Preliminary Bill 221, introduced on October 21, 2026, by Representative Crispiano Adames Navarro of constituency 8-3, proposes establishing Panama’s Pharmaceutical, Scientific and Health Technology Development Free Zone. The initiative remains at the preliminary stage, awaiting committee adoption, and has been referred to the Labor, Health and Social Development Committee.

Article 1 defines the zone as a strategic production and scientific area for manufacturing, formulation, research, storage and export of medicines, active ingredients, biological products, vaccines, advanced therapies, medical devices and diagnostic reagents. Article 3 allows one or several parks in different regions. Article 5 assigns the Executive Branch responsibility for determining the location, with the Ministry of Commerce and Industries handling the arrangements. Articles 7 and 8 establish a national commission comprising the health, economy and finance, and commerce and industries ministers; the Social Security Fund; the National Customs Authority; the National Secretariat for Science, Technology and Innovation; and a representative of Panama’s Association of Pharmaceutical Manufacturing Laboratories.

Articles 14 and 15 contain the main economic provisions. Businesses established there would receive the tax and customs benefits already recognized by Law 32 of 2011, which governs free zones, for importing raw materials, active ingredients, equipment and supplies. Article 16 adds a special immigration regime for foreign scientific and technical personnel, with a single service window. For national and multinational laboratories, the proposal seeks to position Panama as a regional production and export platform serving Latin America and the Caribbean, drawing on its logistics position. If approved, it could create opportunities for manufacturers, local suppliers and research centers. The sponsor states in the explanatory memorandum that the initiative neither creates new tax incentives nor affects the national budget.

The effects would not be immediate. As a preliminary proposal, the text requires committee adoption and three legislative debates before becoming law. Article 5 leaves the zone’s location to a later Executive Branch decision, while Articles 10 and 13 assign an executive secretariat responsibility for preparing the master plan and operating regulations. Article 46 requires regulations within ninety days of promulgation, and Article 47 provides for entry into force in the following fiscal period. Article 6 permits phased development and early installation by businesses with their own infrastructure; implementation therefore need not await completion of the entire zone. Nexo Capital will follow the legislative progress of Preliminary Bill 221.

Research assisted by Sentinel, with editorial verification of official sources. Discover Legislat.ai