Free Trade Zones are based upon agreements between two countries where each country is provided land in each other's country to establish a tariff-free area.

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Free Trade Zones (FTZs) are designated areas within a country where goods can be imported, handled, manufactured, or reconfigured without direct intervention from the customs authorities, primarily for the purpose of export. These zones are not based on reciprocal land agreements between countries but are established by nations independently to encourage trade by reducing trade barriers like tariffs and quotas.

Free Trade Zones Are Based Upon Agreements Between Two Countries