Trade Facilitation

Description

According to the World Bank Logistics Performance Index (LPI) (2012) which measures countries’ trade logistics efficiency, Honduras was ranked 70th out of 155 countries. This means that the country is slightly better than the regional average (Latin America and Caribbean) and considerably better than its income group averages (Low middle income). Its strongest logistics indicators are in the timeliness of cargo reaching destinations as well as the ability to track and trace consignments, while it performs comparatively poorly in the ease of arranging competitively priced shipments and the quality of trade related infrastructure. These findings are well reflected in the World Bank Doing Business (2014). It states that trading a standard container of goods needs 28 days in total (12 days for export and 16 days for import), which takes less than the regional average of 36 days (17 days for export and 19 days for import). Since 2009 Honduras has adopted a number of reforms that have improved the facilitation of trade, which, most significantly, include: abolishing consular legalization for trade documents, which led to a reduction of one document for import; implementing a web-based electronic data interchange system and X-ray machines at the port of Puerto Cortes, and; introducing the authorized economic operators (AEO) system to fast track the clearance of trusted traders goods (World Bank 2014).

Logistics Performance Index (LPI): Country Comparison
Source: World Bank, Logistics Performance Index (LPI)

Note: Source: World Bank, 2012

Logistics Performance Index – Evolution
Source: World Bank, Logistics Performance Index (LPI)

Note: Source: World Bank, 2012