2023-07-02 21:58:44
Privatization and exploitation from abroad are issues of concern in many Honduran communities. Recently, the president Xiomara Castro and the Honduran Congress repealed a law that established the “Economic Development and Employment Zones”, granting private companies a functional autonomy and administration of the national government.
However, this repeal has prompted a lawsuit by the Delaware-based company Próspera. Próspera is challenging the repeal of the law under the Free Trade Agreement between the Dominican Republic, Central America and the United States and seeks compensation of almost eleven billion dollars, a figure that represents almost two-thirds of the Honduran budget for 2022.
The Free Trade Agreement between the Dominican Republic, Central America and the United States has granted investors certain “extreme rights” that have a direct impact on the sovereignty from Honduras. These rights allow foreign companies to sue governments for actions they consider detrimental to their business interests.
In the case of the company prosperousthe repeal of the law of “Economic Development and Employment Zones” is perceived by them as a violation of your rights and has led to the presentation of a million dollar demand.
Melinda St. Louis, director of the Global Trade Observatory of the Public Citizen organization, has expressed concern about the situation in Honduras. According to St. Louis, these types of international trade treaties grant foreign companies excessive power and are often in direct opposition to the sovereignty of the affected countries. He stresses that it is essential to find a balance between commercial interests and the protection of the rights and sovereignty of nations.
#company #installed #private #city #Honduras #sues #State #opposing