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.
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free trade zone

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Taipei, May 9, 2012 (CENS) -- Benefiting from direct transportation links between Taiwan and China, Taiwan's five free trade zones achieved international trade of NT$106.852 billion in the first quarter of this year, up 56.66% from NT$68.205 billion posted a year ago, according to the latest statistics published by the Ministry of Transport and Communications (MOTC).
In 2006 the National Export Free Trade Council (CNZFE) approved permits for 83 new businesses in the free trade zones, of which 62 are operating in the various free trade parks and 21 operate as individual free trade zones, reports Diario Libre (Jan.
This 1998 law is an effort by the Salvadoran government to create incentives for foreign investment and promote exports, generate jobs and provide for the appropriate fiscal treatment of contributions from investors in free trade zones, who in most cases export or sell their goods and services abroad.
TEHRAN (FNA)- Senior Presidential Advisor Akbar Torkan said Iran has paved the way for attracting more investments to the country's free trade zones through two scenarios.
Summary: RAS AL KHAIMAH -- Ras Al Khaimah Free Trade Zone (RAK FTZ) -- one of the fastest-growing and most cost-effective free trade zones in the UAE -- announced on Tuesday a four per cent year-on-year increase in new company registrations in the first half of 2012, according to the audited reports by PricewaterhouseCoopers (PwC).
7, 2011 (CENS) -- Taiwan's airport and harbor free trade zones generated combined trade value of NT$28.74 billion (US$958 million) in October, the highest of its kind ever for an annual growth of 9.1%, according to the statistics from the Ministry of Transportation and Communications (MOTC).
They lack the incentives of free trade zones, which offer even greater tax breaks and more freedom for importing and re-exporting.
TEHRAN (FNA)- Iranian President Hassan Rouhani underlined the importance of free trade zones in increasing the volume of mutual transactions with other countries.
Summary: DUBAI -- As part of its mandate to boost healthcare investments into Ras Al Khaimah, the Ras Al Khaimah Free Trade Zone Authority (RAK FTZ) -- one of the fastest-growing and most cost-effective free trade zones in the UAE -- hosted a high-level US trade delegation of top healthcare and pharmaceutical companies.
Taipei, July 16, 2010 (CENS)--A survey by Taiwan's Ministry of Transportation and Communications (MOTC) done in April and May show enterprises in Taiwan's harbor and airport free trade zones posted an average gross profit rate of 17.2% in 2009, about quadruple the corresponding 4.4% posted by other listed enterprises here.