-
The first new Freeports will be established after we
leave the EU, to turbocharge growth and ensure towns and cities
across the UK benefit from Brexit trade opportunities.
-
Ports and airports across the UK will be invited to bid
to become one of up to 10 Freeports.
-
The Freeports Advisory Panel will include Ministers
from the Department for International Trade and HM Treasury, as
well as experts including technology advisor , small business
champion Emma Jones MBE, tax specialist Tom Clougherty and
economist Dr Eamonn Butler.
International Trade Secretary will today (Friday 2 August)
announce a new Freeports Advisory Panel to advise the government
on the establishment of up to 10
Freeports.
Expected to transform the country’s ports and airports just as
freedoms transformed London’s Docklands in the 1980s, up to ten
Freeports will be created after the UK leaves the EU on 31
October. More details on how ports and airports across the
country will be able to bid for Freeport status will be announced
soon.
Freeports are hubs for business and enterprise for both
manufacturing and services trade. These could be free of
unnecessary checks and paperwork, and include customs and tax
benefits. These zones reduce costs and bureaucracy, encouraging
manufacturing businesses to set up or re-shore. The most
successful Freeports globally attract businesses and create jobs
for local people through liberalised planning laws.
Freeports ensure Britain’s port cities and airports are ready to
take full advantage of post-Brexit opportunities, including
increased trade with the USA and fast-growing Asian markets as we
sign our first free trade deals with global partners.
Britain’s decision to leave the EU on 31st October will mean we
can operate an independent trade policy for the first time in 45
years, setting our own regulations and developing our own
policies to boost economies around the country.
There are already thousands of very successful free trading zones
around the world, with the United States having pioneered the
creation of over 250 free trade zones, employing 420,000 people,
many in high-skilled manufacturing jobs. If the UK model is
implemented as successfully, it could have a significant economic
impact.
On Friday, the Secretary of State will see how becoming a
Freeport could benefit one of the UK’s major ports in the
Northern Powerhouse, Teesport, alongside Tees Valley Mayor
. The Mayor has championed
Freeports, and a report commissioned by his authority found a
Freeport could provide a significant boost to his region and the
UK area’s GDP. Other ports which have expressed an interest
in the bidding process include the Port of Tyne, Milford Haven
and London Gateway.
International Trade Secretary MP said:
“Freedoms transformed London’s Docklands in the 1980s, and
Freeports will do the same for towns and cities across the UK.
They will onshore enterprise and manufacturing as the gateway to
our future prosperity, creating thousands of jobs.
“We will have a truly independent trade policy after we leave the
EU on October 31. I look forward to working with the Freeports
Advisory Panel to create the world's most advanced Freeport model
and launch the new ports as soon as possible."
Chief Secretary to the Treasury said:
“We are exploring freeports as an innovative way to drive growth
and support thousands of high-skilled jobs across the UK.
“We will focus on those areas that could benefit the most, as we
look to boost investment and opportunity for communities across
the country.”
Tees Valley Mayor said:
“Teesport played a crucial role in this nation’s historic trading
past, and is key to our great trading future.
“Creating a Freeport right here would turbocharge jobs and
growth, bringing investment into the region and making us a
global hub of enterprise and innovation.”
During her visit, the Secretary of State will also meet with PD
Ports and tour Teesport to learn more about the port’s
operations, priorities and plans for the future and saw
first-hand the size and scale of operations undertaken
there.
Case study: USA
There are many Freeport models across the US, known as
Foreign Trade Zones. One such port is in Miami, which sees over 7
million tons of cargo pass through its port every year.
Businesses within the zone can import, warehouse and re-export
products duty-free. This cuts down costs for businesses, helping
them become more globally competitive. Businesses can also defer
paying tax on their products while they are stored on site,
adding peace of mind for businesses looking to manage cash flow
and respond more quickly to spikes in demand for their products.
Freeports with less regulation doesn’t just help businesses cut
down on paperwork, but they offer greater flexibility on when,
where, and how they trade.
Note to Editor:
UN Source: “Free Trade Zones as originally conceived do not
exist anymore in the EU”; United Nations Economic and
Social Commission, Free Trade Zone Development
