Special Economic Zones and Export Processing

The modern special economic zone traces its lineage to Ireland's Shannon Free Zone, established in 1959 adjacent to Shannon Airport in County Clare, which is generally regarded as the first purpose-built free trade zone of the modern era, created to offset the economic decline of Shannon Airport as a transatlantic refueling stop once jet aircraft could fly nonstop between Europe and North America. By offering duty-free import of components, corporate tax incentives, and streamlined customs procedures for firms that exported their finished output, Shannon established a template that dozens of countries would later adapt.