Measures: Decree No. 167-94, January 2, 1995, Ley Orgánica de la Marina Mercante Nacional, Title I, II, Chapter VII, Art. 40

Agreement No. 000764, December 13, 1997, Reglamento de Transporte Marítimo, Att. 6

Description: Cross-Border Services and Investment

Coastal navigation for commercial purposes is reserved for Honduran merchant vessels. If there are no Honduran merchant vessels, or if they are not available, and for the time period that such circumstances exist, the Direccién General de la Marina Mercante may authorize foreign merchant vessels to provide coastal navigation in Honduras. In such circumstances, preference shall be given to Central American flag vessels.

Honduran merchant vessels must be organized under Honduran law, at least 51 percent of its subscribed and paid-in share capital must be owned by Honduran nationals, and the company must be domiciled in Honduras.

Sector: Land Transportation

Obligations Concerned: National Treatment (Articles 10.3 and 11.2) Most-Favored-Nation Treatment (Article 11.3) Market Access (Article 11.4) Local Presence (Article 11.5)

Level of Government: Central

Description: Decree No. 319-1976, Ley de Transporte Terrestre, Arts. 3, 5, 17, 18, 27, and 28

Agreement No. 200, Reglamento de la Ley de Transporte Terrestre, Arts. 1, 7, 32, 33, and 34

Measures: Cross-Border Services and Investment

Public domestic land passenger and cargo transportation services may be supplied only by Honduran nationals and enterprises that are organized under Honduran law and at least 51 percent owned by Honduran nationals. It is necessary to obtain a certificate of operation from the Dirección General de Transporte de la Secretaria de Obras Públicas, Transporte y Vivienda (SOPTRAVN, which is subject to an economic needs test.

Public international land passenger and cargo transportation services may be supplied by foreign nationals and enterprises organized under foreign law based on reciprocity, but authorization for particular routes will be granted on a preferential basis to Honduran nationals and to enterprises organized under Honduran law.

Sector: Transportation - Railways

Obligations Concerned: National Treatment (Article 10.3) Senior Management and Boards of Directors (Article 10.10)

Level of Government: Central

Measures: Decree No. 48, Ley Constitutiva del Ferrocarril Nacional de Honduras, Chapters I and VIII, Arts. 32 and 12 (amended by Decree No. 54)

Description: Investment

The Ferrocarril Nacional de Honduras may only sell its subsidiaries to Honduran nationals and enterprises organized under Honduran law.

The senior manager of the Ferrocarril Nacional de Honduras must be a Honduran national by birth.

Sector: Other Business Services - Warehousing

Obligations Concerned: Market Access (Article 11.4)

Level of Government: Central

Measures: Agreement No. 1055, Reglamento de los Almacenes Generales de Depósitos, Art. 3

Description: Cross-Border Services

Only enterprises organized under Honduran law with fixed capital and the sole purpose of providing warehousing services shall be authorized to provide such services.

Sector: Business Consulting Services

Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3) Market Access (Article 11.4)

Level of Government: Central

Measures: Decree No. 900, Ley Orgánica del Colegio de Administradores de Empresas de Honduras, Arts. 61-E and 61-F

Reglamento de Ley Orgánica del Colegio de Administradores de Empresas de Honduras, Arts. 96, 111, 113, and 114

Description: Cross-Border Services

Foreign nationals may enter into contracts to provide business administration consulting services after confirmation of the contract by the Colegio de Administradores de Empresas de Honduras.

Enterprises organized under foreign law may enter into contracts to provide business administration consulting services after confirmation of the contract by the Colegio de Administradores de Empresas de Honduras if such services are not otherwise available in Honduras or because of contractual needs. In order to provide such services, such enterprises must form a partnership with Honduran firms that are duly registered with the Colegio de Administradores de Empresas de Honduras.

Foreign nationals and enterprises organized under foreign law must pay registration fees that are higher than those imposed on Honduran nationals and enterprises organized under Honduran law.

Sector: Economic Consulting Services

Obligations Concerned: Local Presence (Article 11.5)

Level of Government: Central

Measures: Decree No. 1002, Ley Orgánica del Colegio Hondureño de Economistas, Art. 58

Description: Cross-Border Services

In order to provide economic consulting services into the territory of Honduras, economic consulting enterprises organized under foreign law must be represented by a member of the Colegio Hondureño de Economistas.

Sector: Agricultural Engineering and Agronomy

Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3)

Level of Government: Central

Description: Decree No. 148-95, Ley Orgánica del Colegio de Profesionales en Ciencias Agrícolas de Honduras, Att. 5

Reglamento de la Ley Orgánica del Colegio de Profesionales en Ciencias Agricolas de Honduras, Art. 9 and Tabla de Pagos al COLPROCAH

Measures: Cross-Border Services

Foreign agricultural engineers and agronomists may be subject to higher professional association registration fees than those imposed on Honduran agricultural engineers and agronomists.

Sector: Forestry Engineers

Obligations Concerned: National Treatment (Article 11.2) Local Presence (Article 11.5)

Level of Government: Central

Measures: Ley Orgánica del Colegio de Ingenieros Forestales de Honduras, Art. 66

Description: Cross-Border Services

Forestry engineering consulting enterprises organized under foreign law must hire Honduran nationals that are members of the Association of Forestry Engineers of Honduras in a proportion meaningful to the size of the project.

Sector: Veterinarians

Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3) Local Presence (Article 11.5)

Level of Government: Central

Measures: Ley Orgánica del Colegio de Veterinarios de Honduras, Art. 12

Reglamento de la Ley Orgánica del Colegio de Médicos Veterinarios de Honduras, Art. 5

Description: Cross-Border Services

Foreign enterprises wishing to supply veterinary services in Honduras must be organized under Honduran law. Foreign veterinarians may be subject to higher professional association fees than those imposed on Central American veterinarians.

Sector: Microbiologists and Clinicians

Obligations Concerned: National Treatment (Article 11.2)

Level of Government: Central

Measures: Reglamento de Inscripción del Colegio de Microbiólogos y Químicos Clínicos, Arts. 5, 6, and 8

Description: Cross-Border Services

Foreign microbiologists and clinicians must pay a higher registration fee than those paid by Honduran microbiologists and clinicians.

Sector: Notaries

Obligations Concerned: National Treatment (Article 11.2)

Level of Government: Central

Measures: Decree No. 277-2002, August 16, 2002, Ley del Notariado, Art. 4

Description: Cross-Border Services

Notaries must be Honduran nationals.

Sector: Electrical Energy Services

Obligations Concerned: Market Access (Article 11.4)

Level of Government: Central

Measures: Decree No. 158-94, Ley Marco del Sub-sector Eléctrico, Art. 23

Description: Cross-Border Services

In order to be established in Honduras and supply electrical energy distribution services, an enterprise must be organized as a commercial corporation with nominative stock.

Sector: Telecommunications

Obligations Concerned: Market Access (Article 11.4)

Level of Government: Central

Measures: Decree No. 80-2003, Art. 1(3.5)

Executive Decree No. PCM-018-2003, October 2, 2003, Art. 1, No. TV (a)

Decree No. 109-2003, October 24, 2003, Art. 1, No. IV (a)

Description: Cross-Border Services

The Comisión Nacional de Telecomunicaciones (CONATEL) will not authorize additional mobile telephony operators until December 2005. CONATEL will authorize at least one additional operator after that date.

Sector: Public Accountants

Obligations Concerned: Local Presence (Article 11.5)

Level of Government: Central

Measures: Decree No. 19-93, Ley Orgánica del Colegio de Profesionales Universitarios en Contaduríaa Publica, Art. 23

Description: Cross-Border Services

Any person wishing to supply public accountancy services in the territory of Honduras must be organized under Honduran law.

Sector: Architects

Obligations Concerned: Local Presence (Article 11.5)

Level of Government: Central

Measures: Reglamento Interno Colegio de Arquitectos de Honduras, Art. 7(c) and (d)

Description: Cross-Border Services

Enterprises organized under foreign law must designate a member of the Colegio de Arquitectos de Honduras (CAH) as their representative prior to registering with the CAH to supply architectural services in Honduras. For greater certainty, enterprises organized under foreign law may only register for specific projects.

Annex I. Schedule of Nicaragua

Sector:  Musicians and Artists

Obligations Concerned: National Treatment (Article 11.2) Most-Favored-Nation Treatment (Article 11.3)

Measures: Ley de Promoción a las Expresiones Artísticas Nacionales y de Protección a los Artistas Nicaragüenses, Law No. 215, published in La Gaceta No. 134, July 17, 1996, Arts. 14, 23, 24, 25, and 31

Description: Cross-Border Services

Foreign artists or musical bands may perform in Nicaragua solely by means of a prior contract.

Foreign artists performing shows or reviews of a commercial nature shall include in their program a Nicaraguan artist or group that performs similar shows.

Foreign artists or artistic groups not wishing to include a national artist in their program must pay one percent of the show's net receipts to the Instituto Nicaragiiense de Cultura unless the foreign artists' or groups' country of origin does not levy such tax on Nicaraguan artists or artistic groups.

Foreigners selected for the design and construction of public, pictorial, or sculptural monuments erected in Nicaragua, shall do so in association with Nicaraguan artists.

Sector: Tourism - Hotels, Restaurants, Tour Guides, Car Rental, and Other Tourism Related Activities.

Obligations Concerned: National Treatment (Article1 1.2) Local Presence (Article 11.5)

Measures: Ley de Incentivos a la Industria Turística de la República de Nicaragua, Law No. 306, published in La Gaceta No. 117, June 21, 1999, Arts. 16.1 and 16.2

Reglamento de Empresas y Actividades Turísticas de Nicaragua, published in La Gaceta No. 99, May 28, 2001, Arts. 16 and 17

Reglamento de los Operadores de Viajes de Nicaragua, published in La Gaceta No. 100, May 29, 2001, Art. 8

Reglamento que Regula las Actividades de las Empresas Arrendadoras de Vehículos Automotrices y Acuáticos (Rent a Car), published in La Gaceta No. 108, June 8, 2001, Art. 9

Reglamento de Guías de Turistas, published in La Gaceta No. 40, February 26, 2001, Art. 9

Reglamento de Agencias de Viajes de Nicaragua, published in La Gaceta No. 96, May 21, 2001, Art. 5

Description: Cross-Border Services

In order to supply tourism services in Nicaragua an enterprise must be organized under Nicaraguan law; and a foreign national must reside in Nicaragua or appoint a legal representative in Nicaragua.

This paragraph does not apply to the supply of tourism services during a cruise.

Tour Guides must be Nicaraguan nationals.

Sector: Services Related to Construction

Obligations Concerned: National Treatment (Article 11.2) Local Presence (Article 11.5)

Measures: Ley Reguladora de la Actividad de Diseño y Construcción, Decree No. 237, December 1, 1986, Arts. 2, 4, and 6

Description: Cross-Border Services

In order to supply construction services in Nicaragua an enterprise must be organized under Nicaraguan law; and a foreign national must reside in Nicaragua or appoint a legal representative in Nicaragua.

Sector: Distribution of Fireworks, Firearms, and Munitions

Affected Obligation: National Treatment (Article 11.2) Local Presence (Article 11.5)

Measures: Reglamento de la Ley de la Policía Nacional, Decree No. 26-96, published in La Gaceta No. 32, February 14, 1996, Arts. 76 and 77

Description: Cross-Border Services

In order to engage in the distribution of fireworks, firearms, and munitions in Nicaragua an enterprise must be organized under Nicaraguan law; and a foreign national must reside in Nicaragua

Sector: Private Security Services