A plan to create special self-governing zones for foreign investors in Honduras has been thrown into limbo with the new government’s repeal of a law many criticized as surrendering sovereignty. The zones were inspired by libertarian and free-market thinkers as a way to draw foreign investment to the impoverished country. Critics were worried that the zones could become nearly independent statelets and President Xiomara Castro, who took office in January, campaigned against the law. On Monday, she signed a measure passed by Honduras’ Congress to repeal it — though the permission for the zones still remains in the constitution. Castro called the repeal “historic” and said Honduras was “recovering its sovereignty.” Her administration said it did not want to destroy what had already been built, but that changes were coming.
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