Panama's free-trade zone to stage one-day strike

PANAMA CITY | Fri Aug 28, 2009 7:31pm EDT

PANAMA CITY Aug 28 (Reuters) - Workers at Panama's free trade zone, from truck drivers to janitors, will stage a one-day strike next week to protest government plans to hike taxes and fees, the head of the free zone merchants association said on Friday.

Giovanni Ferrari said the stoppage will affect all operations on Wednesday, including movement of free-zone goods through ports.

The Colon free-trade zone, spreading across 450 hectares, is a gateway to the Panama Canal and employs thousands of people responsible for moving goods to and from giant warehouses. It is also a popular tourist stop.

Lawmakers are working on legislation that would raise government fees and taxes on free zone activity by more than $100 million per year, Ferrari said. "This is a very high figure, taking into account the difficulties we are going through."

President Ricardo Martinelli took office in July on plans to boost government spending but the global recession is seen hurting tax receipts in a country that already has a narrow collecting base.

Ferrari said the free zone handled about $9 billion in merchandise in 2008 but the figure is seen falling this year.

Government figures show economic activity in the commerce sector fell by 8.4 percent in the first half of 2009 from the same period in 2008, making it one of the hardest-hit areas of Panama's economy.

(Reporting by Sean Mattson; Editing by Richard Chang)

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