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Jersey prepares ground in event of Brexit vote

By Mark Battersby, 30 Mar 16

Jersey is working hard behind the scenes to shore up its position with the UK and European Union in the event of a vote in favour of Brexit at the UK referendum on 23 June.

Jersey is working hard behind the scenes to shore up its position with the UK and European Union in the event of a vote in favour of Brexit at the UK referendum on 23 June.

Jersey’s chief minister Ian Gorst told International Adviser its government had been in dialogue with the UK’s Foreign Office, the Cabinet Office and the Ministry of Justice, though he has not spoken directly with prime minster David Cameron.

“We have made it clear we want to maintain our existing relationships, whatever the British public decides, and we will continue to do so,” he said.

“We take the view that, if Europe is more competitive, which, I think the British government does, it’s good for us as well.  A competitive Europe is good for Jersey’s economic position, as it is for the UK’s economic position.”

Jersey has had a Brussels office in existence for a number of years, he said “maintaining dialogue directly” with the European Commission and Parliament and Council through the Permanent Representative offices. 

Third country relationship

“We’ll continue to do that as well.  We’ve already been developing our own third country relationship with the EU.”

Under the long-standing Protocol 3, the Channel Islands are part of the Customs Union and are essentially within the EU’s Single Market for trade in goods, but are third countries (outside the EU) in all other respects.

Gorst said the protocol was thought to be the best option at the time because Jersey’s economy was focused on export of agricultural and fishing products.

“Now, services are the main sector of our economy.  We’ve had to show ourselves, and we’ll continue to do so, to be able to deliver third country equivalents.”

Gibraltar is in a different position to Jersey because to all intents and purposes it is a member of the EU, he said.

 “They have representation in the European Parliament, they have access to all services, they have got a border directly shared with one of the other member states, whereas we have a common travel area with the United Kingdom. 

“Our main trading relationship is with the United Kingdom and we see no change to that relationship, which will not and should not be affected by what the British people decide to do on 23rd June.”

As to what new legal agreements might have to be drawn up in a Brexit scenario, Gorst said “you’re asking me a question that is a live debate in the United Kingdom.  This is exactly what they’re arguing about, isn’t it?  Some people are making one point on one side of the argument, and others on the other side of the argument.  The British people are going to have to decide what they want to do.”

Tags: Brexit | Jersey

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International Adviser covers the global intermediary market that uses cross-border insurance, investments, banking and pension products on behalf of their high-net-worth clients. No news, articles or content may be reproduced in part or in full without express permission of International Adviser.