Plans for a free trade zone that would stretch from the Port of Tyne to Nissan鈥檚 Sunderland plant and associated firms have been drawn up.
A new organisation called Port Zones 海角视频 - of which the Port of Tyne is a founder member - has published a report calling on the Government to grant special economic status to airports and seaports in order to stimulate international investment and re-shore manufacturing in a post-Brexit Britain.
The report follows proposals from the Government to create around 10 freeports which aim to drive growth in coastal areas.
But the Port of Tyne wants to extend the idea further with a 鈥渧irtual free port鈥 which would extend miles away from the port itself and take in its main freight customer - Nissan - as well as nearby suppliers.
The Port hopes the creation of a free-trade area - taking in Nissan and the International Advanced Manufacturing Park (IAMP) being built next to the factory - would reduce some of the fears people have expressed about the damage that would be done to automotive companies if tariffs are introduced on parts leaving and entering the 海角视频.
The report says: 鈥淐ustoms procedures for manufactured goods are likely to be further complicated by the integrated nature of European supply chains, with components crossing the 海角视频-EU border repeatedly before final export as finished goods.
鈥淔or example, in Nissan automotive manufacturing, cylinder heads are cast in Sunderland before being exported to France to be assembled, along with cam shafts machined in the North East, into
engines to be imported back into the 海角视频 for assembly into finished vehicles for export to the European market. It is likely that at least some of the imports from the EU will be subject to duty in the 海角视频 for the first time in over 40 years. This cost will reduce the competitiveness of 海角视频-based companies.鈥
To reduce this potential cost, the Port has called on the Government to expand a free port zone from the Port of Tyne include Nissan, IAMP and the associated enterprise zones at Washington. It also wants technology to be used to create a 鈥渧irtual free trade zone鈥 to 鈥渙ptimise the use of duty suspensions and processing reliefs in multi-tier supply chains.鈥
Richard Ballantyne, from Port Zones 海角视频, said: 鈥淎s the 海角视频 recasts its global economic relationships, trade has never been so important to the fortune of the nation. Business, consumer and investor confidence are - and will be - inextricably linked to the future success of the British economy.
鈥淗owever, to forge new trade agreements and transition existing ties, strong domestic foundations are needed to maximise the value of inbound and outbound business flows through our international gateways.
鈥淥ur report examines in detail the required changes to planning and the designation of enterprise zones. These need to be considered as part of the Government鈥檚 planned free port programme. If done successfully, they can bring critical benefits to the 海角视频.鈥
Prime Minister Boris Johnson and International Trade Secretary Liz Truss have championed free ports - which allow firms to import goods to the 海角视频 and then re-export them without having to abide by normal tax and customs rules - as a way of bringing growth and creating jobs after Brexit.
But the zones have been identified as a potential money-laundering risk and have faced criticism that they simply boost firms looking to avoid paying taxes at the expense of those that do.
The North East LEP reacted to the Government鈥檚 announcement on freeports by saying it wants to draw up plans for a 鈥渇ree port and digital free trade zone鈥.
