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A Lawsuit From Backers of a ‘Startup City’ Could Bankrupt Honduras
The country faces a wave of claims after it repealed a law allowing for special economic zones. Chief among them is an American company looking to build a semi-autonomous “startup city” called Próspera.
“The ISDS system is a scam snuck into trade deals to allow large multinational corporations to bypass domestic courts and challenge legitimate public policies,” with Honduras Próspera’s claim as a prominent example, US senator Elizabeth Warren, a Massachusetts Democrat, told Inside Climate News in a statement. The neat, modern plaza sits next to the presidential palace and houses many government offices, but its pedestrian entrance opens onto a busy street without a turn-off, resulting in a chaotic scene of double-parked taxis and honking, as if its architects failed to imagine that citizens would visit. But Honduras Próspera told Inside Climate News that the government has acted illegally by pressuring banks to close accounts for businesses registered in the ZEDE and forcing companies in the zone to pay taxes and fees on goods they purchase or import, among other steps.
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