This portal was established to provide a quick and easy reference about the different trade zones of Lubiar, including information on how to establish new ones for interested government and or private partners. Conceptualized in February 2020, the Trade Zone Program (TZP), was the answer of the Trade Federation to address the city-state's small land territory, reliance on global trade and investments and mission to promote closer relations with its international neighbors.
The TZP provides people with an exciting living and or work space, under the framework of specially tailored rules and regulations which encourage business, innovation and sustainability, and a unique platform to encourage an easy exchange of ideas, goods and people from one jurisdiction to another.
What is a trade zone?
A trade zone is a portion of territory owned by another state (the host government), which is rented to the Trade Federation of Lubiar. The land remains a possession of the host government, but is subject to Lubiarian law and process for the duration of its existence as a trade zones. A trade zone offers living, educational, recreational and work space to citizens of Lubiar, citizens of the host nation and other residents of the trade zone.
How is a trade zone established?
A trade zone is established by a Trade Zone Program Agreement signed by Lubiar and the host government. The document details the different rights and obligations of the parties relative to the trade zone. Each TZPA is different, depending on the expectations and circumstances of the participating host government, but contains the most basic protocols related to territory, non-interference, movement of persons and goods and security. A trade zone will also contain the diplomatic mission of the Trade Federation of Lubiar.
What are the benefits of establishing a trade zone?
Trade Zones attract human capital and investments, which help the immediately surrounding areas under the jurisdiction of the host government grow and develop. Supply chains will be tapped to supply the industries within the Lubiarian trade zone, generating demand that will grow the local and national economy of the host government.
Host governments derive a share of the revenues generated from all economic activity occurring within their trade zone. The Lubiarian government will set aside 5% of all revenues generated annual as a special levy to be remitted to the host government.
The hosting of a Lubiarian trade zone enables the host government access to the Lubiarian Free Trade Area (LFTA), which includes the Trade Federation and all the other trade zones of the program. This means that a host government can sell its products or buy those from other nations at zero to minimal rates, notwithstanding the fact that they have no existing trade agreement. As long as the goods are exchange through the trade zone, zero to minimal rates guaranteed to Lubiar will be extended to the government hosting a Lubiarian trade zone.
The Lubiarian Free Trade Area is also makes possible the movement of persons and services. Opening a Lubiarian trade zone will allow your qualified citizens to visit, work in, study and even live in Lubiar and the other trade zones. This easy movement of people encourages the spread of innovation and best practices.
Won't trade zones endanger the security of a host government?
No. One of the standard provisions of all Trade Zone Program Agreements is the requirement of non-interference. The Trade Federation will never use the trade zones as bases to plot against the host government and or interfere with its internal affairs. Lubiarians are interested in trade and commerce, not war and bloody expansion. Although security assets may be deployed by Lubiar to a trade zone from time to time, they will only for the self-defense of the trade zone. The size of deployed forces can also be cut back if there is an agreement wherein the host government will assist in the Lubiarian government in case of a military attack on the trade zone. At all times, Lubiar will observe the host government policy regarding the storage of nuclear, chemical or biological weapons.