A foreign trade zone is a zone within a country or a union of several countries or parts of it, in which/between those tariffs and other trade restrictions are abolished.

Foreign trade zones as zones in countries

To attract by the mechanism of a foreign trade zone within a country tries foreign investors to reach with the goal of impulses for the entire country. This model is used frequently in developing countries (well-known example: China, in addition, the united Arab emirates like e.g. Dubai or race to aluminium Khaimah).

Incentives for foreign investors are among other things preferential treatments in tariff matters, cheap workers, developed infrastructure, tax exemptions and the political stability of the foreign trade zones. Often also stocks of laws are repealed set, as e.g. from the environment law or industrial law.

see also special economic zones

Foreign trade zones as unions

Differently than at a customs union the member states maintain however different customs tariffs in relation to third states. Goods from third states are declared also when spending a member state in the others; thus border controls remain necessary.

The complete liberalisation of the world trade would realize 250 billion euro at additional incomes annually according to a study of the World Bank (2005) up to the year 2015 - however is the question, which countries would profit from it at most.

Examples

• AFTA - ASEAN Free trade AREA (dt. foreign trade zone of the federation of Southeast Asiatic states)
• CARICOM - Caribbean Community and Common Market (dt. Caribbean community and Common Market)
• CERIUM - Closer Economic relation (dt. closer one economic relations)
• COMESA - Common Market for Eastern and Southern Africa (dt. Common Market for east and South Africa)
• DIC - Dubai Internet town center foreign trade zone for technology companies in Dubai
• EFTA - European Free trade Association (dt. European free-trade association)
• European Union - European union (English European union, briefly European Union)
• EWR - European marketing area (English European Economic AREA, briefly EEA)
• FTAA - Free trade AREA OF the of America (dt. totalAmerican foreign trade zone)
• JAFZ - Jebel Ali Free zone foreign trade zone in Dubai
• MCCA - Mercado Centroamericano (dt. common one centralAmerican market)
• Mercosur - Mercado del Sur (dt. Common Market of the south)
• NAFTA - North American Free trade Agreement (dt. North American free trade agreements)
• SADC - Southern African development Community (dt. South African development community)
• SAARC - South Asian Association for regionally Cooperation (dt. southasiatic combination for regional co-operation)

See also

• Economic Partnership Agreement
• Eurabien

Related links

• Exemplary listing of special zones (among other things foreign trade zones in China)

Articles in category "Foreign trade zone"

We found here 14 articles.