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Weekly Report - 11 July 2013 (WR-13-27)

PANAMA: Martinelli tackles trade troubles

President Ricardo Martinelli paid a visit this week to Caracas where he met his Venezuelan peer, President Nicolás Maduro. While the two pledged to boost trade and investment, the real reason behind Martinelli’s visit was to secure payment of growing debts owed by Venezuelan companies to suppliers in Panama’s Colón free trade zone (FTZ), the second biggest in the world after the one in Hong Kong. This comes amid an FTZ-related dispute with Colombia and has become a concern for the pro-business government given the effect of the drop in FTZ trade on Panama’s otherwise impressive growth rates.

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