Trade in Free Zone hits 5 year low

ACTIVITY in the Colón Free Zone has recorded its lowest level in the past five years says a report from Panama’s Comptroller General.

Between January and August, there was a commercial movement of about $14.4 billion, a fall of 8.7 percent compared to the same period of last year.

Statistics reveal that in comparison to 2014, in the months of January and March the decreases were 22.1 percent and 28.5 percent respectively.

In August, the decrease was 20.5 percent.

At the beginning of October, President Juan Carlos Varela said that the crisis affecting business at the Colón Free Zone is temporary and that the problem “is not operating costs” but changing markets.

This was in relation to complaints by the Association of Users of the Free Zone that commercial activity has diminished in large part due to increases in taxes and fees.

A law has been presented to the National Assembly to eliminate the fees to help stimulate business.