Business Category

The Window of West Africa-SIERRA LEONE 

▶ West Africa Free Trade Area

The Window of West Africa-SIERRA LEONE - West Africa Free Trade Area

 

Foreign trade vessels are allowed to enter and exit freely, foreign duty-free imports, and strict control of quotas on imported goods are also a further extension of the Freeport. It is a special functional area for a country to open to the outside world.

 

In addition to most of the characteristics of the Freeport, the Free Trade Zone can also attract foreign investment to set up factories, develop export processing enterprises, and allow foreign capital to set up large commercial enterprises and financial institutions to promote comprehensive and comprehensive economic development in the region. The limitation of a free trade zone is that it can lead to distortions and tax avoidance of commodity flows. If there is no other measure to supplement it, it is likely that third countries will ship the goods first to the member states of the integrated organization that implement lower tariffs or trade barriers, and then transfer the goods to the member states that implement high trade barriers. In order to avoid the distortion of the flow of goods, the free trade zone organizations have formulated the "principal of origin", which stipulates that only the "original products" of the member states of the free trade zone can enjoy the free trade treatment between the member states.

In theory, when the value of manufactured goods produced in a member state accounts for more than 50% of the total value of the product, the product should be regarded as the origin product. Generally speaking, the more the third country's imports compete with the products produced by the free trade zone member countries, the higher the added value of the raw products in the member countries. The meaning of the principle of origin indicates the exclusivity of the free trade zone to non-member states. A typical free trade zone in reality, such as the North America Free Trade Area

Benefits

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