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Significance
While many countries declare free trade zones or development areas, offering tax exemptions or other benefits in the hope of attracting investment, the ZEDE regime grants an extraordinary level of autonomy over the legal, fiscal, and security regimes within the zones.
Impacts
Castro’s lack of alternatives to a Chinese FTA will help Beijing extract favourable terms on investment deals.
Officials may turn a blind eye to environmental and human rights issues to fast-track project announcements.
A desire to maintain influence in Honduras could cause Washington to overlook links between the political elite and organised crime.
Keywords:
Honduras,
LA/C,
China,
IMF-World Bank,
United States,
economy,
industry,
politics,
fiscal,
foreign investment,
investment,
judicial,
policy,
private sector,
regional,
regulation
© Oxford Analytica 2024. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2024
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