Introducing the 15% global minimum tax on multinationals in Panama marks a significant step in reshaping international taxation frameworks. Aimed at curbing tax avoidance by large multinational corporations, this measure applies to groups with annual consolidated revenues exceeding 750 million euros or the equivalent in U.S. dollars. While the policy reflects global efforts to create a fairer taxation system, its implementation in countries like Panama presents complex challenges, raising questions about its implications for foreign investment, local fiscal incentives, and economic competitiveness.

A Global Push for Tax Equity

The global minimum tax is part of the Organization for Economic Cooperation and Development’s (OECD) Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The BEPS initiative seeks to address gaps in international tax rules that allow multinational corporations, including multinationals in Panama, to shift profits to low- or no-tax jurisdictions, often eroding countries’ tax bases where substantial economic activities occur.

The 15% minimum tax ensures that multinationals in Panama pay at least a baseline level of tax in the jurisdictions where they operate. This policy aims to dissuade companies from exploiting tax arbitrage opportunities and to create a level playing field among nations. However, implementing the tax has been fraught with challenges, especially in developing countries like Panama.

Panama’s Potential Revenue Gains

Álvaro Villegas, Vice President of the Latin American Regional Committee of the International Fiscal Association (IFA), highlighted the revenue potential of implementing the tax. Based on OECD data, Panama could collect between $209 million and $256 million annually, equivalent to up to 30% of its current income tax revenue. These additional funds could significantly bolster the country’s fiscal health, primarily as it seeks to fund public services and infrastructure projects.

“This tax represents an opportunity to improve the fiscal capacity of countries like Panama,” Villegas noted. “However, there is a delicate balance to maintain. While the tax promises increased revenue, it also risks the country’s ability to attract and retain multinationals in Panama.”

Operational Challenges in Implementation

One of Panama’s key hurdles is operationalizing the global minimum tax. Villegas emphasized that enforcing this measure requires significant technical and administrative capacity. Tax authorities must establish systems to calculate, collect, and monitor the tax effectively while ensuring multinationals’ compliance in Panama. Additionally, they need to coordinate with other jurisdictions to prevent double taxation and disputes.

Natalia Quiñones, Global Vice President of IFA, echoed these concerns, stating that implementing the tax requires overcoming various technical, operational, and political barriers. “Despite efforts to create a harmonized regime, implementation has been divergent and chaotic,” she said. Quiñones noted that the tax’s complexity and differences in national tax systems have led to uneven application worldwide.

The Role of the Qualified Domestic Minimum Tax

One potential tool to address implementation challenges is the Qualified Domestic Minimum Tax (QDMT), which allows countries to tax multinational profits domestically before other jurisdictions can claim them. Quiñones argued that this approach is crucial for Panama. “The QDMT ensures that revenues from multinational operations are captured locally, reducing the risk of losing tax revenue to other countries,” she explained.

This mechanism could help Panama retain a portion of the tax revenue generated by multinationals in Panama, even as other nations adopt similar measures. However, implementing the QDMT also requires significant legislative and administrative adjustments, which may take time to develop.

Implications for Panama’s Economic Regimes

Panama’s unique economic frameworks, such as the Multinational Headquarters (SEM) regime, free zones, and other special financial incentives, further complicate the implementation of the global minimum tax. These regimes have traditionally attracted multinationals in Panama by offering favorable tax rates and streamlined regulatory environments. Introducing a minimum tax rate could undermine these incentives, potentially deterring investment.

José Luis Galíndez, President of the Panamanian Chapter of IFA, noted that tax authorities still debate the implications of adopting the global minimum tax. “Panama must carefully evaluate how this measure will affect its ability to attract FDI. If the country does not implement the tax, it risks losing revenue to other jurisdictions. But if it does, it could jeopardize its economic regimes’ attractiveness to Panama multinationals,” he said.

Balancing Tax Equity and Economic Competitiveness

Panama’s challenge lies in promoting tax equity and maintaining its economic competitiveness. Villegas stressed that countries in the region must transition toward fiscal incentives that encourage substantial economic activities, such as employment generation and sustainable development, rather than relying solely on low tax rates.

Quiñones added that aligning with global tax standards does not necessarily mean abandoning economic incentives. Instead, countries like Panama could reform their incentive structures to focus on fostering innovation, technological advancement, and green investments. “The global minimum tax offers an opportunity for countries to rethink their economic models and adopt more sustainable approaches to development,” she said.

Regional Dynamics and Competitive Pressures

Panama is not the only country in Latin America grappling with the challenges of the global minimum tax. Neighboring countries also evaluate their options, creating a competitive environment where jurisdictions vie for multinational investment. If Panama delays implementing the tax, it risks being perceived as a less attractive destination for multinationals in Panama concerned about compliance with global tax rules. Conversely, swift implementation could place Panama ahead of the curve, signaling its commitment to transparency and fairness.

The Path Forward

To navigate these challenges, Panama must engage in a comprehensive dialogue with stakeholders, including tax experts, multinationals in Panama, and international organizations. This dialogue should aim to identify practical solutions for implementing the tax while preserving the country’s economic competitiveness. It should also focus on building the technical capacity of tax authorities and ensuring that the tax system is transparent and predictable.

Additionally, Panama could leverage the global minimum tax to strengthen its fiscal position and invest in areas that enhance its long-term competitiveness, such as education, infrastructure, and sustainable development initiatives. By adopting a strategic approach, Panama can position itself as a leader in implementing global tax reforms while reaping the benefits of increased revenue and enhanced economic resilience.

Conclusion

The 15% global minimum tax represents a significant shift in international tax policy, with far-reaching implications for countries like Panama. While the tax offers the potential for substantial revenue gains, it also presents operational and strategic challenges that must be carefully addressed. By balancing the need for tax equity with the imperative to attract and retain multinationals in Panama, the country can navigate this complex landscape and emerge as a key player in the evolving global tax framework.

Strategic Position and Economic Growth

Cartagena is home to Latin America’s most potent petrochemical cluster, serving as a key driver of business competitiveness and a benchmark in exports. The city has consolidated itself as one of Colombia’s most promising industrial cities, standing out for its strategic capacity as an engine for the country’s economic growth. The city has become Colombia’s key logistics and export hub thanks to its top-tier port infrastructure.

Geographical Advantage for International Trade

The city’s privileged geographical position in the Caribbean provides direct access to international markets, making it a crucial export platform for the country. As a vital logistics and export hub in Colombia, Cartagena connects Colombia with major international trade routes, strengthening its role as a key player in global commerce.

Industrial Clusters Boosting Competitiveness

With industrial clusters spanning key sectors such as petrochemicals, construction, and manufacturing, La Heroica boosts the productivity and competitiveness of local businesses, strengthening the city’s industrial base. This sustained growth in the industrial sector and creating quality jobs in the region underscores Cartagena’s prominence as a logistics and export hub in Colombia.

Mamonal Sustainable Eco-industrial Park

A prominent project in this sector is the Mamonal Sustainable Eco-industrial Park, an initiative driven by the Ecopetrol Group in collaboration with the National Business Association of Colombia (ANDI), the Ministry of Mines and Energy, and the Technological University of Bolívar. This project aims to improve environmental practices in the most potent chemical cluster in Latin America, located in Mamonal, which spans 10 kilometers. The park exemplifies how Cartagena is evolving as Colombia’s logistics and export hub, focusing on sustainability and eco-friendly industrial practices.

Sustainability and Circular Economy

The joint effort seeks to promote sustainability in the industrial sector by implementing environmentally responsible practices. Through this park, the goal is to establish an eco-industrial development model that will serve as a benchmark for the rest of the region. As Cartagena positions itself as a logistics and export hub in Colombia, sustainability is a key driver in enhancing its global competitiveness.

Innovative Industrial Practices

In an interview with El Universal about the growth and sustainability of the industrial sector in Cartagena, María Claudia Peñas, Regional Manager for Bolívar at ANDI, highlighted the significance of the Mamonal Sustainable Eco-industrial Park, a key project aimed at improving the environmental practices of local companies. The project is central to Cartagena’s evolution as a logistics and export hub in Colombia, fostering a circular economy that uses industrial waste to generate energy and reuse water.

Energy Solutions and Regional Impact

The pilot plan for the Eco-industrial Park aims to use company waste to generate energy and reuse water within the same industrial sector, promoting a circular economy. This project could also address energy issues in neighboring districts, such as Policarpa, Arroz Barato, and Puerta de Hierro. Cartagena continues to enhance its infrastructure, strengthening its position as a logistics and export hub in Colombia.

Adoption of Technology and Innovation

Industrial companies in Cartagena are increasingly adopting new technologies and innovations to improve their export competitiveness. Many are investing in more sustainable processes, such as reusing industrial waste, reducing carbon emissions, and transitioning to renewable energy sources. These efforts are crucial to Cartagena’s growth as a logistics and export hub in Colombia, as companies aim to access demanding markets that prioritize sustainability.

Investment Growth in Cartagena’s Industrial Sector

This key economic driver for the city has seen notable dynamism between January and September 2024, with significant investments. “134 investment opportunities have been managed, 17 new investment and reinvestment projects have been finalized in the industrial sector, including manufacturing, logistics, and energy transition, with over $380 million invested in this sector alone,” Peñas highlighted. These investments are essential to strengthening Cartagena’s logistics and export hub position in Colombia.

Export Performance and Market Demand

According to the latest Bolívar in Numbers report from the Chamber of Commerce of Cartagena, mineral fuels and oils, and products derived from their distillation, were the most exported products, totaling $860.7 million. Plastics and their manufactures ranked second, with $475.8 million, showing a 7% growth compared to 2023. Cast iron, steel, and steel products ranked third, with $89 million, marking a 16.9% increase in the same period in 2023. This growth highlights the significance of Cartagena as a logistics and export hub in Colombia.

Strong Connectivity and Export Growth

The National Administrative Department of Statistics (DANE) highlights Bolívar’s excellent export performance in line with this growth. In 2022, Bolívar accounted for nearly 12% of the country’s non-mining, non-energy exports. The dynamism of the export sector in Bolívar has been driven primarily by the excellent global connectivity of the Cartagena Port Group. Cartagena is well-equipped to meet international trade needs as Colombia’s logistics and export hub.

Free Zones and Industrial Expansion

Expanding and strengthening industrial free zones have also been key to the sector’s growth. Bolívar has become one of the most competitive free zones, the second department with the most authorized free zones in the country. It has 19 industrial parks, 10 of which are located in Cartagena and its surrounding area. This infrastructure is vital to Cartagena’s logistics and export hub development in Colombia.

Key Sectors Driving Cartagena’s Industrial Growth

Cartagena represents one of the most critical industrial engines in the region. “Our strength in exports remains in the petrochemical and plastics sectors, especially in the Mamonal Industrial Zone, which has proven to be a fundamental pillar of the regional and national economy, consolidating itself as one of the most important motors of the local industry. In second place is the casting, iron, or steel manufacturing sector, which continues to be a key area in Cartagena’s industrial value chain,” said Peñas. Cartagena’s industrial development reinforces its role as a logistics and export hub in Colombia.

Sustainability Efforts and Global Recognition

La Heroica is making significant strides in adopting responsible industrial practices, which not only enhance the competitiveness of local businesses but also position the city as a benchmark in Latin America. Among the most notable examples are large solar farms, which help reduce energy demand, aligning with global sustainability goals. Additionally, the environmental efforts of local companies are transforming industrial processes, improving efficiency, and reducing environmental impact. These innovations contribute to Cartagena’s growth as Colombia’s leading logistics and export hub.

Guanajuato has solidified its position as one of the most dynamic states in Mexico’s economy. According to preliminary figures from the National Institute of Statistics and Geography (INEGI), in 2022, the state ranked as the fifth-largest contributor to the national GDP, accounting for 4.7% or 1.4 trillion pesos in current terms. Only Mexico City, the State of Mexico, Nuevo León, and Jalisco surpassed its economic output.

This remarkable performance is fueled by a robust industrial base, strategic geographic location, and a commitment to fostering innovation and diversification across various sectors. Guanajuato is recognized as a hub for agribusiness, auto parts and automotive industries, leather and footwear, aerospace, and information technologies. Collectively, these sectors make Guanajuato a significant player in Mexico’s economy.

A Dominant Industrial Base

According to INEGI, the industrial sector in Guanajuato contributes a staggering 42% to the state’s economy. With a history of proactive policies to attract domestic and foreign investment, Guanajuato has become a preferred destination for manufacturers looking to tap into its skilled workforce, world-class infrastructure, and favorable business environment.

The Automotive Industry: A Powerhouse in Guanajuato

The automotive industry is the crown jewel of Guanajuato’s industrial base, making the state a leader in Mexico’s vehicle production landscape. The OEMs in Guanajuato play a critical role in this success. The industry operates in 21 of the state’s 46 municipalities and supports a vast network of 360 companies. Guanajuato is recognized as one of Mexico’s top producers of light vehicles, manufacturing over 788,000 units annually.

Six OEMs in Guanajuato

• Guanajuato stands out as the only state in Mexico with six major OEMs, five of which are focused on light vehicle production. These include:
• General Motors (Silao) produces vehicles such as the Chevrolet Silverado and GMC Sierra, known for their global appeal.
• Honda (Celaya): This company manufactures the HR-V, a popular compact SUV that meets demand in both domestic and international markets.
• Mazda (Salamanca): This company produces the Mazda 2, Mazda 3, and CX-30, contributing to the brand’s reputation for reliability and innovation.
• Toyota (Apaseo el Grande): This company is responsible for assembling the Tacoma, a high-demand pickup truck in North America and beyond.
• Volkswagen (Silao): This company specializes in engine production and powers several automaker vehicles worldwide.
• Hino Motors (Silao): This company focuses on truck assembly, particularly the Series 500 units, catering to the growing commercial vehicle market.

The automotive industry’s footprint extends far beyond manufacturing facilities. The OEMs in Guanajuato have spurred the development of a robust supply chain, supporting Tier 1, Tier 2, and Tier 3 suppliers. They have also created thousands of jobs, further integrating Guanajuato into the global automotive market.

The Emerging Aerospace Sector

Guanajuato is making strides in the aerospace industry, diversifying its economic base and capitalizing on its industrial capabilities. One of the standout achievements is the design and manufacture of Mexico’s first Light Sport Aircraft (LSA) by Horizontec, based in Guanajuato. Companies like CEI Aerospace and Speqtrum contribute to this sector, underscoring the state’s ability to innovate and compete in high-tech industries.

Leather and Footwear: A Traditional Pillar

Guanajuato has long been synonymous with leather and footwear production. The state is home to over 4,698 businesses in this sector, accounting for 52% of Mexico’s total. Guanajuato produces eight of every ten pairs of shoes made in Mexico, solidifying its reputation as a national leader.

The industry also has a significant international presence, with exports exceeding $900 million annually. This success is attributed to the state’s skilled artisans, cutting-edge manufacturing techniques, and established trade networks, making Guanajuato a key player in the global footwear market.

Agribusiness: A Growing Economic Cornerstone

Agribusiness is another vital sector in Guanajuato’s economy. The state ranks seventh nationwide in agricultural GDP, leveraging its fertile lands and advanced farming practices to produce high-quality crops. Guanajuato is a major exporter of strawberries, broccoli, and grain corn, contributing to Mexico’s position as a global agricultural powerhouse.

Approximately 200 agribusiness companies operate in the state, ranging from small-scale producers to large multinational corporations. These businesses drive economic growth and support rural communities by creating jobs and fostering sustainable development.

Information Technologies and Data Centers

Guanajuato increasingly embraces digital transformation, with a growing information technology (IT) sector comprising over 60 companies. The state is also emerging as a hub for data center investments. A notable project is Layer 9’s hyperscale data center, representing an investment of $800 million. Such initiatives reflect Guanajuato’s commitment to integrating advanced technology into its economic fabric, ensuring it remains competitive in a rapidly evolving global market.

Summary

Guanajuato’s economic dynamism is rooted in its diversified industrial base, which contributes 42% to its GDP. The automotive industry, anchored by six OEMs in Guanajuato, is a cornerstone of the state’s success, producing hundreds of thousands of vehicles and engines annually and driving economic growth. Meanwhile, traditional sectors like leather footwear and agribusiness continue to play a significant role in the state’s economy.

Emerging industries such as aerospace and IT highlight Guanajuato’s ability to adapt to new economic opportunities, while substantial investments in data centers demonstrate a forward-looking approach to digitalization. Guanajuato’s industrial and technological advancements ensure its continued relevance nationally and globally as one of the top contributors to Mexico’s GDP.

The OEMs in Guanajuato elevate the state’s status as a manufacturing powerhouse. They underscore its pivotal role in fostering economic growth, creating jobs, and attracting foreign investment, solidifying its position as a leader in Mexico’s industrial landscape.

After years of lobbying, protests, and negotiations, the Mercosur-EU Trade Agreement was finally ratified this Friday. This agreement could significantly impact Argentina’s economic activities in the coming years. The agricultural sector is considered one of the primary beneficiaries of this free trade deal, as it expands the opportunity to export various food products to the European market, one of the most affluent in the world.

Broader Scope of the Negotiations

The Mercosur-EU Trade Agreement goes far beyond agriculture. It includes chapters on Market Access, Rules of Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Defense, Subsidies, Services and Establishment, Public Procurement, Intellectual Property, State-Owned Enterprises, Competition Policy, Customs and Trade Facilitation, SMEs, Transparency, Trade and Sustainable Development, Dispute Resolution, and Political Dialogue and Cooperation.

Argentina’s Ministry of Economy report states, “The EU is a desirable partner for our region. With over 500 million inhabitants and an average purchasing power of $34,000 annually, it represents about 20% of the global economy and a third of global imports.”

Opportunities for Argentine Companies

The Mercosur-EU Trade Agreement will create significant commercial opportunities for Argentine businesses. Mercosur secured larger quotas than the EU granted in other free trade agreements. The EU will offer tariff-free access to 92% of Mercosur exports, with shorter tariff reduction schedules than Mercosur’s. The average tariff on agro-industrial products exported to the EU is 12.6%.

From this perspective, the agreement is seen as an opportunity rather than a threat. The Ministry of Economy predicts that “the agreement will enable Mercosur companies to lower the cost of imported inputs, boosting their productivity and competitiveness. Consequently, the benefits will extend to many industrial sectors that can source inputs at more competitive prices.”

The Importance of the EU for Argentina

The EU is Argentina’s second-largest export destination, accounting for approximately $9 billion annually. Moreover, the EU is the largest investor in the country, with foreign direct investment (FDI) exceeding $35 billion, representing 45% of the total. The Mercosur-EU Trade Agreement is expected to strengthen this relationship further, opening new avenues for growth and investment.

Tariff Reduction Timelines and Market Access

In the chapter on market access, the Mercosur-EU Trade Agreement regulates the conditions and timelines for tariff reduction on products from both parties. The EU has committed to faster tariff reductions (with a maximum schedule of 10 years) compared to Mercosur, which will have up to 15 years to adapt its industries to the competition. This is part of a “special and differentiated treatment” approach.

Approximately 74% of EU imports from Mercosur will have tariffs eliminated immediately, with only 0.3% of trade excluded from the negotiations. Conversely, Mercosur will immediately eliminate tariffs on just 14% of products, with 9% of EU imports excluded from tariff reductions to protect sensitive sectors.

Key Benefits for Argentine Agriculture

The EU will eliminate tariffs on approximately 82% of agricultural product exports and provide partial reductions (through quotas or fixed preferences) for 17.7%. Of the 82% that will reach zero tariffs, 70% will be eliminated immediately upon the Mercosur-EU Trade Agreement’s implementation, while the remaining 12% will phase out over 4 to 10 years.

For products subject to tariff quotas, such as beef, pork, poultry, corn, milk, cheese, rice, ethanol, honey, and eggs (among others, including sugar), the EU has granted a quota of 99,000 tons for Mercosur beef, nearly doubling current export levels. Argentina, Brazil, Paraguay, and Uruguay are already the EU’s largest beef suppliers. Furthermore, the tariff under the Hilton Quota (20%) will be immediately eliminated upon the agreement’s activation.

Export Duties and Subsidies

An interesting development for Argentine agriculture is the agreement to eliminate and refrain from reintroducing export duties in reciprocal trade, albeit with specific exceptions and transition periods. The Mercosur-EU Trade Agreement also addresses the issue of export subsidies, which significantly affect agricultural trade.

The Ministry of Economy clarified that “Argentina will maintain export duties on certain products destined for the EU, as specified in an annex. For these products, maximum duty levels were established (e.g., 14% for oilseed products) or phased elimination schedules, which will be progressively implemented over four to eleven years after the agreement takes effect.”

Both parties agreed to address export subsidies through a chapter that promotes transparency and cooperation on subsidies within the World Trade Organization (WTO) framework.

Modern Customs Procedures

The EU and Mercosur are committed to implementing modern customs procedures under the Mercosur-EU Trade Agreement, including advanced technologies to streamline the release of goods, reduce operation times, and manage risks effectively. These measures include allowing documentation submission before the arrival of goods. Perishable products will receive priority treatment, and expedited claim mechanisms will be established.

Sanitary and Phytosanitary Measures

The agreement includes provisions to ensure that sanitary and phytosanitary measures do not become unjustified trade barriers. These measures are based on scientific evidence, offering Argentine products preferential access to the European market compared to other suppliers under the Mercosur-EU Trade Agreement.

Geographic Indications

The agreement also addresses geographic indications (GIs). The EU will recognize 220 Mercosur GIs, including 104 from Argentina, which could significantly benefit regional economies. Conversely, Mercosur will protect 355 EU GIs. Some iconic EU names will see phased-out usage over long grace periods, allowing products to be renamed and repositioned in markets.

Challenges and Future Implementation

Despite signing the Mercosur-EU Trade Agreement, a lengthy process still needs to be completed before it takes effect. This includes legal and formal reviews of the texts, provisional applications, and final implementation. Such processes can take months or even years. For instance, the agreement with Canada took four years to finalize, and the Mercosur deal may face even more delays, mainly due to opposition from influential EU countries like France.

Conclusion

The Mercosur-EU Trade Agreement presents substantial opportunities for Argentina’s agricultural sector, mainly through expanded access to the European market and reduced trade barriers. However, its full implementation will require overcoming political and administrative challenges. The agreement can significantly enhance Argentina’s position in global agricultural trade if successful.

Claudia Pellerano, the esteemed president of the Free Zone Council of the Americas, has been re-elected as the president of the Association of Free Zones of the Americas (AZFA). Her re-election and the Dominican Republic’s leadership of the organization was confirmed during the Ibero-American Free Zones’ XXVII Conference in Curaçao. This conference brought together a significant representation of free zones across the continent, including Spain, public institutions, regional trade associations, and multilateral organizations.

The conference, a landmark event in the free zone industry, highlighted the importance of collaboration and strategic partnerships in fostering economic growth and competitiveness. “Bringing together our key stakeholders here ensures that the topics we address will create the impact we expect and deserve. There is no greater recognition of the Association of Free Zones of the Americas’ work and its current role as an indispensable interlocutor for developing our respective countries,” Pellerano stated during her address. Her remarks underscored the importance of AZFA as a unifying force in the region’s economic landscape.

Strengthening Free Zones as Hubs of Competitiveness and Inclusion

Pellerano urged participants to support and enhance the role of free zone parks as ecosystems that drive competitiveness and inclusion. Despite global challenges, these zones continue to invest in economic development, create thousands of jobs, promote core values, and contribute to societal transformation and wealth generation.

“The continued investment and resilience shown by free zones during turbulent times demonstrate their unparalleled value to national and regional economies,” said Pellerano. She emphasized that with support from multilateral organizations and national associations, free zones could maintain their status as ideal environments for growth and development. These ecosystems drive innovation and are key enablers of sustainable development by integrating advanced technologies, promoting equitable labor practices, and fostering environmental stewardship. The Association of Free Zones of the Americas is pivotal in advancing these efforts by fostering regional cooperation and sharing best practices

Impact of Free Zones in the Americas

Free zones in the Americas are a cornerstone of economic activity. The region boasts over 800 free zone parks, housing over 12,000 companies. These zones generate over one million direct and two million indirect jobs, a testament to their significant role in regional employment. Furthermore, they have attracted more than $48 billion in foreign direct investment and contribute approximately $68.5 billion annually in exports. These figures highlight the transformative power of free zones in driving industrial development and international trade.

Claudia Pellerano emphasized the proven success of free zones, stating, “We are part of an industry that has consistently achieved technological transfers, advanced management practices, and knowledge sharing in each of our countries. This success is powered by human talent and a commitment to equity, inclusion, and well-being.” Her vision underscores the importance of nurturing talent and fostering inclusive practices as fundamental to the continued success of free zones. This goal aligns with the mission of the Association of Free Zones of the Americas.

A Platform for Networking and Knowledge Sharing

The XXVII Conference of Ibero-American Free Zones provided a unique platform for collaboration and dialogue among key industry players. Over three days, participants had the opportunity to engage with free zone operators, investors, government representatives, consultants, industry suppliers, and multilateral organizations. This exchange of ideas and best practices is expected to redefine the future of free zones in the region, enabling them to adapt to emerging global trends and challenges.

Sessions at the conference addressed various pressing issues, including digital transformation in free zones, sustainable economic practices, workforce development, and strategies to attract investment. Attendees explored innovative approaches to making free zones more attractive to investors and enhancing operational efficiency. The Association of Free Zones of the Americas continues to champion these efforts, positioning its members to lead in sustainable and technological advancements.

The presence of stakeholders from diverse sectors also emphasized the role of free zones as integrative economic models. With businesses and policymakers working in tandem, the free zone model can continue to evolve, aligning with global sustainability goals and technological advancements.

The Vision for the Future

Under Claudia Pellerano’s leadership, AZFA aims to further strengthen the role of free zones as drivers of economic and social progress. She called for collective action to ensure free zones remain competitive and relevant in a rapidly changing global economy. By fostering partnerships with multilateral organizations and leveraging regional expertise, AZFA seeks to position free zones as dynamic ecosystems that catalyze innovation, boost trade, and create opportunities for communities across the Americas.

The Association of Free Zones of the Americas envisions a future where its member organizations thrive economically and contribute meaningfully to inclusive growth and sustainable development. Pellerano concluded her remarks by expressing optimism about the future, emphasizing the untapped potential of free zones to create prosperity and drive inclusive growth. “Together, let us continue positioning free zones as one of the most effective ecosystems for development and competitiveness, ideal for the growth and advancement of our communities,” she declared.

The XXVII Conference reaffirmed free zones’ critical role in economic development and called on stakeholders to innovate, collaborate, and lead the way in shaping the future of trade and investment in the Americas. With the Association of Free Zones of the Americas at the helm, the free zone industry is poised for more significant achievements and enduring impact.