Definition of free trade zone in US English:

free trade zone

noun

  • 1An economic zone consisting of a group of countries allowing free trade arrangements between themselves; compare free trade area, "customs union".

  • 2A geographical region within a country which is subject to special economic laws that are less restrictive than those governing the rest of the country, and where importers and manufacturers are exempt from particular customs duties, regulations, etc.

Origin

Late 19th century.