Brexit provides a new trade opportunity for Britain; the creation of Free Ports, boosting UK manufacturing, trade, and regional growth.
EU law has long held back the potential of British ports. In The Free Ports Opportunity (a new report published by the Centre for Policy Studies on Monday 14 November), Rishi Sunak MP shows how Brexit would bring an end to this, allowing the introduction of Free Ports across the nation. Already successful in the USA, Free Ports would provide a fast response to Brexit that would increase manufacturing output, reinvigorate the North, and promote trade.
Free Ports are areas that, although inside the geographic boundary of a country, are considered outside the country for customs purposes. This means that goods can enter and re-exit the port without incurring usual import procedures or tariffs – incentivising domestic manufacturing. They could create more 86,000 jobs for the British economy if they were as successful as those in the United States. Free Port jobs would mainly be created in areas outside London where economic need is higher. Of the UK’s 30 largest ports, 17 are in the bottom quartile of Local Authorities when ranked by the ONS’ Index of Multiple Deprivation and three quarters are in ‘below average’ Local Authorities.
Leaving the EU will enable Britain to capitalise on the Free Port opportunity. Today, the EU Customs Union and EU State Aid laws make this almost impossible. They have a broad appeal that could command bipartisan support, allowing the policy to act as a rapid response to Brexit. A Free Ports policy is fundamentally simple and is supported by a wealth of international precedent – making implementation possible over a short timescale.
Ports are already a vital strategic asset for the UK economy, accounting for 96 percent of all trade volume and 75 percent of trade value. A programme would build on an existing UK strength and reconnect us with our proud maritime history: Britain’s port infrastructure is world class, and the UK ports sector is already the second largest in Europe.
Rishi Sunak MP comments: “Upon leaving the EU, Britain will find itself with more opportunities for economic innovation than at any time in almost 50 years. As the date of our departure draws closer, it will be the responsibility of Government to ensure Britain is not timid in seizing those opportunities. Foreign Trade Zones are flourishing all around the world – except in the EU. Post-Brexit they could play an important role in signalling Britain’s openness to the world, as well as reconnecting the nation with its proud maritime history.”
James Cooper, Chief Executive, Associated British Ports (the UK’s largest port owner) comments: “Ports are key to the nation’s trade and many offer ideal locations for new manufacturing. They should be front and centre of an industrial strategy to boost exports and re-balance the economy. This report is an example of the creative and ambitious thinking that should underpin such a strategy, maximising the potential of our ports to promote export-led growth and helping forge a prosperous future post-Brexit.”
