Honduras formally rejoins World Bank investment arbitration body

Honduras has officially rejoined the International Centre for Settlement of Investment Disputes (ICSID), an arbitration body under the World Bank Group. The Central American nation ratified the convention, solidifying its return to the organization, which will take effect on August 16.

The ratification instrument was deposited by Honduras's ambassador to the United States, Roberto Flores Bermúdez, with ICSID's secretary-general. This step marks a significant reversal of a decision made in February 2024 by the administration of former President Xiomara Castro, who had denounced the convention, arguing it undermined national sovereignty.

“

to safeguard public finances, correct the imbalance that favors foreign investors and harms national investors and to put an end to litigation terrorism.

At the time of the withdrawal, the Attorney General's Office of Honduras contended that leaving ICSID was necessary to safeguard public finances, correct an imbalance favoring foreign investors, and end "litigation terrorism." The office also cited a perceived "corporate media bias" within the system that favored transnational companies demanding substantial payments from the state.

However, the current administration under President Nasry 'Tito' Asfura views international arbitration as a crucial tool for ensuring the country's competitiveness and legal stability. The return to ICSID is expected to bolster investor confidence and provide a framework for resolving investment disputes.

“

corporate media bias, which manifests in favor of ceding sovereignty to transnational companies that without any right are demanding sums of millions of dollars from the State.