The Economic Threat of Contraband and Illegal Trade in Panama

The Economic Threat of Contraband and Illegal Trade

Understanding the Scope of Illegal Trade

People often seek personal gain, leading them into conflicts where they may unknowingly commit crimes. Nevertheless, the Government can enforce laws and impose penalties to curb these intentions.

One significant problem facing society is contraband. If the Government and society do not take adequate precautions, this issue will persist. Furthermore, the community contributes to this problem because when import costs are very high, consumers often seek faster and less expensive access to goods.

This document aims to explain contraband and raise public awareness about this detrimental practice.

Defining Contraband and Its Effects

Contraband is defined as the illegal entry of foreign merchandise into our country, bypassing customs control. It is crucial to understand that contraband severely affects the income allocated to less developed areas, such as the frontier zones.

Contraband encompasses several illegal activities:

• The clandestine sale of prohibited merchandise, defrauding local authorities.
• The purchase or sale of merchandise that evades taxes.

Contraband is a phenomenon that has always existed, exists now, and will continue to exist as long as there are customs regulations and laws that prohibit or limit the free transit of merchandise. While it is possible to be reduced, it is not possible to be eliminated entirely.

Combating Contraband: Solutions and Urgent Measures

Contraband seriously harms our country, often because citizens themselves obtain benefits illegally. Corruption, the sale of public positions, the ambiguity of laws, and many other factors are causes of this major problem.

However, several alternative solutions exist across political, territorial, and scientific areas to mitigate this situation and provide society with a better quality of life.

We believe Panama is a great country with many wonderful characteristics, and we must protect it by denouncing all such illegal situations to maintain its integrity and best image.

The State must adopt urgent measures to combat contraband, as, in the long term, this problem could escalate into a social conflict with severe consequences for the nation.