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FREE-TRADE ZONES IN COLOMBIA By: Martin Gustavo Ibarra

Discover the different types of free trade zones in Colombia, including uni-enterprise, strategic companies, and industrial parks. Explore the benefits, such as clustering opportunities and incentives for offshore hydrocarbon projects. Learn about the employment and investment generated by FTZs and their impact on municipal tax revenue.

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FREE-TRADE ZONES IN COLOMBIA By: Martin Gustavo Ibarra

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  1. FREE-TRADE ZONES IN COLOMBIA By: Martin Gustavo Ibarra

  2. Free-Trade Zones in Colombia

  3. Types of free-trade zones Uni-enterprise Employer Strategic companies with large investments Industrial parks with different companies (min 5) -Possibility of clustering Offshore Hydrocarbon projects at sea

  4. User companies: • 940 Distribution OF FREE-TRADE ZONES BY REGION

  5. User companies: • 940 FTZ: employment and investment generators Total employment: 171.359 Example: FTZ Bogota produces 500 jobs/ha Investment 2018: 64% of the investments located in FTZ would not have been implemented were it not for the incentives 289% EXECUTION Source: Hernando José Gómez (2019)

  6. Types of Free-Trade Zones

  7. FTZ users by sector 39%

  8. Example: Municipal tax revenue per capita 2017 without free zone vs. with free zone Municipalities with FTZ Municipalities without FTZ 1 2 3 Cauca DEPARTMENT - CAUCA 5 6 8 Ranked by per capita income among the 42 municipalities of the Department of Value: USD

  9. International fiscal leveling

  10. Thank you!

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