PEDC Pursues Foreign Trade Zone Designation for Paris

In 2025, the Paris Economic Development Corporation (PEDC) engaged Ernst & Young LLP to assist with obtaining a Foreign Trade Zone (FTZ) designation for the Paris area. The initiative is part of a broader economic development strategy designed to make Lamar County more competitive for national and international manufacturers, logistics operators, and distribution companies.

An FTZ is a designated area within the United States that is considered outside of U.S. Customs territory for the purpose of duty payment. Companies operating within an FTZ can store, process, manufacture, and re-export goods without paying federal customs duties on imported materials. The designation is administered by the Foreign-Trade Zones Board under the U.S. Department of Commerce.

Why an FTZ matters for Paris

Paris already has a manufacturing base anchored by Huhtamaki's $85 million expansion and other industrial operations. An FTZ designation would amplify that base by reducing the cost of imported raw materials and components for manufacturers in the zone. For a packaging company like Huhtamaki, which imports certain paper and board grades, duty deferral or elimination on those inputs can meaningfully improve operating margins and strengthen the case for continued local investment.

Beyond manufacturing, an FTZ benefits logistics and distribution operations. Companies that import goods for warehousing, repackaging, or regional distribution can defer customs duties until products leave the zone for domestic consumption. This is particularly attractive for operations that re-export to Mexico or Canada under USMCA provisions, leveraging Paris's position along major north-south and east-west transportation corridors.

The broader strategy

The FTZ pursuit is one element of a coordinated economic development playbook. The PEDC's 2025 year in review highlighted site readiness, workforce development, and infrastructure investment as the three pillars of its strategy. The 102-acre industrial site acquisition along South Loop 286, the Industry Connect 2025 workforce partnership with East Texas A&M, and the FTZ pursuit are all designed to position Paris as a turnkey location for industrial expansion.

For commercial property investors, the FTZ initiative signals that Paris is thinking beyond local growth. The city is positioning itself to capture a share of national and international trade flows. An FTZ, combined with the Opportunity Zone designation, the expanding road network, and the growing workforce, creates a layered incentive structure that is difficult for competing markets to replicate. Properties within the zone, or proximate to it, benefit from the traffic, employment, and commercial activity that follow.