Free Zone and Government near accord as business plummets.

BUSINESS  in the Colon Free Zone has been on a downturn for three years, leading to scores of enterprises  putting up the shutters and those remaining pointing  fingers at the government  which in turn lays the blame on external problems.

Now the two sides are close to a consensus over changes to boost business in the zone.

On Friday, February 26 Yesterday, the Association of Users received a proposal from the government that included reductions in certain fees and taxes.

The proposal includes a reduction in charges for waste disposal and security, and the reduction or elimination of other fees. The changes are being contemplated to offset falling sales.

In December, the fee that users must pay at the beginning of the year was reduced  from $5,000 to $2,000.

Users have claimed that the fees they have to pay to the government have meant they are no longer competitive, while the government says their woes are  caused by economic conditions outside of Panama.

The proposal Friday seeks to find middle ground between the two sides,  and help stabilize business in the zone