The World Bank requested Locus Economica's assistance to analyze Peru's special economic zones (SEZs) and provide policy options from October 2015 to March 2016. Peru has multiple overlapping zones laws, all designed to promote industrialization in key sectors. Four of the country's seven zones are operational and attract investment through a combination of fiscal incentives and duty free treatment of imports.
We assisted the Peruvian government by assessing their zones policies against international best practices. We conducted extensive on-site evaluations of the country's zones and of its investment climate and identified numerous improvements. Our report gave special focus on tax, trade, and investment promotion policies, relying on benchmark zones programs including the including the United States' Foreign Trade Zones, Mexico's Maquiladoras, and South Korea's Free Export Zones.
Our assessment included guidance on the following issues, among others:
- Addressing burdensome, overlapping regulation of the SEZs by both local and national regulators;
- Consolidating and streamlining regulatory approvals;
- Best practices for development, operation, and regulatory frameworks and functions; and
- Fiscal and customs incentives.