Also known as: SEZ, Economic development zone
A delimited geographic area within a country with preferential fiscal, customs, and regulatory regimes designed to attract investment, generate employment, and promote regional economic development.
A special economic zone (SEZ) is a geographic area within a country where different and more favorable economic rules apply compared to the rest of the territory, with the goal of attracting domestic and foreign investment, generating employment, fostering industrialization, and promoting development in economically lagging regions. SEZs offer a comprehensive package of fiscal, customs, labor, and infrastructure incentives.
Mexico created the Federal Law on Special Economic Zones in 2016, designating zones in states with the greatest lag such as Oaxaca, Guerrero, Chiapas, and Tabasco. However, the program was canceled in 2019 and replaced by regional development programs such as the Isthmus of Tehuantepec Interoceanic Corridor.
Globally, the most successful SEZs include Shenzhen in China (which went from a fishing village to a technology metropolis), Dubai's free zones, Mexico's northern border maquiladoras, and Panama's free trade zones. Success depends on the combination of incentives, infrastructure, legal stability, and international connectivity.
Free Trade Zone
A designated area within a country where foreign goods can enter without payment of foreign trade taxes, under specific conditions established in customs legislation.
RegulationsIMMEX (Maquiladora Program)
Mexican government program that allows temporary duty-free import of goods for manufacturing, assembly, or repair for export.
TradeFree Trade Agreement (FTA)
International agreement that eliminates or reduces tariffs and trade barriers between signatory countries.
LogisticsCustoms Regime
The legal-customs treatment applied to goods based on their intended purpose in the country, determining importer/exporter obligations.