Topic > The Panama Colon Free Zone - 1416

The Panama Colon Free Zone, considered the second astronomically largest free zone in the world, dedicated to the re-export of a wide variety of goods to Latin America and the Caribbean, has experienced enormous enlargement in recent years, contributing greatly to the Panamanian economy. Panama's free trade zone has been the basis of the country's economic policy for many years. Free trade zones promote intense economic growth in a given area by creating a liberalized trade regime. Panama has an increase in incomes of 20% per year thanks to the Colon Free Zone which generates more than two billion dollars each year. The Colon Free Zone contributes 7.4% to Panama's total GDP; generating approximately 27,347 permanent jobs. (Economy Watch) a free zone attracts international investors because these areas are tax-free for investors and traders. Furthermore, this will promote domestic competition in other parts of the country. Furthermore, free trade increases mercantile activity because it allows goods and services to export products anywhere in the world. Let's start with the very recent event, which has been the headline of many newspapers, namely the breakdown of the relationship between Panama and Venezuela. The free zone maintains a clear operation to manage the business. In 1934, the coalition states created the free trade zone in Colón. Dr. Thomas E. Lyons wanted to accelerate and encourage foreign trade, and the solution was the creation of a free zone. A free trade zone is an area that eliminates traditional trade barriers, such as tariffs, and minimizes regulations related to administrative procedures. Tariffs and tax mitigation are designed to lower the costs of operations engaged in international trade and thus encompass... middle of paper... the unprotected coasts of its oceans. These things have made Panama an impeccable location for illicit drug trafficking as it offers many opportunities for traffickers to transport substances. Although drug trafficking represents a considerable problem for the country and especially for the poor regime, these illicit deals represent opportunities. In the eastern part of Panama there is no region called Gunayala. The Guna people do not grow or process drugs but use their islands and territories as an opportunity. They have used the lands they benefit from as a place to annihilate and evade the Panamanian police. This northeastern area of ​​Panama has become a drug trafficking region clouded by the ocular perceivers of the ascending entities. About 20 years ago this area became part of the Central American drug circuit.