We have to look back more than two thousand years ago, to understand the concept of Free Zone. When the Phoenicians in the cities of Carthage and Tyre, gave fiscal profits on the goods, which had not been sold in the market or had been returned to their point of origin.
In the Middle Ages, Livorno and Marseilles were declared free ports. Lately, Hamburg and Trieste operated as free ports. Hamburg, one of the first operating, had and still has a special importance. Their work made that political and economic trade difference, which dominated the Hanseatic League in that region during the XIX century. Concerning Trieste, its Free Zone dominated the whole trade of the Austro-Hungarian Empire for many years.
In the last decades, Free Trade Zones have been the tools through which many countries overcame their economic crises. Using Free Zones they were able to create new employment and to reduce poverty, without being obliged to wait for many years for the whole economy to be reformed. The list would be too long; we just name two countries: Taiwan and South Korea.
The Free Trade Zones have largely contributed to the fact that both countries have reached an important level of economic development. This has occurred, despite the fact that neither country has any significant amount of natural resources.
HOW TO DEFINE A FREE ZONE
A Free Zone is a portion of clearly defined and isolated land or setting, with a special fiscal and customs status of extra-territoriality.
The main advantages that a Free Zone enjoys, both fiscal and physical, include:
• The infrastructure
• The industrial processes
• The maquila process
• The trade of products and services
• The capital
• The natural or juridical people operating in there
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In the Middle Ages, Livorno and Marseilles were declared free ports. Lately, Hamburg and Trieste operated as free ports. Hamburg, one of the first operating, had and still has a special importance. Their work made that political and economic trade difference, which dominated the Hanseatic League in that region during the XIX century. Concerning Trieste, its Free Zone dominated the whole trade of the Austro-Hungarian Empire for many years.
In the last decades, Free Trade Zones have been the tools through which many countries overcame their economic crises. Using Free Zones they were able to create new employment and to reduce poverty, without being obliged to wait for many years for the whole economy to be reformed. The list would be too long; we just name two countries: Taiwan and South Korea.
The Free Trade Zones have largely contributed to the fact that both countries have reached an important level of economic development. This has occurred, despite the fact that neither country has any significant amount of natural resources.
HOW TO DEFINE A FREE ZONE
A Free Zone is a portion of clearly defined and isolated land or setting, with a special fiscal and customs status of extra-territoriality.
The main advantages that a Free Zone enjoys, both fiscal and physical, include:
• The infrastructure
• The industrial processes
• The maquila process
• The trade of products and services
• The capital
• The natural or juridical people operating in there
Download full notes below -
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