TAIPEI (Taiwan News) — Honduran Foreign Minister Enrique Reina said on Monday his government is seeking to re-engage with the Taiwan market amid plummeting shrimp exports. 

In March 2023, Honduras severed diplomatic ties with Taiwan and established relations with China, hoping that a Free Trade Agreement with Beijing would benefit its economy, per Liberty Times. However, instead of the expected economic boost, China flooded the Honduran market with its goods, leading to a severe trade imbalance.

In an interview with Honduran media outlet Radio America, Reina conceded that since the country has struggled to gain access to the Chinese market, the government is now “working with Taiwan to explore other possibilities.” 

Before the diplomatic shift in March 2023, Taiwan and Honduras had maintained over 80 years of diplomatic relations, based on military, educational, and economic cooperation. The report pointed out that Taiwan not only provided agricultural and technical assistance to Honduras but was also a key market for its shrimp exports. 

In 2022 alone, nearly 40% of Honduras' shrimp exports went to Taiwan. However, after Honduran President Xiomara Castro's administration cut ties with Taiwan in favor of China, the Honduran Association of Aquaculturists reported that within just two years, the country's shrimp exports plummeted by 67%, resulting in over 14,000 job losses.

The contraction of the shrimp farming sector has had a direct impact on the economy of production areas. Business closures, job losses, and reduced income for thousands of families are among the most visible effects of this crisis.