free trade zone

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Free Trade Zone

An area, especially consisting of two or more countries, in which there are few or no tariffs or other trade barriers discouraging international trade. For example, the countries in a free trade zone do not subsidize favored industries in order to make them less expensive compared to international competitors. Proponents of free trade argue that it is more economically efficient and helps consumers by promoting competition to keep prices low. Critics contend that free trade is detrimental to local jobs, especially in the developed world. For example, Canada, Mexico and the United States form a free trade zone because they are all members of NAFTA.

free trade zone


free trade zone



a designated area within the immediate hinterland of an air or shipping port into which IMPORTS are allowed without payment of IMPORT DUTY (TARIFFS), provided the goods are to be subsequently exported (see EXPORTS) either in their original form or as intermediate products within a final good. See ENTREPOT TRADE.
References in periodicals archive ?
Both parties have signed agreements on a variety of cooperation projects, including the establishment of China-Mongolia International Barter Settlement Platform and Trading Center, China-Mongolia Base Wine Storage Center, China-Mongolia Finance Currency Exchange Center, China-Mongolia Medium & Small Enterprises Service Center and China-Mongolia Global Village in the free trade zones of Mongolia.
Damascus, SANA -- The revenues of the free trade zones up till September 2015 reached SYP 1.
TEHRAN (FNA)- Iranian President Hassan Rouhani underlined the important role that the free trade zones can play in the country's economy after implementation of a final agreement between Tehran and the world powers.
Established in 1992, the Qingdao Free Trade Zone is one of the 15 free trade zones in China and the only one in Shandong province and the Yellow River region.
The newly announced rules allow cross-border Renminbi loans with a specified limit made by lenders outside China to non-banking financial institutions and enterprises based in the free trade zones in Shanghai.
There were also reports that China will be relaxing the bans imposed on Facebook and Twitter within the free trade zones.
Summary: Beijing: China hopes to suspend its laws governing foreign investment in proposed free trade zones, .
ISLAMABAD -- Deputy Head of the Trade Promotion Organization of Iran (TPOI) for Marketing Affairs, Reza Towfiqi Zavareh stressed on expansion of trade relations with the regional countries including Pakistan by boosting role of free trade zones.
Summary: In a step aimed at boosting the trade relations between Turkey and Ras Al Khaimah, UAE, a high-level business delegation from Ankara visited Ras Al Khaimah Free Trade Zone (RAK FTZ) -- one of the fastest-growing and most cost-effective free trade zones in the UAE.
Iraq had signed several memos of understanding with neighboring countries to establish free trade zones on borders.
The Taichung Free Trade Zone, part of Taichung Port, has also outperformed the other four free trade zones in Taiwan in growth of trade volume and value so far this year.
Oman plans to invest $450 million to extend its free trade zones across the country to attract more foreign investment and diversify its oil-reliant economy, it said on Monday.