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.