Start Zona Franca de Manaus is one of the places that generates the most jobs in Brazil and guarantees the preservation of the Amazon, bringing billions in profits to the economy of the developing country.

Zona Franca de Manaus is one of the places that generates the most jobs in Brazil and guarantees the preservation of the Amazon, bringing billions in profits to the economy of the developing country.

May 11, 2022 10:06 am to 10:06 am
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Manaus Industrial Pole brought economic development to the northern region
Port of Manaus, an important point for imports and exports in the northern region | Source: Canva Pro




The 500 companies in the Industrial Pole of Manaus (PIM) offer employment to more than 100,000 people in the Amazon region

São Paulo, May 11, 2022 – If you think that the northern region does not have a great contribution to Brazilian development, you are very wrong. After all, the Manaus Free Trade Zone, created in 1967 by the federal government, with its Industrial Pole, has 500 factories with more than 100,000 jobs in various sectors. This is because the region has incentives that encourage the opening and permanence of companies that bring innovation, such as multilaser, and greater industrialization, in addition to preserving the Amazon.

In addition, Amazonas gained prominence in the Brazilian scenario, collecting almost R$ 17 billion in 2021 and becoming one of the 8 states that most consolidate federal taxes. However, the region still accounts for only 0.6% of the Brazilian industrial park and does not offer competitiveness with the other states of the federation. But it allows for regional economic development with mastery.

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Understand a little more about the History of the Free Zone of Manaus in the video below

The history of the Manaus Free Trade Zone in detail | Source: TecMundo

The Manaus Free Trade Zone is a very successful regional development model created by the federal government

The Manaus Free Trade Zone (ZFN) was created in 1967 from Decree-Law No. 288, which established various types of tax incentives for companies that set up shop in the region, as a way of stimulating local economic growth. In this way, the north of Brazil was integrated to the rest of the territory, contributing to industrial advancement, without neglecting the preservation of the Amazon.

The most interesting thing is that this industrial advance, contrary to what many would imagine, contributed to the preservation of 97% of forest cover within the state of Amazonas, since it was linked to sustainable initiatives and compliance with obligations with the preservation of the Amazon. In addition, the region has been an essential source within the economy and development of the northern region, moving a billion-dollar market and generating thousands of jobs.

It is a very promising model as it returns to the federal government a good rate that corresponds to more than half of the wealth produced in the region, around 54%. Furthermore, it encourages the transfer or installation of new companies in the region, since there is a tax waiver by the federal government.

The creation of the Manaus Free Trade Zone was a “master move” and reduced social inequality in the northern region with the rest of the country, in addition to guaranteeing a large migratory flow to the place. According to research by Fundação Getúlio Vargas, the per capita income of Amazonas was 7 times lower than that of São Paulo, which dropped to 1.8 times in 2010. In addition, today the city of Manaus has 2.2 million people. inhabitants, a value 7 times higher than before the creation of the ZFN (300 thousand inhabitants).

New federal decrees on Taxes on Industrialized Products (IPI) create an impasse for the Manaus Free Trade Zone

The creation of some federal decrees are worrying experts, who claim to be a problem for the development of the ZFN. After all, these decrees propose a reduction of 25 to 35% of the Tax on Industrialized Products (IPI) throughout the national territory, which can put in question the attractiveness of the Manaus Free Trade Zone for investors and even the permanence of several companies in the region.

Therefore, some parties, such as Solidarity, have taken direct actions of unconstitutionality (ADIs) as a way of seeking to reduce the impact of the decree on the ZFN. Although the tax reduction is very favorable and necessary, especially in this moment of crisis, to stimulate economic growth, it must be done with caution, considering a country of continental dimensions like Brazil. Therefore, a thorough assessment must be carried out to benefit the expansion of the economy as a whole.


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