Palmaseca Free Trade Zone in Valle | Companies fear impacts due to 'unviable conditions': this is what the Ministry of Commerce responded to.

Unions such as the Inter-Union and Business Committee of Valle del Cauca (Ciev) remain concerned about the future of the Palmaseca Free Trade Zone, located in the municipality of Palmira, near Cali.

There, according to business leaders, more than 7,000 direct and indirect jobs have been created in the region for over 30 years.

These business owners fear changes in the rental rate, as some have expressed, and that they may have no choice but to close their businesses in this free trade zone area. They also pointed out delays by the government, through the Ministry of Commerce, Industry, and Tourism, as the process to select a new operator for the Palmaseca Free Trade Zone has not yet begun. They believe there is an atmosphere of uncertainty that is increasing by the day.

According to Juan Manuel Sanclemente, executive director of the Ciev, a dialogue is being sought with the Ministry of Commerce to maintain the free trade regime in the department.

So far, according to the union, five bid attempts have been submitted, all of which have been declared void.

"The contractual process led by the National Government to award a new lease and select a new free trade operator in Palmaseca (Palmira) has generated uncertainty in the business sector due to conditions deemed financially unviable," reads a statement from the Ciev.

It also reads: "This situation highlights the need to review the established terms, given the latent risk that the free trade regime in Palmaseca could be lost due to the lack of an award."

Meanwhile, the Ministry of Commerce, Industry, and Tourism announced that the bids will be submitted on July 8th, leading to the selection of the operator.

"The primary objective of the Government of Change is to maintain, strengthen, and promote the Palmaseca Free Trade Zone in the Cauca Valley, as well as the more than 100 other zones throughout the country. The goal is to strengthen these mechanisms, which are key to reindustrialization and internationalization," according to a report from this state entity, according to a document from the Ministry of Commerce, Industry, and Tourism on this situation.

Another section of the document reads: "Free trade zones are an instrument that promotes job creation, attracts new investment, increases productivity and competitiveness, and are also a lever for economic growth in the regions where they are established. They also foster economies of scale, benefiting micro, small, and medium-sized enterprises, as well as productive linkages and foreign trade."

In turn, the National Government maintains: "For this reason, the Ministry of Commerce, Industry and Tourism has been taking the pertinent actions for the selection of the administrator of the Palmaseca Free Trade Zone, for which it has published five selection processes since 2024 and has generated spaces for dialogue with the unions and other related actors, with the objective of guaranteeing the free trade zone's operation and a plurality of bidders."

The Ministry of Commerce also stated: "In line with this objective, and with a view to strengthening transparency and efficiency, in response to the various observations received during the public selection process, and in strict compliance with the principles of accountability, planning, and objective selection, those observations that ensure compliance with the criteria of economy and administrative efficiency, as well as the sustainability of the contract, have been accepted."

The Ministry of Commerce noted: " It is important to highlight that the conditions that have not been modified are not based on subjective criteria of the Ministry of Commerce, Industry and Tourism, but rather on the rigorous application of the observations and recommendations issued by the Comptroller General of the Republic, the Council of State and the specialized technical study carried out by CISA. This has been widely shared with the current operator of the Free Trade Zone and sufficiently expanded in the responses given to the observations presented in the different processes, thus constituting the legal and technical basis for the structuring and publication of each process."

"That said, it is important to mention that the structuring of the different selection processes, specifically regarding the estimation of the fee value and its respective increases, which has generated dissatisfaction on the part of the current operator, has been carried out on the basis that these must be aligned with adequate market margins, since the goal is to achieve balance and stability in the annual income and expenditure equation, and not to generate a specific profit in itself," the letter states.

In another section it states: "Likewise, it is worth clarifying that, in accordance with the principles of planning and objective selection, it is not possible to include all the changes and/or access the requests that are submitted in the observations stage, however, and as already mentioned, the Ministry has made numerous adjustments in the development of the different processes, based on the observations received, as can be seen in the background of all the processes, duly published in Secop."

"It is important to highlight that, during the execution of these processes, preventive support from the oversight bodies has been requested, with the aim of ensuring their strict legality and transparency at all times," the report states.

"Likewise, the Ministry is taking all necessary actions, within its jurisdiction, to secure the award of the contract for the administration of the Palmaseca Free Trade Zone. These actions are being carried out with the firm objective of ensuring operational continuity, providing guarantees to all stakeholders: sub-tenants, business owners, unions, local authorities, and the general public," the report states.

"To this extent, an open and constructive dialogue is maintained with the various sectors, promoting a transparent process aimed at strengthening the free trade regime as a key tool for competitiveness and regional development," the Ministry explains.

"Finally, the Ministry reiterates its invitation to associations, industry stakeholders, and, in particular, user operators to submit bids to the currently open process, which, according to the schedule, has a bid submission date of July 8th. This will allow for an award that not only guarantees the general interest and the sustainability of the asset, but also contributes to the economic development of this region of the country," concludes the document from the National Government agency.

Correspondent for EL TIEMPO