Honduras: Political and Economic Situation and U.S. Relations [Updated May 3, 2005] [open pdf - 39KB]
"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. A U.S.-Central America Free Trade Agreement (CAFTA) with five Central American countries was signed on May 28, 2004, and a combined U.S.-Dominican Republic-Central America Free Trade Agreement (DR-CAFTA) was signed on August 5, 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 country; critics fear that a CAFTA without strong environmental and labor provisions would do nothing to spur reforms in the country."
CRS Report for Congress, RS21103