UK officially pledges to make Brexit “deliver for Crown Dependencies”

Monday 16 July 2018

The UK Parliament has made its first concrete moves to ensure that the rights enjoyed by Jersey, and its fellow Crown Dependencies, are protected after the UK leaves the European Union.

A hotly-anticipated white paper laying out the UK’s “future relationship” with the EU after Brexit was released late last week, while Jersey's External Relations Minister visited Brussels.

Since then, the paper’s comments on goods, customs and the freedom of movement have been the focus of discussion among UK and European political officials.

But the States of Jersey and Guernsey instead had a keen eye on mentions of the Crown Dependencies following quarterly meetings with Robin Walker MP, Under-secretary of State for the Department for Exiting the European Union, on the matter. 

The four-chapter report setting out the recent Chequers agreement included eight references to the non-UK sovereignties, which also include Gibraltar and the Isle of Man.

Stating that any Brexit deal should also “deliver for Crown Dependencies”, the paper said that the future UK-EU relationship: 

• Should not affect the special status of the Crown Dependencies’ Common Travel Area arrangements. 
• Should involve “specific arrangements” for Crown Dependencies with regards to the Economic Partnership.
• Should see all authorities work closely together on the conservation and management of fisheries – an industry branded an important part of Britain’s “history, economy and way of life.”

Referring to the Crown Dependencies as part of the “UK family”, the paper also contained a commitment to continue quarterly meetings with Crown Dependency councils and Chief Ministers. 

“Taken together, the package presented in this White Paper would… protect the union, avoiding the need for any hard border between Northern Ireland and Ireland, preserving the constitutional and economic integrity of the UK, and meeting the needs of the wider UK family, including the Crown Dependencies and the Overseas Territories,” the paper concluded.  

2/2 We're pleased the UK has made specific references confirming Crown Dependencies are covered by exit & future partnership negotiations. We undertake regular engagement with the UK Gov on the progress of negotiations & are confident our interests are being taken into account

— Let's Talk Brexit (@letstalkbrexit) July 12, 2018

Minister for External Relations, Senator Ian Gorst, said that the White Paper “...provides helpful clarity on the UK vision for post-Brexit trade.” 

"We are pleased that the UK government has made specific references within the White Paper confirming that the Crown Dependencies are covered by exit and future partnership negotiations. We undertake regular, positive and frank engagement with the UK government on the progress of Brexit negotiations, and I am confident that our interests are being taken into account,” he commented.

Guernsey’s lead politician, Deputy Gavin St Pier, added that the paper was “...testament to our hard work and consistent engagement with the UK government for the last two years precisely to ensure it has a clear understanding of our interests and its responsibilities to represent them.” 

“It is also vital to the Bailiwick that the Brexit negotiations, and ultimately the future UK/EU relationship, do not change the centuries-old relationship that the islands have with the UK. Moving forward, there is still much work to do to ensure that the UK’s commitments to us will be respected in wider UK-EU negotiations and that the islands’ views will be taken into account throughout the process,” he said. 

The White Paper was published during the course of a visit of both politicians to Brussels, where they discussed key current issues, such as Brexit, new data protection regulations and the EU Code Group recommendations on proving that companies based in Jersey have 'substance', with representatives from the EU Council, Commission and Parliament.

External Relations Minister @Ian_Gorst is in #Brussels with @gavinstpier for two days of meetings - including with representatives of the @EU_Commission. An important opportunity to discuss @StatesofJersey & @Govgg shared interests with #EU institutions. pic.twitter.com/YTxu5QpfOE

— States of Jersey (@StatesofJersey) July 12, 2018

Senator Gorst, who met with the French, Romanian and Latvian Ambassadors to the EU, Finnish representatives, and the EU Commissioner's Chief of Staff, said that the trip was a valuable opportunity to share the benefits of Jersey to the rest of Europe

He commented: “From Jersey’s perspective, it is critical that our European neighbours understand the value we place on the contribution their nationals make to our Island. Up to 20% of our population is comprised of EU nationals who provide an invaluable contribution to our community and economy. I was able to reassure our interlocutors that we have developed the Jersey EU Settlement Scheme to ensure their nationals have continued ability to remain in Jersey after Brexit.

“I particularly welcomed the opportunity to meet the new French Ambassador to the EU, and to underline the importance of the Channel Islands relationship with France, our nearest neighbour. It was also invaluable to meet with the Chief of Staff of EU Commissioner Jourova to update her on Guernsey and Jersey’s adoption of equivalent legislation to the EU’s General Data Protection Regulation (GDPR) and Law Enforcement Directive (LED), as well as exchanging views on the shared objective of tackling money laundering and terrorist financing.”

The Brexit process has been particularly closely watched by professionals within the finance sector – Jersey’s key economic driver, which was worth £1.74billion to the economy last year. 

Jersey’s connection to the UK has been crucial keeping the industry buoyant and ensuring that the island isn’t blacklisted amid increasing EU scrutiny of offshore jurisdictions in the wake of the Panama and Paradise Papers’ revelations involving the tax arrangements of high-profile companies and individuals.

In the recently-released JFSC Annual Report, the regulator's outgoing Director General, John Harris, warned that the sector could be at risk without a ‘friend on the inside’ after Brexit.

“Jersey has maintained a consistent line that it is not looking to change the relationship with the EU, but the risk remains that the loss of the UK as a liberal EU member state may have implications for the perceptions of Jersey as an international finance centre among the remaining EU members,” he said.