The tariff problems with Colombia and the debt held by Venezuela explain part of the 12% drop in trade in the CFZ, which went from $27,400 million in 2013 to $24,000 million in 2014.
In the past two years trade in the Colon Free Zone (CFZ) fell by $6.7 million and an improvement is not foreseen in 2015 as there is no sight yet, at least in the short term, of a solution to the tariff of 5 % added by Colombia to textiles and footwear coming from the Colon Free Zone.
Behind the exports of the Free Zone and increased activity at the cruise ship port, there is poverty and insecurity.
“In 2009, the Colón Free Zone billed $10.6 billion in commercial transactions, according to unofficial data from the zone's Users Association”.
“…as we enter the center of the city, it is difficult to believe that this province, which contributes 12% of the country's gross domestic product, has a social environment unfit for insiders and outsiders alike”.
Members of the Association of Users of the Colón Free Port (ZLC) say the tax tweaks will increase operating costs.
Giovanni Ferrari, president of the Association, remarked that the new taxes could be dangerous for the stability of several ZLC companies.
Newspaper Prensa published more comments by Ferrari: "ZLC users have strongly opposed the measure. There is a lot of negative stuff going on at ZLC, and they cannot afford these tax increases".
Although progress has been made in the last years, technology adoption must be much faster, specially in government paperwork.
The implementation of Digital Signatures is one of the top must-does. Although the legal framework has been ready for more than a year now, regulation and norms have only been approved a couple of days ago, and there is still no entity responsible of administering and supervising the system.
The strike which began yesterday by customs agents, who are demanding a raise in salary, is costing the Colon Free Trade Zone $50 million a day.
The activities impede the importation and exportation of goods from the Free Trade Zone of Colon and continue to paralyze activity at ports, airports, and border crossings.
Giovanni Ferrari, President of the Free Trade Zone Users Association, informed Prensa.com: “This strike has a devastating effect for the Free Trade Zone. This internal problem only adds to the problems that we already have been having with some of our main clients, such as Colombia and Ecuador.”
The measures taken by Ecuador to increase the tariffs on 600 imported products has paralized shipments from the Colon Free Zone (ZLC).
Prensa.com reports on its website: "Members of the board of directors of the Association of Users of the ZLC confirmed that they are proceeding to request the help of Panamanian authorities to resolve the conflict.
Ecuador is the third biggest market for the ZLC after Colombia and Venezuela.