The EU plans to raise objections to the UK’s freeport regime.
The UK has designated eight areas as freeports, allowing them to benefit from tax breaks and simplified customs controls. London hopes they will become manufacturing hubs, with components imported tariff-free.
However, EU officials have said this is not in accordance with the post-Brexit trade deal signed with the bloc, and plan to raise the concerns at a meeting later today.
Under the Trade and Cooperation Agreement, which allows tariff and quota-free trade between the UK and EU, the UK declined to harmonise its regulations with Brussels, but it did agree to prevent “distortions of trade or investment” by ensuring a “level playing field for open and fair competition”.
