Free trade zones generate up to seven times the value of the incentives granted.
The region’s free trade zones already generate more than USD$60 billion in exports and more than 3.2 million jobs.
The free trade zone regime in the Dominican Republic generates up to seven times the value of the tax incentives granted. It is consolidating itself as one of the most robust ecosystems in the region.
This is highlighted in the study Free Zones: The ecosystem that redefines investment in the region, which notes that, in the country, the sector drives industries such as medical devices, manufacturing, tobacco, textiles, and international services.
“At the national level, the Dominican Republic stands out for its scale and economic return. It also has a high rate of formal job creation,” the EY research indicates.
It says that Central America, Panama, and the Dominican Republic account for 77% of the free trade zones in Latin America, consolidating their position as the main nearshoring hub in the region.
Overall, the study indicates that the region’s free trade zones already generate more than USD$60 billion in exports and more than 3.2 million jobs.
The study highlights that the model’s value has shifted structurally, as it no longer resides solely in tax incentives but in its ability to provide operational resilience, logistical efficiency, and access to specialized talent.
It indicates that Costa Rica leads in sophistication and value-added, with up to 60% of its exports originating from free zones, driven by sectors such as medical devices, advanced manufacturing, electronics, and global services.
Panama is consolidating its position as a strategic logistics hub, where free zones serve as platforms for international logistics, storage, and distribution.
