Congress Votes on ZEDE (Model Cities) Law in Honduras

A law to regulate the Employment and Economic Development Zones (ZEDE –  Zonas de Empleo y Desarrollo Económico) in Honduras (which are the newest version of “Model Cities”), was approved by the Honduran National Congress after their last debate.

This law is the complement to the amendments to Articles 294, 303 and 329 of the Constitution, which paved the way for the creation of these special ZEDEs where businesses can choose to invest in specific regions with different rules than the rest of the country.

The new law authorized the establishment of courts with exclusive jurisdiction, which may take on legal systems or traditions of other parts of the world, provided that they ensure equal or better constitutional principles for human rights protection.

Honduras ZEDE - Model Cities

Honduras ZEDE’s are allowed their own court system.

This new law also defines that the ZEDE’s are an inalienable part of the State of Honduras, so they are subject to the Constitution of Honduras and the Honduras National Government on the issues of sovereignty, the application of justice, territory, national defense, foreign affairs, electoral issues and identity documents and passports.

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