Free Trade Zone

This article is about the Free Trade Zone. You may be looking for the Association of Free Trade Worlds or the Velcar Free Commerce Zone.

The free trade zones were originally created to foster exchange between the Core Worlds and the outlying systems of the Mid and Outer Rims. At the time, it was thought that free and open trade would prove a benefit to all concerned. But those zones have since become a haven not only for smugglers and pirates, but also for shipping and trading cartels that have availed themselves of the liberties we ensured, by setting themselves up as entities of political and military leverage.Finis Valorum's address to the Senate

The Free Trade Zones were areas in the Mid and Outer Rims where trading could be conducted without government taxation.

History

Creation

The Free Trade Zones were created by the Galactic Senate in 124 BBY to jump-start legitimate commerce in the region in the hopes of ending the political isolation, stagnation and crime that had gripped the area since the Ruusan Reformations. The acts benefited various mega-corporations, including the InterGalactic Banking Clan and the Corporate Alliance, but none more so than the Trade Federation, a Neimoidian trade cartel. The Trade Federation rapidly expanded into the Outer Rim, stifled competition, and enforced deals with its powerful Trade Defense Force. It soon dominated hundreds of star systems and commanded tremendous influence on Coruscant.

Reform

The Free Trade Zones were reformed in 67 BBY after an intense debate on the issue. However, the Trade Federation and several other major commerce corporations opposed this act as it would give startup companies in the Outer and Mid Rim, as well as small planetary business, greater control over trade in the outlying systems. Predominantly in the opposition camp was the financial lobbying company Damask Holdings, while the Jedi Order campaigned strongly in favor of reform.

Secretly however, Damask Holdings Magister, Hego Damask II, knew the trade zones would be reformed regardless so he instead negotiated a compromise to strengthen the Federation. In exchange for Damask's support, the pro-creation lobby granted the Federation full representation in the Senate, while Damask advised the InterGalactic Banking Clan to invest in startup shipping operations in the Outer Rim.

Legacy

By the waning years of the Galactic Republic, it was felt that the Free Trade Zones had made the Trade Federation far too powerful. In 33 BBY, Supreme Chancellor Finis Valorum advocated restoring taxation to the Free Trade Zones in an effort to curb the Trade Federation. Senate Resolution BR-0371 would have effectively abolished the zones. Regarding this as an attack on their interests, and urged on by Darth Sidious, the Trade Federation blockaded the planet Naboo in protest.