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> OTHER FTZs | KINDS OF FREE TRADE ZONES

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The Free Trade Zones were conceived to create an economic and competitive area that permits, with the reduction of prices and speeding up and simplification of administrative procedures, to attract inversions that make it possible to develop new activities, offering tax incentive and better services.

This tool of economic politics has a great impact on the regional development, for changes in inversions the same as for the employment generation on its area of influence.

The huge change produced in the concept of Free Trade Zone is associated to the transformation of economy and all its consequences, this is to say, the impact of the technological improvements that positively affect transportation, telecommunications and the speed of international economic activities.

These are the following kinds of Free Trade Zones:

Commercial Free Trade Zone:

Basically created for the handling of general loads and for containers, for the importation and exportation commerce, the same as storage, the packing and re-packing, the storage and distribution of goods. Generally, these type of free trade zones are associated to a port or airport.

Free Zone of Financial Services:

They have been designed to carry OUT financial activities, trying to make banks, insurance and reinsurance companies and other services settle down.

Special Economic Free Trade Zone:

This term is used to design a geographic area that has particular economic conditions.

Free trade Zone of foreign trade:

This model is used in the USA and it is characterized by the fact that around the 70% of the products that go through a free trade zone of this type have been destined for internal market.

Assembly Plant:

This model has Mexican origin and permits the settling of enterprises with 100% of foreign capital, those that can repatriate their benefits and dividends.

Zone of Exportation Processes or Industrial Free Trade Zone:

The raw material is transformed and the finished product is exported or introduced to the General Custom Territory.

Source: María Luisa Vives, "Las Zonas Francas", Errepar, 2000.

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