 Membership in the Honduran Association of Small and Medium Industry (Asociación Hondureña de Empresas Pequeñas y Medianas) declined by 70 percent by 1991, compared to pre-maquiladora days, foreshadowing the likely demise of most of the small shops.Honduran domestic manufacturers also suffered from increased Central American competition resulting from a trade liberalization pact signed in May 1991 by Honduras, El Salvador, and Guatemala.Overall, the Honduran manufacturing sector has mimicked other sectors of the economy—it is mostly noncompetitive, even in a regional context, because of insufficient credit and the high cost of inputs.