And then where they would see their products, if not by having to pay taxes in the countries where they would ship those products from their own tax free countr

And then where they would see their products, if not by having to pay taxes in the countries where they would ship those products from their own tax free country? I don't think you get the issue here, a company in the USA can't just come to EU and sell their products without paying taxes... much less a company from a non existing wannabe country.