Brexit has had an impact on Jersey’s economy, particularly in relation to the island’s relationship with the City of London. Jersey’s financial services sector has experienced significant growth and success, which has tracked the growth of financial services businesses in London. Any adverse effect on financial services businesses in London caused by Brexit is likely to be felt in Jersey. Jersey is currently part of the EU Customs Union by virtue of Protocol 3, which also provides (with limited exceptions) for the free movement of persons between Jersey and the EU. Whilst Jersey has made preparations to mitigate any adverse impacts of Brexit, it is important that businesses in Jersey understand the changes and measures being adopted and how to explore the potential opportunities that Brexit may bring.
Jersey’s trade relationship with the EU has been significantly altered as a result of Brexit, as it will no longer benefit from preferential treatment under the previous agreement. The island could work directly with its partners worldwide to promote and protect its interests. The government of Jersey has adopted the new role of Minister for External Relations to fulfil the task of France and Brussels. Jersey had to make realistic and good preparations to avoid damage to its economy or at least minimize it. The island’s interests concerning Brexit diverge from the UK, especially for trade in goods. Jersey exports most of its fish to France, and by definition, fishing rights must be subject to the Granville Bay Treaty.
The financial services industry is the largest sector of Jersey’s economy, accounting for more than 40% of the island’s GVA. The government of Jersey has been working to protect the island’s interests in the post-Brexit era, with a focus on the functioning of the Ministry of Justice. The Brexit Residents’ Survey was designed to examine the reasons people move to and from Jersey, including periods of residency in the UK. The survey found that the majority of respondents believed that Brexit would have a negative impact on the island’s economy. The government of Jersey has been working to mitigate the impact of Brexit on the island’s economy, with a focus on promoting and protecting the island’s interests in the post-Brexit era.