EXPORT PROCESSING ZONES: PAST AND FUTURE ROLE IN TRADE AND DEVELOPMENT.

The article presents a study that explores the role of export processing zones (EPZs) in the trade and economic development of countries. It first provides an overview on the use of EPZs, and presents case studies from China, India and Russia that illustrate new trends and policies in such processing zones. It then offers a review of the economic costs and benefits of export processing zones and how EPZ policies relate to trade rules. The relationship between EPZs and the World Trade Organization (WTO) Agreements was also examined, and the treatment of EPZ in Regional Trade Agreements (RTAs) was discussed. The report concludes that EPZs are suboptimal policy from an economic point of view, and can only provide interim solution to developing countries.