Recently, at a campaign event in Georgia, Donald Trump revealed his ambitious plan to revive American manufacturing. He suggested creating special zones on federal land with low taxes and relaxed rules. These zones would be perfect for moving entire industries back to the U.S. from other countries. But can this actually work?
What Are Special Economic Zones?
Special economic zones (SEZs) are areas where governments relax certain laws and taxes to attract businesses. Although they may sound new, these zones have existed for a long time. The U.S. has hundreds of them designed to help exporters avoid extra costs, while many other countries use them to lure businesses. For instance, before the North American Free Trade Agreement (NAFTA), Mexico created maquiladoras—factories along the Texas border that could produce goods for export without heavy tariffs.
Even in distant places like Laos, you can find an extreme example of an SEZ: Boten, a town run by a Chinese corporation wh...
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