Trade and Commercial Law Assessment - Honduras - Economic ...

TRADE AND COMMERCIAL LAW ASSESSMENT DECEMBER 2004
HONDURAS
● Last, mechanisms should be created that allow for the immediate formation of a
company. One step in this direction would be widespread use of “ventanillas unicas” or
“one-stop shops.”
A greater
degree of transparency and expertise must be introduced into the judicial system. This
can be achieved through various reforms.
● Despite the passage of the judicial career law, there is still concern the selection
of judges is not sufficiently de-politicized. A system should be established where
selection is based on merit, exempted from outside influences/interest groups.
● Judges at lower levels need greater independence to assure that they will not be
subjected to influence and pressure from higher courts or politicians to shape decisions in
a particular way. In this connection, judges should have the assurance their jobs will be
there for them, i.e. they should be given them permanent
status.
● Courts of specific jurisdiction should be created with judges having area
expertise, e.g. commercial courts.
● Currently there are gaps between the practice and the content of the law. For
example, factoring and leasing contracts are used in Honduras but the concepts are not
sufficiently developed in the law. Similarly, while electronic contracts are used, there is
no law to control their validity and judges are not sure how they should be interpreted.
In
addition, not only should these areas be dealt with, but a system should be
established so
that such gaps can be more quickly recognized and Congress can more quickly bring the
law in line with practice.
With respect to the recently passed commercially-related laws, priorities for implementation
need to be set in order to encourage foreign investment. Primary among these is the intellectual
property law, which currently exists, but the application of which is not yet well understood.
Similarly, the copyright
law has been passed but it is seemingly being overtly ignored. The new
law
on Property, specifically dealing with real estate, and the draft law on collateral guarantees
are an important pieces of legislation and should be supported so that there is certainty for those
that own property and are seeking guarantees. Lastly, the Ley de Mercado de Valores, passed
more than a year ago, needs promotion and added incentives to encourage support for and
investment in the stock market.
GROUP
4 – IMPROVING COMPETITIVENESS IN HONDURAS
There are a number
of basic steps that need to be taken to improve competitiveness. These
include the passing a law on competition; strengthening the relationship between the public and
private sectors and encouraging greater private sector participation; simplifying the legal
framework and bureaucratic procedures; and privatizing key industries through
appropriate and
regulated means. More specifically:
● Services currently provided by the state, such as energy and electricity, should be opened
to augment competition throughout the country. Obviously, this will require greater private
sector
involvement.
● Despite prior unsuccessful efforts, privatization should be pursued with the goal of
lowering costs and increasing competition.
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