Export Processing Zones and Other Special Regimes in the Context of Multilateral and Regional Trade Negotiations

Dec 2003
Export processing zones and other special regimes will be subject to extensive regulatory reforms as a result of the progressive insertion of the countries into international economy. On the one hand commitments with the World Trade Organization (WTO) impose the elimination of export subsidies. On the other, regional integration schemes will generally exert pressure for the elimination of tariff reduction and other taxes on import goods or equipments, which are incorporated or used as export merchandise to trade partners under those schemes. The combined effect of these two trends has generated and will generate a substantial change in the operation mechanism of these special regimes. This document intends to explain these factors and some general scenarios on export processing zones and other special regimes.