Free trade zones in the Americas have become one of the main drivers of foreign investment, foreign trade and industrialization in the region, according to the report Doing business in free trade zones 2025: Opportunities and competitiveness in investment ecosystems , prepared by the Association of Free Trade Zones of the Americas (AZFA) .
The report offers a comprehensive view of the business environment in the region’s most dynamic investment ecosystems and is presented as a reference tool for investors, public policymakers and business actors interested in understanding the conditions, incentives and competitive advantages offered by Ibero-American free zones.
Currently, the region has more than 700 operational free trade zones that house more than 7,800 companies , generate around one million direct jobs and concentrate an accumulated investment estimated at more than 34,750 million dollars (USD).
These figures reflect the strategic role of the free trade zone regime in productive development policies and in the integration of Latin America and the Caribbean into global value chains.
The report highlighted regional differences in specialization models. In the Caribbean , free trade zones maintain their historical leadership as platforms for global trade, logistics, and services. Central America stands out for its dynamism in advanced manufacturing and business services linked to the nearshoring phenomenon (relocation of production lines) , driven by its proximity to North America.
The cumulative investment in free trade zones has shown sustained growth over the last decade, going from approximately $27.6 billion in 2014 to more than $318 billion in 2024, according to regional estimates.
Although annual investment has fluctuated moderately, the upward trend confirms the attractiveness of the regime and its ability to channel capital towards industrial, technological and logistical projects.
This behavior has been driven by the macroeconomic stability of several countries, the consolidation of trade agreements and the strengthening of national investment promotion agencies, which have incorporated free trade zones as a strategic axis of their competitiveness policies.
Regarding the predominant sectors, the study noted an increasingly sophisticated structure, with a significant presence of the medical and pharmaceutical industries, electrical and electronic devices, business and technology services, agribusiness, tobacco, and textiles. These sectors have transformed free trade zones into spaces for productive specialization and technology transfer, with a high impact on formal employment and exports.
The report also highlighted a clear transition toward more sustainable and digitized models. According to the Economic Commission for Latin America and the Caribbean (ECLAC) , special economic zones that integrate green economy practices and Industry 4.0 processes have increased their productivity by up to 25 percent.
In turn, the United Nations Conference on Trade and Development (UNCTAD) identified Latin America as the emerging region with the greatest potential to attract investment linked to resilient supply chains, especially in advanced manufacturing, global services and clean energy.
Looking ahead, AZFA warned that the region faces key challenges, such as regulatory harmonization, modernization of logistics infrastructure, and strengthening of specialized human capital. Overcoming these challenges will be fundamental to consolidating the free trade zones of Latin America and the Caribbean as competitive , sustainable, and innovative hubs within the global economy.
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