Guernsey Prepared For Brexit
by Jason Gorringe, Lowtax.net, London
14 June, 2016
Guernsey has reiterated its long-standing position that while it is not advocating the United Kingdom remain in or leave the European Union, it is also not seeking to change its relationship with the European Union.
Jonathan Le Tocq, Member of the Policy & Resources Committee, in a recent statement to Guernsey's legislature said: "Our relationship with the European Union (EU) is currently governed by Protocol 3 to the United Kingdom (UK) Treaty of Accession. This allows for the islands to be part of the customs territory of the EU, and effectively underpins the free movement of goods between Guernsey and the UK and the rest of the EU."
"For the majority of the trading relationships that Guernsey has with the EU, such as in financial services, it is treated as a third country. This means, in broad terms, that like other third counties, Guernsey needs to meet agreed criteria in order to be able to access those markets."
"However, a UK exit from the EU will impact the Bailiwick of Guernsey. We stand to lose our Protocol 3 relationship, which may be replicated. In terms of our main trading relationships as a third country, for example in financial services, these relationships will remain intact as they are not part of Protocol 3 ... Guernsey is a third country now and will be a third country no matter what the UK decides to do in respect of its own EU relationship."
Le Tocq said that in the event of a UK exit, Guernsey will need to work with Jersey and the Isle of Man to ensure their best interests are served. This includes replicating or revising Protocol 3.
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