Fast Growth in Colon Free Zone

Colon Free Zone is located at the second biggest city Panama, which is the largest free trade zone second to Hong Kong and is also one of the oldest free trade areas in the world. The import and export trade in 2011 was up to USD29.12 billion, up 35% when compared to the total of 2010. The amount of the import was USD13.79 billion and the export amount was USD15.15 billion. There are approximately 3.065 thousand operation factories in the zone and the major providers are Jewish, Arabian, Indian and Chinese. There are about 20 Taiwanese factories in the zone and they are mainly manufacturing auto parts and computer parts. The products in the zone mainly come from Asia, 36% from China, 24% from Singapore, 9% from the US, 5% from Hong Kong, and also 2% from Taiwan, H=Japan and France, The principal export trade products include the auto parts, hardware, bicycles, etc.

The export products of this free zone are generally medium to low cost products. As the competition of the market is violent, any business is done in the chamber. The zone of the free trade is mainly manipulated by three major merchants, Jews, Indians, and Arabians. The characteristic of the order is large in amounts and low in the price. The pay ways of Colon free zone are D/P and D/A. In order to get the chance of trade, the companies should consider accepting D/P. But open account trading is the most popular way for the Indian and the Jewish providers in the zone; thus, Taiwanese businessmen were compelled to follow them for attaining more orders. As a result, the risks of the bad debts have enhanced, making any credit works to be necessary before the deals are completed.