The Free Trade Area - is ... Free economic zones

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level, which are now in the world economy and international relations require constant reform of market mechanisms.It is assumed in this connection, the use of various forms of business cooperation.Interaction in some cases acquiring a global character.World Economy and International Relations are developing today in rather difficult conditions.To ensure the most effective cooperation undertaken a variety of steps.One of them is a selection of compact areas on which the intense economic cooperation.Consider further detail what constitutes such territories.

General

Free Economic Zone allows you to trade in some States and regions to adapt to the current conditions, the gap to the leaders.On this site formed a special preferential regime of economic and market activities in accordance with national and natural features.A free trade zone - a region where the most favorable conditions for attraction of new technologies, foreign investment and advanced management experience.In the last few decades it has become quite popular creation of such territories.They were the first to form the developed countries.Free trade zones began to appear in the 60-70-ies.Gradually, a single market space has been transformed into a holistic education.Subsequently, this requires not only coordination but also conduct general, in fact, a common policy, the absolute unification of the regulatory framework.

What is a free trade zone?

This regional grouping of developing and highly developed countries.It limits the market do not work duties.The Free Trade Area - is a form of integration.The participants removed tariffs for each other.With this respect third of each party, signed the International Treaty, the right to conduct its own market policy.

Positive aspects of the creation of tax-free areas

international treaty, signed by participants, allows:

  • expand the borders of the internal market.
  • Develop competition.As a result of this or that region is able to overcome the low level of economic development.Thereby enhanced its role in the general circulation, reduces dependence on other regions.
  • develop infrastructure.This, in turn, increases the potential of the export and import of a single state.
  • overcome the difficulties of sales of finished products and services to market.

Increased interaction

Over the past few decades there has been substantial growth in the number of regional agreements.For example, in July 2005, it was notified to the WTO 330 documents.Among them operate in the following years began to 180. Most of them - the agreement on the free trade zones.Of the total number of existing instruments they accounted for about 84%.Negotiations are at 96%.The agreement on free trade zone requires very transparent conditions for the participants.This explains why such a high percentage.Free Trade Zone - a territory that does not require special coordination of external market-oriented policies.Moreover, it maintains the independence of the state in the creation of the customs regime with respect to third parties.

Specificity

free zones allow to solve issues relating to the access of the strategic markets.In this context, the geographical proximity of the participants at times is not necessary.That such areas differ from other, more sophisticated forms of integration, suggesting the existence of a common border between the partners.An agreement at the WTO involves the formation of a multilateral system of basic requirements for the establishment and subsequent operation of the zones.In the first place, allowed the formation of these territories as an exception in the most favorable conditions (with preferences for developing countries, the introduction of cross-border markets, and so on).In such cases, the parties participating States will act on preferential basis.Secondly, the agreement should be concluded only with other States parties.Entry into interaction with third parties should be carried out as an exception.It should be noted here that the observance of this provision in practice is rather ambiguous.The transition to the free market should have a stimulating effect on trade between the parties, without creating obstacles to third countries.Regional acts serve as a complement multilateral principles of formation of a market system, but as opposed to them.Free trade should cover most of the turnover of goods between the parties, including the main branches of economic activity, and to be mutual.Education tax-free areas to be carried out within a reasonable time.The period can be more than ten years only in exceptional cases.It is believed that this period is sufficient to complete the majority of manufacturers to adapt to the new competitive conditions.

distinctive features

Free zones differ in some significant respects.These include, in particular, should include:

  1. number of participants.
  2. Comparative amounts of the national economies of the parties.
  3. different levels of economic development.
  4. Regime coverage of industries and products.
  5. nature of the impact on the national economy.
  6. duration of the transition to a free market.
  7. real level of interdependence between the two countries in economic terms.
  8. importance of the political factor.
  9. norms, values ​​and traditions of the integration process in the region.

Common symptoms

Although the above list the differences, there are several features that combine free zones.These general patterns should be taken into account in the formation of new territories.First of all, you should highlight the fact that the establishment of the zone should have a pretty deep background of the historical, political, economic, regional, social or other nature.It is to provide the level of cooperation in the common market for the region.So, in 2008 they accounted for:

  • 66.8% - of the EU.
  • 24.9% - ASEAN.
  • 12.9% - MERCOSUR.
  • 55.8% - NAFTA.

Free Trade Area, as practice shows, has a positive effect on the level of development of States parties.At the same time the transition to this model of cooperation will not always assume the same benefit.The ratios and amounts of dynamic and statistical results that are specific to individual countries differ from each other.This is due to the differences in production and marketing structures capable manufacturers to adapt to the new environment, efficient use of resources.

leaders

Today it formed the main centers of "attraction" of duty-free areas.It is very attractive to foreign exporters are structurally developed intensive marketplaces customs union or individual states.They provide the formation of most of the conditions for the conduct of international trade.In this category are defined and clear leader.The most developed are considered to be a free trade zone USA, India, Chile, EFTA.Fairly quickly expanded the scope of the interaction of Singapore.The highest number of agreements with the European Union.At the start of negotiations with them the state will have to consider not only the main laws for which duty-free area should be developed.The Free Trade Area with the EU should be shaped in accordance with the terms of the foreign policy of the Union itself.

States near abroad

According to news agencies, Canada plans to open up the market for Ukrainian industrial production.This will be after the signing of the relevant documents.Earlier it was reported that Prime Minister Yatsenyuk will go to the UK, US and Canada.In the United States will be held investment conference.Upon graduation documents will be signed, according to which will be formed a free trade zone.Ukraine plans to supply to Canada production engineering plants and industrial products.After that Yatsenyuk plans to travel to London, where he will talk about the support of Kiev.

Free Trade Zone in Russia

in Russia FTA functioning in customs warehouses and territories.Warehouse mode is set for the content of imported goods without payment of duties, as well as exported products with refund or exemption from fees.The maximum period during which goods may be stored, - three years.During this period, the products can pass sorting, packing, crushing batches, labeling and so on.In fact the owner of the customs warehouse provides clients with tax, including long-term loans.More favorable conditions have a free customs zone.In addition to lending, there is an opportunity to conduct any business other than retail sales and industrial activity.Free warehouses are no restrictions on the temporary detention of goods.The first free trade area in the Russian Federation was created in Nakhodka.The license was awarded to JSC "Dalintermet."This company provides a breaker of decommissioned fishing and commercial vessels and naval ships for scrap.SA has the right to duty-free import of foreign equipment and technology exports.