The Panama Colon Free Zone, considered to be the second most astronomically immense free zone in the world, dedicated to re-exporting a wide variety of merchandise to Latin America and the Caribbean have experienced a tremendous magnification in the last years, contributing highly to Panamas economy. Panama´s free trade zone has been the base of the country´s economic policy for many years. Free trade zones promote the intense economic growth in a certain area by creating a liberalized trade regime. Panama has increase 20% per year in incomes due to the Free Zone of Colon that generates more than two billion dollars each year. Colon free zone contributes 7.4% of Panama's total GDP; engendering around 27,347 permanent employments. (Economy Watch) a free zone attracts international investors because these areas are free of taxes to investors and traders. Also, this will promote domestic competition elsewhere in the country. In addition, free trade increases the mercantile activity because it allows commodity and services to export the products anywhere around the world.
Lets start with the very recent event, which has been headline for many newspapers, which is broken relationship between panama and Venezuela. The Free Zone keeps a clear operation to run out the business. In 1934, the Coalesced States engendered the free trade zone in Colon. Dr. Thomas E. Lyons wanted to expedite and embolden foreign commerce and establishing a free zone was the solution. A free trade zone is an area that eliminates the traditional trade barriers, such as tariffs, and minimizes the regulations cognate to administrative procedures. Tariff and tax mitigation is designed to lower the costs of operations engaged in international trade and thereby eng...
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...he unprotected coastline on its oceans. These things have made Panama an impeccable place for illicit drug trafficking since it offers many possibilities for traffickers to convey substances. While drug trafficking is a sizably voluminous quandary for the country and especially for the regime for the poor people these illicit business designates opportunities. In nor east part of Panama subsist a comarc called Gunayala. The Guna people do not cultivate or process drugs but they utilize their islands and territories as an opportunity. Those lands they benefit from they have utilized it for a place to obnubilate, and evade the Panamanian police. This nor east area of Panama has become a region for drug trafficking obnubilating from the ocular perceivers of the ascendant entities. Around 20 years ago, this zone became a component of the Central American drug circuit.
... Factbook- Panama." Welcome to the CIA Web Site — Central Intelligence Agency. Web. 02 Apr. 2011. .
The Empowerment Project::The Panama Deception. (n.d.). The Empowerment Project::The Panama Deception. Retrieved May 4, 2014, from http://www.empowermentproject.org/pages/panama.html
The History of the Panama Canal The Panama Canal is called the big ditch, the bridge between two continents, and the greatest shortcut in the world. When it was finally finished in 1914, the 51-mile waterway cut off over 7,900 miles of the distance between New York and San Francisco, and changed the face of the industrialized world ("Panama Canal"). This Canal is not the longest, the widest, the deepest, or the oldest canal in the world, but it is the only canal to connect two oceans, and still today is the greatest man-made waterway in the world ("Panama Canal Connects). Ferdinand de Lesseps, who played a large role in building the Suez Canal in 1869 (Jones), was the director of the Compagnie Universelle Du Canal Interoceanique de Panama ("Historical Overview").
The subject that I have chosen for my essay is: ‘Maras in Central America. Analyse its social causes and consequences’ – a gang that operates on territories of Central and Latin America. During writing my essay I want to analyse the phenomenon of how a not that big community of Salvadoran young immigrants has been transformed into one of the most dangerous and the largest gang groups in the United States and Northern Central America in about 30 years. Also I would like to analyse and present social causes and consequences of Las Maras. The past 20 years has been an escalation of crime in Central America. Surprisingly not in Colombia but in Honduras, El Salvador and Guatemala are one of the most dangerous countries in the world. According to
El Salvador’s geography left their country and people extremely exposed to invasions. The people had to create a certain image in order to keep their country safe. “To survive, El Salvador had to develop tough-and often violent-stance toward the outside world” (37,38). This situation is one of the many reasons that gang violence is so present in El Salvador. The country is only connected to one ocean (the pacific) and is surrounded by
Panama is the southernmost country of Central America. It sits on the isthmus connecting north and South America. Panama remains bordered by Costa Rica to the west. Colombia is to the southeast. The Caribbean is to the north and the Pacific Ocean to the south. Panama City is the capital of Panama. Explored and settled by the Spanish in the 16th century, Panama broke with Spain in 1821.Panama has the third largest economy in Central America and it is the fastest growing economy and the largest per capita consumer in Central America. In 2013, Panama ranked fourth in Latin American countries in terms of the Human Development Index, and is ranked 59th in the world. Studies in 2010 show that Panama remains as the second most competitive economy in Latin America. Panama’s jungle is home to an abundance of tropical plants, animals, and birds and some of them found nowhere else in the world.
Since 2005, Muehlmann has spent many years conducting fieldwork on several fishing communities in Northern Mexico. (Muehlmann 2014:11) These communities are at the center of the drug trafficking economy and they are used as pit stops for transporting narcotics to the United States. Muehlamann 2014:5.
As Ian Fletcher pointed out in Free Trade Doesn’t Work: What Should Replace it And Why, nations need a well-chosen balance between openness and closure toward the larger world economy (Fletc...
In January 1994, the United States, Mexico, and Canada implemented the North American Free Trade Agreement (NAFTA), forming the largest free trade zone in the world. The goal of NAFTA is to create better trading conditions through tariff reduction, removal of investment barriers, and improvement of intellectual property protection. NAFTA continues to gradually reduce tariffs on set dates and aims to eliminate all tariffs by the year 2004. Before NAFTA was established, investing in Mexico was a difficult process. Investors needed the Mexican Government's approval and were also required to meet specific investment guidelines. These requirements necessitated investors to export a set level of goods and services, utilize domestic goods and services, and transfer technology to competitors. Under NAFTA, investors no longer need government approval to invest and are treated as domestic investors. NAFTA has also increased intellectual property rights and allowed companies to obtain patents in Mexico and Canada. In the past, companies were hesitant to export research and development intensive goods; with increased intellectual property protection, however, exports of these goods have shown a definite increase. As a result of better trading conditions, exports and imports of most other goods have increased along with the research and development intensive goods. In Mexico, the elimination of investment barriers has allowed investment to expand. Increased trading and investment has then created many jobs, raised the Gross Domestic Product, and lowered consumer prices.
middle of paper ... ... Works Cited Bates, Theunis. “The Sinaloa Cartel is now the world's biggest supplier of illegal narcotics. How did it become so powerful?.”
Drug trafficking is a prohibited, global trade that involves the production, the distribution, and the sales of drugs. It is a topic that has become a very large issue all over the world. It also has had a very big effect on many different countries because they often depend on the business that the drug trafficking creates. Since it has become such a problem, there have been many different efforts to put a stop to drug trafficking by different enforcement agencies. A website about drug statistics, drugabuse.net, indicated that the Drug Enforcement Agency or DEA, as it is well known as, makes over thirty thousand arrests each year dealing with the illegal sales or distribution of drugs. It is also believed that Mexico’s economy would shrink by over sixty-three percent if they lost their drug trafficking industry. There are many different tribulations like this that drug trafficking has created. Many people see it as such a vital asset to some countries, so it has emerged as an extremely big business that brings in a boatload of money. Just like any other immense problem, drug trafficking has its causes and effects
Globalization has become one of the most influential forces in the twentieth century. International integration of world views, products, trade and ideas has caused a variety of states to blur the lines of their borders and be open to an international perspective. The merger of the Europeans Union, the ASEAN group in the Pacific and NAFTA in North America is reflective of the notion of globalized trade. The North American Free Trade Agreement was the largest free trade zone in the world at its conception and set an example for the future of liberalized trade. The North American Free Trade Agreement is coming into it's twentieth anniversary on January 1st, 2014. 1 NAFTA not only sought to enhance the trade of goods and services across the borders of Canada, US and Mexico but it fostered shared interest in investment, transportation, communication, border relations, as well as environmental and labour issues. The North American Free Trade Agreement was groundbreaking because it included Mexico in the arrangement.2 Mexico was a much poorer, culturally different and protective country in comparison to the likes of Canada and the United States. Many members of the U.S Congress were against the agreement because they did not want to enter into an agreement with a country that had an authoritarian regime, human rights violations and a flawed electoral system.3 Both Canadians and Americans alike, feared that Mexico's lower wages and lax human rights laws would generate massive job losses in their respected economies. Issues of sovereignty came into play throughout discussions of the North American Free Trade Agreement in Canada. Many found issue with the fact that bureaucrats and politicians from alien countries would be making deci...
While free trade has certainly changed with advances in technology and the ability to create external economies, the concept seems to be the most benign way for countries to trade with one another. Factoring in that imperfect competition and increasing returns challenge the concept of comparative advantage in modern international trade markets, the resulting introduction of government policies to regulate trade seems to result in increased tensions between countries as individual nations seek to gain advantages at the cost of others. While classical trade optimism may be somewhat naïve, the alternatives are risky and potentially harmful.
The economic impact of the Panama Canal is best noted in increased jobs and income for individuals, families, and the entire economy of the United States. The main way by which the canal has impacted the US economy is increased export and import travel and trade. In fact, goods are exchanged through the Panama Canal on a daily basis. It is reported that more than 10% of U.S. shipping passes through the Panama Canal. Besides providing avenues for exchanging import and export goods
Many other countries operate special customs areas, such as free trade zones (also referred to as FTZs) and export processing zones. U.S. exporters and other interested parties should contact the embassy or customs officials of individual countries for specific procedures, requirements, and arrangements. Although there may be several similarities, it should not be assumed that a free trade zone overseas operates under the same principles as a foreign trade zone in the United States. Contact information for foreign embassies is available by calling the Trade Information Center at 800- USA-TRADE, or by visiting www.export.gov/tic. Many U.S.freight forwarders also have working relationships with trade zones overseas and can provide information on the documentation required to ship goods through them.