Inaugurating new president, Honduras prepares special zones to offer investors and workers world standards for RULE OF LAW
TEGUCIGALPA, Honduras, Jan. 26, 2014 /PRNewswire/ -- As President Juan Orlando Hernandez takes office, Honduras prepares to proactively address regional issues that affect investment and job creation. Innovative "Zones for Economic Development and Employment" (ZEDE) are designed to be the most competitive new jurisdictions in the CAFTA space.
Unlike traditional special zones that just address a single dimension by using only economic incentives, the Honduran ZEDE considers four critical dimensions and addresses the legal, economic, administrative, and political (LEAP) factors that in the CAFTA region are vital for winning investment leadership.
The design of the Honduran ZEDE is to create an investment/employment jurisdiction that meets international standards for rule of law, efficiency, security, and transparency to a degree that surpasses any competing investment zone in the CAFTA region.
The advantage for Honduran workers is real:
By building competitiveness across all the LEAP factors, the Honduran ZEDE avoids the "race to the bottom" that is driven by the lowest wage countries of Asia and Africa and instead adds greater value and security for investors seeking the most credible "near-shore" production and employment platform in a new, first-class jurisdiction in the CAFTA region.
In addition to attractive, WTO-compliant economic incentives, the Honduran ZEDE jurisdiction competes for world investment with additional advantages unique in the CAFTA region:
-- International legal standards, dispute resolution mechanisms and institutions, using Common Law, mandatory arbitration, and special judges.
-- A 21st century, business-efficient, non-politicized, transparent, stable, system of administration, plus a special police and security institutionality to overcome regional issues and meet world standards.
-- A distinguished 21-member international committee working to assure the adoption in the Honduran ZEDE of best international practices. The committee's mandate, with support from an International Advisory Council, is to help bring investment and jobs to Honduras by meeting world standards of international investors and markets.
-- For high value brands, a modern and transparent export jurisdiction able to provide superior confidence and predictability. For innovative sectors that work with new technologies, processes and markets, an agile new jurisdiction with a unique, rapid customization capacity.
-- A durable and transparent investment regime secured by a strong law, guaranteed by a constitutional amendment, reinforced by an international treaty, and further protected by international trade agreements including CAFTA and others.
SOURCE Honduran ZEDE