28 June 2009

Moody's Coutino Says Honduras Coup May Jeopardize Trade With U.S.

By Nathan Gill
     June 28 (Bloomberg) -- Alfredo Coutino, director for Latin America at Moody’s Economy.com in West Chester, Pennsylvania, comments on the economic impact of a military coup in Honduras. Coutino spoke today in a telephone interview.

On the coup’s impact on Honduras’s trade:
     “Its going to be a negative mark for Honduras, particularly from the U.S.
     “The U.S. will put pressure for the restoration of democracy, if that doesn’t happen, we will see major economic consequences because then we will see that they can impose restrictions on Honduras trade.”

On which areas of Honduras’s economy will be the most affected by the coup:
     “The sectors that would suffer because of trade restrictions are going to be the industrial sector and the agriculture sector.
     “Honduras is an important exporter of manufactured goods to the U.S., particularly in the area of textiles.

On the potential affect of Honduras’s coup on the rest of Latin America:
     “There is no reason to think that the main Latin American countries are going to be punished by international markets. This is not an international event. It’s just a very, very local event in a very, very small Central American nation.
     “If the US doesn’t get bananas from Honduras, they can get them from Costa Rica.”