Restrictions on industrialization and domestic sales prevent the region from realizing its full potential. Across Latin America, free zones have become powerful drivers of industrial, technological, and logistical development. In the Dominican Republic, they generate more than 200,000 direct jobs and lead the country’s exports. In Colombia, they account for 6.4% of total exports and 2.6% of GDP, in an ecosystem where 90% of the companies operating within them are micro, small, or medium-sized enterprises (MSMEs). Meanwhile, in Argentina, the La Plata Free Zone, one of the largest and most strategically located in the country, continues to hold tremendous potential that is only partially utilized. Its development could mirror the positive outcomes achieved by similar regimes across the region if its regulatory framework were modernized to enable broader productive activity.

Strategic Location and Untapped Capacity

Located in Ensenada and connected by major highways to Argentina’s principal industrial corridor, the La Plata Free Zone spans 70 hectares prepared for industrial and logistical operations. It features modern infrastructure, warehouses, security services, and direct access to Greater Buenos Aires. Yet despite this strategic foundation, its current legal framework—defined by Law 24.331—significantly limits its scope. Productive manufacturing inside the zone is not allowed; only storage, fractioning, assembly, and repackaging are permitted. Furthermore, production destined for the domestic market is prohibited, even if all applicable taxes are paid. This stands in sharp contrast to leading regional models, in which free zones operate as full-scale industrial, service, and technology hubs.

Lessons from the Dominican Republic

The Dominican Republic demonstrates how free zones can serve as strategic pillars of national development. The country hosts nearly 90 zones that collectively generate 200,000 direct and 600,000 indirect jobs, according to Deputy Minister Johannes Kelner. Since the 1990s, Law 8-90 has attracted foreign investment, fostered local innovation, and diversified the export base. Today, the Dominican Republic exports goods and services ranging from medical devices and tobacco to software and finance. Significantly, the benefits extend to small enterprises as well: numerous small tobacco firms have developed their own brands and now sell in markets across Europe and the United States. Additionally, the country is moving into emerging sectors such as semiconductors and advanced manufacturing, supported by a long-term strategy and workforce development.

The Colombian Model of Regulatory Stability

Colombia’s experience also underscores the importance of regulatory clarity in unlocking the potential of free zones. According to the national Free Zone Users Association, 90% of the businesses operating across Colombia’s 119 free zones are micro, small, or medium-sized enterprises. This concentration fosters dynamic business ecosystems with shared infrastructure and access to technology. In 2023, Colombian free zones exported USD 3.39 billion—equivalent to 6.4% of total national exports—and contributed 2.6% of GDP. The success of this model is rooted in a stable, investment-oriented legal framework, particularly Law 1004 of 2005, which has encouraged both foreign and domestic participation in productive ventures.

Argentina’s Limitations and the Need for Modernization

In contrast to these regional examples, Argentina maintains a more restrictive and fragmented approach. Free zones currently operating in La Plata, Córdoba, Mendoza, San Luis, Chubut, and Santa Cruz function primarily as logistics hubs rather than integrated industrial platforms. Within this context, the La Plata Free Zone remains strategically important due to its proximity to key ports, Buenos Aires, and major industrial districts. Its advantages position it as a natural platform for international trade, input storage, and export logistics, yet its productive contribution remains underdeveloped.

A Global Opportunity for Transformation

The global shift toward nearshoring—relocating supply chains closer to end markets—has created a historic opportunity for Latin America. Free zones are among the primary recipients of this investment trend due to their operational flexibility and competitive tax frameworks. With a modern regulatory framework enabling manufacturing, technological integration, and global service operations, the La Plata Free Zone could evolve into a regional industrial and logistical hub capable of attracting investment, boosting exports, and strengthening employment throughout Buenos Aires Province. International evidence shows that free zones are not merely mechanisms for trade—they are engines of productive transformation that enable export diversification, technological upgrading, knowledge transfer, and the creation of high-quality jobs.

Conclusion: Unlocking Value Through Reform

To achieve this potential, Argentina needs a modernized, globally competitive regulatory framework focused on value creation and industrial development. Free zones must transition from storage-oriented facilities into engines of growth and innovation. Only then can the La Plata Free Zone realize its role as a transformative driver of economic development and international integration, rather than a strategic asset constrained by outdated legislation.

At the Summit Invest Forum, leading economists, corporate executives, and business strategists gathered to debate the key challenges of business and investment in Bolivia. The high-level event brought together national and international participants to exchange ideas, identify obstacles to growth, and explore opportunities for innovation and competitiveness in the Bolivian market. One of the central moments of the forum was the presentation by economist Hugo Siles, who unveiled the much-anticipated Ranking of the 500 Largest Companies in Bolivia 2025. This comprehensive study evaluates the structure, contribution, and resilience of the country’s most significant business players in a challenging macroeconomic environment.

Held in the dynamic city of Santa Cruz de la Sierra, often considered Bolivia’s economic capital, Summit Invest Bolivia 2025 served as a platform for dialogue between the public and private sectors. The forum attracted analysts, investors, academics, and business leaders from across the country, who examined the current state of the Bolivian economy, the factors affecting its competitiveness, and the outlook for medium-term recovery.

Organized with the support of the National Chamber of Industries (CNI), Cainco, and Economy magazine as a strategic partner, the event emphasized collaboration and evidence-based discussion. The forum’s highlight was, without doubt, the presentation of the Ranking of the 500 Largest Companies in Bolivia 2025, prepared by renowned economist Hugo Siles Espada. In his remarks, Siles underlined the importance of maintaining a formal, organized, and transparent business sector amid the country’s current economic slowdown and declining levels of private and foreign investment. He argued that despite the constraints on liquidity, trade, and production, Bolivia’s formal companies have continued to demonstrate resilience and adaptability.

According to Siles, the ranking paints a nuanced picture of Bolivia’s economy. While many sectors are under stress, the core of the business community remains solid. The data revealed that the 500 largest companies collectively generate more than 80% of the formal GDP, employ approximately 350,000 people directly, and contribute about 60% of national tax revenues. These firms serve as the backbone of Bolivia’s formal economy, driving innovation, job creation, and sustainable growth even amid structural challenges.

However, Siles warned that Bolivia’s business ecosystem is under mounting pressure due to persistent foreign currency shortages, import restrictions, and rising costs for raw materials and logistics. The country’s dual currency market, where an official exchange rate coexists with a higher parallel rate, has complicated business operations, limiting access to dollars needed for imports and investment. “The lack of dollars and fuel affects all sectors across the board,” Siles said. “Nevertheless, formal enterprises have maintained stability in production and employment. This ranking shows that the private sector continues to be the true engine of the economy and a key driver of sustainable investment in Bolivia.”

Siles also pointed to broader macroeconomic vulnerabilities. If the current conditions persist, he warned, GDP growth could close the year below 1.5%, while the fiscal deficit remains at about 8% of GDP. International reserves continue to fall below US$3.5 billion. Such figures, he argued, are unsustainable in the long run. “These indicators call for a new economic and fiscal pact between the State and the private sector—a shared vision for a competitive and diversified Bolivia,” he emphasized.

Macroeconomic Discipline and Confidence

Former President of the Central Bank of Bolivia (BCB), Juan Antonio Morales, provided a sobering analysis of the country’s fiscal and monetary imbalances. Morales argued that Bolivia’s economic model, which has relied heavily on public spending and state intervention over the past two decades, is clearly exhausted. “The accumulated public deficit, hovering around Bs 30 billion annually, combined with growing current expenditure, is simply unsustainable without a major structural adjustment,” he warned.

Morales emphasized the need for a more transparent and realistic exchange rate policy to close the widening gap between the official and parallel exchange markets. “The market cannot function under constant uncertainty,” he said. “Predictability is essential if the productive sector is to plan effectively and investors are to regain confidence in investment in Bolivia.” He added that a credible monetary policy—backed by fiscal discipline and institutional independence—is crucial to restoring macroeconomic stability and encouraging capital inflows.

The former central banker also drew attention to the inflationary pressures that accumulated throughout 2024, when the inflation rate reached 9.97%. Combined with the loss of industrial competitiveness, these factors have severely affected Bolivia’s ability to attract foreign direct investment, which has fallen to below US$400 million per year, one of the lowest levels in Latin America. Morales noted that this figure stands in stark contrast to neighboring countries such as Chile, Colombia, and Peru, which each attract several billion dollars in foreign capital annually. The decline, he argued, underscores the urgent need for Bolivia to rebuild its reputation as a stable and attractive destination for investors.

Productivity and Innovation as the Way Forward

The forum also heard from Pablo Mendieta, Director of the Bolivian Center for Economic Studies (Cebec) at Cainco, who stressed that Bolivia is at a critical juncture. Mendieta called for a new development model anchored in productivity, innovation, and digital transformation. “Seventy percent of Bolivia’s workforce is in the informal sector,” he said. “A country cannot achieve sustained growth with such a large portion of its labor force operating outside the formal economy.”

Mendieta argued that Bolivia must double its private investment—currently about 9% of GDP—to sustain growth rates above 4% per year. “Competitiveness, innovation, and the attraction of investment in Bolivia are the keys to a new economic cycle,” he declared. “We must shift from a subsidy-driven model to one based on value creation, technological advancement, and industrial diversification.”

He also emphasized that Santa Cruz remains the heart of the country’s productive and entrepreneurial activity, contributing more than 30% of Bolivia’s GDP. The department’s agricultural, industrial, and service sectors continue to drive national growth. Yet, Mendieta warned that persistent logistical bottlenecks, infrastructure gaps, and regulatory bureaucracy limit Santa Cruz’s export potential and constrain private investment in Bolivia. He urged the government to adopt a comprehensive infrastructure modernization agenda—expanding roads, ports, and energy networks—to better connect Bolivia to regional and global markets.

Evolution of the Bolivian Economy

Financial analyst Luis Enrique Herrera provided a historical perspective on Bolivia’s economic evolution, tracing key reforms that shaped the country’s modern economy. He highlighted the Investment and Privatization Laws of 1992 and the Capitalization Law of 1994, both of which played a crucial role in revitalizing the economy during the 1990s. These reforms encouraged foreign participation, raised transparency standards, and boosted efficiency in strategic sectors such as telecommunications, hydrocarbons, and energy. As a result, foreign direct investment surged from virtually zero to around US$900 million annually by the end of the decade.

Herrera noted that the repatriation of capital between 1989 and 1991—supported by Central Bank incentives—stimulated growth, especially in Santa Cruz. This policy environment attracted multinational corporations that contributed to industrial diversification, technological transfer, and job creation. Companies like Cervecería Boliviana Nacional (CBN) became symbols of how a favorable business climate could attract global investors and promote sustainable investment in Bolivia.

He explained that during this period, public investment was strategically used to complement and enhance private investment, forming a model of balanced and diversified growth that delivered tangible benefits for nearly a decade. However, Herrera contrasted this with the subsequent two decades under the Movement Toward Socialism (MAS) governments, which, he argued, adopted a more state-centric and interventionist approach. According to him, widespread expropriations and policy uncertainty undermined investor confidence, leading to a sharp fall in foreign direct investment that never recovered to pre-2006 levels.

Despite these setbacks, Herrera suggested that Bolivia retains considerable untapped potential. The country’s natural resources, youthful population, and geographic position at the heart of South America could position it as a regional logistics and energy hub—if supported by sound governance and clear market rules. He concluded that restoring investor trust and promoting a consistent regulatory environment are essential to reinvigorate long-term investment in Bolivia.

Looking Ahead: A Call for Structural Reform

Throughout the Summit Invest Forum, participants emphasized that Bolivia stands at a crossroads. With economic growth slowing, fiscal pressures rising, and international reserves shrinking, the country must define a new development strategy that balances macroeconomic discipline with private-sector dynamism. All panelists agreed that deeper structural reforms—focusing on productivity, innovation, and competitiveness—are necessary to unlock the next wave of growth.

Above all, the discussions reaffirmed that sustained investment in Bolivia requires a stable and predictable business environment, one that fosters trust between the public and private sectors. By encouraging collaboration, reducing red tape, and modernizing infrastructure, Bolivia can strengthen its resilience and position itself once again as a magnet for both domestic and international investors.

At the Summit Invest in Bolivia Forum, leading economists, corporate executives, and business strategists gathered to debate the key challenges of business and investment in Bolivia. The high-level event brought together national and international participants to exchange ideas, identify obstacles to growth, and explore opportunities for innovation and competitiveness in the Bolivian market. One of the central moments of the forum was the presentation by economist Hugo Siles, who unveiled the much-anticipated Ranking of the 500 Largest Companies in Bolivia 2025. This comprehensive study evaluates the structure, contribution, and resilience of the country’s most significant business players in a challenging macroeconomic environment.

Held in the dynamic city of Santa Cruz de la Sierra, often considered the economic capital of Bolivia, Summit Invest Bolivia 2025 became a platform for dialogue between the public and private sectors. The forum attracted analysts, investors, academics, and business leaders from across the country, who examined the current state of the Bolivian economy, the factors affecting its competitiveness, and the outlook for medium-term recovery.

Organized with the support of the National Chamber of Industries (CNI), Cainco, and Economy Magazine as a strategic partner, the event emphasized collaboration and evidence-based discussion. The forum’s highlight was, without doubt, the presentation of the Ranking of the 500 Largest Companies in Bolivia 2025, prepared by renowned economist Hugo Siles Espada. In his remarks, Siles underlined the importance of maintaining a formal, organized, and transparent business sector amid the country’s current economic slowdown and declining levels of private and foreign investment. He argued that despite the constraints on liquidity, trade, and production, Bolivia’s formal companies have continued to demonstrate resilience and adaptability.

According to Siles, the ranking paints a nuanced picture of Bolivia’s economy. While many sectors are under stress, the core of the business community remains solid. The data revealed that the 500 largest companies collectively generate more than 80% of the formal GDP, employ approximately 350,000 people directly, and contribute about 60% of national tax revenues. These firms serve as the backbone of Bolivia’s formal economy, driving innovation, job creation, and sustainable growth even in the face of structural challenges.

However, Siles warned that Bolivia’s business ecosystem is under mounting pressure due to the persistent shortage of foreign currency, import restrictions, and rising costs of raw materials and logistics. The country’s dual currency market—where an official exchange rate coexists with a higher parallel rate—has complicated business operations, limiting access to dollars needed for imports and investment. “The lack of dollars and fuel affects all sectors across the board,” Siles said. “Nevertheless, formal enterprises have maintained stability in production and employment. This ranking shows that the private sector continues to be the true engine of the economy and a key driver of sustainable investment in Bolivia.”

Siles also pointed to broader macroeconomic vulnerabilities. If the current conditions persist, he warned, GDP growth could close the year below 1.5%, while the fiscal deficit remains at about 8% of GDP. International reserves continue to fall below US$3.5 billion. Such figures, he argued, are unsustainable in the long run. “These indicators call for a new economic and fiscal pact between the State and the private sector—a shared vision for a competitive and diversified Bolivia,” he emphasized.

Chilean companies are reinforcing their commitment to Colombia following a business tour organized by the Santiago Chamber of Commerce. In an increasingly interconnected regional economic environment, trade relations between Chile and Colombia are consolidating as a strategic axis for business development and Latin American integration. In early October 2025, the Santiago Chamber of Commerce (CCS) led a business mission to Bogotá to strengthen ties, promote investment, and expand cooperation in technological innovation and sustainability.

The trip, which brought together representatives of major Chilean companies, government officials, and Colombian business leaders, marked a new milestone in bilateral relations. According to the CCS, the visit was “highly positive,” consolidating Chilean companies’ presence in Colombia while identifying new opportunities in infrastructure, energy, technology services, and retail.

High-Level Engagement to Boost Economic Integration

During the tour, the Chilean delegation met with Colombian officials, including President Gustavo Petro at the Casa de Nariño. This meeting signaled Colombia’s interest in promoting foreign investment, particularly from strategic regional partners such as Chile.

“The fact that President Petro received the Chilean companies’ delegation demonstrates the value Colombia places on bilateral investment and cooperation,” said Juan Francisco Velasco, Manager of Membership, Partners, and International Affairs at the CCS.

Velasco emphasized that the visit renewed trust between both countries and projected collaboration beyond trade. “The trip strengthened institutional and business ties and reaffirmed Chilean companies’ commitment to growth in the Colombian market, which remains a priority in their expansion plans,” he added.

Colombia: A Key Destination for Chilean Investment

Colombia has emerged as a top destination for Chilean companies’ investment in Latin America. According to the Central Bank of Chile, over 200 Chilean firms operate in Colombia, generating thousands of jobs and contributing to sectors such as retail, banking, energy, and services.

Velasco highlighted that this trend is expected to continue. “Chilean companies take a long-term view of Colombia. It is a market with institutional stability, sustained growth, and a business-friendly environment. Despite political changes, confidence in the country’s economic fundamentals remains strong,” he said.

Cencosud, one of the region’s largest retail companies, recently opened a new supermarket in Cali with an investment exceeding $5 million. This expansion reflects the confidence of Chilean companies in Colombia’s capacity to absorb new investments. Other sectors with high potential include renewable energy, mining, financial services, digital infrastructure, and e-commerce. Colombia has positioned itself as a regional hub for technological innovation, offering attractive opportunities for sustainable and digitally competitive business models.

Opportunities in Public and Urban Sectors

A highlight of the tour was the meeting with the Mayor of Bogotá, who presented investment projects in mobility, urban infrastructure, technology, and environmental sustainability.

Velasco noted that this generated strong interest among Chilean companies, opening doors to public tenders and public-private partnerships (PPPs) in the Colombian capital. “This is a key opportunity to promote Chilean investment in public sector projects, particularly in urban modernization initiatives that advance sustainable mobility and energy efficiency,” he said.

Bogotá, one of Latin America’s most dynamic cities, has implemented policies to attract foreign direct investment in green infrastructure, clean energy, and digital transformation—all areas where Chilean expertise and companies excel.

Stability, Trust, and Clear Business Rules

The CCS emphasized Colombian entrepreneurs’ positive perception of Chile as a commercial partner. “Chile is seen as reliable, stable, and governed by clear rules. This creates ideal conditions for deepening economic relations,” Velasco explained.

Colombian business leaders highlighted Chile’s governance model, focus on innovation, and sustainability, making it an ideal partner for technological exchange and joint projects. Chile contributes experience in management, services, and technology, while Colombia offers a growing market with a young and entrepreneurial population.

Political Context and Future Outlook

Despite upcoming presidential elections in Chile and Colombia, business confidence remains strong. Velasco stated, “Both countries’ economic fundamentals are solid. Colombia maintains macroeconomic stability, a robust financial system, and policies favorable to foreign investment. There is ample room to deepen trade and cooperation.”

The CCS projects growing Chilean investment in Colombia, particularly in digitalization, logistics, and clean energy projects. Simultaneously, Colombian companies are expected to increase investment in Chile, leveraging free trade agreements and regional synergies.

Technological Cooperation and Innovation

The mission also promoted cooperation in technological innovation. Both economies face digital transformation and automation challenges, making knowledge exchange essential.

The CCS highlighted collaboration opportunities in artificial intelligence, fintech, digital logistics, and the circular economy. Representatives from Chile’s startup ecosystem presented initiatives to Colombian accelerators and innovation entities.

“We aim to foster two-way knowledge exchange. Chilean companies have advanced technological solutions for business management, and Colombia’s entrepreneurial ecosystem complements this approach,” Velasco explained.

A Relationship with History and Vision

Trade relations between Chile and Colombia span decades, supported by free trade agreements and the Pacific Alliance with Mexico and Peru. This framework has reduced tariffs, harmonized standards, and promoted investment.

Colombia is the third-largest destination for Chilean investment in Latin America, with capital exceeding 10 billion dollars across productive and service sectors. Cultural affinity and a shared commitment to sustainable development make the bilateral relationship one of the most dynamic and balanced in the region.

CCS Vision: Integration with Purpose

At the conclusion of the tour, the CCS reaffirmed its commitment to promoting business integration between Chile and Colombia. Strengthening these ties not only drives economic benefits but also contributes to regional stability and sustained growth.

“Trade and investment are powerful tools for inclusive development. We aim to continue building bridges connecting companies, institutions, and people from both countries. Colombia is a strategic partner, and the CCS’s vision is to support Chilean companies in their expansion with responsibility and a long-term perspective,” Velasco concluded.

The business mission marked a decisive step in consolidating bilateral economic relations, strengthening Chilean companies’ presence, and demonstrating mutual interest in sustainable investment, technological cooperation, and joint development projects.

Chile and Colombia share a vision of progress based on stability, innovation, and inclusive growth. The CCS mission was not merely a commercial trip but a reminder that ties between the two nations are built on trust, collaboration, and a forward-looking perspective.

A Strategic Position in Global Trade

In logistics—the circulatory system of global commerce—the Dominican Republic occupies a privileged geographic position. More than 17,000 kilometers away from Dominican shores lie those of Singapore. The two countries do not share much in common; rice and beans have little in common with Hainanese chicken rice (prepared with two different broths). Yet both nations share something essential: a strategic location that provides exceptional international logistics connectivity. For Singapore, its proximity to major Asian shipping routes has made it a global maritime powerhouse. For the Dominican Republic, its location in the heart of the Caribbean places it at the intersection of North, South, and Central America, as well as key Atlantic shipping corridors.

This geographic advantage is more than a point of pride; it is the foundation for a national development strategy. As global supply chains become more interconnected and consumer expectations rise, the importance of logistics in the Dominican Republic has grown significantly—not only for international trade partners, but also for an actor that may seem small yet is increasingly influential: the final consumer.

The Consumer at the Center of the Supply Chain

How is it possible to ensure, for example, that during a moment of celebration or achievement, a premium spirit is simply there, available? Behind that simple gesture—grabbing a bottle from a supermarket shelf or receiving it via home delivery- are countless efforts, international collaborations, optimized warehouse planning, transportation networks, inventory forecasting models, and advanced technologies that track and move goods in real time. The final consumer increasingly expects speed, transparency, sustainability, and reliability. Companies know that a single delayed shipment or an unavailable product can affect loyalty and brand credibility.

This consumer-driven perspective reinforces why logistics is no longer simply about moving goods; it is about ensuring experience. The efficiency of logistics in the Dominican Republic will determine whether companies succeed in meeting those expectations with precision and consistency.

Learning from Global Leaders

Singapore has world-class port operations, excellent infrastructure, and a strong banking sector. These and other factors have allowed it to become an exemplary and competitive logistics economy. It ranked first in the World Bank’s 2023 Logistics Performance Index. In that same ranking, the Dominican Republic rose six positions, moving from 85th to 79th. This improvement signals clear steps forward in infrastructure, customs processes, cargo tracking capabilities, regulatory efficiency, and intermodal transportation.

Although the gap between Singapore and the Dominican Republic remains significant, the upward trajectory highlights the country’s growing role in regional trade. The government continues to advance a long-term strategy to become a logistics hub or “logistics nation.” At the recent Third United Nations Ocean Conference in France, President Luis Abinader reaffirmed the country’s commitment:

“We accept the challenge of becoming a regional logistics hub, which represents both an opportunity and a great responsibility.”

Innovation and Technology: The New Frontiers

According to KPMG’s analysis of 2024 supply chain trends, innovation, technology, and the adaptability of transportation systems are crucial to responding to growing sector demands. The use of generative artificial intelligence is becoming increasingly essential to analyze the vast amount of data produced daily in international trade—data related to routes, pricing, warehousing, weather patterns, supplier reliability, and consumer purchasing patterns.

For logistics in the Dominican Republic, digital transformation represents both an opportunity and a challenge. The companies that integrate real-time tracking systems, predictive analytics, and smart inventory tools will gain a competitive advantage in customer satisfaction and cost efficiency.

A Perspective from the Industry: Pernod Ricard

Deybi de León, a distribution and logistics specialist at Pernod Ricard in the Dominican Republic, has a comprehensive view of the sector. The company operates more than 100 production sites worldwide—40% distilleries and 60% bottling and distribution centers.

“The sector has become highly complex and competitive, in part because we must ensure that each product reaches the right consumer, at the right moment, sustainably and efficiently,” he explains. “At Pernod Ricard, we take great pride in our brands and collaborate constantly with suppliers and farmers to serve customers and consumers worldwide. We dedicate time and resources to research and development. The greatest challenge is continuing to grow as a business while maintaining our commitment to our people and our natural environment.”

This reinforces an essential idea: logistics in the Dominican Republic must evolve not only to meet commercial objectives but also to align with global sustainability commitments.

Sustainability and Responsibility as Core Values

De León emphasizes that the obligation is twofold: achieving operational efficiency while minimizing environmental impact. Companies operating in the country are taking this challenge seriously. Pernod Ricard, for example, works under four pillars of Sustainability & Responsibility: nurturing the land, empowering people, promoting a circular economy, and encouraging responsible hosting. Each pillar includes ambitious goals that push the company to innovate and raise standards both internally and among partners. The goal is clear: ensure “Good times from a Good Place.”

A Legal Framework to Boost Growth

With the recent enactment of Law 30-24 in the logistics sector, the country not only improves regulatory clarity and introduces tax incentives, but also opens the door to activities that will energize the industry. Logistics centers can now perform consolidation, deconsolidation, storage, packing, repacking, labeling, assembly, and lot formation, among other value-added services. This creates greater product availability, more competitive pricing, and improved service levels for consumers.

“The final buyer has become more demanding, and only products backed by a well-oiled logistics system will always be available at the right time and place. Those products will win the consumer’s heart,” De León emphasizes.

Toward a More Competitive and Connected Future

The value-added focus now being encouraged in the country is essential for positioning logistics in the Dominican Republic as a driver of national progress. If executed carefully, the Dominican Republic can become not only a regional logistics hub with international reach but also a model of how logistics can contribute to sustainable economic development while improving consumers’ everyday lives.

The evolving diplomatic and economic dynamic between Panama and Germany is entering a promising new phase marked by expanded cooperation, strategic investment, and deeper integration into global value chains. The recent incorporation of Panama as an Associate State of the Southern Common Market (MERCOSUR) has set the stage for new commercial possibilities that connect Latin America more closely with Europe. This milestone highlights Panama’s growing role as a geopolitical and geoeconomic bridge between continents, and underscores its commitment to advancing collaborative trade, innovation, and sustainability-driven growth.

A Strategic Meeting at the XVI Ministerial Conference of UNCTAD

The latest advancement in bilateral relations took place during the XVI Ministerial Conference of the United Nations Conference on Trade and Development (UNCTAD). Panama’s Minister of Commerce and Industries, Julio Moltó, held a bilateral meeting with Dr. Thomas Steffen, State Secretary of the Federal Ministry for Economic Affairs and Energy of Germany. The purpose of the meeting was to identify new investment opportunities, strengthen technical cooperation, and enhance commercial exchange between Panama and Germany.

During the dialogue, Minister Moltó emphasized Panama’s intention to attract high-value foreign investment, particularly in sectors aligned with global economic transformation, such as pharmaceuticals, digital technology, logistics services, renewable energy infrastructure, and financial services. These sectors not only diversify Panama’s national economy but also reinforce its positioning as a regional hub for business operations.

Panama’s Competitive Advantages as a Global Logistics and Services Hub

One of Panama’s most defining strengths is its integrated logistics platform. The Panama Canal, through which approximately 6% of global maritime trade flows, remains one of the world’s most essential commercial routes. The country’s interoceanic connectivity is complemented by state-of-the-art port infrastructure on the Atlantic and Pacific coasts, an extensive network of free trade zones, and Tocumen International Airport, widely recognized as the “Hub of the Americas.”

Minister Moltó emphasized that these advantages, combined with Panama’s network of 23 trade agreements granting preferential access to more than 60 international markets, secure Panama’s role as a competitive gateway for global commerce. This strategic positioning is particularly relevant for companies seeking to expand into Latin American and Caribbean markets, as well as those looking to strengthen value chains in sectors such as manufacturing, e-commerce distribution, and nearshoring operations.

Panama Becomes an Associate State of MERCOSUR: A New Era of Integration

Panama’s recent incorporation as an Associate State of MERCOSUR opens an important chapter in its international economic relations. This status provides new mechanisms for strengthening export development, fostering industrial cooperation, and enhancing trade harmonization practices with major South American economies, including Brazil, Argentina, Uruguay, and Paraguay.

According to Moltó, the integration advances Panama’s role as a partner for Europe and reinforces the country’s potential as a logistical platform capable of supporting re-export strategies. For Panama and Germany, this development offers fresh avenues for joint projects in sustainable agriculture, manufacturing, technology transfer, and green energy transition, aligned with international environmental commitments and responsible industrial practices.

Stable Legal Framework and Business-Friendly Environment

Foreign companies evaluating expansion opportunities often prioritize predictability, transparency, and legal stability. In this regard, Panama’s regulatory framework, investment protection agreements, and special economic regimes have proven attractive to multinational corporations. More than 180 multinational companies currently operate in Panama under the Multinational Headquarters Law (SEM) and other investment incentive frameworks that encourage long-term business establishment.

These companies benefit not only from operational cost efficiencies and strategic geographic positioning, but also from access to a highly skilled, multilingual workforce, supported by training programs and international academic partnerships. Moltó reaffirmed Panama’s commitment to maintaining a reliable and transparent environment that welcomes international capital while protecting both investors and national development priorities.

Germany’s Perspective: Strengthening Cooperation and Sustainable Growth

Dr. Thomas Steffen acknowledged Panama’s significant potential as a strategic ally for Europe. He highlighted that Panama and Germany share common goals related to market modernization, innovation in industrial supply chains, and the strengthening of sustainable economic models. Steffen also referenced the importance of concluding negotiations on the trade agreement between the European Union and MERCOSUR, noting that such an agreement would further facilitate business, reduce trade barriers, and encourage partnership across key sectors.

Germany’s long-standing reputation in high-technology manufacturing, engineering, and renewable energy positions it as a valuable partner for Panama’s development ambitions. German companies are already active in logistics, pharmaceuticals, industrial equipment, and environmental services in Panama, and the renewed diplomatic commitment opens the door to deeper collaboration in digital transformation, green mobility, port modernization, and cybersecurity infrastructure.

Shared Priorities: Innovation, Sustainability, and Regional Competitiveness

Both delegations underscored the importance of promoting innovation and sustainable investment as engines for mutual economic growth. In particular, the transition toward cleaner energy systems presents major opportunities for Panama and Germany to cooperate in renewable electricity generation, hydrogen development, energy efficiency solutions, and carbon-neutral logistics.

Furthermore, Germany’s leadership in technical education and vocational training could support Panama’s workforce development goals—an essential factor for strengthening productivity and competitiveness in globally integrated sectors.

Moving Forward: Strengthening Public-Private Dialogue

The meeting concluded with a reaffirmed commitment to deepen communication channels between government institutions and private sector representatives in both countries. Strengthening these connections will be vital for accelerating investment projects, designing new trade facilitation mechanisms, and promoting cross-sector business missions.

As Panama and Germany continue to engage in economic diplomacy, the potential for cooperative development grows. Their shared vision, built on principles of innovation, legal certainty, and sustainable growth, will contribute not only to stronger bilateral ties but also to the advancement of economic integration between Latin America and Europe.