Trade Restrictions in Honduras Include Price Band

Trade restrictions in Honduras include price band mechanisms for yellow corn, sorghum, and corn meal .The price band mechanism works by charging 20% tariff on imports that are valued within the defined rates of the band, when the price is lower, then the rate of the tariff charged is over 20% (Carbaugh, 2004, p. 197). There are bands on United States (U.S.) raw poultry imports, which deny these products from importing into Honduras (Carbaugh, p. 198). The Government of Honduras also has seasonal import restrictions to protect local farmers during the main harvest; these policies limit access of U.S. agricultural products (Trade Compliance Center [TCC], 2000, p. 1). Until recently, import restrictions on ruminant products and sub-products existed; the following ruminant items were prohibited: meat, casings, organs, hydrolyzed proteins, glands, & bile are some of the products listed in this category. (Aphis [A], 2005, p.1). Ruminant is any various cud-chewing hoofed mammal having a stomach divided into four (occasionally three) compartments ((Word Web Online [WWO], 2005, p.1).

When discussing the question of who will benefit from these restrictions, the answer is rather simple. Farmers are among the main population of individuals that stand to benefit the most from the above listed restrictions. When one creates a situation in which there is no or little competition, opportunity is more abundant if you are the only provider of that product.