A proposal put forward by the textile sector seeks to generate trade between national and free zone companies, starting with the possibility that the latter provide raw materials to local companies.
The objective of the Nicaraguan Association of Textiles and Confection of Free Zones (ANITEX) is to generate greater links between the companies that operate under the regime and those in the national market.
Vice president Rosario Murillo gave details on 10 new projects to be executed in the next six months for free zones dedicated to different productive activities.
The 10 projects announced are:
1- Call Center in Managua DMF, 102 direct jobs, 2.7 million investment. 2- OOQIA S.A.
The main business association has announced the trade fairs Expocomer, Expo Franchise, Expo Tourism, Expo Medical, Expo Furniture and Expo Logistics , to be held between March and October 2016.
From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):
Panama, March 02, 2016.- The Chamber of Commerce, Industries and Agriculture Panama (CCIAP) has officially launched a set of six exhibitions that will take place between March and October this year, in order to encourage and stimulate various economic sectors and business in the country.
In January the minimum monthly wage in companies operating under the free zone regime will change from $159 to $171.
The adjustment which has been in force since January this year is the result of multi-year tripartite agreement signed in December 2012 and applied to 109,000 employees working in free zone enterprises. This was reported to Laprensa.com.ni by Dean Garcia, executive director of the Nicaraguan Association of Textiles and Apparel (Anitec).
The project aims to create a free trade zone which will offer offshore financial services and related economic activities.
The Nicaraguan government's proposal to create a free trade zone to provide tax incentives to attract financial sector companies and to exported services from there has raised doubts in some quarters, with accusations being made that the bill evokes the concept of a tax haven.
Analysis of the impact of the Trans-Pacific Partnership on the region.
The competition which sectors such as textiles could face is one of the elements raising questions among employers in the region, compared to the real benefits that could be accrued if Central America participates in the Strategic Economic Trans Pacific Partnership (TPP).
The presence of direct competitors, such as countries like Vietnam, in the textile sector, and the possibility of losing dominance in the American market due to trade rules that TPP countries must meet, is unsettling the productive sectors in the region and forcing a reckoning of the pros and cons of a possible entry to the block to be undertaken.
A market of one billion consumers has been opened up to products that are manufactured, processed, assembled or finished in Panamanian Free Trade Zones, without requirements for having value added locally.
Companies under the free zone regime in Panama are offering local and foreign companies the ability to export to China under the special conditions that govern them, with the aim of achieving the high production volumes required.
The union of Private Free Zones plans to build five new business parks in 2014.
In 2014 the plan is to supercede the investment of $150 million which was made in 2013, with the implementation and establishment of new zones to boost the arrival of new businesses in sectors such Chontales where there is a new bridge over the San Juan river and the new Acoyapa-San Carlos road which is an export route for Puerto Limon, Costa Rica.
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.
Representatives of the Government of Nicaragua have made assurances that the tax reform will not affect the incentives announced in the FTZs.
The presidential delegate for the Promotion of Investment and Trade Facilitation, Alvaro Baltodano said, "What's in free zones, stays as it is, it will not change."
"'Remaining intact, that is what we are working on in order to see how the tax reform will work, but free zones will remain unchanged, everything that is in a free zone, stays as it is, it will not change", said Baltodano , who participated this morning in a forum with foreign investors", reported Elnuevodiario.com.ni
Trusting foreign investment to keep flowing, Nicaraguan private companies are building three industrial parks.
In addition, construction will start on two new parks in the next few weeks.
"The operators of free zones hope to double their investment of 500 million dollars in the 35 parks currently in operation, with a construction area of 1.50 million square meters. In these areas there are 161 companies", Reported La Prensa.com.ni
The Nicaraguan Federation Chamber of Private Free Zones plans to install 15 companies in 6 new industrial parks within the country this year.
The secretary of the Nicaraguan Federation Chamber of Private Free Zones (FCNZFP in Spanish), Mario Zelaya, said the new industrial parks will be located in Niquinohomo, Masaya, Leon and El Viejo (all areas on the Pacific side).
The firm Hansae and a local partner will build new facilities for producing fabric in Niquinohomo, south of Managua, with capacity for 7,000 jobs.
A local company and the Korean textile firm, Hansae, will build on a total area of 70,000 m2 a new facility for a textile factory, which represents the extension of the Asian firm's investments in Nicaragua, said the president of Zona Franca SA Niquinohomo, Mario Zelaya.
The companies announced the development of garment and sporting goods factories, which will operate under free zone regime.
Adidas’ manufacturing plant, which will operate under the free trade zone, will start operations next year, said the director of the Free Zones Corporation (CZF), Alvaro Baltodano. The company Gusta will be responsible for the plant’s operation.
Beverage Industry Digital Magazine established in 1942, the oldest Spanish trade journal and the only beverage trade magazine serving the Latin American beverage market. It serves soft drink bottlers, brewers, bottled water...