Panama Creates 5 New Free Trade Zones to Increase Investments
With the aim of increasing investment in the country and creating a positive impact to the economy hit due to the Covid-19 pandemic, the Government of Panama has approved the creation of five new free trade zones in the country, generating a combined investment of US$21.9 millions and more than 10,000 jobs. Some of the free zones are investments of Panamanian entrepreneurs and others of foreigners.
The new free trade zones authorized will be located in the provinces of Panama, Chiriqui and Herrera.
Three of them will be dedicated to agribusiness, with the objective of becoming important sources of economic growth in vulnerable regions of the country and at the same time strengthening the national logistics supply, knowledge transfer and the incorporation of new technologies in the productive processes.
Two facilities will be built in the eastern area of the province of Panama, the Panama Agroindustrial Free Trade Zone (Pacora) and the Aristos Free Trade Zone (Chepo, Puerto Coquira). The Panama Agroindustrial Free Trade Zone will be the largest free trade zone in the country, promoting year-round commercial agricultural production, incorporating the concept of vertical farming and thus lowering water consumption by 95% compared to field production. The objective of the Aristos Free Trade Zone is to promote the agricultural and fishing sector in the area, to support the various production sectors to offer their products in the national and international market, and to increase exports of national products and create new opportunities for the border area with Colombia.
In Panama Centro, Zone 1 of the Juan Díaz Terminal will be built, a warehouse for merchandise, manufacturing and logistics activities. In Pesé (province of Herrera), the Las Cabras Free Trade Zone will be installed focusing on agroindustrial activities (fruit processing, production of organic fertilizers, production of high-end liquors, etc.), creation of a productive chain cluster, biomass processing, and management and treatment of urban waste as a source of energy generation. In the province of Chiriquí (Bugaba), the construction of the Global Logistic Free Trade Zone was authorized, targeting companies related to international trade to Central America.
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