What are free trade zones?

What are free trade zones?

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Free zones or free ports are parts of a country where normal financial, economic and trade laws are either not applied or only applied to a limited extent. These zones are created with the aim of attracting investment, increasing production and exports and are usually separated from the rest of the country by a fence or official decisions.

In these zones, the import of goods, storage, processing, production and re-export are carried out with special incentives.

An example of a free zone:
The image you see is an aerial view of the Colon Free Trade Zone in Panama.

Types and expansion of free zones:
Depending on the purpose of the activity, these zones are sometimes known by names such as “free trade zones” or “export-oriented manufacturing zones”.

According to 2023 statistics, there are about 3,500 free zones in 135 countries around the world and this number is increasing day by day. It is estimated that today the number of these zones has reached more than 5,000. In the United States alone, there are 298 active foreign trade zones.

Free zones in Turkey:
Turkey has had 19 active free zones since 1985. More than 100,000 people are employed in these zones and exports from Turkey's free zones have reached more than $15 billion.