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 ?
Minister of Economic Development and Trade of Tajikistan Nematullo Hikmatullozoda and representatives of ADB headed by Tarik Niazi discussed prospects of cooperation development of Tajikistan and ADB for the next several years, including macroeconomic and fiscal policy, development of private sector and investment climate, free-trade zones, country rating on Doing Business project, diversification of external trade and its marketability at the meeting in Dushanbe on April 2.
"Specialists, lawyers and experts, who participated in the bill drafting, looked into international legislation on free-trade zones in details.
To that end, Katkout said, a number of agreements have been signed with some friendly countries aimed at attracting investors and improving the investment situation at the free-trade zones and supporting the national economy with the needed foreign currency.
Tu Guangshao, a vice-mayor of Shanghai, described the launch of the energy exchange as an important move with far-reaching significance for the development of the free-trade zone, launched in September.
On the trade level, the two sides signed in November 2004 an agreement on the creation of a free-trade zone. Trade exchanges between the two countries reached, in 2009, some 1 billion dollars.
But he anticipated difficulty in getting Russia to agree to the free-trade zone.
Sean Chen, Premier of Taiwan, has urged the Ministry of Transportation and Communication to expedite the amendment, which stipulates internationally certified traded metals, stored in the free-trade zone or approved by management in the zone, will be exempt from business tax, with such privilege to last 30 years until Dec.31, 2042.
China's financial center Shanghai has received State Council approval to establish a pilot free-trade zone to explore investment and trade policy innovations and expand the opening of services industry, the official China Daily ( reported .
18, 2009 (TAP) - A co-operation and partnership agreement was signed Thursday in Gammarth (Tunis northern suburb) between the Zarzis economic activities pole and the free-trade zone committee of Sharjah, in the United Arab Emirates (UAE).
By: Egypt Today staff CAIRO -- 3 May 2017: Total capital invested inside Egypt's private free-trade zones has exceeded $55 billion (996 billion EGP), with $11 billion of total investments, according to a Tuesday governmental report.