What is the Hawksbill Creek Agreement (HCA)?
In 1955, satisfied that the dredging and construction of a deep water harbour and turning basin at Hawksbill Creek, and the establishment of factories and industrial undertakings would be of great economic benefit to the country, the Government entered into the Hawksbill Creek Agreement (HCA) with the GBPA
Free Trade Zone
Effectively, the HCA created a FREE TRADE ZONE (FTZ) in the Port Area of Freeport/Lucaya.
There are more than 3,500 FTZs in 135 countries
Freeport/Lucaya was a forerunner of FTZs
By 1960s, south and east Asian countries, including communist China, implementing their own FTZs.
Are Free Trade Zones Beneficial?
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*Adapted from Michael Schuman
Between 1960 and 2012, ten south and east Asian countries, including communist China, utilized free trade zones to significantly surpass The Bahamas in economic development.
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*Adapted from Michael Schuman
Between 1965 and 1999, the East and South Asian countries nurtured their free trade zones; their economic growth exceeded that of the rest of the world including high income nations. Other countries have since joined the movement.
Is Freeport’s FTZ Beneficial?
Although hampered by administrative issues, Freeport’s FTZ resulted in:
Development of a 230 sq. mile city
◦ 400 miles of paved roads/400 miles of unpaved
◦ World class airport, harbour, container port, power plant, water plant, & telecommunications
