Responding to DexEU Secretary, David Davis’ speech at Teesport, the British Ports Association’s Chief Executive, Richard Ballantyne suggested that cross border trade facilitation was being neglected in the negotiations.
The Free Ports concept has been much debated recently. This will not solve some of the immediate cross border challenges arising from Brexit but there are some ports such as Milford Haven, Teesport and others, where there could be interest. Additonally, the British Ports Association outlined its vision for UK ports to be granted a special status which would enable them to enable development, enterprise and regional growth.
“Our vision is for a new pro-growth and trade initiative where UK ports are designated as ‘Port Development and Enterprise Zones’, encouraging regional and coastal development and boosting trade. Within such zones, trade and industrial activity could be incentivised by favourable business, tax and planning conditions,” Richard Ballantyne said.
Whilst Free Port status might not work for all ports, the UK Government has to examine how this can work. It is not certain if the terms of any Brexit departure deal would even allow free ports as they may cause competition and state aide challenges, Mr Ballantyne noted.
He also added that: “The confirmation of the Government’s priorities for Brexit transitional arrangements provides European focused ports and logistics operators some clarity that in the short term it will be business as usual at the border. Much depends upon the negotiations and agreements of course but longer term, post the transitional period, we are unsure what the arrangements might be when leaving the European Union.”