Special Economic Zones in the United States: From Colonial Charters, to Foreign-Trade Zones, Toward USSEZs

Special economic zones represent evolving experiments in jurisdictional autonomy that allow governments to delegate regulatory authority to specific geographic areas. Bell traces the history of special jurisdictions in America from colonial charters granting monopolies to Old World kings' merchants establishing proto-SEZs like Jamestown and New Amsterdam, through Foreign Trade Zones offering tax and regulatory exemptions. Modern SEZs range from single factories exploiting customs loopholes to massive self-governed cities housing millions. SEZs have flourished, declined, and resurged across centuries and continents, adapting to environmental conditions like competitive species. The United States pioneered jurisdictional experimentation yet currently relies on Foreign Trade Zones offering limited tax breaks. Bell proposes United States SEZs (USSEZs) on federally owned property, easing regulatory burdens and federal law compliance while generating revenue. Unlike FTZs, USSEZs would have residents requiring incentives to attract and retain populations. Bell argues special economic zones demonstrate successful jurisdictional delegation can promote economic growth and human welfare. The proposal positions USSEZs as distinctly American responses to underdeveloped federal lands.

Topics: Administrative Law · Federalism

Keywords: special economic zones · Foreign Trade Zones · jurisdictional autonomy · regulatory delegation · federal lands · economic development · governance