There have been profound changes in the free zone concept and approach to economic development since the first modern zone was established in Ireland in 1959, and even more fundamental changes are foreseen over the next decade with full implementation of the WTO agreement. This can be consented to by expansion of the types of Zones in both developing and industrialized countries.countries are now facilitating the development of Zones to meet specific objectives and target markets. traditional EPZS are increasingly being augmented sometimes supplanted by new, more flexible arrangements.
Hybrid Export processing Zones are the preferred model in most Central and East European Countries, but this is a recent innovation in Asia, where Zone development has emphasized export manufacturing.
free zones were traditionally developed as isolated enclaves in terms of both their underlying policy framework and location. Access to generous set of incentives and privileges was rapidly controlled. Qualifying firm typically had to be 80% – 100% export oriented, for firms engaged in manufacturing activities.