Territory in which, as a result of an agreement between the countries that make it up, there is freedom of trade regarding industrial and agricultural products. Some trade barriers, such as tariffs and quotas, are eliminated and bureaucratic procedures are reduced in the hope of attracting new foreign business and investments. Its objective is to promote international trade between these countries and thus contribute to the growth of economic activity, job creation, productivity improvement, financial stability, and improvement of living conditions in the contracting countries. An example of a free trade zone is NAFTA, created by the United States, Canada, and Mexico after the signing of the North American Free Trade Agreement.
« Back to Glossary IndexFTZ (Free Trade Zone)
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