Obligations Concerned: Most-Favored-Nation Treatment (Article 4.03)
Measures: Civil Aviation Law, Congressional Decree No. 93-2000, Article 24
Description: Cross-Border Trade in Services
In the performance of aeronautical functions on board foreign aircraft, persons must possess for the exercise thereof, a certificate, license or the equivalent accepted by the Directorate General of Civil Aeronautics or issued in accordance with the International Agreements to which the Republic of Guatemala is a party and under reciprocity conditions.
Sector: Specialized Air Services
Obligations Concerned: National Treatment (Article 4.04)
Measures: Ley de Aviación Civil, Decreto Numero 93-2000, Article 62
Description: Cross-Border Trade in Services
In Specialized Air Services operations of Guatemalan operators, all personnel performing aeronautical functions on board must be Guatemalan by birth; however, the Directorate General of Civil Aviation may authorize foreign personnel for a period not to exceed three months, counted from the date of authorization.The Directorate General of Civil Aviation may extend this period, if it is determined that there are no trained personnel in Guatemala.
Sector: Air Transport Services
Obligations Concerned: National Treatment (Article 3.04) Senior Management and Boards of Directors (Article 3.08)
Measures: Ley de Aviación Civil, Decreto Numero 93-2000, Article 71
Description: Investment
Only Guatemalans by birth or a company incorporated under the national laws may be operators of a commercial air transportation company in Guatemala.For greater certainty, commercial air transportation includes all domestic air transportation of passengers, mail or cargo. To comply with the provision of such services, a company must also meet the following requirements: a) the company must have its principal place of business in Guatemala; and b) at least half plus one of the directors, managers and individual persons in charge of the administration and control of the company must be Guatemalan or reside permanently in Guatemala.
Sector: Road Transportation of Passengers and Cargo
Obligations Concerned: National Treatment (Article 4.03)
Measures: Transportation Law, Decree Number 253, Article 4
Governmental Agreement Number 135-94, Articles 3, 9, and 10, Regulations for the Transportation of Cargo Equipment Service.
Protocol to the General Treaty on Central American Economic Integration, Articles 15 and 28
Description: Cross-Border Trade in Services
The public passenger or cargo transportation service may be provided by individuals or legal entities, both domestic and foreign; however, no motor vehicle, with foreign license plates or registration plates, may transport passengers or commercial cargo between points within the national territory.
Annex I. Schedule of Honduras
Sector: All Sectors
Obligations Concerned: National Treatment (Article 3.04)
Measures: Decree No. 131, Constitution of the Republic of Panama. 131, Constitution of the Republic, Title Ill, Chapter II, Article 107
Decree No. 90-1990, Law for the Acquisition of Urban Property in the Areas delimited by Article 107 of the Constitution of the Republic, Articles 1 and 4
Decree No. 968, Law for the Declaration, Planning and Development of Tourism Zones, Title V, Chapter V, Article 16
Description: Investment
State lands, common land, and private land within 40 kilometers of the borders and coastlines, and such lands on the islands, keys, reefs, breakwaters, reefs, shoals, sirtes and sandbanks in Honduras, may be acquired, possessed, or held only under any title by nationals of Honduras by birth, by companies constituted entirely by nationals of Honduras, and by institutions of the State. Notwithstanding the preceding paragraph, any person may acquire, own, hold, or lease for up to 40 years (which may be renewed) urban land in such areas provided that it is certified and approved for tourism purposes, economic or social development, or for the public interest by the Secretary of State in the Office of Tourism. Any person acquiring, owning, or holding such urban land holdings may transfer such land only upon prior authorization of the Secretary of State in the Office of Tourism.
Sector: All Sectors
Obligations Concerned: National Treatment (Article 3.04) Most Favored Nation Treatment (Article 3.05)
Measures: Decree No. 131, Constitution of the Republic of Honduras, Title VI, Chapter I, Article 337
Agreement No. 345-92, Regulations of the Law of Investments, Chapters I and VI, Articles 3 and 49
Description: Investment
Small-scale industry and commerce is reserved to Honduran persons. Foreign investors may not engage in small-scale industry and commerce, unless they are naturalized citizens and their country of origin grants reciprocity. "Small-scale industry and commerce" is defined as an enterprise with capital of less than 150,000.00 Lempiras, excluding land, buildings, and vehicles.
Sector: All sectors
Obligations Concerned: National Treatment (Article 3.04) Most Favored Nation Treatment (Article 3.05)
Measures: Decree No. 65-87, dated May 20, 1987, Law of Cooperatives of Honduras, Title II, Chapter I, Articles 18 and 19
Agreement No. 191-88 dated May 30, 1988, Regulations of the Law of Cooperatives of Honduras, Article 34(c) and (d)
Description: Investment
Non-Honduran cooperatives may establish themselves in Honduras with prior authorization from the Honduran Institute of Cooperatives of Honduras, such authorization will be granted as long as there is: (a) Reciprocity in the country of origin, and (b) The non-Honduran cooperative has, at least one permanent legal representative in Honduras.
Sector: Customs Agents and Brokers
Obligations Concerned: National Treatment (Articles 3.04 and 4.04)
Measures: Decree No 212-87, Customs Law Title IX, Chapter I, First and Third Sections, Articles 177 and 182
Description: Investment and Cross-Border Trade in Services
Licensed customs agents must be Honduran nationals by birth. Employees of the customs broker, who carry out formalities on behalf of the customs broker, must also be Honduran nationals by birth.
Sector: Agricultural
Obligations Concerned: National Treatment (Article 3.04)
Measures: Acuerdo No 2124-92, Reglamento de Adjudicación de Tierras en la Reforma Agraria, Articulos 1 y 2
Description: Investment
Beneficiaries of agrarian reform must be Honduran nationals by birth individually or organized in peasant cooperatives or other peasant enterprises.
Sector: Communications Services- Postal
Obligations Concerned: Market Access (Article 4.06)
Measures: Decree No 120-93 Ley Organica de la Empresa de Correos de Honduras, Articles 3 and 4.
Description:Cross-Border Trade in Services
The operation of postal services in Honduras is reserved exclusively to the Empresa Hondurena de Correos (HONDUCOR). (1)
Sector: Radio, television and newspapers
Obligations Concerned: Senior corporate management and boards of directors.(Artf Article 3.08).
Measures: Decree No 131, Constitution of the Republic of Honduras, Chapter II, Article 73, third paragraph
Decree No 6, Law of Broadcasting of Thought, Chapter IV, Article 30
Decree No 759, Law of the College of Journalists of Honduras, Article 8, amended by Decree No 79 of January 1, 1981
Description: Investment
Only Honduran nationals by birth may hold senior management positions in printed newspapers or free-transmission news media (radio and television), including the intellectual, political and administrative orientation thereof. "This does not apply to printed newspapers or news media established outside Honduras.
Sector: Telecommunications
Obligations Concerned: National Treatment (Article 4.04)
Measures: Decree No. 185-95, Framework Law of/ Telecommunications Sector Chapter I, Article No. 26
Agreement No. 141-2002 dated December 26, 2002, General Regulations of the Framework Law of/ Telecommunications Sector, Title Ill, Chapter I, Article 93.
Description:Cross-Border Trade in Services
Foreign governments may not participate directly in the provision of public telecommunications services.
Sector: Telecommunications
Obligations Concerned: Market Access (Article 4.06)
Measures: Decree No. 244-98 of October 2, 1998, Article 1
Description: Cross-Border Trade in Services
The Empresa Hondurefia de Telecomunicaciones (HONDUTEL) has the exclusive right to provide throughout the territory of the Republic of Honduras, national and international telecommunications services, such as: carrier services, telex, telephony and telegraphy, including telegraph services in those places where there is no other means of communication with the rest of the country.
Reduction schedule: As of December 25, 2005, HONDUTEL will no longer enjoy the exclusive right to provide national and international telecommunications services throughout the national territory of Honduras, such as: carrier services, telex, telephony and telegraphy, including telegraph services in those places where there is no other means of communication with the rest of the country.
Sector: Construction or consulting services and related engineering services - civil engineering.
Type of Reservation: National Treatment ( 3.04 and 4.04) Most Favored Nation Treatment (4.03 ) Local Presence (4.05) Market Access (4. 06)
Measures: Decree No 47-1987, Organic Law of the College of Civil Engineers of Honduras
Regulations of the Organic Law of the College of Civil Engineers of Honduras, Articles 100 (A)- (D) and 101
Decree No 753, Organic Law of the College of Architects of Honduras, Articles 37 (b), (c), (d), (g), and (h)
Regulations of the Organic Law of the College of Architects of Honduras, Articles 4(h), 7(a), (c ), (d) and (h), 13, 68 and 69
Decree No 902 , Organic Law of the College of Mechanical, Electrical and Chemical Engineers of Honduras, Article 40 ( c), (d) and (h).
Description: Investment and Cross-Border Trade in Services
Consulting and construction firms must be organized in accordance with Honduran law to be members of the Colegio de lngenieros Civiles de Honduras (CICH) and to perform civil engineering projects in Honduras. For greater certainty, consulting and construction firms incorporated under the law of a foreign country may provisionally register with the CICH to perform specific civil engineering projects. Higher registration fees will apply to foreign firms. In addition, foreign personnel must be authorized by the CICH in order to work on such projects.
Sector: Distribution Services - Petroleum products (liquid fuel, automotive oil, diesel, kerosene, and LPG)
Obligations concerned: National Treatment (Article 3.04) Local Presence (Article 4.05)
Measures: Decree No 549, Law on Representatives, Distributors and Agents of National and Foreign Companies, Chapter I and VI, Articles 4 and 25.
Decree No 804, reforming Article 4 of the Law of Representatives, Distributors and Agents of Domestic and Foreign Companies.
Description : Investment and Cross-Border Trade in Services
Only Honduran nationals and companies incorporated under Honduran law may be authorized to sell petroleum products. Companies must be at least 51 percent owned by Honduran nationals.
Sector: Electricity
Obligations Concerned: Market Access (Article 4.06)
Measures: Decree No. 158-94 dated November 26, 1994, Ley Marco del Sub Sector Electrico, Chapter V, Article 15
Description: Cross-Border Trade in Services
Only the Government of Honduras, through the Empresa Nacional de Energia Electrica, may carry out the transmission of electric power, conduct the operation of the transmission system and dispatch center.
Sector: Lotteries
Obligations affected: Market access (Article 4.06)
Measures: Decree No 438, dated April 23, 1977, Article 5 (c), Ley Organica de Patronato Nacional de la lnfancia
Description: Cross Border Trade in ServicesThe Patronato Nacional de la lnfancia (PANI) exclusively administers the national lottery.
Sector: Education services - Private preschool, primary and secondary education services
Obligations concerned: High-level corporate management and boards of directors (Article 3.08) Most-favored-nation treatment (4.03) National treatment (Article 4.04) Local presence (Article 4. 05)
Measures: Decree No 131, Constitution of the Republic, Title Ill, Chapter VIII, Articles 34, 166 and 168
Decree No 79, Organic Law of Education, Articles 64 and 65
Decree No 136- 97, Law of the Statute of the Teacher, Articles 7 and 8
Executive Agreement No 0760 -5E-99, Reglamento General del Estatuto del Docente, Article 6
Description: Investment and Cross-Border Trade in Services
The director or supervisor of a school must be a Honduran national by birth. Teachers at all levels of the educational system must be Honduran nationals by birth. Foreign nationals may, however, teach particular subjects at the middle or high school levels if there are no such Honduran nationals available to teach such subjects. Notwithstanding the preceding sentence, foreign nationals may teach the Constitution, civics, geography, and history of Honduras only if there is reciprocity for Honduran nationals in their country of origin. Private schools at all levels must be incorporated under Honduran law. For greater certainty, there are no restrictions on foreign ownership of such schools.
Sector: Entertainment Services- Musicians
Obligations concerned: National Treatment (Articles 3.04 and 4.04)
Measures: Decree No 123 dated October 23, 1968, Law for the Protection of Musical Artists, Articles 1 - 4.
Description: Investment and Cross-Border Trade in Services
Notwithstanding the above measure, Honduras agrees that foreign musical artists wishing to present shows in Honduras either individually or jointly shall pay the Sindicato de Artistas de Honduras five percent of their fees and the impresario or lessee shall, if possible, hire for the same show local musical artists from the country. For greater certainty, foreign musical artists shall register with the Sindicato de Artistas de Honduras for each performance in Honduras.
Sector: Championships and Soccer Game Services
Obligations concerned: Most-Favored-Nation Treatment (4.03) National Treatment (Article 4.04) Local Presence (Article 4.05)
Measures: Regulations for Championships and Competitions Liga Nacional de Futbol No Aficionado de Primera Division, Articles 9 and 1
Description: Cross-Border Trade in Services
Foreign nationals who are players in the Honduran National Soccer League must be temporary residents of Honduras. Each team in such league must register a maximum of four foreign players, one of whom must be a national of a Central American country.
Sector: Recreational, cultural and sports services - Casinos for games of chance (includes roulette, checkers, cards, point and bank, baccarat, slot machines and other similar games)
Obligations concerned: National Treatment (Article 3.04) Local presence (Article 4. 05)
Measures: Decree No 488, dated February 16, 1977, Ley de Casinos de Juegos de Envite o Azar, Article 3
Description: Investment and Cross-Border Trade in Services
Only Honduran nationals by birth and companies organized under Honduran law may operate a casino.
Sector: Environmental Services
Obligations Concerned: Access to markets (Article 4.06)
Measures: Decree No 134-90, Law of Municipalities, Article 13 (3) and (4)
Decree No 104-93, General Law of the Environment, Articles 29 and 67
Description: Cross-Border Trade in Services
Only the State, through its municipalities, may provide public services of water distribution, waste treatment, and sanitation and hygiene services. For greater certainty, municipalities are responsible for the construction of aqueducts, the maintenance and administration of drinking water, sanitary sewerage, drainage and the promotion and development of related projects.
Sector: Distribution, Wholesaling and Retailing - Arms, ammunition and other related items