Colón Free Trade Zone

The Colón Free Trade Zone is a free port in Panama dedicated to re-exporting a wide variety of merchandise to Latin America and the Caribbean. It is located on the Caribbean coast, near the Atlantic entrance to the Panama Canal, in the province of Colón, within the city of Colón though outside its municipal jurisdiction and operates as an autonomous entity of Panama.

Aerial view of the Colón Free Trade Zone

Location and size

The Colón Free Trade Zone is the largest free port in the Americas, and second largest in the world.[1] It started operations in 1948 and occupies about 2.4 km2 (600 acres). It is divided in two large areas: one located in Colón, segregated from the city by a wall, and the other relatively new, in the harbor area, which is designated for warehouses, covering 0.53 km2 (130 acres) and 370 m (400 yards) from Colón's commercial sector.

Issues

Exports from the free trade zone into neighboring countries are still subject to local rules, regulations, and payment requirements of the importing country. Venezuela, one of the larger buyers from the zone, has had difficulty meeting its obligations to exporters from the zone resulting in unpaid debts.[2] Colombia implemented a series of tariffs which had the effect of reducing imports, primarily from Asia.[3]

The Zone was created by Decree Law No. 18 of 17 June 1948, as an autonomous entity to develop the country's competitive advantages. Recently, the legislation for the Zone was modernized by Decree Law No. 8 of 4 April 2016, to allow for new businesses, such as electronic commerce, construction and operation of ports and other commercial activities.

References
  1. https://www.export.gov/article?id=Panama-foreign-trade-zones
  2. El Nacional Personal (2015-03-20). "Panamá espera pago del gobierno venezolano" [Panama waits for payment from the Venezuelan government]. El Nacional (in Spanish). Caracas, Venezuela. Archived from the original on 2 June 2016. Retrieved 30 April 2016.
  3. Patricia Rey Mallén (2013-11-05). "Venezuela's Debt And Colombia's Tariffs Are Hurting Panama". International Business Times. Retrieved 30 April 2016.

Further reading
  • Mellander, Gustavo A.; Nelly Maldonado Mellander (1999). Charles Edward Magoon: The Panama Years. Río Piedras, Puerto Rico: Editorial Plaza Mayor. ISBN 1563281554. OCLC 42970390.
  • Mellander, Gustavo A. (1971). The United States in Panamanian Politics: The Intriguing Formative Years. Danville, IL: Interstate Publishers. OCLC 138568.

See also

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