US embassy cable - 05TEGUCIGALPA119

UNCLAS SECTION 01 OF 02 TEGUCIGALPA 000119 
 
SIPDIS 
 
State for EB/TPP/MTA/MST:AWhitten and WHA/CEN 
State pass USTR for CHooker 
 
E.O. 12958: N/A 
TAGS: ETRD, HO, WTO 
SUBJECT: Honduran Market Access Priorities for WTO Services 
Negotiations 
 
REF: 04 State 270998 
 
1.  The following information is provided in response to 
reftel: 
 
Sector                                 Priority    Openness 
------                                 --------    -------- 
Legal services                             5           L 
 
Accounting, auditing and bookkeeping 
  services                                 3           H 
 
Taxation services                          3           H 
 
Architectural services                     4           H 
 
Engineering and integrated engineering 
  services                                 2           M 
 
Urban planning and landscape 
  architectural services                   2           M 
 
Computer and related services              2           H 
 
Research and development services          4           H 
 
Real estate services                       3           H 
 
Rental/Leasing Services                    3           H 
 
Advertising services                       3           M 
 
Market research and public 
  opinion, polling services                3           M 
 
Management consulting services             1           M 
 
Technical testing and analysis services 
  (including energy related testing 
  services)                                3           M 
 
Services incidental to agriculture, 
  hunting and forestry, and fishing        2           M 
 
Services incidental to mining              1           M 
 
Energy services (including land site 
  preparation, drilling and plugging) 
  (except for 88442)                       1           L 
 
Services incidental to energy distribution 1           L 
 
Placement and supply services of personnel 5           L 
 
Investigation and security                 1           H 
 
Related scientific and technical 
  consulting services                      2           H 
 
Maintenance and repair of equipment        1           H 
 
Building-cleaning services                 5           H 
 
Photographic services                      4           H 
 
Packaging services                         2           H 
 
Printing, publishing                       3           H 
 
Convention services                        5           H 
 
Courier services (Express Delivery)        2           H 
 
Telecommunication services                 1           H 
 
Audiovisual services                       3           H 
 
Construction and related engineering       2           M 
 
Distribution Services, including: 
  commission agents' services, wholesale 
  trade services, retailing services, and 
  franchising                              1           H 
 
Educational Services, including: higher 
  education services, adult education 
  (i.e., vocational), other education 
  services (i.e., testing and computer or 
  language training)                       3           M 
 
Environmental services (wastewater 
  treatment, sanitation, protection of 
  ambient air and climate, remediation 
  and clean up, noise and vibration 
  abatement, and biodiversity protection)  3           H 
 
Insurance services                         3           M 
 
Banking and other financial services 
  including securities                     3           M 
 
Tourism and travel-related services, 
  including: hotels and restaurants, 
  catering, travel agencies and tour 
  operators services, and tourist guides 
  services                                 1           H 
 
Recreation and sporting services (other 
  than audiovisual services), including: 
  entertainment services (including theatre, 
  live bands and circus services), news 
  agency services; libraries, archives, 
  museums and other cultural services; 
  sporting and other recreational 
  services.                                2           M 
 
2.  Comment:  Please note that a high or medium ranking for 
"openness" in the table above indicates only a lack of 
statutory barriers to foreign investment in that sector.  It 
does not necessarily indicate a trouble-free investment 
climate in practice.  Historically, U.S. firms and citizens 
have found corruption to be a problem which seriously 
complicates doing business in Honduras, particularly in the 
areas of government procurement and the buying and selling 
of real estate.  Additionally, the judicial system is easily 
influenced; investment and business disputes involving 
foreigners have rarely been resolved in a transparent 
manner.  So, for example, while Honduran laws are very 
welcoming of foreign investment in the tourism sector, 
American citizens who purchase property for use as a 
restaurant or hotel may nonetheless find themselves ensnared 
in a complicated legal dispute with little hope of a rapid 
and just resolution.  End comment. 
 
Palmer