Panama's Colón Free Zone Denies Being a Hub for Contraband

The management of Panama's Colón Free Zone (ZLC), the largest in the Americas, has strongly refuted allegations that it serves as a center for contraband and illicit trade. The ZLC dismissed claims made by the Transnational Alliance to Combat Illicit Trade (Tracit) as "false and unfounded."

Tracit's director, Jeffrey Hardy, had presented a report in Panama City suggesting the ZLC is a "central vulnerability" for illicit trade, money laundering, and the distribution of illegal goods, even calling it a "Disneyland of contraband" due to perceived limited oversight. The report, presented at an event organized by the Chamber of Commerce, Industry, and Agriculture of Panama (CCIAP), drew a sharp response from the ZLC.

In a statement, the ZLC management asserted that Tracit's publications falsely attribute illicit activities to the zone and its users. They highlighted their policy of reporting any illegal acts and pointed to their growing commercial activity, noting that reported illicit incidents represent less than 0.00042% of their annual trade volume, which exceeds $25 billion. The ZLC also noted that Hardy's information appeared to be based on data over two years old, predating the current administration's improvements.

During a meeting with Hardy and representatives from Philip Morris International and the National Customs Authority (ANA), ZLC officials reportedly observed Hardy's lack of awareness regarding the zone's current situation. The ZLC statement characterized Hardy's public declarations as "interested and tendentious." Hardy, however, told EFE that his recommendations for strong measures in Colón were based on the zone's negative impact on consumers in Panama and neighboring South American economies due to the influx of counterfeit and illegal products.

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La Zona Libre de Colón... también se utiliza ampliamente para el contrabando, el lavado de activos basado en el comercio y la distribución de bienes ilícitos.