free trade zone free zone Free Trade Zone System Free Zones Law Salvadorean Textile and Clothing Association free zone trade International Commerce Duty free Textile Industry incentives Exports & imports Local Law World Trade Organization drawback José Antonio Escobar

Textile Industry Hopes for Free Trade Area Reforms

New investments in the sector are pending the approval of El Salvador's new tax-free zone law.

Thursday, November 3, 2011

According to the Salvadoran chamber of textile manufacturers (CAMTEX in Spanish), the reforms being considered by the government comply with all the demands made by the World Trade Organization (WTO).

"However, CAMTEX director, Patricia Figueroa, comments that until the reforms are finally approved by congress the investments will not get the green light," reports Laprensagrafica.com.

Their approval will provide certainty and predictability, she added.

Source: laprensagrafica.com

Key entities

Salvadorean Textile and Clothing Association Ministry of Economy (El Salvador)

Countries

El Salvador

Insight

Free Zones Law free zone trade free zone free trade zone Duty free incentives taxes tax exemption Free Trade Zone System drawback Industry Textile industry Local Law International Commerce Exports & imports Textile Industry Business and Investment

El Salvador: Textile Companies Oppose 5% Tax

February 2013

The Chamber of Textile, Clothing Companies and Free Zones states that if the new law on Free Zone included the tax, it would drive away millions of dollars in investments.

Elmundo.com.sv reports that "The Chamber of Textile, Clothing Companies and Free Zones of El Salvador (Camtex) on Wednesday opposed changes made by the Finance Minister Carlos Cáceres to the proposed amendments to the Law on Free Zones, agreed with the sector since October 2011."

El Salvador: Free Zones Law Generates Controversy

October 2011

If a reform of the law is approved, tax exemptions enjoyed by members of the scheme would be limited.

Although the purpose of the law reform is to modernize the free zones scheme and meet the requirements established by the World Trade Organization, companies currently operating under the scheme would be affected.

El Salvador: New Law on Free Zones Delayed

August 2011

There is a growing demand for textiles and clothes manufacturing, but a new Law on Free Zones is needed in order to bring fresh investments to this sector.

The World Trade Organization (WTO) has determined, after two extensions, the country should, in 2015, replace the law that has been in force since 1998, which grants tax benefits such as a total and permanent exemption from taxes, among others.

Free Zones Act Advances in El Salvador

May 2011

Government and private company representatives have achieved an 80% consensus on the new draft law on Free Zones.

So says the executive director of the Chamber of the Textiles, Clothing and Free Zones (CAMTEX), Patricia Figueroa, without providing specific details on the proposals.