Honduran Supreme Court’s ZEDE Ruling Threatens Livelihoods of Thousands of Honduran Families: Próspera ZEDE remains in force under Honduran law.

The Honduran Supreme Court’s recent decision that seeks to retroactively annul the ZEDE Laws, is inapplicable to the workers, residents, and entrepreneurs in Próspera ZEDE, to whom Honduran law guarantees 50 years of legal stability. This arbitrary decision by the Supreme Court sends a wrong message to international investors.  

Islas de la Bahía, November 6, 2024 – The Supreme Court of Justice has issued a ruling that seeks to retroactively annul the Employment and Economic Development Zones (ZEDE) laws, creating a climate of legal uncertainty that endangers thousands of jobs and hundreds of business projects. Próspera ZEDE alone has attracted over $150 million in the economy, creating over 3,000 jobs across the Bay Islands and Atlantic coast. These jobs offer a chance for families to thrive locally, without needing to emigrate. This ruling now threatens that progress, bringing uncertainty and loss to communities and families that depend on income generated by ZEDE jobs.

Honduran law is clear. As expressed in the dissenting vote of 5 Supreme Court Justices, a retroactive ruling is null and void. Furthermore, article 94 of the Law on Constitutional Justice states that this ruling will not affect Próspera ZEDE and its residents, while international treaties such as CAFTA-DR (Art. 10.4) guarantee the legal stability of our legal framework for a 50-year period. The retroactive application of this decision contradicts the UN Universal Declaration of Human Rights and the jurisprudence of the Inter-American Court of Human Rights (IACHR). As a member state of the American Convention on Human Rights, Honduras is obligated to ensure access to justice and respect for due process for all. 

This ruling marks a profound setback for Honduras, yet Próspera ZEDE remains committed to the country and prepared to collaborate with national and local leaders whose leadership understands the importance of attracting foreign investment and generating opportunities. Honduran talent deserves an environment that rewards effort and innovation, not one that punishes them.

Despite the setback, Próspera ZEDE will use every legal resource to protect investments within the ZEDE, workers, and the families that rely on salaries. The possibility of a brighter future for Honduras endures. Próspera ZEDE remains committed to the mission of stability and prosperity within Honduras, where innovation, respect for law, and opportunity thrive.