Ricardo Quijano, Minister of Commerce and Industry in Panama, said he understands that Colombia can place this type tax on products, but the complaint is that there is a limit imposed by the World Trade Organization (WTO) and the tariff should be lower.

Quijano recognizes that any tax hits Colon Free Zone (CFZ), but he hopes that Colombia will lower the current settings and minimize the impact.

"Colombia's tax is now being reflected in the figures from the Panamanian zone. Up to March 2013 business in the Colon Free Zone reflected a contraction of 11.4%," noted an article in Laestrella.com.pa.

Statistics show that between January and March $6.584 billion was registered, which represents $847 million less than what was achieved in 2012 when there were $7.431 billion. In the month of March alone, the fall was 23% and it is mainly attributed to the Colombian tariffs.

Source: laestrella.com.pa

More on this topic

Colombia-Panama: No Agreement Over Free Zone Tariffs

July 2014

The meeting of the Presidents Santos and Varela made it clear that there will be no immediate solution to the problem of the tariffs Colombia is imposing on imports of footwear and textiles from the Colon Free Zone.

Companies operating in the Free Zone of Colon have seen their sales to Colombia decrease dramatically since the government of that country imposed a protective tariff on all imports of footwear and textiles from countries with which the country does not have a free trade agreement in place. The measure already has been implemented now for nearly two years, removing competitiveness of exports by traders from the CFZ.

WTO to Mediate Panama-Colombia Trade Dispute

October 2013

The World Trade Organization will form a panel to look into Panama's complaint over Colombian tariffs on textiles and footwear from the Colon Free Zone.

In August Panama asked the WTO to form an international panel.

At the request of Colombia it has not yet been defined who will make up the panel.

Colombian Tax Denounced to WTO as Illegal

September 2013

Panama has requested that the World Trade Organization verify that the taxes being charged by Colombia on imports from the CFZ are illegal.

This was announced by Minister of Commerce and Industries of Panama, Ricardo Quijano, who explained that his government has asked the WTO to establish a panel "to determine the legality of the measures imposed by Colombia on imports of clothing and footwear from the Colon (Free) Zone," noted an article in Laprensa.com.ni.

Issue of Tariffs With Panama and Colombia Goes to WTO

August 2013

Colombian authorities have show no interest in resolving the issue of additional taxes on imported goods from the CFZ.

According to Ricardo Quijano, Minister of Commerce and Industry (Mici), the panel could be set up in September as it ensures that the first step has already been taken and there has been a consultation period with the authorities of both countries to find a solution, which in this case could be a modification to the Colombian decree .