Táchira demands improvements before creating an Economic Zone

A few days ago, Nicolás Maduro ratified the proposal to negotiate a Binational Special Economic Zone with Colombia. But what can Táchira offer to this? Since the reopening of the border, trade between Colombia and Venezuela has shown slow but steady growth. However, this fact mainly favored to Colombia by almost 80%.

William Gomezformer mayor of the Bolívar municipality on the Táchira border, said that it is necessary to first establish an economic zone on the Venezuelan side. “To do this, a zone must first be created here, where on the Venezuelan side the border economic zone can be established, organized and regulated,” he said.

What benefits should be offered to implement a Special Economic Zone in Táchira?

– Tariff benefits.

– Taxes.

– Customs.

– Tax incentives.

“This would encourage investment from both national and international entrepreneurs. It would also encourage investments to come to the region and reactivate the industry,” he suggested. This measure would allow Venezuelan products to be more competitive in both the national and Colombian markets.

Public service deficiencies affect merchants at the border

“They don’t work, we don’t have a good water supply, the electricity has improved, but it goes out for two hours a day, it’s intermittent,” said Gomez. On the other hand, the cost of public services has increased by more than 1,500%, which led to the closure of several businesses.

“A small business to be able to work and stay open in these times without profits, just to keep the business open and not close, must pay at least 700 dollars,” Gomez concluded.

Colombia’s production increases compared to Venezuela’s

In Táchira state, most of the products available on the shelves come from the border region, with more than 95% of Colombian origin and only 5% of national product. In contrast, 70% of products in the rest of the country are imported, while only 30% are of national production.

This situation creates a complex commercial environment. He said that the low purchasing power of the inhabitants of the region aggravates the situation. Many citizens cross the border to Cúcuta to buy cheaper products.

What are the benefits of creating a Special Binational Economic Zone?

The creation of this Special Economic Zone would allow the local industry, which currently operates at 30% of its capacity, to increase its production and produce competitive products not only for Colombia, but also for other countries in the Andean community such as Ecuador, Peru and Bolivia, as well as for the national market.

He stressed the need to balance the trade balance between Venezuela and Colombia, which currently favors Colombia by 80%. “All this influences the creation of an economic zone where benefits and a special regime are provided throughout the territory, motivating the arrival of investors and re-boosting the local industry,” he concluded.