks that respond to export demand while increasing the value of our products.”

Guests toured Haute Couture’s facilities and classrooms during the event, previewing a collection designed by students and learning about educational programs that currently run at the institute. With garments that played with textures, volume, and fabrics, students emphasized their creativity and willingness to experiment as representatives from industry arrived to tour the school and learn about designers on the ground. Instruction also focuses on detail, craftsmanship, and sustainable production methods – key elements sought by international buyers.

Dialogue was also prompted between creative sector representatives and industry officials in a facilitated networking session. During this time, guests discussed ways of coordinating creative processes with industry capacities, from access to inputs for production to capabilities for small orders, product quality, timeframes and challenges associated with scaling the production of designed items for export.

CAMTEX Executive Director Patricia Figueroa emphasized the importance of working together to enhance the Salvadoran fashion industry. According to the press release, CAMTEX strives to create “a strong national fashion industry that innovates and makes us known worldwide, built from our own talent.”

Likewise, Haute Couture’s mission was on display at the event, with representatives describing their institute as “a platform for learning and launching our national talent. We are constantly looking for ways to promote our talent and provide opportunities for our young graduates to enter the world of design, bringing Salvadoran creativity to the international scene.”

Mayorga has previously led similar efforts this year to convene representatives from CAMTEX, fashion brands, and other apparel-industry stakeholders to discuss coordinating efforts and driving exports of Salvadoran-made fashion abroad. The organizations noted their commitment to continue promoting events that convene both sectors while also exploring opportunities to mentor up-and-coming talent, creatives pursuing collaboration opportunities, and showcasing joint collections at international trade shows—initiatives expected to further consolidate the Salvadoran textile and fashion sector.

Textile Industry in El Salvador

Textiles and apparel represent some of El Salvador’s most important export products. The sector represents close to 35% of the country’s total exports by value while supporting approximately 73,603 direct jobs and another 200,000 indirect jobs. Representing around 43% of all employment in industry, textile production and assembly also continues to hold social relevance for the country.

The sector was historically based in assembly-style production for export, focused mainly on apparel manufacturing for international brands. Over time, these industries have added spinning, knitting, dyeing, and finishing capacities, along with logistics operations. Shorter lead times, full traceability of production, and compliance with internationally recognized labor and environmental standards allow El Salvador to differentiate itself from other regional and Asian suppliers.

Between 2015 and 2024, however, the sector experienced a contraction of 34% in export value. The factors affecting this decline were attributed to uncertainty in the international economy, inflation, and low purchasing power, impacting demand primarily in the United States, which receives around 80% of total Salvadoran production. Lower inventory levels and reduced consumer ordering abroad also affected exports.

Textile Industry in El Salvador

Analysts forecast an upturn for El Salvador’s textile industry starting in 2026. This recovery is expected to be supported by recent investments into the sector, reactivation of orders from abroad, and the potential elimination of tariffs on Salvadoran-made goods by way of an agreement with the United States. By leveling the trade playing field, El Salvador would further benefit from its proximity to the United States compared to other Latin American countries or Asia.

Last year, El Salvador ranked as the United States’ 18th-largest textile supplier by value. Total sales reached USD 2.09 billion in 2024, accounting for 32.4% of all exported textile and apparel products. Officials have stressed the need to diversify markets and expand the variety of goods sold abroad in order to insulate the sector from downturns in demand from a single buyer.

Salvadoran designers have also found ways to shine on the world stage. Designers were featured as part of New York City’s Latin Fashion Week earlier this year, promoting the use of natural fibers and native dyes such as indigo while celebrating Salvadoran artisan traditions and a commitment to sustainable production methods.

Textile Industry in El Salvador

Closer to home, local designers have found ways to showcase their talent while giving back to the community. In a rally aptly named Fashion for a Cause, the streets of San Salvador’s Historic District became a runway that connected designers from across the country – and globe – while also collecting donations for a local cause.

The importance of sustainable practices is driving change throughout the textile industry, from reduced water consumption and renewable energy usage to circular manufacturing models at industrial facilities. Designers, for their part, are exploring alternative materials by way of upcycling and responsible input selection. The alignment of industry and design will continue to satisfy demands from buyers abroad while allowing El Salvador to better position itself in high-value markets.

The Panamanian government held meetings with FONPLATA to finance social and infrastructure projects during the CAF forum

More than 20 multinational companies—including giants such as Pfizer, Google, PepsiCo, Coca-Cola, AES Corporation, Siemens, and Cisco Systems—reiterated their interest in expanding and making new investments in Panama, within the framework of the 2026 International Economic Forum for Latin America and the Caribbean, organized this week by CAF—the Development Bank of Latin America and the Caribbean—in Panama City.

The announcement came during a meeting between President José Raúl Mulino and senior executives from these companies, members of the Council of the Americas (AS/COA), a New York–based business organization that promotes economic development, market openness, and institutional strengthening in the Western Hemisphere.

At the meeting, the president emphasized that his administration has succeeded in creating a stable investment climate after putting public finances in order and strengthening fiscal discipline.

According to Mulino, this process has helped restore the confidence of international investors and laid more solid foundations for economic growth, creating favorable conditions for new investments in Panama.

“The country has begun to move forward on the right path, with order,” the president said, referring to the reforms promoted in administrative, financial, and transparency matters.

During the meeting, Mulino shared his government’s vision focused on efficient public spending, reducing the size of the state, and strengthening institutions.

He also expressed optimism about the impact of the public investment plan to be executed this year, aimed primarily at road infrastructure, health, and access to basic services such as drinking water.

Among the topics discussed were the stabilization of the pension system of the Social Security Fund (Caja de Seguro Social), the strengthening of the logistics and connectivity platform, and a commitment to educational reform to improve labor competitiveness and guarantee greater employment opportunities.

The president also highlighted investments promoted by the Panama Canal Authority in projects such as new ports, a gas pipeline, and a reservoir, designed to improve the operational efficiency of the interoceanic waterway and reinforce the country’s role as a regional logistics hub.

In the technology sphere, Mulino underscored that Panama seeks to position itself as an innovation hub by incorporating the use of digital tools, artificial intelligence, and developments linked to semiconductors into its training and productive development strategy, as part of a broader effort to attract new investments in Panama.

Representatives from companies such as Coca-Cola, Cisco Systems, Google, PepsiCo, Pfizer, Salesforce, Siemens Energy, The AES Corporation, InterEnergy, the International Air Transport Association, Grupo Cox Energy, Enfragen, and Macquarie Capital, among others, attended the meeting.

Business leaders thanked the government for the space for dialogue and praised the organization of the regional forum, noting that Panama is consolidating itself as a meeting point for economic and business discussion in Latin America.

Panama closed 2025 with a total of 188 companies established under the Multinational Headquarters (SEM) regime, consolidating its position as one of the region’s main corporate hubs for managing regional and global operations.

In addition, two companies are registered under the Multinational Manufacturing Companies (EMMA) regime, aimed at value-added productive activities.

The SEM regime is designed to attract headquarters, shared services centers, and administrative, financial, and logistics hubs of multinational companies through tax, immigration, and labor incentives.

These companies centralize functions from Panama, such as regional planning, technological support, treasury, procurement, marketing, and talent management, for their operations in Latin America and other markets.

For its part, the EMMA regime seeks to promote the installation of advanced manufacturing plants and specialized industrial processes, allowing multinationals to produce, assemble, or transform goods in Panamanian territory for export.

Both schemes are part of the country’s strategy to diversify its economy, generate skilled employment, and strengthen its position as a services and production platform in the region.

If the new investments materialize, the country could attract more foreign capital at a time when foreign direct investment (FDI) remains far below the best levels recorded before the pandemic. Currently, the Dominican Republic and Costa Rica rank among the main recipients of FDI in the region, while Panama has fallen to fourth place, far from the top position it held years ago.

Meeting with FONPLATA

In parallel with the dialogue with the business sector, Mulino held a meeting with executives from FONPLATA – Development Bank, who expressed their interest in financing social and infrastructure projects in Panama.

The delegation was led by the institution’s Executive President, Luciana Botafogo, accompanied by the Vice President of Strategic Development, Viviana González; the Head of the Strategic Alliances Division, Leonardo Chagas; and advisor Carlos Melo.

FONPLATA is a multilateral financial institution made up of Argentina, Bolivia, Brazil, Paraguay, and Uruguay, whose mandate is to finance medium- and small-scale projects aimed at promoting development, physical integration, and the reduction of inequality in the region.

During the meeting, Botafogo explained that the bank can support social works such as production roads, bridges, health centers, schools, and housing for low-income families, especially in areas with historical infrastructure deficits.

Mulino noted that one of his government’s priorities is addressing the needs of Indigenous regions, where significant gaps persist in basic services, connectivity, and access to critical infrastructure.

He also emphasized that the state has an outstanding debt in terms of sustained access to drinking water, which is why projects such as the Río Indio Multipurpose Reservoir are being promoted under the coordination of the Panama Canal Administration.

He indicated that these initiatives can be complemented by works developed through the National Council for Sustainable Development (Conades), which will also require external financing.

Regional Context

Both meetings took place in the context of the 2026 International Economic Forum for Latin America and the Caribbean, organized by CAF, which brought together heads of state, ministers, business leaders, and representatives of multilateral organizations in Panama.

The event served as a platform to promote investment and to debate regional integration, development financing, energy transition, technological innovation, and institutional strengthening.

EU announces credits to Honduras as international cooperation flourishes

Multilateral organizations, friendly nations, and trade partners immediately signaled support for newly inaugurated constitutional president Nasry Asfura. The regional and international support projected hopes that his government will continue putting forward its plans for cooperation, investment attraction, and institutional strengthening.

Messages sent by officials to Honduras on inauguration day pointed to the continuation of foreign relations with renewed impetus towards trade, investments, and productive alliances. The wave of international support sent positive signals of continuity and intensified cooperation that can positively impact the Honduran economy and its positioning in Central America and abroad.

European Union Cooperation with Honduras

European Union Ambassador to Honduras Gonzalo Fournier announced during inauguration day events that European cooperation will strengthen this year with the immediate opening of financing operations.

“In the coming weeks, we will have the first mega-credits that Honduras signs with Europe since 2009.” Fournier made it clear that European Union cooperation with Honduras is taking center stage this year during a series of meetings with President Asfura as soon as he takes office.

Credits totaling somewhere between €369 million and €500 million are being structured to finance electricity transmission projects and investments aimed at eliminating logistical bottlenecks suffered by Honduras for years. These mega credits will help lower production costs while increasing reliability throughout the Honduran productive sector.

Fournier also announced that a total of €60 million will be destined for sustainability-linked finances, while another €6 million investment will focus on supporting Honduran entrepreneurs, including the micro, small, and medium-sized enterprises segment.

Political significance of credits to Honduras

The ambassador added that “what we are talking about with Honduras will make it the second country in Central America that receives the most financing from the European Union, only behind Panama.” Stressing that EU cooperation with Honduras is also signaling international confidence in Honduras’ institutions.

Trade Ties between Honduras and the European Union

Trade relations between Honduras and European Union nations will continue to be significant. “Europe is the destination of about 68% of Honduran coffee exports,” stated the European Union Ambassador, referring to one of Honduras’ principal exports.

Honduran coffee benefits more than 120,000 families spread throughout the Honduran countryside. European Union Ambassador Fournier also made sure to mention that Honduran coffee exports comply with European Union regulations prohibiting deforestation, allowing them to access the European market with a sustainability label.

Trade diversification talks ahead for Honduras and the EU

“We want it to be not just coffee, but other value-added products,” Fournier said listing examples such as animal and vegetable fats, processed agricultural goods, and textiles as products of interest. EU Ambassador Fournier said Honduras is ready to diversify exports and work towards less dependence on raw commodities.

Investment relations with the European Union

Commenting on investment trends, Ambassador Fournier said, “European investors are already here and have been for years.” He explained that 21% of foreign direct investment coming into Honduras comes from European companies.

European Union investment in Honduras stretches beyond purchasing goods from Honduran producers. Investors from EU countries are engaged in production, renewable energies, and services, providing much-needed jobs and know-how to help strengthen the Honduran economy. Infrastructure projects have also received European financing in years past.

SIECA presidency matters to European Union cooperation with Honduras

Europe congratulated Honduras on its pro tempore presidency of the Central American Integration System (Spanish acronym SIECA) and pledged cooperation in relevant areas. Ambassador Fournier said Europe will work alongside Honduras during its SIECA pro tempore presidency, strengthening customs integration projects, decreasing non-tariff barriers, and trade facilitation mechanisms.

Europe is coming to Honduras February 2-4, and Honduras is heading to EU next month

“I want to announce that the European Union Directorate-General for Trade will visit our country from February 2 to 4,” Ambassador Fournier confirmed. He also announced that Honduras has been invited to the European Union–Central America Investment Forum to be hosted in Panama next month.

“I know that the minister responsible for commerce will count on European investors.” European Union Ambassador Fournier finished speaking on the topic of future visits between Honduras and Europe, signaling continuous exchanges in the months to come.

Supportive Message Sent by US Officials

During the inauguration ceremonies, Asfura was also greeted by the Chargé d’Affaires of the US Embassy to Honduras, Colleen A. Hoey. She took the opportunity to deliver a strong message of support through embassy social media channels.

“Today is the beginning of a new chapter in the relationship between the United States and Honduras,” wrote Chargé Hoey. She went on to highlight security cooperation, economic opportunities, and strengthening bilateral relations as goals to work towards together.

Republican US Congresswoman María Elvira Salazar sent a congratulatory message saying that “today is a new dawn not just for Honduras, but for all of the Western Hemisphere.” She continued writing that she hopes Asfura will focus efforts on promoting democratic institutions while building a stronger bilateral alliance with the United States.

United Nations Sends Support

“United Nations agencies congratulate President Nasry Asfura Jiménez on his inauguration as President of Honduras,” began a joint statement from the United Nations signifying multilateral support for the president.

“The United Nations in Honduras stands ready to continue working with the Government and people of Honduras to advance its development priorities and improve the lives of all Hondurans.” UN Resident Coordinator Alejandro Álvarez emphasized continued UN support for Honduras.