Honduras: Political and Economic Situation and U.S. Relations

Honduras faces enormous challenges in the areas of crime and human rights and improving overall economic and living conditions in one of the hemisphere’s poorest countries. The United States has a close relationship with Honduras, characterized by significant foreign assistance, an important trade partnership, a military presence in the country, and cooperation on a range of transnational issues. Honduras signed the original U.S.-Central America Free Trade Agreement (CAFTA) in May 2004 and an expanded U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) in August 2004. The Honduran Congress approved the agreement on March 3, 2005, by a vote of 124-4. The Bush Administration views DR-CAFTA as a means of solidifying democracy in Honduras and promoting safeguards for environmental protection and labor rights in the countr