Panamanian president improvises changes for a free trade zone

His Excellency, Mr. Ricardo Martinelli, President of the Republic of Panama, has informed the leadership of the Panama Diamond Exchange (PDE) that he will soon be initiating a session of the country's National Assembly to complete the legislation, granting a free zone status to the diamond exchange. Also, President Martinelli informed that his government would expedite Panama's membership in the Kimberley Process.

The legislation before the Panamanian National Assembly will provide permanent free trade status to the area of the Panama Diamond Exchange, enabling import and export of diamonds from the zone to be free of customs & tariffs, and a preferential tax exempt status for companies with businesses within the area of the Panama Diamond Exchange. The special legislation was necessary because, although Panama operates the world's second-largest free trade centre after Hong Kong, this is the first time that such a status is being extended outside of the area of the Panama Canal.

"This is indeed very good news, certainly for the Panama Diamond Exchange but also for the entire international diamond community," said Erez Akerman, PDE President. "What it effectively will do is provide the diamond trade easy passage into the fast growing Latin American diamond market, complemented by a tax environment that compares favorably with those existing in diamond centers like Belgium, Israel and Dubai. This is an essential step in our program to transform Panama into the primary diamond, gemstone and jewelry center for all of Latin America."

The president's commitment came following a meeting in Panama City on October 13, attended by an international industry delegation, led by World Diamond Council Chairman Eli Izhakoff, and officials from the Panama Diamond Exchange. The international delegation included senior diamond industry officials from Israel and the United States.

"President Martinelli's pledge to drive through the steps necessary to complete Panama's KP membership was most encouraging," said Mr. Izhakoff. "And his personal involvement in the entire process is definitely apparent. Immediately upon my return to New York from Panama, I was contacted by Panamanian government officials about procedural steps that need to be taken in order to obtain KP membership. I am confident that they are on track and will get the job done within a very short period of time."

The Panama Diamond Exchange is currently located in the exclusive Torre de las Americas complex in Panama City's Punta Pacifica business district. It eventually will move to the dedicated Panama Diamond Exchange Complex, currently being built in Costa del Este.