Honduras and China marked two years of diplomatic relations on March 24, 2025, with the signing of an agreement in Tegucigalpa for three aid projects aimed at supporting the Central American nation’s health and agricultural sectors. The deal, formalized by Honduran Foreign Minister Eduardo Enrique Reina and Chinese Ambassador Yu Bo, includes 298 ambulances, agricultural pruning tools, and solar dryers for coffee cultivation. Yet, beneath the surface of this diplomatic milestone, Honduran shrimp producers—especially small-scale operators—are grappling with disappointment over their inability to crack the lucrative Chinese market.

The aid package reflects growing cooperation between the two nations, with the ambulances intended to improve healthcare access across Honduras’s municipalities and the agricultural tools poised to create temporary jobs for around 10,000 people. However, for the shrimp industry, the promise of China’s vast consumer base has yet to translate into significant export growth, highlighting a disconnect between diplomatic gains and commercial realities.

Disappointment Among Shrimp Producers

When Honduras shifted its allegiance from Taiwan to China in March 2023, shrimp producers anticipated a windfall from the Asian giant’s seafood-hungry market. Two years later, those hopes have largely evaporated. Small producers, in particular, lament that China is not purchasing their shrimp in the volumes they expected, despite the rapid warming of bilateral ties.

The frustration is palpable. While China expressed early interest in Honduran shrimp, actual imports have been limited. Foreign Minister Reina told EFE that China “was very quick” to offer shrimp imports within just a few months, subject to phytosanitary measures, but the follow-through has fallen short, leaving producers questioning the benefits of the diplomatic pivot.

Addressing Market Barriers

Reina has acknowledged the hurdles, pointing to an “early harvest agreement” that allows Honduran shrimp to enter China with zero tariffs—a notable concession. “This now allows Honduran shrimp to access the Chinese market with zero tariffs,” he emphasized, signaling a willingness from Beijing to open its doors. Yet, market penetration remains elusive, hampered by structural and competitive challenges.

The minister highlighted persistent “market issues” that need resolution, particularly around price competitiveness. High production costs in Honduras—driven by expenses such as energy, feed, and concentrates used in shrimp farming—have put the country’s shrimp at a disadvantage, even with tariff relief. These barriers underscore the limits of diplomatic agreements in overcoming economic realities.

Competitiveness Challenges

The cost structure of Honduran shrimp production is a central concern. Reina noted that supporting producers to reduce these expenses is critical to boosting competitiveness. “We are looking to work to support shrimp producers in reducing these costs and making shrimp more competitive,” he said, acknowledging the quality of Honduran shrimp but stressing the need for cost parity with rivals.

Ecuador looms large as a benchmark. With its lower production costs, Ecuadorian shrimp has secured a foothold in China, leaving Honduras struggling to compete. “Competitiveness is complex, especially with countries like Ecuador due to their low costs,” Reina observed, a candid admission of the uphill battle facing Honduran producers in this key export market.

Government Support and Future Prospects

In response, the Honduran government is exploring measures to lighten the burden on shrimp producers, aiming to trim operational costs and level the playing field. While shrimp lags, other Honduran exports—such as coffee and melon—are gaining traction in China, with coffee enjoying strong demand and melon securing phytosanitary approval. This broader trade success hints at potential opportunities for shrimp if similar support can be marshaled.

The bigger picture offers some optimism. Reina noted that Honduran exports to China have surged by more than 30% over the past two years compared to trade with Taiwan, reflecting a robust upward trend in bilateral commerce. For the shrimp industry, this growth suggests that with targeted interventions, a foothold in China’s market remains within reach—though it will require sustained effort to turn diplomatic goodwill into tangible gains.