In the first two months of the year, trade in the Colon Free Zone grew by 23% compared to the same period in 2016, reaching $3.12 billion.
Figures compiled by the Office of the Comptroller General indicate that imports through the Colon Free Zone (ZLC) totaled $1,529 million in January and February of this year, 23% more than in the first two months of 2016, while re-exports exceeded $1.590 million, an increase of almost 24% compared to the same period in 2016.Seereport by the Comptroller's Office.
An end has been reached to the additional time period requested by Colombia to continue charging the 10% tariff on textiles and footwear coming from the Colon Free Zone, but it is not known whether they will continue to implement the measure.
The World Trade Organization (WTO) ruled in favor of Panama and ordered Colombia to stop charging the tariff, but despite this, the South American country extended the measure until November.
A road to connect the Colon Free Zone with Enrique Jimenez airport, and the union of the areas of France Field and Cocosolito in one single customs post are planned for 2017.
In the case of the creation of a single customs post between France and Cocosolito Field, the aim of the authorities at the Colon Free Zone is"...
Employers of the Colon Free Zone disagree with the audit carried out by the management, which using a new methodology determined that the debt is $41 million and not $530 million.
Surse Pierpoint, Manager of the Colon Free Zone, said the audit was carried out because"... there was a lot of skepticism from Venezuela over the figure", reported Prensa.com. However, Panamanian businessmen of the Association of Users of the CFZ, doubt this new figure, claiming that it "does not represent the real debt".
MEPs have given the green light to legislation that modernizes the legal framework of the free trade zone, including the consolidation of business operations under other schemes.
From a statement issued by the National Assembly of Panama:
67 years after the creation of the commercial emporium, the plenary of the National Assembly approved on its third reading Bill No. 223, which modernizes the legislation relating to the Colon Free Zone.
Free Zone users require another type of measures on top of the proposals the government has discussed in the Assembly, such as reducing the charges for renting.
The bill that was discussed in Congress and which seeks to increase the competitiveness of the Colon Free Zone (CFZ), (already approved in the first debate) is not enough for entrepreneurs. Marco Tellez, president of the Association of Users (AU), told Prensa.com that "...
The reopening of trade between the US and Cuba, one of the main destinations of re-exports of the Colon Free Zone, could further aggravate their problems.
Once trade has been fully restored between Cuba and the United States, the Colon Free Zone (CFZ) will have to intensify its search for new markets, as Cuban entrepreneurs will have the ability to import directly from the US, without intermediation as is currently done through the Colon Free Zone.
Negotiations are being promoted with the US chain for the installation of a distribution center for Latin America in the Colon Free Zone.
Editorial
Panama reserves supermarket operations for local companies, so there could be confusion over the news report from Prensa.com, which states that "... Through a letter signed by Panamanian President Juan Carlos Varela, a group of businessmen, headed by the general manager of the Colon Free Zone (CFZ), Surse Pierpoint- are seeking to attract the attention of executives at Walmart US to install a distribution center for Latin America in Panama ", indicating the Colon Free Zone (CFZ) as 'the right place'."
The two governments have agreed to establish working groups in order to negotiate the payment of Venezuela's debts with companies in the Colon Free Zone and Copa Airlines.
Deputy Minister of Foreign Trade, Nestor Gonzalez, will manage the working group that will attend to the subject of outstanding debts to Copa Airlines, while Surse Pierpoint will attend to the issue of settlements for companies established in the Colon Free Zone .
Administrators of the Colon Free Zone are promoting its re-exportation services through business appointments with companies other than those in traditional markets.
In order to mitigate the effects of trade restrictions imposed by Colombia and losses from the drop in business with Venezuela, major customers of the Colon Free Zone (CFZ), authorities are changing strategy in order to attract companies from other markets, such as South America.
The Colon City Council has repealed a 1953 rule which exempted companies that provide services in the CFZ from paying taxes.
Colon City Council passed a bill that repeals another approved in 1953 that exempts from tax services performed by companies in the Colon Free Zone (CFZ). Companies that offer services such as banks, law firms, messaging, restaurants, cleaning, consultancy and others, will be obliged to pay taxes.
Additional provisions by banks for loans to companies in the CFZ are a "medicine worse than the disease."
The Association of Users of the Colon Free Zone (AU) fears that the bank contingency measures, ordered last week by the Superintendency of Banks of Panama (SBP), will limit bank lending to companies in the CFZ.
"Entrepreneurs foresaw an adverse scenario for the Colon Free Zone (CFZ) as, in addition to warnings from the banking regulator, there is the possibility of tax collection approved by the City Council of Colon, as well as pressure from insurers after multiple disasters".
Following the meeting of President Martinelli with his Venezuelan counterpart Nicolas Maduro, doubts remain about when the debt will be settled.
It's been two weeks since the Panamanian president, Ricardo Martinelli, visited his Venezuelan counterpart Nicolas Maduro, in order to find a solution to the problem of the debt owed by Venezuelan entrepreneurs to the Colon Free Zone (CFZ).
Restrictions faced by Venezuelan businessmen in obtaining dollars are causing delays in paying imports from the Colon Free Zone.
"I will travel to Venezuela on Monday," said Ricardo Martinelli, who said he hopes to have "a direct frank and sincere conversation, with President (Nicolas) Maduro". The president will travel with several Panamanian businessmen to the country to find a way to facilitate the prompt payment of debst to the businesses in the CFZ.
The Minister of Commerce and Industry said that although Colombia is maintaining its excess tariffs on the CFZ, the FTA between the two countries is moving ahead.
"After starting negotiations for a free trade agreement (FTA) with Colombia, without having dealt with the request from businesses in the CFZ, the goal now is to raise a complaint with the World Trade Organization (WTO) in order to mitigate the effect of the Colombian excess tariffs", reported Prensa.com.