P&R wants UK to extend WTO membership to Bailiwick

Saturday 02 March 2019

Policy & Resources have taken steps to ensure trade with other jurisdictions flows smoothly in the event of a 'no-deal' Brexit.

The States' senior committee has secured government approval to try and finalise World Trade Organization membership ahead of 29 March, when the UK is set to leave the European Union.

P&R President Gavin St Pier said Bailiwick officials were in 'ongoing negotiations' with their counterparts in the UK in a bid to have them extend their membership to Guernsey, Alderney and Sark. 

Deputy St Pier told the States this week: "Much of the work to prepare and mitigate the impact of Brexit has taken into account the risk of the UK leaving the EU with no deal. 

"Membership of the WTO will help Bailiwick trade to flow smoothly in the absence of Protocol 3. It will place us on a similar footing to the UK and the Isle of Man when businesses trade in goods as well as services outside the EU. Being in the WTO is very much part of the norm as an out-facing, liberal economy as we are that relies on an export sector for economic growth.

"Being part of the WTO will help to provide certainty for business and ensure that the Bailiwick has access and is subject to globally-applied international trade rules, which will complement the customs arrangement signed between the Committee for Home Affairs and HM Treasury in November 2018."

Deputy St Pier added: "If the States do not agree, or if the UK does not agree to this request, these benefits will be harder to access. We cannot provide the assurance to business on how their goods and services will be treated in other markets. You can still trade without the WTO, you just can’t rely on the principles underpinned by the various agreements or as importantly the dispute resolution mechanism within the WTO to resolve disputes that may arise."

If the UK does not approve our request, Bailiwick officials could seek membership of the WTO independently but this would need to be negotiated with all of the other WTO member nations. Deputy St Pier said this would be a complex and time-consuming process and that it 'would likely take many years'.