With the reform proposal to the Law of Free Zones presented to Congress, it is intended to reduce from 20 to 10 the requirements that must be met to approve a new free zone.
After several months of working on the proposal to make changes to the law, the file was submitted to the legislative chamber and prepared by the Honduran Maquiladora Association (AHM), the Ministry of Finance, the Central Bank of Honduras and the Ministry of Economic Development (SDE).
In the Dominican Republic, approvals were granted for the development and operation of four new industrial parks, as well as the respective permits to install 12 new companies in free trade zones.
In the case of the new parks, these will be located in Boca Chica, Valverde, San Cristobal and Santiago, reported the National Council of Export Processing Zones (CNZFE).
The business sector and executive authorities are working on a proposal for reforms to the Law of Free Zones of Puerto Cortés, a project that aims to expand existing incentives for this regime.
The modifications that will be discussed in next week's mobile congress in San Pedro Sula seek to reform decrees 1, 2, 3, 12, 16 and 22 of the Free Zone Law of Puerto Cortés.
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.
In the Dominican Republic, contracts were approved for the development and operation of four parks in export processing zones and 13 permits for the installation of companies.
The National Council of Export Processing Zones (CNZFE) reported last May 21 that it approved permits for two new parks of processing zones to be built in Boca Chica, and another in Nigua.
Two years after having been presented at the Guatemalan Congress, the initiative to reform the Free Zones Law is still awaiting approval.
In 2016, initiative 5174 was presented to the Congress of the Republic, and has been debated in speeches made by deputies and in meetings of the Economic Cabinet of the Executive Power, none of which have resulted in its approval.
In Guatemala, reform of the Free Zones Law has been in place for two years, and as a result, several companies have withdrawn, while others are still waiting for the tax benefits to be restored before making any more investments.
Some companies are keeping their investments on hold, because the tax benefits applied to activities that take place in free zones were eliminated withDecree 19-2016.One such case is that of electric vehicle importer Electricmóvil. This companyis waiting for Congress to reform the Law and restore the benefits, before expanding its operations under this regime.
In Guatemala, only 141 of the 205 free zone companies that had to report their 2016 activities presented their reports, and half of them declared not having made any investment during the year.
"...As part of a budget regulation for last year, companies in free zones were required to send investment portfolio information with investment amounts, new jobs generated and wages paid in 2016.Only 141 out of 205 complied with the delivery of information, but almost half reported not making any investment or generating employment."
A Peruvian spinning mill is to invest $15 million in Las Mercedes Industrial Park, and soon three other companies from the call center and textile sectors will be setting up there too.
Dean Garcia, executive director of the Nicaraguan Association of Textile and Apparel (Anitec), told Elnuevodiario.com.ni that"...
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.
At the end of 2014, exports from free zones totaled $5,242 million, equivalent to 53% of total exports from the country.
The sectors that reported the most exports are medical and pharmaceutical products with 25%, textiles 24%; electrical products, with 14%; tobacco and derivatives, with 11%; footwear and components, with 9%.
The president of the Dominican Association of Free Zones, Jose Tomas Contreras, told elnuevodiario.com.do that "...
The concessionaire London & Regional Panama has a higher rate of investment than it promised the Panamanian government when it won the contract.
At the end of 2014 the company had invested $430 million, which is $25 million more than it had agreed to invest up to 2016. Despite this, representatives of London & Regional Panama argue that the amount of bureaucracy has been one of the obstacles limiting growth of the area.
Four developments are in process of obtaining official and environmental permits, and could begin construction in mid-2014 or early 2015.
Elfinancierocr.com reports: "One will be called Green Park and will be located in San Jose, Alajuela, another will be named Tech Park and will be in the district of Ulloa de Heredia, a third will operate as Life Free Zone & Business Park in El Coyol in Alejuela, and a fourth, called Lindora Park business park, will be located in Pozos de Santa Ana ".
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.