Colon Free Zone pushes expansion plan amid illicit trade accusations

Panama's Colon Free Zone (CFZ) is moving forward with ambitious expansion plans, even as it faces criticism for allegedly being a hub for illicit trade. Luisa Napolitano, the CFZ's general manager, met with the board of the Chamber of Commerce, Industries, and Agriculture of Panama to discuss modernization and expansion initiatives.

The meeting occurred shortly after the Transnational Alliance to Combat Illicit Trade (TRACIT) labeled the CFZ the "Disneyland of contraband." TRACIT's report cited limited oversight within the zone, suggesting it facilitates the concealment, repackaging, and redistribution of illegal goods. The organization urged Panamanian authorities to implement stricter measures.

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We have more than 490 cameras, which was not seen before in the Colon Free Zone, and we have a monitoring center working 24/7. We have modernized the entry for visitors and users, making it fully digital.

Napolitano countered these claims by highlighting the CFZ's modernization efforts. "We have more than 490 cameras, which was not seen before in the Colon Free Zone, and we have a monitoring center working 24/7. We have modernized the entry for visitors and users, making it fully digital," she stated. She presented the Newfields project, a master plan to expand the CFZ by 280 hectares, which is expected to go to tender in November.

Aurelio Barría, president of the Chamber of Commerce, acknowledged the ongoing challenges. "Certainly, there are challenges, because it is a problem that affects all countries; however, we view the progress made by the Colon Free Zone in this particular area favorably. This is work that needs to be strengthened over time, but we see it positively," he said. The expansion aims to attract new businesses and create jobs, with the first phase projected for completion before the current government's term ends.

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Certainly, there are challenges, because it is a problem that affects all countries; however, we view the progress made by the Colon Free Zone in this particular area favorably. This is work that needs to be strengthened over time, but we see it positively.