Honduran Market Access Priorities for WTO Services

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000119

SIPDIS

State for EB/TPP/MTA/MST:AWhitten and WHA/CEN
State pass USTR for CHooker

E.O. 12958: N/A
TAGS: ETRD HO WTO
SUBJECT: Honduran Market Access Priorities for WTO Services
Negotiations

REF: 04 State 270998


1. The following information is provided in response to
reftel:

Sector Priority Openness
-------------- -------------- --------------
Legal services 5 L

Accounting, auditing and bookkeeping
services 3 H

Taxation services 3 H

Architectural services 4 H

Engineering and integrated engineering
services 2 M

Urban planning and landscape
architectural services 2 M

Computer and related services 2 H

Research and development services 4 H

Real estate services 3 H

Rental/Leasing Services 3 H

Advertising services 3 M

Market research and public
opinion, polling services 3 M

Management consulting services 1 M

Technical testing and analysis services
(including energy related testing
services) 3 M

Services incidental to agriculture,
hunting and forestry, and fishing 2 M

Services incidental to mining 1 M

Energy services (including land site
preparation, drilling and plugging)
(except for 88442) 1 L

Services incidental to energy distribution 1 L

Placement and supply services of personnel 5 L

Investigation and security 1 H

Related scientific and technical
consulting services 2 H

Maintenance and repair of equipment 1 H

Building-cleaning services 5 H

Photographic services 4 H

Packaging services 2 H

Printing, publishing 3 H

Convention services 5 H

Courier services (Express Delivery) 2 H

Telecommunication services 1 H

Audiovisual services 3 H

Construction and related engineering 2 M

Distribution Services, including:
commission agents' services, wholesale
trade services, retailing services, and
franchising 1 H

Educational Services, including: higher
education services, adult education
(i.e., vocational),other education
services (i.e., testing and computer or
language training) 3 M

Environmental services (wastewater
treatment, sanitation, protection of
ambient air and climate, remediation
and clean up, noise and vibration
abatement, and biodiversity protection) 3 H

Insurance services 3 M

Banking and other financial services
including securities 3 M

Tourism and travel-related services,
including: hotels and restaurants,
catering, travel agencies and tour
operators services, and tourist guides
services 1 H

Recreation and sporting services (other
than audiovisual services),including:
entertainment services (including theatre,
live bands and circus services),news
agency services; libraries, archives,
museums and other cultural services;
sporting and other recreational
services. 2 M


2. Comment: Please note that a high or medium ranking for
"openness" in the table above indicates only a lack of
statutory barriers to foreign investment in that sector. It
does not necessarily indicate a trouble-free investment
climate in practice. Historically, U.S. firms and citizens
have found corruption to be a problem which seriously
complicates doing business in Honduras, particularly in the
areas of government procurement and the buying and selling
of real estate. Additionally, the judicial system is easily
influenced; investment and business disputes involving
foreigners have rarely been resolved in a transparent
manner. So, for example, while Honduran laws are very
welcoming of foreign investment in the tourism sector,
American citizens who purchase property for use as a
restaurant or hotel may nonetheless find themselves ensnared
in a complicated legal dispute with little hope of a rapid
and just resolution. End comment.

Palmer