Freeport: Bidding process opens for first one in Wales
- Published
There are eight freeports in England, including Thames Freeport
The bidding process has opened for Wales' first freeport.
The Welsh and UK governments are inviting applications for the freeport, which should be operational by next summer.
Freeports are special zones with simplified customs procedures, relief on custom duties, tax benefits and development flexibility.
In May, the Welsh government reached an agreement with the UK government to establish freeports in Wales.
The successful bid will be announced in spring 2023.
Welsh ministers agreed to support freeports in Wales after the UK government agreed it would be based on a "partnership of equals" between the two governments.
UK Ministers also agreed to provide up to £26m of non-repayable starter funding for any freeport established in Wales, which represents a parity with the deals offered to each of the English and Scottish freeports.
Wales' first freeport should be up and running by summer 2023
The Welsh and UK governments have worked together to design a freeport model, which will deliver on three main objectives, which must be met by applicants.
The objectives are:
Promote regeneration and high-quality job creation
Establish the freeport as a national hub for global trade and investment across the economy
Foster an innovative environment.
Applicants must submit their bids by 24 November.
Both governments will work together to co-design the process for site selection and will have an equal say in all implementation decisions, including the final decision on site selection.
They both remain open to the possibility of a multi-site freeport in Wales, and to the possibility of allowing more than one freeport in the country.
The bidding process has opened for Wales' first freeport, with applications due to be submitted by 24 November 2022
What is a freeport?
At the moment, importers of goods or raw materials that enter the UK have to pay taxes or tariffs.
There is no single definition of a freeport but in general it means that companies importing products into the freeport do not have to pay any taxes when they bring them in.
If they use those products to make something else and then export it, they do not have to pay any taxes. They would only have to pay them if the product left the freeport and entered the UK .
A freeport is effectively outside a country's customs borders.
In England, businesses in freeports also have cheaper business rates, but in Wales that would be up to the Welsh government.
They also pay a lower rate of national insurance for new staff.
The Scottish and UK governments have agreed to set up two green freeports, with the two governments sharing responsibility.
The ports would focus on low emissions industries and fair work.
The argument in favour of freeports is that they create new jobs and attract investment .
But critics argue they do not create new jobs but simply encourage businesses to move from one location to another.
Wales' Economy Minister Vaughan Gething says freeports will promote international trade, fair work and sustainability
Wales' Economy Minister Vaughan Gething said: "Thanks to the agreement we have reached with the UK government, we are launching a freeports programme in Wales which offers an opportunity to harness Wales' abundant economic potential domestically and internationally by reimagining the role of ports, whilst promoting fair work and sustainability."
And UK Secretary of State for Levelling Up, Greg Clark said: "The UK government's freeports programme is already delivering benefits to businesses and communities across England, with operations in Teesside and Liverpool already under way, I look forward to seeing similar benefits for Wales as we deliver a ground-breaking new freeport and level up the whole of the United Kingdom."
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