Creating free trade zones

Description

Creating free trade zones involves designating specific geographic areas where goods can be imported, manufactured, and re-exported without the intervention of customs authorities or tariffs. This strategy aims to stimulate economic growth, attract foreign investment, generate employment, and enhance export competitiveness. By reducing regulatory barriers and offering fiscal incentives, free trade zones address issues such as sluggish industrial development, high unemployment, and limited access to global markets, thereby fostering regional economic integration and development.

Implementation

The European Union and 12 southern Mediterranean partner countries are in the process of setting up a Euro-Mediterranean Free Trade Zone (MFTZ), with a target date for completion by the year 2010.

In 2002, agreement was reached on the Association Agreement between the EU and Chile. The Agreement incorporates a Free Trade Area, a political dialogue and extensive co-operation aspects.

Claim

Developing countries can obtain the greatest possible benefit from export processing zones. They can improve international manufacturing and distribution through the use of such zones.