This is really big news and all good for Panama.    A market of one billion consumers has been opened up to products that are manufactured, processed, assembled or finished in Panamanian Free Trade Zones, without requirements for having value added locally.

Companies under the free zone regime in Panama are offering local and foreign companies the ability to export to China under the special conditions that govern them, with the aim of achieving the high production volumes required.

Products which are manufactured, processed, assembled or finished in processing zones in Panama may enter China, according to a statement released by the Asian government to its Panamanian counterpart.

Capital.com.pa reports that “Free Zones Association of Panama (Azofrap) have already been in contact with U.S. and Latin American companies, among others, and are offering the opportunity to companies in Panama who are interested in exporting to China.”

“Obviously, there is an important detail, which is that exporting to China requires large volumes and we are promoting the integration of international value chains, where business groups established in Panama composed of one or two companies join to assemble products and export them to China,” noted Ricardo Muñoz Tejeira, president of Azofrap.

Source: Capital.com.pa