Newport is seeking freeport status, the leader of the city council has confirmed.
Eight freeports in England, after a competitive bidding process, were announced by Chancellor Rishi Sunak in his Budget last month.
While a devolved area, the 海角视频 Government wants to see at least one freeport in Wales. However, the Welsh Government has reservations on their economic benefit, including a concern that they just displace business activity from elsewhere.
The 海角视频 Government says goods entering freeports would not have to pay tariffs, import VAT or excise duty until they leave the freeport and enter the domestic 海角视频 market, with simplified customs procedures and declarations.
The 海角视频 Trade Policy Observatory said its analysis had found that the policy would have little effect in the 海角视频 because tariffs were already low.
In a written question to the leader of Newport council, Conservative councillor Joan Watkins asked for details of what the authority is doing to support the city to become a freeport “with all the benefits that that will bring”.
“Newport is in the race to be afforded the same status and there is a body of evidence to support an application on the city’s behalf here in Wales,” Cllr Watkins said.
In response, council leader Jane Mudd said: “Newport City Council has appointed AECOM to assist in developing the business case for the Port of Newport achieving freeport status.
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“AECOM are a leading consultancy with significant specialism in ports, marine operations and economic development, and were instrumental in achieving the successful Teeside bid.
“The detail on the bidding process for Wales remains unpublished, but this commission will ensure Newport’s readiness to bid once the competition opens.”
The port is owned by Associated British Ports, which is supportive of freeports and has previously made the case for its other ports in south Wales in Port Talbot, Swansea, Newport and Barry.
The fact that the port of Bristol didn’t secure freeport strengthens the case for Newport.
The ports of Milford Haven and Holyhead could also be contenders.
In England freeports are being established at East Midlands Airport, Felixstowe and Harwich, the Humber region, the Liverpool City Region, Plymouth, Solent, Thames and Teesside. They are each expected to receive around £25m from the 海角视频 Government to support their establishment. However, it is not clear whether the same amount of support would be provided to establish a freeport in Wales.