Panama’s President Urged to Form Diamond Free-Trade Zone

A delegation of leaders in the diamond world met with Panamanian President, Ricardo Martinelli. During the meeting, the group discussed with the president the need for Panama to pass legislation enabling diamond trade and tax exemptions.

The meeting was attended by Israel Diamond Institute Group of Companies (IDI) Managing Director, Eli Avidar; Israeli Ambassador to Panama, Yoad Magen; chairman of the World Diamond Council (WDC), Eli Izhakoff; president of the Diamond Dealers Club of New York (NYDDC), Moshe Mosbacher; NYDDC managing director, Martin Hochbaum; and president of the Panama Diamond Exchange, Erez Akerman.

President Martinelli welcomed the collaboration with Israel in the diamond sector and said that members of the Israeli diamond industry would be welcome guests in Panama. The president also promised that the Panamanian Government would take the necessary legislative steps to bring about a bureaucracy-free diamond trade.

Avidar acknowledged that the diamond trade in South America is currently not well organized and in certain cases problematic. He went on to say that the Israeli diamond industry is seeking a base from which it can expand its activities into South America. He also said that it was imperative that such a base must have a strict rule of law and a stable government. 

"We are looking for the South American equivalent of Hong Kong. We believe that Panama can serve as an ideal base for Israeli Diamond Industry activities in South America, just as this country acts as a free-trade zone for other products."

Other issues raised at the meeting included the need for Panama to re-join the Kimberley Process, the need to pass legislation for forming a free-trade zone for the Panama Diamond Exchange and a tax exemption for diamond exports from Panama to South America.

On behalf of IDI Chairman Moti Ganz, Avidar presented Martinelli with membership to the IDI League of Honor. Membership in the league is awarded to heads of state as a token of esteem by IDI, for their efforts to enhance their countries' relationship with the Israeli diamond industry.