A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered in hopes of attracting new business and foreign investments. It is a region where a group of countries has agreed to reduce or eliminate trade barriers. Free trade zones can be defined as labour intensive manufacturing centers that involve the import of raw materials or components and the export of fast moving consumer goods and other factory products.
Most FTZs are located in developing countries: China, the Philippines, Malaysia, Pakistan, Mexico, Costa Rica, Honduras, and Madagascar have EPZ programs.. In 1997, 93 countries had set up export processing zones (EPZs) employing 22.5 million people, and five years later, in 2003, EPZs in 116 countries employed 43 million people
Corporations setting up in a zone may be given tax breaks as an incentive. Usually, these zones are set up in underdeveloped parts of the host country; the rationale is that the zones will attract employers and thus reduce poverty and unemployment, and stimulate the area's economy. These zones are often used by multinational corporations to set up factories to produce goods (such as clothing or shoes).
Free Trade Zones are also known as Special Economic Zones in some countries. Special Economic Zones (SEZs) have been established in many countries as testing grounds for the implementation of liberal market economy principles. SEZs are viewed as instruments to enhance the acceptability and the credibility of the transformation policies and to attract domestic and foreign investment.
In 1999, there were 43 million people working in about 3000 FTZs spanning 116 countries producing clothes, shoes, household goods, electronics, and toys. The basic objectives of EPZs are to enhance foreign exchange earnings, develop export-oriented industries and to generate employment opportunities.
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Showing posts with label Africa free trade Zones. Show all posts
Showing posts with label Africa free trade Zones. Show all posts
Africa Free Trade Zones - The Gambia Trade Gateway Project
The Gambia Trade Gateway Project is aimed at establishing free trade zones at sites around the seaport, airport and other strategic locations around the capital city, Banjul, and designed to operate within a tax and duty-free environment with fiscal and other incentives accorded to investors.
A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered to attract new business and foreign investments.
Investing inside the Gambia Free Trade Zones
The Free Zones Act in The Gambia provides the legal framework for setting up Free Tade Zones and their efficient management. The main thrust is to create a world-class investment climate in The Gambia for businesses engaged in manufacturing, processing and export oriented activities.
Activities authorized for the purpose of investing within the Free Zones include warehousing, breaking bulk cargo, processing and manufacturing opportunities such as assembling, storing, grading, cleaning and mixing goods and products and their subsequent labelling, packaging and repackaging.
Other opportunities include telecommunication and information technology, energy, financial services and off shore services, health and veterinary services and transportation, logistics and distribution services.
A free trade zone (FTZ) or export processing zone (EPZ) is an area of a country where some normal trade barriers such as tariffs and quotas are eliminated and bureaucratic requirements are lowered to attract new business and foreign investments.
Investing inside the Gambia Free Trade Zones
The Free Zones Act in The Gambia provides the legal framework for setting up Free Tade Zones and their efficient management. The main thrust is to create a world-class investment climate in The Gambia for businesses engaged in manufacturing, processing and export oriented activities.
Activities authorized for the purpose of investing within the Free Zones include warehousing, breaking bulk cargo, processing and manufacturing opportunities such as assembling, storing, grading, cleaning and mixing goods and products and their subsequent labelling, packaging and repackaging.
Other opportunities include telecommunication and information technology, energy, financial services and off shore services, health and veterinary services and transportation, logistics and distribution services.
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