Chetumal's economy has been influenced by its proximity to the border with Belize. A goods and services tax-free zone (Corozal Free Zone) established on the Belizean side attracts many visitors to Chetumal and also provides a ready market for Chetumal's retailers and traders. However a certain vacuum was created by the lower free zone prices forcing many Chetumal retailers to close their doors. Merchandise bought elsewhere was hard to sell at higher prices than the competition. Chetumal itself was also once a free zone and a notable destination for people from other parts of Mexico seeking to purchase high-value and bulk goods, free of government duty charges (a policy that was deliberately implemented to attract this business). The city retains a significant retail trade for the region, which supports many local businesses.