The UK government has recently announced plans to open eight new freeports in England. It hopes that the establishment of these trading hubs will help regenerate some of the country’s most deprived areas.

Number of UK Freeports Will Double

Freeports are typically located near airports or shipping ports, and products arriving at freeports from outside the country are exempt from tariffs normally charged on goods imported into the country. These taxes are only paid if the goods leave the freeport to another location in the UK; if they are sent from the freeport to a location overseas, the fees do not have to be paid.

According to recent data, there are currently around 3,500 freeports in the world. Free trade zones exist in roughly 135 countries, with most of them being located in the Far East. Between 1984 and 2012, the UK had seven freeports at locations such as Liverpool, Southampton, the Port of Tilbury, the Port of Sheerness, and Prestwick Airport. However, the legislation that established freeports in the UK was not renewed.

The UK government announced in its March 2021 budget that it will set up the eight new freeports in the following locations: East Midlands Airport, Felixstowe and Harwich, Humber region, Liverpool City Region, Plymouth, Solent, Thames, and Teesside.

The Benefits of Freeports

As mentioned before, freeports, also known as free trade zones, are areas where tariffs that usually apply to the trade of goods do not apply. Simply put, they are areas where goods can be imported, manufactured, and exported without tariffs. Freeports thus allow companies to import raw materials, produce goods, and export them without paying the high tariffs that are typically associated with these activities. Companies that operate within freeports generally pay lower taxes such as VAT and employment tax.

There are clear benefits for manufacturers who want to operate in these zones. Supporters of freeports claim that adding freeport locations to the UK will help boost manufacturing, increase job opportunities, and enhance investment in areas that may otherwise struggle. Some experts also believe the freeports may offer UK-based manufacturers a way to benefit after the detrimental impact of Brexit.

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Hope Nigeria will benefit from it..

Nigeria can't so such....to even maintain existing ports dey hard dem.
Na to come build free ports.