U.S. lawmakers warn of harassment of U.S. investors and total elimination of ZEDEs
By Próspera Team2 min read
The Senator from Bill Cassidy (LA) and U.S. Representative Maria Elvira Salazar (US) (FL-27) were quick to respond to reports of a high-level effort to influence the newly appointed Honduran Supreme Court to criminalize ZEDE investors and overturn established law upholding the ZEDE investment framework.
In his letter to Honduran President Xiomara Castro, the senator and the representative wrote:
“Threats of total elimination of the ZEDE legal framework and harassment of legitimate investors are exactly the kind of actions that have kept Honduras with an extensive informal economy and increased irregular migration; and are actions that the Americas Act would seek to eliminate; but also that would make Honduras ineligible for accession to the Americas Act when it becomes law.”.
The aforementioned The Americas Act is a legislative proposal that would reorient U.S. foreign and economic policy toward stabilizing Latin America. by developing new opportunities for investment, economic growth and job creation in the Western Hemisphere. Senator Cassidy, a member of the Senate Finance Committee, and Representative Salazar, Chair of the House Western Hemisphere Subcommittee, are also the authors of the Americas Act. Their assertion that the elimination of the ZEDE legal framework would make Honduras “ineligible for accession to the Americas Act” echoes the public policy promoted by the U.S. Investment Protection Act (H.R. 465), The bill, co-sponsored by Representatives Paul Gosar (AZ-9), Eli Crane (AZ-2) and Rick Crawford (AR-1), would deny visas and remittances to foreign public officials who expropriate U.S. investments or fail to consult with U.S. investors to resolve investment disputes.
With their formal warning to the Government of Honduras, Senator Cassidy and Representative Salazar have joined Senators Ben Cardin (MD) and Bill Hagerty (TN), as well as the Representative Chip Roy (TX-21) to publicly express grave concern over the Castro government's efforts to undermine treaty-backed guarantees of legal stability for U.S. investments in ZEDEs.
When guarantees of legal stability backed by investment treaties are at stake, it's no wonder that more and more U.S. lawmakers are insisting that any change in policy must be consistent with international law, treaty obligations and investor confidence. These concerns recognize that stabilizing Latin America and improving the lives of Hondurans will require extraordinary levels of investment. Breaking solemn sovereign promises will chill future U.S. investment not only in Honduras, but throughout Latin America.
In view of these With well-founded concerns about hasty efforts to extinguish U.S. ZEDE investments, Honduras Próspera Inc. remains hopeful that reasonable people in the Castro government will prevail.; and that the newly appointed members of the Honduran Supreme Court will resist efforts to undermine its independence.
Read also:
Letter from Sen. Cassidy and Rep. Salazar to Honduras
Congressional Homeland Security members join U.S. investment protection movement