Achieving WTO Compliance for Special Economic Zones in Developing Countries
Many developing countries operate geographically delineated economic areas in the form of export processing zones, special industrial zones, or free trade zones. They experiment in these special economic zones (SEZs) with infrastructure, regulatory...
| Main Authors: | , |
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| Format: | Brief |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2009/04/10536787/achieving-wto-compliance-special-economic-zones-developing-countries http://hdl.handle.net/10986/11122 |
| Summary: | Many developing countries operate
geographically delineated economic areas in the form of
export processing zones, special industrial zones, or free
trade zones. They experiment in these special economic zones
(SEZs) with infrastructure, regulatory, and fiscal policies
that are different from those implemented in the rest of the
domestic economy with the aim of attracting foreign
investment, creating employment opportunities, and boosting
exports. Special incentives for zone-based firms play a
prominent role in most countries programs. This note
provides an overview of the application of World Trade
Organization (WTO) disciplines to incentive programs
typically employed by developing countries in connection
with SEZ programs. It is intended to inform policy makers,
zone administrators, and the development community about the
WTO consistency of such incentive measures. The analysis is
concerned exclusively with multilateral law and leaves
economic aspects concerning beneficial or adverse effects of
such fiscal incentives aside. As in all legal analysis,
different interpretations of particular provisions might be
possible and the ultimate decision on the legality of a
particular measure remains subject to the authoritative
interpretation of the WTO and its members. |
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