From October 1 to 3, Guatemala will be hosting a Conference on Free Zones of the Americas, where topics such as the potential and benefits of companies in the sector will be discussed.
From a statement issued by the Association of Free Zones of the Americas:
Guatemala, September 19, 2018.- The Association of Free Zones of the Americas - AZFA - together with the Santo Tomas de Castilla Free Zone, Chamber of Industry, Chamber of Commerce and the Ministry of Economy, presented the twenty-second Conference for Free Zones of the Americas to be held from October 1 to 3 at Hotel Casa Santo Domingo, in Antigua Guatemala.
As of May 2017, fishing and carton production recorded sales of nearly double in relation to what was observed in 2016, and they are still growing at rates of 10% and 40% respectively.
The Foreign Trade report by the Central Bank of Nicaragua states that"fishing and cardboard production recorded sales of almost double in relation to what was observed in 2016 and continue to grow at rates of 10.4 percent and 40.2 percent, respectively."
In Nicaragua, a banana processing and packaging plant has opened up in the free zone regime, with a capacity to process 3,500 cases per day.
The company Banano Líder is now one of the 264 companies operating in the country under the free zone incentive scheme.The new plant, located in La Paz Centro, León, has capacity to process 3,500 cases of the fruit per day.
Between January and September the value of exports amounted to $509 million, registering an increase of 22% compared to the same period in 2015 and 29% in volume.
The monthly report by the Ministry of Foreign Trade specifies that the export of harnesses represented 14% of total exports from Nicaragua during the first nine months of the year.
The report said that exports of harnesses, along with garments and clothing, were those that were the most buoyant of all the exports under the free zone regime. "... Together they had a share of 58.4% in January-September 2016. "
Although clothing and car wiring harnesses continue to lead, the number of types of goods exported under the free zone regime has gone from ten in 2008 to 20 today.
Production and export of clothing and wiring harnesses are still the main goods produced and exported under free trade zone conditions, but now others have been added such as as cigars, edible oil, fruits, leather shoes, paper, cardboard, and manufactured leather covers for furniture.
Ten companies have already shown interest in setting up in the logistics center to be developed in Tocumen, whose business plan and regulations for a free zone could be ready in September.
Among the activities that will be developed by the companies operating in the logistics park are packing and repacking, as well as product manufacturing and other complementary activities.
The 50 companies already operating at Tocumen's airport facilities will be able to access free trade zone incentives if the request made by the administration of the terminal is approved.
The documentation was submitted to the National Commission of Free Zones at the Ministry of Trade and Industry (MITI), and there will be a 30 day period to review and approve the application.
173 companies operating in 48 industrial parks using the free zone format, in three years increased the total number of square meters used by 33%.
An estimated $300 million has been invested between January and November 2015 by companies operating under the free zone incentive scheme, which are focused on the textile industry mainly in the manufacture of harnesses, production of tobacco and more recently, services such as call centers.
A study by PROCOMER indicates that for every dollar exonerated in the period between 2010 and 2014, companies in the free zone regime generated $5.7 on average for the country.
From the executive summary of the study by PROCOMER entitled "Free Zone Balance 2010-2014":
4. Country Net Profit (CNP) for the operation of the Free Trade Zone Regime (FZR) reached an average of US $2.556 billion a year in 2010-2014.
Falls in sales of textiles, machinery and transport equipment accounted for the 6% annual contraction in manufacturing activity in May this year.
In the case of textiles, a reducicón of 8.7% in industrial production in May is attributed to lower production of knitted or crocheted fabrics, clothing and leather production. In the machinery and heavy equipment sector, which fell by 48%, a reduction in demand from the Mexican automotive industry is, according to Central Bank data, the reason for the poor performance.
From November 4th to 6th a conference will be held in Managua attended by users of free zones, industrial parks and representatives from customs, exporters and freight forwarders in the region.
Association of Free Zones:
The XIX Conference of Free Zones of the Americas will take place on 4 to 6 of November in Managua, Nicaragua.
The event is being organized by the National Commission of Free Zones of Nicaragua and ProNicaragua at the Hilton Hotel.
If free zones -with their tax breaks and other privileges- are good for the economy, why isn't the entire country made into a free zone?
EDITORIAL
Why not provide companies founded with Central America capital the same benefits and privileges enjoyed by foreign firms operating under free zone regimes? The job creation and contribution to the economy that can be made by companies in free zones because they enjoy these privileges should be able to come from business founded with Central American capital as well, which in contrast to foreign firms, have to deal with excessive regulations and bureaucracy in the States of Central America.
During 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.
Information published by the Central Bank of Nicaragua (BCN):
In 2012, free zone exports stood at $1.9038 billion, equivalent to a growth rate of 8.6%.The sectors which participated the most in the absolute growth of exports from the free zone in relation to 2011 were chasis, which contributed $65 million (42.9% of total), fishing, $37.6 million (24.8%), textiles, $32.2 million (21.3%) and tobacco $23.1 million (15.3%), among others.
Korean investors are studying the Nicaraguan market, evaluating new investments in the country.
33 Korean companies are currently operating in the country with a capital investment of $156 million, of which $133 million is related to investments in ‘EPZ’s (free zone regimes).
"High levels of public safety and the fiscal incentives in the free zone regime are the two conditions attracting the attention of Korean investors, said the Soon Tae Kim, South Korean ambassador in Managua.
With a record $2.207 billion in exports last year in 2012, the nation aims to continue growing its free zone regime, both in terms of the number of companies and volume of exports.
Beyond having obtained these successful figures, the aim is to attract more businesses and diversify economic activities. Within these objectives, the installation of the U.S.
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