Post-Brexit UK free ports opportunity report

Commenting on the Centre for Policy Studies’ report outlining the benefits and opportunities of a “Free Port” and Free Trade Zones system for post-Brexit Britain, the British Ports Association Director Richard Ballantyne called the report an interesting concept which will be explored with its members.

“The Brexit vote has prompted a number of discussions to do with trade and customs policy and any options which improve potential flow of goods and passengers at our ports are well worth exploring further,” he said.

“A “Free port” system could be more beneficial for some ports and it is important to ensure any proposals properly reflect the diversity of the UK ports industry.”

The report summarises that Brexit will provide the UK with new economic freedom simultaneously increase manufacturing output, create employment regionally where it is most needed and promote trade.

Free Ports are defined as an area inside the UK geographically, but legally outside of the UK customs territory. Goods can be imported, manufactured or re-exported inside without incurring domestic customs duties or taxes. These are only paid (often at reduced rates) on goods entering the domestic economy.

There are no Free Trade Zones on the UK mainland today and as a member of the EU Single Market and Customs Union, the UK does not have control over its trade policy.

In conclusion, the report said that upon leaving the EU, Britain will find itself with more opportunities for economic innovation than at any time in almost 50 years.

The obvious, and probably the most effective, mechanism for deciding upon the locations of the first Free Ports would be a hybrid approach. A number of locations would be decided upon centrally in accordance with the government’s industrial strategy priorities.

The remaining locations, meanwhile, could be decided through a bidding process in which Local Enterprise Partnerships, Devolved Administrations and the ports themselves would be able to submit their case for participation.