December 31st is the deadline set by the WTO for Costa Rica, El Salvador, Guatemala and Panama to stop subsidizing exports from free zones.

In her article on Eleconomista.net, María José Saavedra analyzes “… the long road of extensions and extensions” which is coming to an end now with the World Trade Organization (WTO), having set 31st December 2015 as the last date for the elimination of these subsidies.

“… Since the mid-nineties, the entity that oversees commercial powers in the world drew attention to countries seeking to attract investment using attractive tax exemptions, by, for example, granting subsidies to export companies located in free zones regimes (ZFR), special areas or processing areas, depending on the country. ”

Honduras and Nicaragua, as low-income countries, are exempt from this rule set by the WTO, while per capita income of its population does not exceed $1,000 for at least three consecutive years.

Saavedra analyzes the current situation in compliance with WTO rules, for each country in the region.

See: “CA: The end of export subsidies“