A Special Economic Zone in Brazil: The Manaus Free Trade Zone

Abstract

Many are the reasons why governments decide to implement a free trade zone, or a foreign trade zone, in their own countries. The most common one is to boost the economic development of a specific region of the nation. This is achieved by offering incentives to domestic and foreign companies such as a logistic advantage by the non-applicability of certain taxes and duties on imported goods that enter the zone and are destined to the industrial sector. Brazil is no different, and established a Special Economic Zone in the northern state of Amazonas, in the middle of the rain forest and the amazon jungle.