Package-Manufacturing Plant Closes in Panama

©image: Celloprint

The company had been trying to save its operations for more than two years, struggling to curb imports of the product from Colombia and Peru. In 2007, the Panamanian company resorted to the safeguard mechanism, making the Ministry of Trade and Industry implement a tariff surcharge of 59.9% above the current tariff of 6%.

In an article in Prensa.com, "Juan Sosa, Celloprint manager, confirmed the plant’s closing and said that they are proceeding to sell their machinery. He noted that the procedure for applying a safeguard requires adjustments in Panama in order for it to be an effective mechanism, just like other countries that protect their industries against distortions in the international market. ‘We warned the government about this, but nothing happened,’ said Sosa."

Closing the plant involves laying off 140 people.

Source: Prensa.com

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