La Colon Free Zone (CFZ) is the premier free trade zone in the western hemisphere. Created in June 1948, the Colon Free Zone has served for more than 69 years as the major trading center for Latin America and the Caribbean. Its operations began in a segregated area of 35 hectares originally in Colon Downtown and with 10 companies. Now, this free trade zone is divided into nine different sectors totaling 1,064 hectares for exhibition with more than 1,800 companies.
The main objective of Colon Free Zone is to promote international trade under a tax exempted work frame most of the commercial activities are wholesale oriented, and logistics and banking activities support them.
Colon Free Zone is located in the middle of the Americas at the Atlantic entrance of the Panama Canal, specifically at Colon City, becoming a natural distribution center (DC) serving to the regional market of Central America, South America and the Caribbean. It is surrounded by four containerized seaports, two cruise terminals, an international airport and a railroad terminal.