The north american free trade agreement (nafta) created a free trade zone among Mexico, the united states, and Canada in 1993.
Previously known as a free port, a free-trade zone allows items to be brought in, handled, manufactured, or modified, and then reexported without the involvement of customs officials. The products do not become subject to the current customs duties until they are transported to consumers inside the nation where the zone is situated.
Free-trade zones are set up around significant seaports, international airports, and national borders—regions with numerous free-trade zone-friendly geographic advantages. A few cities that come to mind include Hong Kong, Singapore, Colón (Panama), Copenhagen, Stockholm, Gdask (Poland), Los Angeles, and New York City. In some large seaports, alternative equipment is employed, such as the bonded warehouse and related systems (e.g., London and Amsterdam).
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