Statement on the Legal Stability of Próspera ZEDE

Existing ZEDEs are protected for a minimum period of 50 years from any changes to the ZEDE regime. Próspera ZEDE enjoys special legal stability guarantees under the Dominican Republic – Central American Free Trade Agreement (CAFTA-DR) and the Bilateral Investment Treaty between the Republic of Honduras and the United States of America.

Among other things, this is accomplished through the ZEDE Organic Law, which provides a minimum transition period of 10 years during which the rights of the residents are protected, and the mechanism for abolishing ZEDEs that it creates (i.e., 2/3 qualified majority vote in National Congress and a referendum in certain cases).

In addition, even though the Honduran Supreme Court has upheld the law two times (one time expressly and implicitly in June 2021 when it created the ZEDE court system), any ruling that the ZEDE regime is unconstitutional would not have retroactive effect and, pursuant to established Honduran law, would not impact the constitutional autonomy already recognized to existing ZEDEs.