Brexit Facts4EU.Org Summary

Freeports – another Brexit benefit

In this report we address:-

1. What are Freeports?
2. Could we have done this while still a member of the EU?
3. How many does the UK have and how many are we going to have?
4. Wales – and the government’s announcement on Thursday
5. What are the benefits of Freeports to the local community and to the country?

In tomorrow's report we will address:-

1. The SNP's Scotland and 'Green Freeports'
2. The Scottish Green party not backing Scotland's 'Green Freeports' (Yes, really)
3. The EU's Northern Ireland

[Sources: See bottom of article.]

1. What are Freeports?

Credit: Plymouth Cattewater Harbour Commissioners

Freeports are defined areas where it is possible to import goods (typically at a seaport or airport) without paying any import duty or tax, use them in a manufacturing process, and then export the finished goods. They can extend up to 28 miles beyond the centre.

They have precise geographical boundaries within which companies can operate on preferential tax terms, making inward investment attractive.

Countries around the world have adopted Freeports or other kinds of Special Economic Zones (SEZs), but the UK Government says it has worked in partnership with ports, businesses, local authorities, and wider stakeholders to develop a world-leading Freeports model for England. The Welsh government has now followed the English model, as has the Scottish government – with a small variation.

2. Could we have done this while still a member of the EU?

No, not in the highly competitive way the UK is doing this. The EU Commission allows what are known as “Free Zones”. On the face of it these are similar to the England’s Freeports, but they are highly restrictive in terms of the incentives governments can offer to persuade companies to invest.

There are a wide range of rules and regulations and only bureaucrats in Brussels can give approval. Not only that, but in 2019 the EU Parliament said they should be phased out altogether.

3. How many does the UK have and how many are we going to have?

The UK currently has two operational Freeports, on Teeside and on the Thames in Essex. In addition, six more Freeports have been agreed, following a tendering process in each region. Here is the list:-

4. Wales - and the government’s announcement on Thursday

On Thursday the Government announced the ninth tendering process, for a Freeport in Wales.

Backed by £26million in UK Government funding, the successful site is expected to become operational in 2023.

5. What are the benefits of Freeports to the local community and to the country?

With their wide geographical spread across the country, it is not surprising that Freeports are touted by the Government as part of the ‘levelling up’ agenda.

Freeports are planned to act as national hubs for global trade and investment, making trade processes more efficient, maximising developments in production and acquiring specialist expertise to secure Freeports’ position within supply chains.

The Government hopes this will create new markets for UK products and services and drive productivity improvements, bringing jobs and investment to Freeport regions for communities that need it most.