RL34027
Honduran-U.S. Relations
October 06, 2009

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Summary

On June 28, 2009, the Honduran military detained President Manuel Zelaya and flew him to exile in Costa Rica, ending 27 years of uninterrupted democratic, constitutional governance. Following the ouster, the Honduran Supreme Court released documents asserting that an arrest warrant had been issued for Zelaya as a result of his noncompliance with court decisions declaring his proposed non-binding referendum illegal. Zelaya's forced removal halted the judicial process before a trial could be held, and the Honduran National Congress replaced him with head of Congress Roberto Micheletti. The United States and international community have universally condemned the events in Honduras and called for a restoration of Zelaya and the rule of law. Those involved in the ouster have rejected the international response, and maintain that Zelaya's removal was done in accordance with the country's constitution. The political instability brought about by the removal of President Zelaya has created yet another challenge for Honduras, one of the hemisphere's poorest countries. In addition to significant challenges in the areas of crime, human rights, and improving overall economic and living conditions, the country faces a poverty rate of nearly 70%, high infant mortality, and a significant HIV/AIDS epidemic. While traditional agricultural exports of coffee and bananas are still important for the economy, nontraditional sectors, especially the maquiladora, or export-processing industry, have grown significantly over the past decade. The economy, which grew by 6.3% in 2007 and 4% in 2008, has benefitted from significant debt reduction by international financial institutions that have freed government resources to finance poverty-reduction programs. The global financial crisis and current political crisis, however, are expected to slow economic growth sharply in 2009. The United States has a close relationship with Honduras, characterized by an important trade partnership, a U.S. military presence in the country, and cooperation on a range of transnational issues. In addition to Honduras being a party to the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), some 78,000 Hondurans living in the United States have been provided temporary protected status (TPS) since the country was devastated by Hurricane Mitch in 1998. The United States also provides significant foreign assistance to Honduras, amounting to $40.5 million in FY2008 and an estimated $43 million in FY2009. Several resolutions have been introduced in the 111th Congress regarding the political crisis in Honduras. On July 8, 2009, H.Res. 619 (Mack) and H.Res. 620 (Serrano) were introduced in the House. H.Res. 619 condemns Zelaya for his "unconstitutional and illegal" actions and calls on all parties to seek a peaceful resolution. H.Res. 620 calls upon the Micheletti government to end its "illegal seizure of power" and work within the rule of law to resolve the situation. On July 10, H.Res. 630 (Delahunt) was introduced in the House. It condemns the "coup d'etat" in Honduras; refuses to recognize the Micheletti government; calls for the reinstatement of Zelaya; urges the Obama Administration to suspend non-humanitarian assistance to Honduras; calls for international observation of the November 2009 elections; and welcomes the mediation efforts of Costa Rican President Oscar Arias. On September 17, H.Res. 749 (Ros-Lehtinen) was introduced in the House, calling for the Secretary of State to work with Honduran authorities to ensure free and fair elections in Honduras. It also calls on President Obama to recognize the November elections "as an important step in the consolidation of democracy and rule of law in Honduras."

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