Agribusiness: Plans to Attract Foreign Investment

In Panama, a bill is planned to convert the provinces of Los Santos and Herrera into a Special Economic Zone, which will offer tax and labor incentives to companies in the agricultural sector that decide to invest in the area.

Monday, October 7, 2019

Representative Julio Mendoza, of the Democratic Revolutionary Party, announced that in the coming weeks he will present a bill to the Assembly to create the Special Economic Zone of Azuero.

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Mendoza explained to that companies interested in establishing in the area "... not only will be offered tax incentives, but also labor benefits, so that they can bring the skilled labor required to establish their operations initially, jobs that will gradually be filled by Panamanians thanks to a training program in agribusiness and technology transfer.

Also see "Agricultural Production in Danger of Extinction

Aida Michelle de Maduro, president of the Association of Free Trade Zones of Panama (Azofra), said that "... any initiative that seeks to attract productive investment to the country should be well received as it will generate well-paid jobs for Panamanians."

In Maduro's opinion, it is not necessary to enact a new law to create a Special Economic Zone since the Law of Free Trade Zones allows the development of this type of facilities throughout the country.

According to official figures in Panama in 1970 the production of the agricultural sector represented 25% of the GDP, however, at present this proportion barely reaches 2%, which is attributed to increased food imports and low soil productivity, among other factors.

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More on this topic

Proposals for Special Economic Zones Law

July 2019

In El Salvador, it is proposed that the law discussed in the Assembly, considers the reduction of minimum requirements for investments made in special economic zones, to compensate for the disadvantages of lack of productive activity in the area.

In July 2018, the Executive Branch presented to the Legislative Assembly the draft Law on Special Economic Zones (LZEE), which is being analyzed by the Economy Commission.

Tax Benefits for Companies in Special Zones

February 2019

The regulation for Special Public Economic Development Zones, which came into effect in Guatemala on February 4, establishes fiscal incentives for companies operating under this scheme.

Among the tax benefits provided by the Law on Special Public Economic Development Zones (ZDEEP), include the exemption for 10 years of 100% of income tax, as well as the temporary suspension of taxes associated with imports.

Special Economic Zone for El Salvador

July 2018

A proposal has been made to create a special economic zone in 26 municipalities in the southeast of the country, which would provide tax incentives for activities related to clean energy and the prospecting of natural gas and oil.

The Executive presented to the Legislative Assembly a preliminary draft of the Law on the Special Economic Zone of the Southeast Region of El Salvador, which has the objective of developing 26 municipalities of Usulután, San Miguel and La Unión.

Increasing the Attractiveness of Investing in Panama Pacifico

October 2014

The government is promoting a bill that will modernize the tax status of high-value services and the movement of goods from the zone to other countries.

From the preamble to the draft submitted to the National Assembly of Panama:

Law 41 of July 20, 2004, created the Panama-Pacific Special Economic Area as a scheme for legal matters, tax, customs, labor, immigration and special business, oriented towards encouraging and promoting investment, job creation and to make the Republic of Panama more competitive in the global economy.

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