business

Zona Libre trade gathers steam

Jorge Fernández/LA PRENSA

growth: Commerce in Panama’s free zone took in $16.159 billion last year, an increase of 12.6 percent from 2006. 1065209

Business in the Zona Libre de Colón (ZLC), the second largest market of its kind in the world, continues to maintain a strong upward pace, despite lingering security and infrastructure issues.

Last year, commercial trade within the ZLC reached $16.159 billion, up 12.6 percent over 2006. And transactions rose another 8.2 percent during the first half of this year, according to official data.

And the global emporium has plans to grow even more. Nilda Quijano, the ZLC’s director of operations, is in the process of adding more warehouses and sales rooms and finding new businesses to fill them.

Negotiations are ongoing with businesses from Mexico and Brazil to set up their logistics centers in Colón.

Quijano said that the 200-hectare property intended for the proposed Centro Multimodal, Industrial y de Servicios (Cemis) will now be used for other commercial activities. The land will be up for auction within the coming months, she added.

Giovanni Ferrari, president of the Asociación de Usuarios de la Zona Libre (AU), explained that an above-board handling of the sale of the property will serve to bring in significant funds for further development in the ZLC.

“We hope this process will benefit users and that the funds collected are invested in making much-needed improvments,” said Ferrari.

While previous administrations of the ZLC have been marred by allegations of bribery and corruption, Ferrari said his main concern these days is keeping the zone accessible to markets.

Colombia, one of the ZLC’s a major trading partners in the region, has begun to impose customs restrictions on goods purchased within the zone. Colombian customs authorities have also established minimum prices for imports such as textiles, footwear, matches, notebooks, lighters and stuffed animals. Other trade issues have developed with Mexico and Argentina.

Ferrari said he will devote much of his efforts as chairman of the AU seeking remedies to these trade obstacles.