Colón Free Zone

The Col\u00f3n Free Zone in Panama is a significant economic area established in the mid-20th century. It functions as a manufacturing, warehousing, and reexport center, similar to maquiladora districts in other Central American countries. Located at the northern end of the Panama Canal, it was designated a free-trade zone in 1953 and is recognized as one of the world's largest duty-free ports.123

Factories within the zone produce various goods, including chemical products, textiles, machinery, and transportation equipment, utilizing raw materials from international sources. Finished products are then distributed to countries across Central and South America, as well as for domestic use. The zone's development has been crucial for Panama's economy, particularly in redeveloping properties after the withdrawal of U.S. forces.1