Panama and the Dominican Republic: Fostering a New Chapter of Regional Development

Panama’s Minister of Commerce and Industries (MICI), Julio Moltó, provided Dominican business leaders with an overview of the myriad opportunities Panama can offer as a regional platform for investment and trade. In a forum held during his official visit to the Dominican Republic, Moltó shared the advantages and new incentives of Panama as a platform for the creation of new business opportunities and productive chains. The event was attended by the Dominican Republic’s Minister of Industry, Commerce, and MSMEs, Víctor “Ito” Bisonó, and culminated with the signing of a Joint Declaration between both ministers. The MICI states that both countries have deepened their commitment to advancing mechanisms to combat illicit trade, with a view toward improving transparency and business intelligence and opening new opportunities for bilateral cooperation.

Panama: A Strategic Hub for Latin America

The Panamanian minister presented in a business forum held in Santo Domingo, Panama’s main attributes as a platform for business creation, as well as the promotion of bilateral ties. For Moltó, the country’s macroeconomic stability, strategic geographic position, and role as a gateway for the Americas are characteristics that reinforce Panama’s position as a reliable logistical and financial hub for foreign investment. “Panama and the Dominican Republic have two economies that do not compete but complement each other. This is a very favorable condition that allows us to expand shared value chains”, he added. In this way, Moltó and Bisonó discussed the great potential that Panama has to join productive forces and businesses in both countries in a process of closer integration to open new spaces in the hemisphere.

The MICI indicates that, during his participation, the Panamanian minister also offered updated information on the behavior of Dominican investment in Panama, highlighting the main sectors in which the Caribbean nation has significant participation: banking, energy, pharmaceuticals, and beverages. In all of them, Dominican companies have found an environment in Panama to continue expanding and strengthening their operations, opening new opportunities. In this regard, he also pointed out that bilateral trade exceeded 100 million dollars in 2024 with a constant surplus in Panama’s favor, a trend that both countries seek to continue strengthening, especially through the Colón Free Zone. From this strategic hub, Dominican companies, along with their Panamanian counterparts, have broadened the re-export flow as evidence that Panama’s logistics model is one of the main competitive engines of the region.

Advantages and Opportunities in the Framework of Panama as a Platform for Business Creation

In his presentation, Minister Moltó showed an institutional video that highlighted the main advances made by Panama in recent years, in terms of modernization, connectivity, and its leading infrastructure. He especially highlighted Panama’s special regimes, SEM and EMMA, and its free trade zones that serve as an attractive legal and fiscal framework for international companies. For Panama and the Dominican Republic, these tools represent concrete opportunities to work on the development of joint projects that include light manufacturing, business services, advanced logistics, as well as the relocation of regional operations. The Panamanian minister said that his country continues to position itself as a natural ally for the Caribbean, betting on attracting productive investments and generating new shared value chains that allow Dominican companies to find their natural growth partner in the region.

“The Panamanian platform for business creation is consolidating itself as a Caribbean ally for the attraction of productive investments and the generation of new shared value chains. We want more Dominican companies to see in Panama their natural partner for their growth in the region”, Moltó expressed, reaffirming that the joint vision between both countries can make it possible to generate a competitive and modern business environment, oriented toward deepening commercial integration.

Dominican Republic: A Transparent Economy with Guaranteed Investment Security

In the words of Minister Víctor “Ito” Bisonó, the Dominican Republic has strengthened its control systems to fight illicit activities. This goal has helped it build international confidence and secure the support of strategic partners such as the United States. “We have improved our traceability, modernized our customs and increased commercial vigilance, which are significant achievements that have allowed us to fight smuggling, avoid tax evasion and above all guarantee a more transparent environment for productive activity”, he said. The Dominican minister explained that these are joint objectives between Panama and the Dominican Republic, and the results obtained are aligned with the commitments of both governments to increase cooperation in economic security issues and to guarantee the integrity of their respective markets.

Permanent Mechanism of Economic and Business Dialogue

The meeting between Moltó and Bisonó also allowed to explore new tools to deepen technological and operational cooperation in the detection of illicit activities, in addition to the possibility of establishing a permanent mechanism of business dialogue between Panama and the Dominican Republic that would allow mutual investment and transfer of knowledge and would identify new opportunities in sectors such as agribusiness, renewable energy, digital services, logistics and advanced manufacturing.

Joint Vision for a Modern, Competitive Economy

The official visit reaffirms the interest of both Panama and the Dominican Republic in building a cooperative framework for economic relations that can promote common development and consolidate and strengthen their productive chains. Panama and the Dominican Republic see that, in a world marked by very rapid changes in trade, technology, and economic security, strategic regional alliances such as the one they are building are essential for sustaining long-term growth. The joint work and vision shared by Panama and the Dominican Republic on issues related to trade, innovation, transparency, security, and the creation of a new, modern business environment opens a horizon of greater economic integration for both countries.

A Strengthened Partnership with a Vision for Regional Leadership

In conclusion, the visit of Minister Moltó and the signing of the Joint Declaration of Understanding between Panama and the Dominican Republic consolidate both countries as key regional partners and set an agenda of cooperation that prioritizes transparency, mutual understanding, and benefits, and the construction of a more competitive and resilient space. Panama and the Dominican Republic, as regional leaders in the integration of the Caribbean and Central America, are key points to position both countries as forerunners in the construction of a new era of shared prosperity.

A new phase in regional economic diplomacy

Washington confirmed on Wednesday a set of new bilateral trade agreements that grant tariff relief to key export sectors in Argentina, Guatemala, Ecuador, and El Salvador, addressing pressure on American households facing a high cost of living and implementing an initial adjustment to a tariff structure that has been a source of tension since April. As the United States announces trade agreements, the Trump administration’s move is seen as a recalibration of its approach, allowing it to provide targeted relief without fully retreating from its overarching protectionist stance.

The official statement revealed that the four South and Central American countries had committed to lowering barriers to trade with the United States in return for partial reductions in bilateral tariffs on a range of goods essential to their export economies. The specific sectors impacted include bananas, coffee, cocoa, and pharmaceutical ingredients, all of which are expected to benefit immediately from the changes, leading to cheaper prices for American consumers. The administration’s broader goal is to reorient trade dynamics in the Western Hemisphere on more reciprocal terms, cementing political alliances while potentially reducing the US trade deficit over time.

Economic factors at play in the agreement

US officials have stressed that the intent of the agreements is to mitigate the economic distortions caused by the tranche of global tariffs imposed by Washington earlier this year, which have created tensions with longstanding allies, including in Latin America, where export-led economies are often reliant on access to the American market. By selectively removing certain restrictions now, the White House believes it can ameliorate supply-chain stress, protect its own access to vital imports, and restore greater predictability to cross-border commerce.

Another factor is the domestic political calculus in Washington, where US consumers have become more vocal about the cost-of-living squeeze they are under, particularly regarding essential imported goods, such as food items. The United States announces trade agreements as the White House attempts to project greater sensitivity to this feedback. By making concessions on tariffs with friendly governments that have closely aligned themselves with Washington over the past year or more, the administration is also able to project an image of greater unity and mutual benefit with regional partners in the face of countervailing pressures from China and Russia.

Argentina, Guatemala, Ecuador, and El Salvador: Politics and Economy

In this context, in Latin America, the agreements are viewed as signaling in political terms as much as in economic ones. Leaders like Argentina’s Javier Milei and El Salvador’s Nayib Bukele have had close personal relationships with Trump, and publicly supported much of Washington’s agenda on economics and security. Their decision to sign onto these agreements now reinforces a kind of regional alignment in which governments seeking to carry out pro-market reforms and increase security cooperation receive a degree of preferential treatment when it comes to trade and investment.

Guatemala’s Bernardo Arévalo has a different political orientation but has also sought to make the strategic argument for deepening commercial and political ties with the United States, and by securing an agreement as early as possible, Guatemala has indicated a willingness to make the case that it is a reliable and trustworthy partner that deserves to be granted tariff relief that will make the country more competitive.

Guatemala: “historic agreement” and its benefits

President Arévalo announced that Guatemala would see some of the broadest benefits of the entire process. In particular, Arévalo described the result as a “historic agreement,” and one in which “more than 70% of all Guatemalan exports to the United States will now have zero tariffs”. The statement further clarifies that only about 14% of tariffs will remain at 10% for the remaining products, which is a far cry from the level implemented at the beginning of the year.

At a time when, between January and September 2025, 30.7% of all exports from Guatemala—totaling $3.64 billion—were sold to American buyers, according to data from the country’s central bank, the reduction in barriers to trade should be a boon to producers and exporters in agriculture, processed foods, apparel, and specialty manufacturing sectors. In return for the United States’ tariff relief, Guatemala will also be easing its own regulatory and logistical barriers to imports, with a particular emphasis on pharmaceutical products, medical devices, and agricultural inputs. These measures are designed to modernize the country’s own internal supply chain and expand access to goods that will support Guatemalan efforts in healthcare and farming productivity.

El Salvador’s pledges and reciprocal advantages

El Salvador will likewise receive significant tariff relief, according to a document published by President Nayib Bukele. The United States “agreed to permanently eliminate reciprocal tariffs on Salvadoran products for those products that are not or cannot be produced within the United States domestic market,” which notably includes certain agricultural goods, as well as some specialized industrial goods and manufacturing components.

In return, El Salvador will remove the non-tariff barriers to US exports that still exist, work to speed approvals for pharmaceutical and medical-device products, and “recognize US regulatory certifications”. The agreement also contains broader commitments on both sides: to maintain non-discriminatory policies in digital services, respect the prohibition on goods made with forced labor, and enforce environmental protection requirements. These aspects of the agreement seem to signal Washington’s desire to ensure that trade partners align their own regulatory frameworks as closely as possible to the American model.

Ecuador’s tariff relief and priority areas

Tariff relief also comes to Ecuador as a result of the new agreements. Two industries that are important to the country, bananas and cocoa, will see tariffs returned to a lower level, reversing an increase that had reached 15% in August. As the United States announces trade agreements, Ecuador is emerging as a particularly important beneficiary given its economic reliance on agricultural exports and its interest in economic diversification.

In return, Quito will reciprocate with reduced or eliminated tariffs on a range of products that the United States has identified as strategically important, which include industrial machinery, chemical products, ICTs, goods for healthcare, and auto parts. These types of products have been part of Ecuador’s larger strategy of moving towards more investor-friendly policies and will further strengthen economic and commercial ties with Washington at a time when the country is facing fiscal constraints and seeking to attract new foreign investment.

Argentina’s agreement and market access expansion

Argentina, in turn, will benefit from the elimination of tariffs on certain natural resources, agricultural products, and pharmaceuticals that are not protected by patents. It has also committed to expanding market access for beef, which is central to the country’s export economy. Given the high demand in global markets for premium beef and pharmaceutical ingredients, the country is now seeking to regain its competitiveness in these areas, lost due to tariff increases at the beginning of the year.

The joint declaration notes that both sides stand to benefit from streamlining customs procedures, increasing regulatory transparency, and only partially re-imposing the 10% tariffs that were applied as of April. These will fit with President Milei’s economic agenda, which has focused on liberalizing markets, cutting red tape, and deepening cooperation with the United States.

Conclusion

In sum, the newly announced trade agreements between the United States and Argentina, Guatemala, Ecuador, and El Salvador underscore a strategic recalibration in Washington’s hemispheric economic policy—one that blends selective protectionism with pragmatic cooperation. By offering targeted tariff relief in exchange for reciprocal market access and regulatory alignment, the United States seeks to ease domestic cost pressures while strengthening political and economic ties with governments that have demonstrated a willingness to collaborate on shared priorities. For the four Latin American nations, the agreements offer an opportunity to enhance competitiveness, modernize supply chains, and attract new investment amid global uncertainty. As the United States announces trade agreements of this nature, the move signals not only a temporary adjustment to recent tariff policies but also a broader effort to reinforce regional partnerships and shape a more stable, mutually advantageous framework for trade in the Western Hemisphere.

Coordinator of a Network of 15 Research Institutes Dedicated to Developing a National Rare Earths Supply Chain Outlines the Path to Unlock the Country’s Potential

Brazil holds the world’s second-largest rare earth reserves—a group of 17 elements essential for the energy transition and high-tech industries. Yet transforming this geological advantage into economic development and technological sovereignty requires overcoming challenges such as the lack of a dedicated public policy, insufficient investment, and limited mechanisms to guarantee national research institutions’ access to mineral samples. This assessment comes from Professor Sérgio Michielon, coordinator of the newly created INCT Material (Advanced Materials Based on Rare Earths: Innovations and Applications). As debates advance around Brazil’s rare earth production, experts increasingly emphasize the need for strategic action.

“Rare earth materials represent only 1% of the total value of a cell phone. It may seem small, but without that 1%, the device wouldn’t exist. That means rare earths are not at the center of debate for their financial potential, but for their strategic value,” he explains.

A professor at the Federal University of Amazonas (UFAM), Michielon oversees INCT material, a network that brings together researchers from 15 national institutions working to drive the development of rare-earth-based materials. The initiative covers the entire production chain—from extraction and processing to high-impact applications and recycling.

Challenges and Opportunities

According to the specialist, Brazil possesses the main requirements to become a global leader in the rare earth market. In addition to hosting the world’s second-largest reserves—behind only China—the country has research institutions and highly regarded experts in the field. “Brazil has the raw material and the knowledge, but it still lacks investment and the creation of a specific public policy. We need to build an ecosystem capable of turning our potential into wealth and innovation,” he says. Strengthening Brazil rare earth production would position the country more competitively in the global technology landscape.

One of the barriers he highlights is the difficulty universities and national research centers face in accessing these minerals. He notes that many mining companies produce waste rich in rare earths, yet when Brazilian researchers request samples, they are often denied. “This is something that needs to be addressed within the legislative framework,” he explains.

Training and Retaining Talent

Another challenge concerns the training of specialized labor. In this regard, INCT Material includes the participation of two technical education institutions. “This is important because it helps inspire new generations to take an interest in the topic, which is crucial for ensuring sustainability over the decades.”

However, Michielon stresses that simply training new specialists is not enough. There must also be investment in strengthening the industrial supply chain to create jobs capable of retaining this workforce in the country and generating domestic wealth.

“Today, the country invests heavily in training professionals, but they often leave for opportunities abroad because they cannot find a market in Brazil. In other words, foreign companies receive highly qualified professionals essentially for free—professionals we finance. We need to create conditions that allow these people to build their careers here,” he argues.

One initiative aiming to change this trajectory is the creation of the Innovation and Technology Center for Rare Earth Magnets (CIT Senai ITR) in Lagoa Santa, Minas Gerais—a lab-factory focused on producing high-performance magnets. This effort reinforces the broader vision of advancing Brazil rare earth production through integrated industry-academia partnerships.

The project is the result of a partnership between Senai, Fiemg (the Federation of Industries of the State of Minas Gerais), and MagBras, a consortium of 28 companies, seven research institutes, and three foundations. “The initiative shows the synergy required between academia and industry to foster the development of a national supply chain for rare earth permanent magnets,” he summarizes.

 Three Strategic Pillars

INCT Material aims to coordinate efforts to train people, attract funding, and support research in the field of rare earths. With an expected duration of five years, the project is structured around three main pillars.

The first focuses on the national production of neodymium-iron-boron magnets, the most advanced on the market. These magnets are essential for device miniaturization and are found in electric vehicles, wind turbines, and computer hard drives.

The second front explores new properties and applications for different rare earth elements, while the third is dedicated to developing metallurgical routes for mineral processing and substance concentration, with a strong emphasis on sustainability.

“One of our priorities is what we call urban mining. Instead of searching for natural deposits, we will focus on recycling end-of-life magnets. The goal is to ensure that the mineral resources found in products like electric vehicles are not wasted in the future,” Michielon reveals. Such innovations will play a critical role in improving Brazil rare earth production through circular and sustainable practices.

Institutions Participating in INCT Material

Federal University of Amazonas – UFAM (AM)

Institute for Technological Research of the State of São Paulo – IPT (SP)

Mineral Technology Center – CETEM (RJ)

Federal University of ABC – UFABC (SP)

University of São Paulo – USP (SP)

Federal University of Santa Catarina – UFSC (SC)

Federal University of Catalão – UFCAT (GO)

Nuclear Technology Development Center – CDTN/CNEN (MG)

Federal University of Espírito Santo – UFES (ES)

Federal Institute of Education, Science and Technology of Amazonas – IFAM (AM)

SENAI School of São Paulo – SENAI (SP)

Federal University of Western Pará – UFOPA (PA)

Federal University of Minas Gerais – UFMG (MG)

Geological Survey of Brazil – CPRM/DF (DF)

Nuclear and Energy Research Institute – IPEN/CNEN (SP)

Conclusion

Brazil stands at a decisive crossroads. With abundant reserves, strong scientific talent, and emerging partnerships that bridge academia and industry, the country has the foundations needed to become a global rare earth powerhouse. Yet the transition from potential to leadership will depend on coherent public policies, regulatory reform, industrial investment, and a long-term vision that recognizes rare earths not only as a commodity, but as a strategic asset for the nation’s technological future. By advancing these priorities, Brazil can secure a central role in the global clean-energy supply chain and ensure that the benefits—economic, scientific, and geopolitical—are realized at home.

The maquila in Paraguay is a particularly attractive source of investment for manufacturing and re-export activities

In a recent press release, the Vice Ministry of Industry of the Republic of Paraguay, the agency in charge of Paraguay’s industrial policy, provided a series of figures that not only illustrate the dynamism of the maquila regime—an already highly dynamic export system—but also its growing impact on economic development, job creation, and regional competitiveness. According to the most recent data, the maquila in Paraguay exports over USD 1 billion and is one of the most strategic pillars in the country, with over 35,000 direct jobs, representing one of the main formulas for attracting investment and promoting industrialization. As Paraguay positions itself as a nearshoring opportunity for global companies and strengthens its competitive advantages in terms of logistics and energy, the maquila sector will also continue to grow in size and participation.

Highlights of the Maquila Industry in Paraguay

Exports above USD 1 Billion

The Paraguayan maquila industry registered USD 131 million in exports in October, taking the total amount for 2024 to USD 1.052 billion. The accumulated figure thus exceeds the USD 918 million exported in the same period last year, representing an increase of USD 134 million and continuing the steady expansion of the maquila in Paraguay. The results in the external component not only respond to strong demand, but also to Paraguay’s growing competitiveness as a destination for manufacturing and re-export activities. Attracted by cost efficiencies, logistical benefits, and access to strategic markets, particularly those of Mercosur, the maquila in Paraguay continues to attract companies seeking opportunities.

Major Exporting Industries in the Maquila Sector

Diversification is one of the characteristics of the maquila sector in Paraguay. However, some industries lead the ranking in contributing to the country’s export revenues. Auto parts remain in the lead with 34% of total maquila exports, a segment that has created an ecosystem of suppliers, logistics operators, and specialized labor. This has turned Paraguay into an increasingly relevant hub in the regional automotive value chain. In second place is the textile and apparel industry with 17%, an ongoing trend that further consolidates its role as an important generator of jobs and a stable export contributor. Aluminum and aluminum-derived products stand at 13% and food products are at 12%, showing that the maquila’s manufacturing portfolio is broadening beyond traditional sectors.

A diversified export portfolio of the maquila sector in Paraguay is a key competitive advantage, since, in addition to mitigating risks derived from external uncertainties, it also provides companies with greater agility in the face of changes in market dynamics.

Maquila Export Destinations

Mercosur countries are, by far, the main destinations of the maquila sector’s exports. This is a natural consequence of Paraguay’s geographic location and commercial integration within the bloc. Brazil accounts for 64% of the share, which is the main destination for Paraguayan maquila companies. Argentina is next in line with 15%, while Chile and Bolivia each account for 3%. Uruguay, for its part, is the last of the main five, with 2% of the total volume of maquila exports. In recent years, maquila companies in Paraguay have also been able to expand their presence in more distant markets. The United States and the Netherlands each represent 4%, which is an indicator of the sector’s growing geographic reach and diversity. This expansion is also strengthening the international reputation of the maquila industry as a platform focused on industrial manufacturing.

A Leading Force in Industrial Exports

In 2024, up to 66% of exports of manufactured industrial products (according to data reported by the Vice Ministry of Industry) corresponded to maquila companies. This percentage already illustrates the fundamental role that the maquila regime in Paraguay has been playing in the productive infrastructure and industrialization process of the country. The features of the maquila system, with tax incentives, greater operational flexibility, and a framework based on export dynamism, are increasingly attractive to investors seeking stable and predictable environments, especially in times of global uncertainty.

Geographical location and industrial poles

In addition to its continued growth in size, the maquila industry also plays a key role in the definition and development of regional industrial poles in the country. Currently, 91% of the approved maquila programs in Paraguay are concentrated in the departments of Alto Paraná, Central, the Capital, and Amambay. Of all of them, Alto Paraná is by far the most relevant, with 59% of the total, driven mainly by the district of Ciudad del Este and the municipalities that make up its area of influence. This department has established itself as one of the most dynamic industrial poles in Paraguay, thanks to its strategic location on the border with Brazil and its well-developed logistics corridors. On the other hand, the Central and Capital departments continue to capture investments thanks to the availability of talent, infrastructure, and proximity to essential services. Amambay, for its part, has shown a sustained growth curve and is increasingly attracting the attention of manufacturers and logistics operators in Paraguay.

These regions reflect how the maquila industry in Paraguay is sculpting a more geographically balanced industrial network in the country.

Job Creation: A Multitude of Opportunities

Job creation is, in turn, one of the main contributions of the maquila industry. Currently, the maquila system has 35,447 direct jobs. In October, companies in the sector hired 383 new employees, which represents a year-on-year growth of 6,676 jobs. In the most comprehensive and strategic understanding of the term maquila, a wide range of industries are generating growth in employment. The sector that stands out the most in this regard is the textile and apparel industry, which employs 8,076 workers in the system. Close behind is the auto parts sector, with 7,963. Intangible services—a growing category that includes technology, back-office operations, and other digital services—employs 3,959 people. Fourth and fifth place are, respectively, plastics and chemicals, with 2,742 employees.

Furniture manufacturing, pet food production, and the metalworking industry also stand out, since each has more than 1,000 direct jobs. The figures are not only evidence of the maquila sector’s role as an engine of exports, but also of its importance as a generator of formal, stable, and diversified employment in multiple value chains.

A Winning Model to Attract Investment

It is no coincidence that the maquila industry operates with such high volumes. The country has become an increasingly attractive proposition for the manufacture and re-export of products, due to a combination of very low labor costs, an abundant and competitive energy supply, an efficient logistics infrastructure, and a stable macroeconomic environment. In addition, the maquila regime itself provides a predictable and transparent legal framework that guarantees favorable conditions, such as tax incentives, simplified procedures, and the ability to import raw materials and machinery. All of these factors are making Paraguay an increasingly attractive destination for global companies looking for alternative production sites or seeking to restructure their supply chains. Faced with trends such as nearshoring and regional integration, the competitive advantages of Paraguay’s maquila are key to positioning it to capture new investment.

Conclusion: A sector with a promising future

The performance of the maquila industry has demonstrated its key role in Paraguay’s economic strategy and the growth potential it has for the coming years. With an export volume that exceeded USD 1 billion, thousands of new jobs, and a high degree of participation across a very diverse range of industries, the maquila formula has proven to be a reliable growth driver for competitiveness and industrial development. As the country continues to strengthen its industrial base and attract new investment, the maquila industry in Paraguay is expected to remain a strategic pillar in the long-term process of economic progress and deeper insertion into global value chains.

The Colón Free Zone is a free trade zone in Panama and one of the most important commercial and logistics centers in the Western Hemisphere. Located on the Atlantic entry point of the Panama Canal, the Colón Free Zone has been serving as a center for international trade, distribution, and re-export for over 70 years. The free zone connects markets from the Americas, Europe, and Asia.

A Strategic Hub for Regional Commerce

Currently, the Free Zone continues to consolidate its position as a regional logistics powerhouse by presenting major benefits to companies interested in penetrating the Latin American market. Dovi Eisenman, president of the Colón Free Zone Users Association (AUZLC), indicated that this free trade zone is consolidating itself as a strategic point for regional commerce and as an engine for economic growth for Panama.

“Colón Free Zone continues to be a preferred destination for foreign investment and an important economic engine for Panama,” Eisenman said. He added that “many foreign companies are coming to Panama to locate themselves in the Colón Free Zone by the benefits and incentives that we have in Panama to attract foreign investment.”

Global Connectivity and Business Diversity

The businessman explained that the Colón Free Zone “is a strategic point for the development and generation of trade in the region, in addition to being a door to the Atlantic and Pacific oceans and having access to more than 1,400 ports in the world through the Panama Canal.”

There are currently 2,800 registered companies in the Colón Free Zone, “representing various areas such as logistics, pharmaceuticals, textiles, electronics, and automotive parts. These companies take advantage of the excellent infrastructure and world-class connectivity that the Free Zone has, as well as its efficient customs regime to operate their international supply chains and regional distribution,” Eisenman stated.

Competitive Advantages for Companies

Eisenman explained that companies have multiple competitive advantages in the Colón Free Zone. These include: “The benefits of operating in the United States dollar, a stable and dollarized economy, and a very favorable geostrategic location between two continents. In addition, Panama is a country with a long-standing tradition of being a business-friendly environment with a solid and growing financial services sector, which makes Panama an attractive option for multinational companies that are interested in establishing a presence in Latin America.”

Fiscal and Customs Benefits

The businessman noted that Colón Free Zone companies operate under a special fiscal and customs regime, which includes the free importation, storage, and re-exportation of goods. For this reason, the Colón Free Zone is “one of the largest free trade zones in the world, after Hong Kong.”

The Colón Free Zone’s close proximity to the largest ports, modern warehouses, and multimodal transport links—including the Panama Canal Railway—offers a streamlined and efficient logistics ecosystem for companies looking to move their goods throughout the Americas, which reduces costs and optimizes delivery times.

Economic Contribution and Local Impact

The Colón Free Zone president also indicated that “last year, we generated more than 50 million dollars per year as a result of the commercial activity that is carried out by all the users of the Free Zone. Of those $50 million, we deliver about $30 million to the Central Government, and then it is the Central Government that takes care of distributing it among the municipalities,” Eisenman explained.

The businessman’s statements were in response to a controversy generated by statements made by Colón’s mayor, Diógenes Galván, who had indicated that in the Colón Free Zone, “businesses are not paying taxes and that is what slows down the district.”

Clarifying Misconceptions About Taxation

Eisenman responded to the comments by stating that “the mayor from the start should have clarified, because the story was completely inverted, as if the businessmen were to blame for what is happening.”

Eisenman indicated that “what I can tell the mayor is that he should be very well informed because by what he said, he confused not only the general public but also every one of us. We, as Free Zone businessmen, don’t understand what he means by ‘not paying taxes.’”

According to the president of the AUZLC, “people in general, including the mayor of Colón, do not understand the way our free zones work in Panama, because our Free Zones have special regimes, which I will briefly explain.”

Fees, Permits, and Local Obligations

“It’s important to know that the free zone companies pay all the fees, permits, security, sanitation, taxes on local sales, social security, and all operational costs. All services that a city hall or municipality normally collects are the services that are paid to the administration of the Colón Free Zone,” Eisenman said.

In addition, he noted that beyond these fees, companies pay other operational fees for operating in the jurisdiction of Colón. “We also pay for other services for operating within the Colón area, and that costs $5,000 per year, being $2,500 for operation and $2,500 for representation,” the businessman stated.

He went on to clarify that “we also pay by the square meter of the space that we occupy, because all the land in there is rented, it is not privately owned; it is rented for 20 years.”

Strengthening Understanding of Free Zone Operations

In light of these explanations, the president of the AUZLC stated that “we are active taxpayers, our companies pay rent, permit taxes, and everything within the law and the regulations that we have.” The businessman said that this contributes to a more accurate understanding of how free zones contribute to economic development and challenges common misconceptions about tax exemptions.

The Colón Free Zone Users Association (AUZLC)

The Colón Free Zone Users Association (AUZLC) was founded on November 5, 1979. The Association was created by a group of entrepreneurs who decided to take the initiative to unite in defense of the rights of the Free Zone users and to strengthen the competitiveness of this important Panamanian institution.

Since then, the AUZLC has been working day by day to promote greater collaboration between the private sector and the public authorities, in order to make the Free Zone more efficient and attractive as a platform for global commerce. The Association promotes the continuous improvement of policies, supports business development initiatives, and also seeks to promote sustained and sustainable growth in the Colón region.

Who Is Dovi Eisenman?

Dovi Eisenman is the current president of the Colón Free Zone Users Association (AUZLC). In addition, Eisenman is the CEO of Grupo FCI, a Panama-based company that provides transportation, e-commerce, distribution, customs management, and third-party logistics (3PL) services.

He is also the president of Fundación Voluntad Panamá. He has a Master’s degree in Administration and Transportation Logistics Management. Eisenman is a professional in the area of international maritime transport, and he has worked closely with ship captains, which has allowed him to establish connections with a large number of global shipping agents.

Looking Ahead: The Future of the Colón Free Zone

The Colón Free Zone is one of Panama’s most resilient economic institutions, and it represents the country’s commitment to trade, openness, and free markets. Despite the challenges the free zone has faced over the last decade, it has continued to evolve and adapt to changes in the global economy.

For instance, the Colón Free Zone has embraced digitization and is implementing sustainable business practices to remain competitive in the changing global market.

A Catalyst for Panama’s Economic Growth

In the future, with continued support from the authorities and with the leadership of the current president of the AUZLC, Dovi Eisenman, and active participation of the organization’s members, the Colón Free Zone has an opportunity to increase its influence as a regional logistics hub, attract new investment, and continue to contribute to the long-term prosperity of Panama.

As Eisenman stated: “The Colón Free Zone is not just a place of business, it’s a catalyst for economic growth and international cooperation, which strengthens Panama’s role as the commercial bridge of the Americas.”

Uruguay has formally taken over the Presidency of the Organization for Economic Cooperation and Development (OECD) economic development program for Latin America and the Caribbean.

Building on Strengths and International Partnerships

The OECD’s economic development program for Latin America and the Caribbean (ECLAC) brings together OECD member countries and regional partners working to design, coordinate, and implement effective public policies to address common development challenges and promote sustained, inclusive growth.

The presidency, which the Uruguayan government and the organization will hold in joint coordination until 2028, will be based on four pillars: productivity, social inclusion, institutions, governance, and environmental sustainability.

“The Ministry of Foreign Affairs, through its involvement in this area of the OECD, will continue working to strengthen the program, so that its actions are in line with the real interests of the countries of the region and benefit their population,” said Deputy Minister of Foreign Affairs Valeria Csukasi.

An Opportunity to Lead the Region

The OECD economic development program for Latin America and the Caribbean is designed to support and stimulate public policy innovation and regional cooperation to tackle the challenges that countries in the region face. From strengthening social protection systems to promoting sustainable economic growth, the program plays a crucial role in helping countries build more inclusive and prosperous societies.

Uruguay’s new position will enable the country to strengthen and diversify South-South cooperation with countries in the region, advancing governance, transparency, competitiveness, and other essential aspects for the well-being of society.

Strengthening dialogue and collaboration among countries, international organizations, and civil society will be central to the new round of work under Uruguay’s coordination. In this sense, Deputy Minister Csukasi advanced that her visit to the OECD headquarters was an opportunity to meet with international partners in order to define work priorities and identify cooperation opportunities. “We have also had the opportunity to meet with the Secretary-General of the OECD, Mr. Mathias Cormann, and with Ms. Elsa Pilichowski, Director of Public Governance, among others,” said the deputy minister.

Dialogue and consensus-building among governments, civil society, and the private sector are key to achieving the goals of the economic development program. The program’s member countries and partner nations in the region agreed to structure their work around four strategic pillars of action. These include productivity, social inclusion, strengthening institutions and governance, and sustainability.

Promoting Productivity and Innovation

One of the program’s key pillars is productivity, which is essential to economic growth and competitiveness. The OECD and participating governments will work together to support policies that help Latin American and Caribbean countries increase productivity, including by integrating small and medium-sized enterprises (SMEs) into regional and global value chains.

Opening access to technology and improving training and financing for SMEs are priorities that will receive particular attention during the Uruguayan Presidency. The program also supports innovation and competitiveness through better policy design and implementation, helping businesses to grow and compete in regional and global markets.

Expanding Opportunities for All

Expanding social inclusion and access to labor markets is another strategic objective. The OECD will work with Latin American and Caribbean governments to promote more inclusive social protection systems, better vocational training, and access to education.

Attention will also be paid to the benefits of digital transformation, given that many people in the region do not yet have equal access to these technologies. The expansion of public transport and urban infrastructure is also a clear priority to make access to employment and services more inclusive.

Building Stronger Institutions and Governance

Strengthening institutions and governance is critical for creating more transparent, accountable, and effective public policies. The OECD program promotes best practices in public administration and supports a culture of integrity to build trust between governments and citizens.

Uruguay will support countries in the region to improve their institutional performance, strengthen the rule of law, and protect human rights. Policies that promote fiscal transparency, for example, can also help attract more investment and make public spending more efficient and transparent.

Environmental Sustainability and Resilience

Latin America and the Caribbean face significant environmental challenges, including climate change, deforestation, and natural disasters. The OECD economic development program supports countries in the region to develop and implement environmentally sound policies, strengthen resilience to climate-related risks, and better manage natural resources.

The program also supports clean energy transitions and efforts to reduce carbon emissions. Biodiversity protection is also high on the list of the governments’ and OECD’s environmental priorities.

Enhancing Regional Cooperation and Dialogue

During her official visit to the headquarters of the OECD, Deputy Minister Csukasi had the opportunity to meet with different international partners to exchange on issues of common interest. Among these, she held a meeting with the OECD Secretary-General Mathias Cormann, with whom she discussed the strengthening of relations between Uruguay and the Organization in key areas such as the quality of institutions, good governance, and sustainable growth.

“We agreed on the need to continue working together in order to ensure that regional public policies are aligned with best practices in OECD countries, which will help increase transparency and competitiveness,” said the Deputy Minister after the meeting.

Subsequently, she met with Anabel Gonzalez, Vice President for Countries and Regional Integration of the Inter-American Development Bank (IDB), with whom she identified opportunities to explore synergies between the IDB’s regional integration projects and the OECD’s capacity-building initiatives.

In turn, she had meetings with Ragnheidur Elin Arnadottir, Director of the OECD Development Center, and Elsa Pilichowski, Director for Public Governance in the OECD, to discuss opportunities for advancing policy coherence in areas of common interest such as digital government, education, and transparency.

21st Meeting of the Executive Committee

Dya Cukasi also co-chaired, together with Costa Rica’s Minister of Foreign Trade, Manuel Tovar, the 21st meeting of the Executive Committee of the program’s participants, which served to assess progress made in recent years and to give shape to the next phase of work.

She also participated in a session with members from various countries of Latin America and the Caribbean and officials of the OECD. She also presented a speech in which she highlighted Uruguay’s strengths in matters such as digital government, green energy, and social protection, and expressed her government’s commitment to working in a pragmatic way to develop public policies that ensure the well-being of citizens and benefit from synergies with regional and multilateral work.

Uruguay’s Presidency

Member countries and partner nations recognized Uruguay’s pragmatic approach and record of successful governance and economic management, with its emphasis on social protection, green energy, and regional integration.

During the next stage of the work program, Uruguay will focus on building long-term and effective partnerships, translating policy recommendations into practical results, and leveraging its experience in innovation to support reforms in other countries in the region.