Harper announces free-trade deal with Honduras

SAN PEDRO SULA, Honduras — Prime Minister Stephen Harper wrapped up his tour of Latin America on Friday by announcing that Canada has struck a free-trade deal with Honduras.

The development came as Mr. Harper visited the impoverished nation, where violence is common and the leftist president was deposed by a coup just two years ago.

Mr. Harper made the announcement after meeting with Honduran President Porfirio Lobo Sosa.

“Our government received a strong mandate to implement our ambitious job-creating free-trade plan that will benefit Canadians,” Mr. Harper said.

“A free-trade agreement with Honduras is a key part of our government’s agenda to open new markets for Canadian businesses, create new opportunities for our workers and contribute to Canada’s future prosperity.”

Critics have said the Mr. Harper government is moving too quickly to provide credibility to the current right-wing Honduran regime at a time when the country is still suffering human-rights abuses, poor treatment of underpaid workers and a high crime rate.

But Mr. Harper applauded the current government for establishing a ministry dedicated to “justice and human rights” and for trying to learn the lessons of where it went wrong in its recent political coup.

“We strongly believe that prosperity, general and widespread, is essential to any nation’s full enjoyment of peace, freedom and democracy,” said Mr. Harper at a joint news conference with Sosa.

“And if prosperity is the key to these great objectives, so is trade the key to prosperity.”

Mr. Harper said the new trade agreement will benefit many Canadian workers and business sectors, including agriculture, manufacturing and mining.

“Our experience shows that the removal of barriers to trade is the most efficient tool that governments possess to generate growth and to create jobs.”

The agreement, which includes side agreements on labour standards and environmental protection, must now be ratified by Honduran politicians and by Canada’s Parliament.

In addition to his meeting with Lobo on Friday, Mr. Harper was scheduled to visit a textile manufacturing facility and hold a roundtable with businessmen.

Among the Canadian companies doing business in Honduras is Montreal-based Gildan, which produces products such as T-shirts and employs thousands of Hondurans.

In addition to putting the focus on a new trade deal, Mr. Harper came here with a clear objective: to help provide stability and international credibility to a country that has been plagued for years by political crisis and brutal criminal activity.

Mr. Harper’s visit is the first by a major foreign leader since Honduras was readmitted earlier this year into the Organization of American States.

It had been drummed out of the organization following the spectacle of its president, Manuel Zelaya, being ousted by the military in a 2009 coup.

He was forced to go to Costa Rica and, despite many efforts to return and regain his presidency, he failed.

At the time, Canada condemned the coup. However, in late 2009, another presidential election was held and Zelaya’s political rival — the current president — won.

Since then, Canada has moved to recognize his democratic bona fides, lobbying to have the country readmitted to the Organization of American States.

Canada appears to have been persuaded that the Honduran government, which appointed a Truth and Reconciliation commission to learn the lessons from the controversial coup, is on the right track.

Canadian officials say the Lobo government appears to be following the recommendations of that commission, which submitted its report recently, and is serious about battling human rights problems in the country.

On his trip to Latin America this week, Mr. Harper has dismissed critics who say he doesn’t care about the human-rights records of the countries he visits, such as Colombia. Rather, he says Canada is closely monitoring the issue and that economic prosperity, through enhanced international trade, is one of the best ways to bring a populace out of poverty and reduce human-rights violations.

In 2010, two-way merchandise trade between Canada and Honduras totalled $192-million.

Canadian exports totalled $40.8-million — mainly fertilizers, machinery and dye. Imports totalled $151.2-million – mainly fruits and textiles.

The Mr. Harper government, with free-trade deals already in place with Colombia and Costa Rica, is keen to increase trade with Honduras now that it has struck a similar arrangement with the country.

Still, there is little doubt that the security woes faced by Honduras won’t be resolved with any easy fix.

On its own website, Canada’s Foreign Affairs Department warns Canadians considering travelling to Honduras that the country is a dangerous place.

“The security situation has seriously deteriorated in Honduras,” says the warning.

“Travellers should exercise a high degree of caution throughout the country, as Honduras has the highest homicide rate in Central America. Growing poverty and the increased presence of street gangs contribute to an already significant crime rate, and the apprehension and conviction rate of criminals remains low.”

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Source: National Post