In February 2015, Honduras and Guatemala signed a customs union agreement to reduce trade barriers, reduce costs and speed up the movement of goods throughout the region. This unique customs territory has created border posts from a single source to ensure the speed of trade in goods and cross-border control of goods that are not subject to free movement. El Salvador has also negotiated membership of the customs union in 2018. In June 2019, Nicaragua expressed interest in joining the customs union. The CACU granted free access to the entire region for 99.9% of Central American products (excluding sugar and unroasted coffee for the region). The harmonized common law amounts to 97% of Central American products so far. Central America introduced a joint external tariff plan in 1998. Six countries signed a revised protocol on economic integration and macroeconomic coordination in October 1993. The Integration Protocol allows Central American countries to move at varying speeds in the direction of more open trade. It describes the bilateral and multilateral trade agreements to which that country belongs, including with the United States. Includes websites and other resources that allow U.S. companies to get more information about how they can use these agreements.

The final agreement was signed on 5 November 2013 by the trade ministers of both countries, as well as by cooperation agreements on environmental protection and workers` rights. [1] The Honduran trading system is relatively open, with an average tariff rate of about 6% in 2012 (relatively stable at this rate for more than 10 years), a modest application of non-tariff barriers and without recourse to emergency measures. Agricultural products are subject to an average tariff of 10.5%, while the average tariff for non-agricultural products was 5.0%. Dairy products are covered by a relatively high average tariff of 22.5%, and some animal products are subject to a high maximum tariff of 165%. Honduras not only has free trade agreements with Colombia, Mexico, Chile, Taiwan and Panama, but also participates in the Common Market of the Americas (CACM), which includes Guatemala, El Salvador, Nicaragua and Costa Rica. As a member of the CMAC, Honduras applies a common external tariff (CET) for most items with a maximum rate of 15%, with a few exceptions. The CMAC also concluded free trade agreements with the United States and the Dominican Republic (CAFTA-DR) in 2004 and concluded a free trade agreement with the EU in 2011. The implementation of these free trade agreements has led to the modernization and liberalization of the country`s trade and investment systems. (WTO, 2012).

The Association Agreement between the European Union (EU) and Central America was signed on 29 June 2012. The Association Agreement is based on three pillars: political dialogue, cooperation and trade. The trade pillar of the Association Agreement came into force on 1 August 2013 with Honduras, Nicaragua and Panama, 1 October 2013 with Costa Rica and El Salvador and 1 December 2013 with Guatemala. In June 2013, Honduras and Guatemala suspended negotiations with the European Free Trade Association (EFTA), composed of Switzerland, Iceland, Liechtenstein and Norway. CAFTA-DR supplanted the old Caribbean Basin initiative and later Caribbean Basin Economic Recovery Act commercial benefits. CAFTA-DR has liberalized bilateral trade between the United States and the region and has also encouraged integration efforts among Central American countries by removing barriers to U.S. trade policy and investment in the region.