Curaçao is drafting its strategy in order to transform its free trade zone regime into a catalysator of economic growth

In light of new opportunities

WILLEMSTAD - Martin Ibarra of Araújo- Ibarra International Trade Consultants recently paid a visit to the Minister of Economic Development Mr. Ruisandro Cijntje at the onset of the development of a strategic plan to position the Free Zones of Curaçao as a catalysator of economic growth in light of the new opportunities that are presenting within the new trends of international trade and businesses.  Free Zones have been declared as the best tool that a country can use for economic reactivation, employment generation and promotion of social progress after COVID-19 by the United Nations Conference on Trade and Development (UNCTAD). Because of this, alongside the World Free Zones Organization, the UNCTAD has established a Global Alliance of Special Economic Zones, in which it describes free zones as: An indisputable instrument for development, social progress and international competitiveness.   

Mr. Ibarra emphasized during his meeting with Minister Cijntje, at the onset of the process to draft the strategic plan for the Free Zones of Curaçao, that it is imperative for Curaçao that its free zone regime gets in line with what the World Trade Organization (WTO) specifies. Futhermore, Curaçao already has the infrastructure in place to accommodate any interest investors to establish. With its geographic location in the Caribbean, Curaçao has to take advantage of its unique conditions and unveil its potential to offer international business the best investment experience of the Caribbean.

Free Zones - instrument for employment generation

Because of its nature, free zones are instruments of employment generation. Up to 80 million jobs around the world are currently provided by free zones and now with global reactivation after the pandemic, free zones around the world are joining forces and working in the possibility of doubling-up the employment provided to reach a total of 160 million jobs.  In Latin America and the Caribbean, there are 25 countries that have free zone regimes that provide nearly 5 million jobs throughout the region. In countries such as the Dominican Republic and Costa Rica, free zones play a key role in export promotion. Respectively, free zones represent approximately 60% of total exports.  

Moreover, Curaçao’s will unlock its potential considering that   its size and population density does not determine its capacity of trading internationally. Countries such as Costa Rica and Uruguay in Latin America and Hong Kong and Singapore in Asia, are examples in which its exports per capita outgrow the world’s.

New opportunities presenting in the world

The Inter-American Development Bank (IDB), estimates an arrival of up to $70,000 million USD in new investments in regard to the new nearshoring and friendshoring trade and business trend. Current affairs such as the trade war between China and the USA and now the Russian invasion towards Ukraine, are reconfiguring international trade.

Lately, several countries such as Colombia, Mexico and Brazil have updated their legal framework to get in line with latest international trade trends such as nearshoring and e-commerce. Modern free zones have legal frameworks that allow them to specialize in service provision, data administration and furthermore, e-commerce related services. Curaçao can not be left behind.

Broad participation in drafting the Curaçao free zone strategy

 

A strategic plan to position the free zones of Curaçao is in the making and will be a process encompassing a broad participation of all relevant parties.  The international consultants of Araújo-Ibarra,  alongside  its CEO and renowned expert in development of free zones, Mr. Martin Ibarra, will facilitate the process and draft the strategic plan.  CURINDE looks forward to the cooperation of all parties approached in order for this to be a start of a future filled with new economic activities and employment opportunities for our community.




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