The public likely won't get to see a consultant's findings on the pros and cons of establishing a foreign trade zone here until later this year.
Victoria hired a firm to research the potential competitive advantages of foreign trade zones earlier this year just as the operator of Deltaport at Roberts Bank was part of a national lobby to the federal government to allow the creation of the special zones.
GCT Global Container Terminals Inc. wants the federal government to explore establishing foreign trade zones in this country. It is part of a steering committee that includes YVR, CN, CPR, Port Metro Vancouver, Halifax and Montreal ports, and Centreport in Winnipeg that wants a review of federal policies and processes regarding the zones and has made the B.C. government aware of its efforts.
A spokesperson for the B.C. Ministry of Transportation and Infrastructure told the Optimist last week the consultant's study should be completed by the end of July and that the government will spend the rest of the summer analyzing the findings. A report will be available for the public afterward.
The zones were created in the United States to provide special customs procedures, including dutyfree treatment, to U.S. firms engaged in international trade-related activities. By having goods sitting in the zones, duty payment is deferred on those items until they are brought out for sale in the market. The zones are supposed to help to offset customs advantages available to overseas producers that compete with domestic industry.
However, there's uncertainty what the potential impacts could be for the host community and there's been a growing concern about what could happen in South Delta, mentioned on numerous occasions as the prime candidate for a zone in B.C.
Delta council discussed the issue last week.
Saying he has no position until he sees the consultant's report, civic finance director Karl Pruess issued a report to council noting such zones now exist in numerous jurisdictions. Most European countries have one or more (England has five, while Germany has six) and they exist across the Americas, Africa and Asia. There are several zones in the U.S., including San Francisco, Portland and Seattle.
Canada has pilot zone underway in Manitoba at Centrepoint inland port and there is a foreign trade zone at the Gander International Airport in Newfoundland.
Some lingering questions raised by council included whether speculators buying up agricultural properties in South Delta anticipate land being converted for industrial purposes without Delta's or the Agricultural Land Commission's consent.
Other concerns included whether firms within the trade zones will be able to avoid municipal zoning regulations and taxes.
"It does raise a lot of questions. If it was simply storage for foreign material, that's one thing. But the thing is, it can take control of an area outside of local government. If that happens, you lose your ability to negotiate what occurs in there," said Coun. Anne Peterson.
"A lot of the free trade zones around the world, the economic viability of that area for the local population has been greatly undermined. In industrial areas, what occurs is that it can negatively not only affect the social environment, it can also greatly impact local autonomy... depending on what is in there, it can allow for local businesses and manufacturers to relocate into that area and away from the local government in order to not pay local taxes," she said.
Peterson echoed the sentiment of her colleagues that Metro Vancouver as well as local government should be part of the conversation and should get answers on what foreign trade zones would mean for a community.
Council agreed to send a letter to the province seeking answers and assurances.
Delta North MP Guy Gentner recently warned a trade zone could become an autonomous authority within the community.
Delta South MLA Vicki Huntington, meanwhile, had also warned about the prospect of valuable farmland being removed from the Agricultural Land Reserve to create "an industrial wasteland" in her community.
In an interview earlier this year, Eric Waltz, president of Global Container Terminals Canada, said foreign trade zone policies are already in place, but what the zones would do is offer more clarity as to what the regulations mean for businesses.
