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Taking into account no-deal tariffs, I'm still at a complete loss as to what products would benefit from tariff inversion opportunities of being processed in a free port. Certainly not cars, as car parts are zero tariffed anyway under no-deal tariffs. Maybe processed food?
(tariff inversion is where you import inputs that ordinarily face high tariffs into a free port and then process them into outputs that face lower tariff to then be sold into UK)
These are the examples given by @CPSThinkTank in their report advocating for free ports: cps.org.uk/files/reports/…
As far as I can tell, all of the inputs identified here, with the exception of textiles used to make a leather sofa/car seat (2% tariff) would be zero tariffed anyway
As far as I can tell, all of the inputs identified here, with the exception of textiles used to make a leather sofa/car seat (2% tariff) would be zero tariffed anyway
@CPSThinkTank I know the no-deal tariffs are only meant to be temporary, but let's assume for a second, like the rest of the world absolutely is doing, that they would actually be permanent. I'm not seeing the added value here.
@CPSThinkTank Of course, we could lift tariffs again to make free ports more useful, but that would be odd.
@CPSThinkTank Perhaps something in this point by @chip_roh:
