Free Market Zones
Free economic activity zones, or free market zones as they are often called, have generated many economic and social benefits and have proven politically acceptable in an increasing number of industrialized and developing countries. In these designated zones, industries such as banking, insurance, international trade, and enterprise are almost totally deregulated. Canada has not as yet taken advantage of the benefits associated with the establishment of such zones.
Author, Herbert Grubel, looks at the benefits and costs from a Canadian perspective and recommends, through the selected reduction or elimination of regulations, controls, and taxes, the implementation of free market zones in certain geographically defined areas. He concludes that economic activities in these zones would expand rapidly, resulting in increased employment and productivity combined with an improved balance of payments position for Canada.