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In Name Only
Report

In Name Only

Are Free Trade Zones Assisting Capitalism or Criminals and Crony Capitalists?

AEI, 2013

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Editorial Rating

9

Qualities

  • Innovative

Recommendation

Free trade zones (FTZs) have proliferated in the absence of a global trade agreement. FTZs attract overseas businesses by adopting a laissez-faire attitude toward tariffs, duties and regulations. Yet these same liberal market principles lure counterfeiters, money launderers, drug smugglers and other criminals. Economist Roger Bate provides chilling evidence of the dangers FTZs pose to legitimate companies and to global security. getAbstract recommends his gripping anecdotal report to policy makers, business executives and concerned consumers.

Take-Aways

  • International trade talks have so far failed to establish a global free trade agreement.
  • Free trade zones (FTZs) – regions “where national customs laws regarding import duties and taxes do not apply” – have filled the void, encouraging cross-border trade.
  • FTZs exhibit many of the characteristics of a truly enlightened capitalist regime, such as relaxed regulations and low or no taxes and tariffs.

About the Author

Roger Bate is an adjunct scholar at the American Enterprise Institute.


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