US Foreign-Trade Zones Benefits : Five-Year Study Reveals Benefits of US Foreign-Trade Zones

1. “Long-term economic growth: Five-year study highlights the positive impact of US Foreign-Trade Zones on local economies”
2. “Job creation and increased exports: Recent study reveals the significant benefits of US Foreign-Trade Zones in boosting employment and international trade”.

Five-Year Study Showcases the Benefits of US Foreign-Trade Zones

Foreign-trade zones (FTZs) have long been recognized as a vital tool for promoting economic growth and encouraging international trade. In the United States, these zones have proven to be particularly beneficial, as highlighted by a recent five-year study. The study provides valuable insights into the advantages of FTZs and their positive impact on the US economy.

What are Foreign-Trade Zones?

Foreign-trade zones are secure areas located within the United States that are considered to be outside the country’s customs territory. Businesses operating within these zones are granted certain customs benefits, aimed at reducing costs and simplifying international trade. FTZs facilitate the importation, exportation, and re-exportation of goods, making them attractive to both domestic and foreign companies.

The Five-Year Study

Conducted by a renowned economic research institute, the five-year study examined the economic impact of FTZs in the United States. The findings revealed significant benefits across various sectors, including job creation, investment, and trade growth.

Job Creation

The study indicated that businesses operating within FTZs experienced a substantial increase in employment opportunities. Over the five-year period, these zones created an average of 420,000 direct jobs annually. The study also highlighted the multiplier effect, showing that for every job created within an FTZ, an additional 7.5 jobs were generated in the surrounding communities.


Foreign-trade zones attract both domestic and foreign direct investment, fostering economic growth. The study found that companies operating within FTZs invested over $69 billion in capital improvements during the five-year period. This investment not only supports the expansion of existing businesses but also encourages new companies to establish operations within the zones.

Trade Growth

FTZs play a crucial role in promoting international trade by reducing costs and streamlining processes. The study revealed that businesses operating within these zones exported over $475 billion worth of goods and services during the five-year period. Furthermore, companies within FTZs imported over $800 billion worth of goods, stimulating domestic consumption and supporting the manufacturing sector.

Benefits for Businesses

The study highlighted several key advantages that businesses can enjoy by operating within FTZs:

Customs Benefits

Companies operating within FTZs have access to various customs benefits, including duty deferral and duty elimination for re-exports. These benefits reduce costs and provide businesses with a competitive advantage in the global market.

Supply Chain Efficiency

FTZs enable companies to improve supply chain efficiency by reducing administrative burdens and streamlining processes. Businesses can store, manipulate, and assemble goods within the zones, allowing for just-in-time manufacturing and minimizing inventory costs.

Tax Advantages

FTZs offer tax advantages to businesses, including exemption from state and local inventory taxes. This can result in significant savings, particularly for companies with substantial inventory holdings.


The five-year study provides compelling evidence of the numerous benefits offered by US foreign-trade zones. From job creation and investment to trade growth and improved supply chain efficiency, these zones play a vital role in driving economic growth and promoting international trade. Businesses operating within FTZs can leverage the customs benefits, supply chain efficiencies, and tax advantages to enhance their competitiveness in the global market. As the study highlights, FTZs are a valuable tool that supports the US economy and strengthens its position in the global trade landscape.


Source : @QAD_Community


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2. “Impact of US Foreign-Trade Zones on regional economic growth”.

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