Located on the Carribean side of the Panama Canal, and opened for business in 1948, the Panama Free Zone is the world’s second largest free trade zone, after Hong Kong. The Zone itself is a massive 400 hectare area within the city of Colón, Panama.

Here, wholesale products coming from the U.S., Hong Kong, and Japan, are sent to Central and South America, free from tariffs. An estimated ten billion dollars worth of goods come through the zone each year.

Because the products are wholesale, one might think that this means they are cheaper. However, this is not necessarily so. Products in the Panama Free Zone are sold on a large scale basis and not meant for individual consumers. In fact, visitors need a permit to enter the area. Not to mention, purchases cannot be simply taken out of the Zona Libre. As the Zone is meant for exports, customers must give the stores their airport information and the goods will be delivered, at a charge, and will await their owner at the airport on the day of departure.

For cruise ship passengers and travelers alike, a smaller duty free shopping mall called Colon 2000 has been established. Colon 2000 makes for easier purchasing and better prices.

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Filed under: History on February 29th, 2008