Colombia is one of the countries with more free trade zones in Latin America and this contributes considerably to the economic development of the country, through different motivations offered to companies located in the territory to carry out different import and export processes. On this occasion we will tell you about the importance of free trade zones in our country and the role they play.
What are free zones?
These can be defined as delimited geographical areas within Colombia. Within these zones, different industrial activities for the transformation of products and services or commercial activities are developed through special regulations that generate various customs, tax and foreign trade benefits.
In this sense, goods entering the free zones are considered as if they were outside Colombia. This means that the same import and export tax rules that apply in Colombia do not apply to them.
The Economic Development Observatory explains that the concept of free trade zone is something that dates back to ancient times. This is related to the fact that trade was fundamental for many cities, being understood as the main element of support and survival. In this context, with history, free trade zones were established mainly at strategic points along the routes through which international trade passed.
It was in this way that some free zones appeared, such as Gibraltar in 1704, Singapore in 1918 and Hong Kong in 1842. By the 20th century, the idea of free zones was spreading in Europe and other territories..
Types of free zones in Colombia
In Colombia, there are three main types of free trade zones: permanent or multi-company, special permanent or single-company and places declared by the customs authority. They are zones of special dynamism, fundamentally because they allow the operator to manage them and companies capable of developing their economic activities to be established there. In fact, the areas established as free trade zones are of vital importance for the country, since they encourage its economic growth.
Importance of free trade zones in Colombia today
These areas have different objectives that respond to the importance of their existence in Colombia. On the one hand, they seek to generate and create new jobs, as well as to attract new capital investments.
They also seek to be development poles to promote the competitiveness of the regions in which they are located and to develop competitive industrial processes. Free trade zones aim to simplify the procedures for the trade of goods and services and also to promote the generation of economies of scale.
Currently, Colombia is one of the Latin American countries with the most free trade zones, with 122 in total. In first place is the Dominican Republic; the other territories that have a considerable number of free zones are: Nicaragua, Honduras and Costa Rica. It is estimated that, as a whole, Latin American countries have 400 free trade zones, which in turn generate around 800,000 jobs.
The Observatory of Economic Development adds that, throughout the last years, free zones in Colombia have had a marked development, being great generators of foreign investment and also of employment for the region. Thus, the Observatory explains that the country's free zones function as engines of economic development. A striking case, they argue, is that of the free zone of Bogota, which stands out for its technology and services.
A 2016 study by the Andi Chamber of Free Zones showed how free zones in Colombia had more than 840 users, the majority (85%) dedicated to industrial activities of goods and services. That is a reflection of how free zones become one of the investment alternatives for different activities of companies that not only benefit themselves, but also contribute to the growth of an entire country.
