Free trade area is the abbreviation of free trade area, which refers to the member countries that have signed free trade agreements to completely eliminate tariffs and quantitative restrictions in commodity trade with each other, so that goods can flow freely between member countries.
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Free Trade Area (Free Trade Area) refers to the complete elimination of tariffs and quantitative restrictions on commodity trade among member countries that have signed a free trade agreement, so that commodities can flow freely among member countries. However, member states still maintain their own policies on restrictions on imports from non-member countries.
The free trade zone developed from the free port. Usually located in the port area of the port or adjacent port area, especially in economically developed countries, such as the United States has 92 foreign trade zones. As early as the early 1950s, the United States proposed that the manufacturing industry with export processing as the main goal could be developed in the free trade zone.
In the late 1960s, some developing countries took advantage of this form and built special industrial zones to develop into export processing zones. Since the 1980s, the free trade zones of many countries have developed into high-tech, knowledge and capital intensive areas, forming a “technology based free trade zone”.
The free trade zone allows foreign ships to enter and exit freely, foreign goods are imported duty-free, the cancellation of the quota control of imported goods, is also a further extension of the free port, is a special functional area of a country open to the outside world. It may also attract foreign capital to set up factories, develop export and processing enterprises, and allow and encourage foreign capital to set up large commercial enterprises and financial institutions to promote comprehensive and comprehensive economic development in the area.