WTO Rules

Guernsey and Jersey will have access to World Trade Organisation (WTO) rules on trade once the UK leaves the EU, the foreign secretary has said. Dominic Raab notified the WTO on Friday of the extension of its formal territory to cover the Channel Islands. The extension will allow island businesses to access international rules covering trade in goods, services and intellectual property.

The Brexit Briefing in January 2019 given to the States of Jersey by Senator Gorst noted:

"Territorial extension of the UK’s WTO membership has been a longstanding objective of the Government of Jersey. Due to the UK Government reserving its right to extend WTO application to the Crown Dependencies and the precedent set by the extension to the Isle of Man in 1997, the potential for the UK to extend the territorial application of its WTO membership to Jersey remains an option. Brexit has heightened the focus on the UK’s WTO membership. Should the UK exit the EU without a negotiated settlement then the UK-EU trading relationship will fall back on the WTO rules, which are not as favourable as the EU preferential system."

I was getting concerned as nothing seemed to be happening. Access to WTO rules had been an objective for the island's government for more than 20 years and was specific to the Brexit negotiations. It was unclear what basis the Island would have to fall back on in the event of the UK leaving and no WTO rules. There could be grave repercussions to trading with the EU.

A 2017 statement said "We also call on the Government to support Guernsey and Jersey in their efforts to ensure that the UK’s WTO membership is extended to cover them, as it already does the Isle of Man."

The UK Government notice states:

"The Channel Islands will benefit from the UK’s independent membership of the WTO after Brexit, the government confirmed today. Trade Policy Minister, Conor Burns, agreed the extension with Deputy Gavin St Pier, Guernsey’s Chief Minister, and Senator Ian Gorst, Jersey’s Minister for External Relations at a meeting in London."

"This decision will take effect as soon as the UK leaves the EU and takes up its independent representation at the WTO. In the event of a no deal EU exit on 31 October, the UK would take up its independent representation on 1 November."

"Securing WTO extension in time for Brexit ensures that Jersey companies will have access to global rules on the trade in goods, services and IP with other WTO members, including EU Member States and the majority of countries worldwide."

"This represents the conclusion of a political and diplomatic process to achieve extension of the UK’s WTO membership that has been an objective of the Government of Jersey for over 20 years."

Well done to the External Relations Minister and his team for getting this through!