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 "...
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.
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.
Although the subject of the Colon Free Zone remains an obstacle, next Tuesday will see the start of the seventh round of negotiations on the free trade agreement between the two countries.
Panama's interest in joining the Pacific Alliance forces it to close a FTA with each of its members, including Colombia.
After the sixth round of negotiations, held in Colombia in March, the Colombian delegation welcomed the progress on customs cooperation and mutual assistance, but the issue of the Colon Free Zone (CFZ) continued without an agreement between both parties.
In February 2009, imports and re-exports totaled $1.143 billion or 11.6% less than in February 2008.
Surse Pierpoint, vice president of the Association of Colón Free Zone Users, told prensa.com that: "There seems to be a trend, a cooling in the commercial movement of the markets we serve," and under normal conditions this would "be worrisome. However, when you see the US stock market down 10%, it does not seem as serious, but we have not bottomed out yet and we are expecting the downward trend to continue in March."