The recent diplomatic tension between Honduras and Taiwan has had notable effects on the national shrimp farming sector, influencing exports and revenue.

Export Volume Plummet

According to the latest market report from the National Association of Aquaculturists of Honduras (Andah) for May 2024, the exported volume of shrimp has seen a notable decline. Figures reveal a stark drop from 32,677,892 pounds in January-May 2023 to 26,473,782 pounds in the same period this year. This represents a substantial reduction of 6,204,110 pounds.

The primary factor driving this downturn is the collapse of farmed shrimp exports to Taiwan. Exports to Taiwan nosedived from 9,427,272 to 4,166,872 pounds within the analyzed period, indicating a 5,260,400-pound decrease. This decline accounts for 84.78% of the total volume that is no longer exported.

Tariff Troubles

Andah sources shed light on the reasons behind the diminished exports to Taiwan, citing both reduced purchases and the impact of a 20% tariff. This tariff was implemented on December 5, 2023, following the expiration of the free trade agreement between the two nations.

The repercussions of this diplomatic rift extend beyond mere export figures. In 2023, shrimp exports to Taiwan totaled 24,317,638 pounds, down from 29,082,675 pounds in 2022—a decrease of 4,765,035 pounds. This decline in exports translated to a significant drop in foreign exchange earnings, plummeting from USD 105.8 to 74.9 million.

Taiwan: A Former Key Market

Taiwan has historically been a crucial market for Honduran shrimp, particularly products sourced from Choluteca and Valle. With the exception of 2021, Taiwan has consistently ranked as the top destination for Honduran shrimp exports, primarily for frozen products.

Looking ahead, preliminary projections from shrimp producers and exporters paint a cautious picture. They anticipate that between 10 and 12 million pounds of shrimp may be shipped to Taiwan this year—a stark contrast to the 24.3 million pounds exported in the previous year. This projection suggests an average year-on-year drop of 50%.