Government Reforms Face Corporate Backlash in Honduras: As President Xiomara Castro's administration works to mitigate the fallout of the post-coup years, transnational companies are lining up to sue the state for lost profits.

Transnational companies in Honduras are suing the government for lost profits, following President Xiomara Castro's decision to overturn laws that supported economic development projects. The companies are seeking international arbitration under the Central America-Dominican Republic Free Trade Agreement (CAFTA-DR), claiming that the government's actions threaten their ability to make a profit. The U.S. Embassy in Honduras has been critical of Castro's policies, and there is concern that the U.S. government is supporting opposition to her administration. These investor-state dispute settlement (ISDS) cases pose a significant challenge to the Castro administration's proposed reforms and the future of Honduras. [Extracted from the article]