6th August 2020
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Is the sun setting on Boris Johnson’s plan for FTZs?
Just a short note today, to flag up an exceptional blog on Dubai’s problematic ‘free trade zones’ (FTZs) by Lakshmi Kumar from Global Financial Integrity.
I was going to review the information in full, but that would simply detract from Lakshmi’s excellent original work (here) – and would make my blog look even more like GFI love-in! But do read this superb work, which follows-up on GFI’s contribution to the Carnegie Endowment for International Peace study of Dubai’s role as a facilitator of, and a haven for, illicit finance (here).
As you may already know, the UK is seeking to introduce up to ten FTZs to its shores to boost post-Brexit trade. Just this week, we learned more details of plans for a FTZ at Cromarty Firth in Scotland.
But just as prime minister Boris Johnson is seeking to bring these tariff-free and light-touch regulatory trade regimes to the UK, critics increasingly warn that FTZs simply create the perfect conditions for illicit trade, money laundering, drug importation and other criminal activities.
Financial Times coverage this week (here) also revealed that the British Chambers of Commerce, which forms part of the panel advising the UK government about FTZs, is sceptical about some reported benefits – claiming that FTZs often simply lure investment, trade and jobs away from other areas of the sponsoring state.
What any government must do, is weigh up these multiple risks against the ability of FTZs to boost genuine trade and, therefore, economic growth. But there is now a weight of evidence which suggests that, in many instances, the problems associated with FTZs are beginning to outweigh the benefits.
But don’t take my word for it – read Lakshmi’s excellent blog on FTZs in Dubai, the CEIP study and an OECD analysis of FTZs (here). All three reports are accessible and provide a comprehensive view of the issues at play.
I will return to the issue of FTZs soon. On that note, I should let (my few!) regular readers know that this blog will soon move beyond its initial ‘soft launch’ phase – including several investigations into issues beyond illicit finance. This first month or so has allowed me to launch the blog and get to know how the admin system for the website works. I’m always balancing blog work with my paid roles as an investigative hack and ghost. But there is more to come, rest assured.
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30th March 2023
New Thinking Archive: Braverman and UK Asylum Seekers
Quite rightly, the treatment of UK immigrants and asylum seekers is back in the news. There’s a lot to say about the UK government’s handling of these delicate policy issues,…
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22nd March 2023
New Thinking Archive: China and Illicit Trade
This week, another article from the New Thinking magazine archive – on the reality of China’s illicit trade. Timely, given President Xi’s recent visit to Moscow. A few interesting, and…
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