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The location of Wales' first freeport is expected to be revealed this spring. The Welsh and º£½ÇÊÓƵ governments are currently jointly assessing the three bids put forward.

The winner will benefit from £26m in seed funding from the Westminster administration, the similar funding deal secured by freeports in England and Scotland. Currently England has eight freeports and

A Welsh freeport will be a special zone with the benefits of simplified customs procedures, relief on customs duties, tax and rates relief, streamlined planning, and wider government support for trade, investment and innovation. Goods entering freeports would not have to pay tariffs, import VAT or excise duty until they leave the freeport and enter the domestic º£½ÇÊÓƵ market.

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While businesses within the zone would receive 100% business-rate relief for five years and forego NIC contributions on salaries up to £25,000 for new hires in the first three years. Freeport local authorities would also retain 100% of business rates revenues for 25 years.

Those bidding must demonstrate support for employment with good salaries and conditions, embed fair work practices in the wider freeport area, generate increased economic activity for Wales, stimulate net growth in jobs, and contribute to Wales’s Net Zero climate ambitions.

Though the Welsh Conservatives have called for two of the three bidders to be awarded freeport status, Economy Minister Vaughan Gething said a second freeport would require the same level of financial support from the Treasury.

However, critics believe freeports have little net economic benefit, claiming they mainly displace business activity from elsewhere. The º£½ÇÊÓƵ Trade Policy Observatory said its analysis had found that the policy would have little effect in the º£½ÇÊÓƵ because tariffs were already low.