Brexit Report: December 2019 update

2019  R.155

REPORT

BREXIT UPDATE

This Report to the States Assembly provides an update since the last report in July 2019. Specifically, it provides States Members with an overview of –

• the latest political developments in which the Government of Jersey has been working since the last report to the States Assembly in July 2019 (Section I);

• the Government's preparations to mitigate the domestic impact of a possible No Deal' exit in 2019 (Section II);

• the  Government's  preparations  for  the  Future  UK-EU  Trade  Agreement (Section III); and

• the Government's preparations for the Island beyond Brexit (Section IV).

The report aims to update States Members and the Public on the ongoing work that the Government of Jersey is undertaking to prepare Government, residents and businesses for the UK's exit from the EU, and to ensure that the Island is negotiation ready' for the next phase of the UK-EU negotiations.

MINISTER FOR EXTERNAL RELATIONS 19 DECEMBER 2019

TABLE OF CONTENTS

Page FOREWORD BY THE MINISTER FOR EXTERNAL RELATIONS..........................................  4 SECTION I – THE POLITICAL CONTEXT ..........................................................................  6 SECTION II – PREPARATIONS FOR A DAY ONE NO DEAL ...............................................  11 SECTION III – PREPARATIONS FOR THE FUTURE UK-EU FREE TRADE AGREEMENT 18 SECTION IV – BEYOND BREXIT ........................................................................................  22 SECTION V – CONCLUSIONS .............................................................................................  26

FOREWORD BY THE MINISTER FOR EXTERNAL RELATIONS

This report is presented to the States Assembly following the United Kingdom's General Election  on  Thursday  12th  December  2019,  the  result  of  which –  a  substantial Conservative victory – will have significant implications for the Brexit process. With a significant majority in the House of Commons, Prime Minister Boris Johnson has the mandate from MPs to ensure that the UK will leave the European Union on 31st January 2020.

Since the last report to the Assembly in July 2019, we have made significant progress on several critical pieces of work, many of which will be discussed throughout this report. Officials have worked tirelessly to prepare the Island for a possible No Deal Brexit, co-ordinating the technical and operational implications of such an outcome through a dedicated One Government Brexit Team; analysis and scoping work is underway to assess how Jersey will input into the future partnership discussions, principally the UK-EU FTA negotiations, which are set to start in earnest in the New Year; and colleagues have been continuing their work looking beyond Brexit, securing extension of the UK's membership of the World Trade Organization and engaging with key interlocutors around the world through our Global Markets strategy. It has been an intense, demanding and productive 6 months, focusing on ensuring that Jersey continues to flourish into and beyond 2020.

Preparing for Brexit has been an undertaking that has required co-operation with our colleagues in the UK and the other Crown Dependencies on a breadth of complex and crucial issues. This engagement has occurred in many forms, from round-tables and teleconferences to Ministerial meetings and discussions at the British-Irish Council. Officials from the Government of Jersey have worked closely with their counterparts across all Whitehall departments, resolving issues and preparing the Island for the UK's departure. We are confident that following the outcome of the election these long- established relationships will continue as we move into Phase 2 negotiations on the future relationship between the UK and the EU.

Preparations for a possible No Deal grew comprehensively in detail and complexity, ranging from traffic management plans around the Port of Portsmouth, to supporting vulnerable Islanders who may have been susceptible to the knock-on effects of the UK crashing out of the EU; a comprehensive communications campaign, launched at our public event on the 7th October 2019, kept Islanders abreast of developments and how best to prepare for the UK's departure; registration for the Jersey EU-Settlement Scheme continues to operate effectively, providing reassurance to those EU nationals who call Jersey their home that they can continue to live, work and study in our Island after Brexit; and extension of the UK's membership of the World Trade Organization was secured, bringing to a close a 20 year policy objective of the Government of Jersey and ensuring that Jersey companies will have access to global rules on the trade in goods, services and intellectual property with other WTO members, including EU Member States and the majority of countries worldwide.

Whilst the outcome of the election has reduced the immediate prospect of a No Deal exit  in  January 2020,  it  does  not  mean  that  we  can  become  complacent.  As  the withdrawal phase of Brexit looks set to reach its conclusion, the next phase – the future UK-EU relationship – will begin imminently. The implications of these negotiations for both the UK and Jersey are significant, and officials are building upon detailed work to assess how and where Jersey should wish to be involved in these discussions. The outcome of these negotiations could shape the Island for years, and Jersey needs to be

ready to feed into this process and ensure the objectives and interests of our Island and our economy are heard and understood. I am confident that we can achieve such an outcome.

Our preparations for Brexit have been underway now for over 3½ years. It has been a period characterised by unpredictability, but one that has been met head-on by a perseverance and dedication to ensure that Jersey, in whatever path Brexit takes, is as prepared as it possibly can be. With every threat of No Deal, coupled with every extension, the work of officials and fellow Ministers has placed the Island in an enviable position – we now have a much greater understanding of our Island, and of where we can improve. We are ready for the next phase and bringing Jersey into the post-Brexit world in the best possible position.

Again, I want to thank officials from across the Government of Jersey for their ongoing diligence and commitment to the Island's Brexit preparations, and I commend this report to the Assembly.

Senator I.J. Gorst

Minister for External Relations

SECTION I – POLITICAL CONTEXT

AN OVERVIEW OF DEVELOPMENTS (FROM JULY TO DECEMBER 2019)

This period has, without question, been one of the most eventful in British Parliamentary democracy for several centuries.

The previous Brexit Update Report to the States Assembly (R.88/2019) was submitted prior to the result of the Conservative leadership contest. The outcome of this contest – which was triggered following the resignation of then Prime Minister Theresa May in June – resulted in a victory for former Foreign Secretary, Boris Johnson . On 24th July 2019 he was sworn in as the new Prime Minister of the United Kingdom, becoming the third Prime Minister since the EU membership referendum in June 2016.

The strategy of the former Foreign Secretary throughout the leadership contest had been based on a promise to "get Brexit done" and pledging to take the UK out of the EU by 31st October 2019, with or without a Deal. As a result of this hardening stance, government preparations for a possible No Deal – in both the UK and Jersey – were stepped up to mitigate the consequences of the UK potentially crashing out of the EU at the end of October without a negotiated agreement. The immediate possibility of a No Deal  departure  was  then  averted  when  Parliament  forced Johnson  to  seek  an extension to the Article 50 period, extending the UK's membership to 31st January 2020.

The decisive result of the UK general election held on 12th December means that the Withdrawal Agreement is now almost certain to be passed by Parliament, with a No Deal averted on 31st January. That will then take the UK into complex negotiations with the EU on the nature of their future relationship, with the lingering possibility of a No Deal on 31st December 2020 if those talks do not conclude successfully.

Whatever  form  Brexit takes –  and  whenever it  may  happen –  Jersey  will  not  be unaffected. Maintaining the status quo is not an option. Our relationship with the EU will change, and the Island will almost certainly need to make difficult decisions in the months and years to come, particularly in relation to the proposed post-Brexit UK-EU trading relationship [see Section III]. It is not easy to predict what will happen in a process that has been characterised by uncertainty and unpredictability, but what is evident is that the outcome of Brexit will have extensive, far-reaching implications for the UK, EU and for Jersey.

The spotlight that has shone brightly on Parliament over the last 3 years remains and will continue to do so in the aftermath of the General Election, and now with a new Speaker of the House. The House of Commons has, yet again, remained centre-stage in what has become a totemic struggle over the future path of the United Kingdom. This report picks up the narrative where the last report left off: the swearing-in of a new Prime Minister and a new approach to "getting Brexit done".

The Benn Bill & Proroguing of Parliament

On 24th July 2019, Boris Johnson accepted Her Majesty the Queen's invitation to form a government and become Prime Minister of the United Kingdom. Seemingly in order to  allow  a  Queen's  Speech  setting  out  a  fresh  legislative  programme  for  a  new Parliamentary session, Government attempted to prorogue Parliament in September,

which would end the sittings of both the House of Commons and the House of Lords almost immediately after they had returned from summer recess.

This decision proved controversial. MPs from several parties claimed that the unusually long prorogation was an attempt to limit the amount of time Parliament would have to scrutinise and pass legislation ahead of the Article 50 deadline of October 31st. In response to this, on 3rd September 2019 a motion for an emergency debate to pass a bill that would rule out a unilateral No Deal Brexit – by forcing the Government to get Parliamentary approval for either a withdrawal agreement or a No Deal Brexit – passed by 328 votes to 301; 21 Conservative MPs defied the party whip and voted for the motion, which secured a debate for the following day. Subsequently, the Conservative whip was removed from the rebel MPs, who became independents.

On 4th September the Benn Bill – the piece of legislation designed to prevent a No Deal happening – passed through the House of Commons by 329 votes to 300. A 22nd Conservative MP, Caroline Spelmen, voted against the Government. During the course of the next 7 days, the Government twice lost attempts to trigger an October General Election under the Fixed-Term Parliaments Act, with Labour MPs choosing to abstain and thus denying the required two-thirds majority.

The Benn Act received Royal Assent on 9th September, putting into law a legal requirement for the Prime Minister to seek an extension to the Brexit withdrawal date – which at the time remained 31st October 2019 – should the House of Commons not give its consent to either a withdrawal agreement or leaving the EU without a deal by 19th October 2019.

To implement the planned prorogation, the Prime Minister was required to secure the Queen's agreement. On announcing that he had done so, a number of MPs wrote directly to the Queen to request that she reject the Prime Minister's proposed Parliamentary timetable. Should the Queen have done so, it would have been an unprecedented blurring between Parliament and the Monarchy. As such, the Queen approved the Prime Minister's  request,  and  Parliament  was  to  be  prorogued  from  9th  September  to 14th October.

However, just over 2 weeks later, the Supreme Court of the United Kingdom ruled that Prime Minister Johnson 's decision to advise Her Majesty to prorogue Parliament was unlawful, and as such the prorogation was null and void. The following day, on 25th September and in spite of the verdict falling in the middle of the UK Party Conference recess, Parliament was recalled.

The Revised' Withdrawal Agreement

Following the return of Parliament, all eyes were on the Government's next steps and how Prime Minister Johnson would look to uphold his promise of taking the UK out of the  EU  on  31st  October  with  the  Benn  Act  now  in  place.  During  the  ongoing parliamentary turmoil of September, the government had re-entered negotiations with the EU to try and break the deadlock. The key issue at hand – as had been the case throughout former Prime Minister Theresa May's premiership – remained the Irish border.

On 2nd October the government published a White Paper outlining a new plan to replace the Irish backstop. These alternative arrangements introduced regulatory alignment across the island of Ireland, but retained a customs border between the Republic and Northern Ireland.

Despite  criticism  of  this  approach  to  resolving  the  Irish  border  issue,  the  UK Government and the EU agreed on a revised Withdrawal Agreement containing a new protocol on Northern Ireland. Two days later, during a special Saturday sitting of Parliament, the revised withdrawal agreement was debated.

However, notwithstanding the progress that had been made in negotiations with the EU, the UK Government was again to face stern Parliamentary opposition to its Brexit approach.  During  the  special  Saturday  sitting  of  the  House  of  Commons  on 19th October,  MPs  approved  Sir  Oliver  Letwin's  amendment:  this  delayed consideration of the new Withdrawal Agreement until the legislation to implement it had  passed.  This  unconventional  use  of  Parliamentary  mechanisms  automatically activated the Benn Act, requiring the Prime Minister to immediately write to the European Council requesting an extension until 31st January 2020. As such, the Prime Minister's pledge to take the UK out of the EU by 31st October appeared to be unattainable. To comply with the Benn Act, the Prime Minister wrote 2 letters to the president of the European Council, Donald Tusk; the first – unsigned – sought an extension to the end of January 2020, as per the requirements of the Benn Act; the second – this time signed personally by Johnson – urged the president and all EU Council members to continue to support his pledge to take the UK out of the EU without the need for an additional extension.

In increasingly fervent attempts to uphold the Prime Minister's commitment to leaving on 31st October, "do or die", the Government again attempted to bring the Withdrawal Agreement back to the House of Commons for a new vote on 21st October. Much to the infuriation of the Government however, the Speaker, John Bercow, refused to allow another vote on a motion that was the same "in substance" during the course of a single parliamentary session.

During what was another turbulent day in Parliament, the Government made its next move, introducing the EU (Withdrawal Agreement) Bill in the Commons. Twenty-four hours later, the Bill was approved by the Commons on its second reading, by 329 votes to 299. It was the first time in over 3 years of negotiations and multiple votes on various forms of a Withdrawal Agreement that a deal had been approved in principle by MPs across the House.

Nevertheless, as has been the case throughout this process, not all went according to the Government's  intended  plans.  The  Government  had  also  attempted  to  include  a "programme motion" to take control of the amount of time Parliament had to scrutinise the Bill. The Government's intention was to push the Bill through all necessary stages in 3 days, providing just enough time for the Prime Minister to uphold his promise of taking the UK out of the EU by 31st October. However, MPs considered this not to be enough time to properly consider a Bill of this magnitude, and rejected the motion by 322 votes to 308.

Flextension'

Following the rejection of the programme motion, Prime Minister Johnson approached Opposition leader Jeremy Corbyn for support on a Government motion for a general election  on  12th  December.  Corbyn  continued  to  reiterate  the  position  that  the Opposition has maintained throughout: a No Deal' Brexit must first be "off the table" before consideration of a general election could be given.

Without the support of Jeremy Corbyn and Opposition MPs, another Government motion for a general election was defeated by 299 votes to 70, again failing to reach the two-thirds majority required by the Fixed-Term Parliaments Act. In what was another eventful 24 hours in the Brexit process, on 28th October the European Council agreed to an extension date of 31st January 2020, which the UK Government accepted. This extension was similar in nature to previous "flextensions", providing opportunity for the UK to leave before the end of January – on the first day of any month – should a deal be  approved  by  both  the  UK  and  European  parliaments.  Shortly  after,  the  UK Government withdrew the EU (Withdrawal Agreement) Bill and stated their intention to introduce a short bill for an election on 12th December.

General Election

The offer of an extension to the end of January from the European Council, which was accepted by the UK government, satisfied the Labour leadership that the prospect of a No Deal Brexit had been taken off the table. The Early Parliamentary General Election Bill 2019 – introduced by the Government on 29th October – finally secured support from the Labour Party, passing unamended by 438 votes to 20, and receiving Royal Assent on 31st October. Just over a week later, on 6th November, Parliament was dissolved ahead of an election on 12th December.

In the weeks following the dissolution of Parliament, all parties set out on the campaign trail, aiming to win over voters across the country. Although discussions and debate focused on a wide range of pressing matters – such as the NHS, climate change, education and tackling violent crime – there was no hiding from the fact that Brexit had been the trigger for the election, the outcome of which would determine the path that the UK would take in the coming months and years.

Opinion polls consistently showed a substantial lead for the Conservative Party, albeit with some narrowing as the campaign wore on, and Johnson received another significant boost when the Brexit Party announced it would not field candidates against incumbent Conservative MPs.

The results, when they came, showed a decisive victory for the Conservative Party. The winning majority of 80 was a bigger margin than most commentators had expected. It came mainly at the expense of the Labour Party, which lost 59 seats, including several in its traditional heartlands. Jeremy Corbyn immediately announced that he would not lead the party into another election, and it is now considered inevitable that he will be forced to stand down early in 2020. There were also losses for the Liberal Democrats, forfeiting all of their gains since the 2017 general election and suffering the indignity of their leader Jo Swinson losing her own seat. Nigel Farage's Brexit Party failed to win a single seat, though their strategy of targeting Labour seats with pro-Leave messaging appeared to reap significant dividend for the Conservative Party, especially across the

Midlands and the North. In Scotland, the Scott ish National Party was resurgent, picking up 48 out of 59 seats there.

The decisive Conservative victory provides a clear mandate for Prime Minister Johnson to "get Brexit done", and it is near certain that the Withdrawal Agreement Bill will now be  passed  by  Parliament  early  next  year,  with  the  UK  then  leaving  the  EU  on 31st January 2020. Nonetheless, fraught negotiations lie ahead on the nature of the "future relationship" between the UK and the EU, with a risk of a No Deal' departure at the end of 2020 if agreement cannot be reached. Additionally, the success of the Scott ish National Party sets the stage for a confrontation between Westminster and Holyrood about a second independence referendum in Scotland.

Government of Jersey

The main consequence for Jersey is that the focus of the Government's work shifts to preparing for UK-EU negotiations. Since the first Brexit Report to the States Assembly in June 2016, the Government of Jersey has continually stated that a negotiated exit is in the best interests of the Island. The decisive result in the UK's general election means that passage of the Withdrawal Agreement Bill is now a near-certainty, so No Deal looks set not to take place on 31st January 2020.

That date now marks the start of Phase II of negotiations with the EU – this time on the future relationship. Jersey officials are poised to provide detailed input on Jersey's interests in those negotiations, which will potentially culminate in a future UK-EU Free Trade Agreement.

However, the Withdrawal Agreement provides that the negotiations must be concluded by 31st December 2020. It looks very challenging to conclude negotiations and secure ratification in the time available, yet Prime Minister Johnson has consistently ruled out any extension and has inserted a clause into the Withdrawal Agreement to this end. That raises the very real possibility of a No Deal departure at the end of 2020, which would have significant impact on Jersey.

The Government of Jersey is ready to mitigate the effects of any No Deal which may occur at the end of 2020, and will continue to engage with colleagues in the UK and the EU to ensure that this remains the case.

SECTION II – PREPARATIONS FOR A DAY ONE NO DEAL ("D1ND")

Since the last Brexit Report to the Assembly in July 2019, the UK's departure date has been extended again to 31st January 2020. This extension is the third of its kind, and the Government of Jersey has been working to ensure that in each instance the Island is ready to manage any disruption brought about by a Day One No Deal' ("D1ND") Brexit. This work is led by officials across the public sector, who co-ordinate and manage  detailed  planning  for  all  Government  functions  and  responsibilities.  The intensity of this planning has been stepped up' ahead of each potential No Deal date, in line with corporate risk management profiles.

Previous Brexit Reports to the Assembly have consistently stated that the Government of Jersey believes a negotiated exit is in the best interests of the Island. This position – which would ensure continuity until at least the end of next year – is one that the Government still holds. A transition' or implementation' period until 31st December 2020 would allow residents and businesses time to prepare for the UK's eventual departure from the EU and the new arrangements that would need to be introduced.

Although 31st January 2020 remains the legal default until the Withdrawal Agreement Bill is passed, the result of the General Election has meant that the passage of this Bill is almost a certainty. However, whilst this would take the immediate threat of a No Deal off the table, as has been mentioned in the previous section there remains a possibility that the UK would crash out of the EU without a trade deal at the end of next year, should no future agreement be reached. As such, our preparations for No Deal will remain on standby, ready to ramp up again later next year.

Since March this year, the One Government No Deal Brexit Team has co-ordinated the operational and technical response to a potential D1ND. The team has a particular focus on potential issues around the Island's Critical National Infrastructure ("CNI"); supply of food, fuel and medicine and medical supplies to the Island; the possible impacts on some of our most vulnerable communities; and the implications for those looking to travel to and from the EU. Since its initial inception, membership of the 1GBT has expanded, and now comprises officials from the following departments –

• Chief Operating Office (COO)

o Commercial Services

• Children, Young People, Education and Skills (CYPES)

• Customer and Local Services (CLS)

• Emergency Planning Office (EPO)

• Growth, Housing and Environment (GHE)

• Health and Community Services (HCS)

• Justice and Home Affairs (JHA)

• Jersey Customs and Immigration Service (JCIS)
• States of Jersey Police
• States of Jersey Fire Service

• Law Officers' Department (LOD)

• Office of the Chief Executive (OCE)

• Communications
• External Relations

• Strategic Policy, Performance and Population (SPPP)

• Treasury and Exchequer (T&E).

As might be expected with such integrated supply-chains, the vast majority of our planning has been undertaken in close co-operation with colleagues in both the UK and other Crown Dependencies. We have had frequent and productive engagement with officials in all UK government departments ensuring that our contingency plans and public communications are in line with and complementary to the UK's own D1ND preparations. We have engaged with a large number of departments across Whitehall, with a particular focus on ensuring close engagement with the Department for Health and Social Care, the Department for Transport and the Department for Environment, Food  and  Rural  Affairs.  The  Government  of  Jersey  recently  welcomed  a  senior delegation of officials from the Ministry of Justice and the Department for Exiting the EU to discuss and assess Jersey's No Deal preparations on-Island. These discussions have also involved relevant UK Local Resilience Forums, particularly Hampshire and Isle of Wight Local Resilience Forum ("HANTS LRF"); transport, retail and wholesale organisations; and other Channel Islands partners.

In the weeks and months following the last report to the Assembly, this work has grown in complexity and detail, involving some of the most comprehensive contingency planning ever undertaken by the Government of Jersey. The critical areas of focus are:

• Supply-chains (Food, Fuel and Medicines)

The Island's critical supply of food, fuel, medicines and medical supplies are a major focus of our No Deal preparations. Emphasis has been placed on our northern supply-chain, principally on the capacity and resilience of Portsmouth International Port, and, crucially, the road infrastructure leading to the Port, where almost 95% of the goods needed to sustain the Island's economy and population originates.

As  mentioned  above,  our  preparations  have  involved  a  number  of  UK departments,  notably  the  Department  for  Health  and  Social  Care  and  the Department for Transport, as well as local bodies, such as HANTS and IoW LRF and Portsmouth International Port ("PIP"). This has included a traffic management plan to keep the road network around the Port as clear as possible; the  prioritisation  of  Channel  Islands  bound  freight;  and  a  step-by-step co-ordination plan in the unlikely event that the Port of Portsmouth becomes unusable.

• Food – comprehensive work has occurred with the Island's key ferry and freight operators to add additional freight capacity and stress-test contingency plans. Work was also undertaken with local wholesalers and supermarkets to add additional stock on-Island, particularly ahead of the April deadline – however, this was not deemed necessary for October due to intensive planning undertaken by HANTS LRF through their "Operation Transmission" preparations.

• Fuel – the vast majority of the Island's fuel comes from outside the EU, and as such any disruption or shortage of supply remained unlikely. However, as a matter of contingency, fuel suppliers took increased precautions by storing additional supply of up to 3 months ahead of 31st October. Officials are keeping a watching brief on developments to ensure the same level of resilience is in place moving forward.
• Medicine –  the  contingency  planning  on  the  continued  supply  of medicines  and  medical  supplies  formed  some  of  the  most comprehensive and detailed planning undertaken by the Government of Jersey.  Officials  in  Health  and  Community  Services  ("HCS")  are working extremely closely with the Department for Health and Social Care to ensure that Jersey is considered in UK contingency plans, given our dependence on the NHS supply-chain. Additional preparations – such as maintaining elevated winter stocks of medicines and medical supplies  at  the  Hospital  and  local  pharmacies,  as  well  as  having business continuity plans utilising air freight and emergency powers legalisation in place – have ensured that the Island can handle any ongoing  disruption  in  the  UK  supply-chain.  However,  should  the Withdrawal Agreement be passed by the House of Commons in the coming  weeks –  as  is  expected –  these  additional  stocks  will  be released.

The frequency and intensity of engagement in all these areas – coupled with the level of detail and analysis that has occurred – has provided officials with a far greater understanding of how our supply-chain operates, particularly where its strengths and weaknesses lie. It has also highlighted where there is scope to improve our resilience in the future.

• Vulnerable People

Ahead of both the March and April deadlines, a Vulnerable People Working Group' was established to co-ordinate preparatory work designed to support those Islanders who may find themselves negatively affected by a No Deal Brexit. This could have been through an increase in the price of goods, shortages or delays in the supply of food or medicines, or a reduction in variety. Officials have been working closely with a range of third sector bodies, including charities and local parish representatives, to co-ordinate contingency plans and best mitigate any potential disruption. A central food and assistance hub was designed (to be set up in a central St. Helier location), and a dedicated phoneline was established at Customer and Local Services to aid those who may be most susceptible to changing circumstances in the Island and concerned about a No Deal scenario.

• Health and Social Care

The  continued  functioning  of  our  health  and  social  care  services  was  an important consideration for officials. The contingencies put in place in respect of medicines and medical supplies alleviated some of the concerns surrounding the supply of essential stocks, but additional work was also undertaken to ensure resilience in staffing levels too. The launch of the Jersey-EU Settlement Scheme

("JEUSS") in February 2019 provided reassurance that those EU nationals working in the Island – many of whom form a crucial proportion of workers in our health and social care services – could continue to do so even in the event of a No Deal Brexit.

• Community Safety/ Concurrent Risks

Throughout our ongoing preparations for a No Deal, the States of Jersey Police and officials in Justice and Home Affairs have worked closely with colleagues in the UK to monitor potential risks surrounding community safety and the threat of civil unrest. This included regular teleconferences, workshops and meetings in both the UK and Jersey, to ensure that the Island was adequately prepared for any potential disruption and that the intelligence flow was kept updated and current. The 2-way exchange of information between local and national agencies has proved of paramount importance in ensuring our planning assumptions were aligned.

• Transport

To  mitigate  against  any  travel  disruption  in  the  event  of  a  No Deal,  the Government sought the extension of the United Nations Vienna Convention on Road  Traffic,  which  was  achieved  in  February  2019.  This  international convention ensures that even in the event of a D1ND, Jersey vehicles will still be able to circulate in the EU, and Islanders will still be able to hire a vehicle. The extension of this convention has meant some additional requirements for Islanders taking a vehicle to Europe, namely the need for International Driving Permits ("IDPs"). Officials worked closely with the Parish Hall s to make the process of applying for IDPs as easy and accessible as possible. Moreover, officials have also been working to ensure that local commercial hauliers who deliver goods into the EU have the necessary authorisations and permits to continue to do so.

• Utilities and Critical National Infrastructure

Provisions were also put in place to ensure that the Island's Critical National Infrastructure ("CNI") – such as the continued supply of clean water and safe electricity – would be unaffected by a D1ND. Officials worked closely with local CNI suppliers to assess contingency plans and ensure that suppliers had the necessary level of essential materials to withstand any potential disruption in the UK or elsewhere.

• Communications

Building upon the extensive work undertaken during the Ready for Brexit' Week in January 2019, a comprehensive, targeted communications campaign – titled Jersey: Brexit Ready' – was steadily ramped up over the summer as the October  deadline  approached.  This  culminated  in  a  follow-up  event  on 7th October, inviting business, industry and the Public to a series of public Q&As, workshops and briefings on how a D1ND may impact the Island. In addition, a No Deal guidance flyer was sent to all households in the Island in conjunction with information posted on social media and through gov.je, as well as updates on local radio. The campaign was designed to inform Islanders and

businesses  of  what  may  happen  in  the  event  of  a  No Deal  and  provide reassurance – and a point of contact through Let's Talk Brexit – to those who had questions or concerns.

• Borders

Officials in Jersey's Customs and Immigration Service ("JCIS") have worked extensively in collaboration with colleagues in the Home Office and UK Border Force to preserve the Common Travel Area, which the United Kingdom, Ireland and the Crown Dependencies agreed to maintain after Brexit. This ensures that Islanders can continue to travel between these jurisdictions without formal immigration  controls.  JCIS  has  implemented  an  EU  Settlement  Scheme ensuring all EU residents will have the appropriate permission to remain post- Brexit. The necessary updates or amendments to legislation for both Customs and Immigration work-streams to be compliant following a D1ND have either been implemented or are ready to be implemented should there be a D1ND.

• Retail and Industry engagement

Officers from across Government continue to be involved in regular discussions with  key  sectors,  including  representatives  from  retail,  wholesale,  travel, fisheries,  agriculture,  and  financial  services  businesses.  These  2-way discussions have helped to keep officers up to date with the emerging issues, and to ensure businesses have been kept abreast of developments in the Brexit process, as well as the work underway to protect vital elements of the Island's economy. This engagement also provided a valuable opportunity for business and industry to raise any concerns they may have, and the contribution and support of representative bodies, such as the Jersey Chamber of Commerce, has been highly beneficial.

• Emergency Planning

As the possibility of a No Deal became more apparent in Summer 2018, the Emergency Planning Office ("EPO") was also brought in to assist Island-wide preparations. Officials from the EPO have formed membership of the One Government No Deal Brexit Team, focusing on how the Island would react – if the situation arose – where our planning would need to shift from contingency to  an  emergency  scenario.  This  has  involved  close  work  with  Guernsey, engagement and information-sharing with the UK, and assessing on-Island preparations and capabilities. On 21st October, a table-top' exercise involving senior  officials  across  government  was  conducted  that  rehearsed  how  the government would respond to a range of No Deal scenarios.

• Trade

Ensuring the continuity of our ability to trade – with both the UK and the EU – has formed an important part of our preparations. In November 2018, the signing  of  the  Jersey-UK  Customs  Arrangement  established  a  post-Brexit customs  union  between  Jersey  and  the  United  Kingdom,  maintaining  the historic practice over several centuries that neither the UK nor Jersey has imposed import tariffs on goods produced in the other's territory.

In addition, the territorial extension of the UK's membership of the WTO to Jersey concluded an objective of the Government of Jersey that has existed for over 20 years. 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.

In conjunction with our D1ND preparation, officials have also been working on how Jersey will look to position itself in the post-Brexit trading world; how Jersey can feed into the imminent UK-EU FTA negotiations; and capitalise on any future trading opportunities. [See Section III for more detail.]

• Legislation

Throughout our Brexit preparations, ensuring the necessary legislative changes were  in  place –  particularly  ahead  of  each  possible  No Deal  deadline – underpinned all of the areas of work mentioned above. A comprehensive legislative programme, managed by officials in the Law Officers' Department and the Legislative Drafting Office, and supported by policy officials, ensured that  the  necessary  legislative  provisions  were  prepared,  Regulations  were lodged for debate by the States Assembly, and Ministerial Orders were ready for signature should the UK have crashed out on 31st October.

Preparing for a possible D1ND has been complex, demanding and has required input from all departments across the Government of Jersey. The difficulty in repeatedly  preparing  for  such  a  scenario –  and  one  particularly  of  this magnitude – is that there has been no template from which to work, nor previous instances from which planning can be based. All the work undertaken by officials has been built from the ground up, looking at scenarios and aspects that have not been envisaged before. The fact that the deadline, as well as the working context in which D1ND preparations are being made – such as the growing season and winter weather disruption – keeps changing, only adds to the complexity and unpredictability of the challenge.

Whilst the intended goal of all of these preparations has been to ensure that the Island is as Brexit ready' as possible, an unintended positive outcome has been the development of a far better understanding of Jersey's overall contingency and emergency planning priorities and processes, including identification of key strategic strengths and weaknesses; risks and risk management; legislative provision  for  emergency  and  contingency  planning  including  the  role  of competent authorities; and areas for further review and improvement. The necessary focus on our northern' [UK] supply-chain has brought into sharp focus  our  critical  dependence  on  Portsmouth  International  Port,  and  has highlighted the need for the Island to explore alternatives and mitigations to ensure greater resilience to our regular supply of food and goods.

A related benefit of this work is the improved relationships at departmental level between  the  Government  of  Jersey  and  the  UK  Government,  with  UK departments now increasingly aware of the size and scope of operations in Jersey, and how crucial the continued free flow of goods back and forth to the UK is to the welfare of our Island.

Although the frequency and intensity of D1ND preparations had been stepped down' following the extension to January 2020, officials remain on standby to step up' preparations should the need arise again. Preparations that were put in place ahead of the 31st October deadline – such as the centralised food bank, the dedicated phoneline at Customer and Local Services, and the Island-wide communications campaign – are ready to be re-activated at a later date if required. The extension to January next year has also provided officials with more time to stress-test our plans, to ensure that they are as comprehensive and effective as possible.

The  changing  political  landscape  in  the  UK,  coupled  with  the  sheer unpredictability of the overall Brexit process, brings many challenges, not least a temptation to succumb to Brexit fatigue'. Until a Withdrawal Agreement is passed into law in the UK, 31st January 2020 remains the default exit date; yet a No Deal could still occur at the end of next year, even with a Withdrawal Bill in place. It is therefore imperative that the Government of Jersey continues to resource and prepare for such an eventuality. The cross-government work of officials has been, and will continue to be, built upon the principal objective of ensuring that Jersey experiences as little impact and disruption from a D1ND as possible.

SECTION III – PREPARATIONS FOR THE FUTURE UK-EU FREE TRADE AGREEMENT

The  previous  report  to  the  States  Assembly  contained  a  section  focusing  on  the Government of Jersey's preparations for the next phase of Brexit, known at the time as the "future partnership negotiations". With the election of Boris Johnson following the Tory leadership contest in July 2019, and his subsequent appointment as the Prime Minister, the UK Government position and approach to the next phase of Brexit has changed. No longer is this approach focused on a close, tight-knit "future economic and security partnership" as envisaged by Theresa May's government, but rather on a looser Free Trade Agreement, or "FTA", based on a "super Canada plus arrangement".

This FTA, which will determine how the UK and EU trade with each other once the UK has left the bloc, is set to be comprehensive, cross-cutting and complex. The EU has already negotiated a number of significant FTAs with other countries, notably Canada and Japan, that provide the precedent for the future UK-EU agreement, assuming one can be reached by the end of 2020. It is anticipated that the UK-EU FTA will be of similar scale and magnitude. The UK Government has approached all of the Crown Dependencies –  Jersey,  Guernsey  and  the  Isle  of  Man –  in  anticipation  of  these upcoming negotiations, asking each Crown Dependency to state our objectives, interests and concerns. These are generationally-significant asks, and work is currently being undertaken by officials, with close input from Ministers and informed by stakeholder feedback, to map out a framework for Jersey's potential participation in the future trading relationship between our two closest economic partners. This section describes that process.

Background

In November 2018 Jersey concluded a Customs Arrangement with the UK, and in October 2019 a World Trade Organization ("WTO") extension (see section IV); these preserve our ability to trade freely with the UK, and to avoid punitive tariffs being applied when the UK exits the EU.

When the UK leaves the EU, Jersey's existing ability to trade with the EU under Protocol 3 falls away, and we will need to agree a new trading relationship.

Policy development

To  better  understand  Jersey's  relationship  with  and  interests  in  the  UK's  future agreement with the EU, officials from across Government have undertaken detailed analysis of FTAs across a number of policy chapters. This has included assessing alignment with EU regulations; the Comprehensive Economic and Trade Agreement between Canada and the European Union known as "CETA"; consideration of the UK government consultation on future FTAs with the USA, Australia, New Zealand, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership; as well as the expected chapters to be included within the UK's proposed "Best in Class" FTA with the EU.

The work undertaken in this area has attempted to identify areas or aspects of the FTA that would be acceptable, appropriate and proportionate to the  Island, as well as identifying those that are not. Along with the stakeholder engagement through the Let's talk Trade consultation (see below), the Government of Jersey has also considered

the likely negotiation paths' that a UK-EU FTA could take. These exercises have helped to establish an evidence base for our emerging international trade policy and our interaction with the UK Government and other bilateral and multilateral actors on trade.

Engagement with UK Government

There have been a number of formal and informal discussion since 2016 between Jersey and the UK Government about possible participation in a UK-EU trade deal.

Ministerial  engagement  on  future  trade  has  included  engagement  through  Chief Ministers' Quarterly meetings and British-Irish Council summits, as well as via a number of calls to discuss the latest position of the negotiations and how Jersey can feed into shape UK negotiating positions. Ministers will continue with this engagement following the result of the UK election and into 2020.

Official level engagement, a critical area of ongoing business for the UK Government, has of course continued through and after the election period. As well as regular, initially fortnightly and now weekly, discussions with the Department for Exiting the European Union, a number of policy workshops between the UK and Jersey have taken place, in the  UK  and  in  Jersey,  involving  practically  all  Government  of  Jersey  and  UK departments and focussing on a number of key topics, such as agri-food, services, mobility and security. These discussions will intensify as we get closer to the beginning of February 2020 when the UK-EU negotiations are expected to commence.

Stakeholder engagement

Stakeholder input to this analysis has and will continue to be critical. This stakeholder engagement includes direct engagement through events such as Jersey Brexit Ready week, industry workshops such as those held on services and goods, and regular meeting with industry bodies and their members, and indirectly through consultations such as Let's talk Trade. This engagement helps formulate our key policy positions and how Jersey  may  wish  to align  itself  in  the  future.  Providing  these  key  stakeholders – including the Public, business and industry – with the opportunity to feed into this process ensured that officials can confidently feed the interests of the Island's economy into negotiations.

This engagement occurred throughout the summer and culminated in an all-day event at the Royal Yacht Hotel on 7th October. Workshops, discussions and Q&A sessions were held throughout the day, highlighting the importance of an approach focussed on stimulating growth, promoting Jersey's economic interests and protecting the Island against external risks.

The results of the Let's talk Trade consultation and the response from the Government of Jersey will be published soon.

Governance

As mentioned in the previous Brexit Report, new governance structures have been put in place to facilitate and co-ordinate this phase of negotiations, and to ensure that the Island  can  react  and  respond  quickly  to  developments. The  3  Brexit  Programme clusters' – Goods & Borders; Services & Digital; and Immigration & Security meet to

analyse the key FTA policy chapters in their respective areas and provide timely advice to Ministers.

A Brexit Clearing House' meets fortnightly, bringing together the 3 clusters for a review of work and to address – and escalate if necessary – any outstanding issues. Finally, the Brexit Ministerial Group continues to meet as before, with any pressing or urgent matters brought before Ministers for political sign-off. It is envisaged that negotiations will progress at pace in the New Year, and officials and Ministers will utilise these structures for efficient and effective discussion, approval and sign-off of policy decisions.

A new aspect of Brexit governance is also taking shape to determine the role of Government of Jersey Ministers and officials in the negotiations themselves; how we work closely with our UK and Crown Dependency counterparts to protect our interests; and how we can respond quickly in negotiations that are undoubtedly going to move apace.

The implications of this phase of negotiations are potentially significant for the Island, and the Government of Jersey stands ready to represent the interests of businesses and Islanders to achieve an acceptable outcome.

European engagement

This work to develop the Island's negotiation position for the upcoming UK-EU FTA negotiations has been supported by an extensive programme of European engagement. Building on well-established relationships through our offices in London, Brussels and Caen, Ministers and officials have been engaging closely with key European partners – on economic, cultural and social matters – to improve the understanding of Jersey and our relationship with Europe and the EU, and how this is set to change after Brexit. Some examples of European engagement in the second half of 2019 include –

• Significant engagement in Paris for the Minister for External Relations and External Relations officials, often structured around OECD meetings, helping build our network in Paris and foster a relationship with the British Embassy Paris.

• The Minister for Infrastructure, GHE officials and international tax officials visited the Netherlands, discussing tax matters, cycling infrastructure and initial meetings with the British Embassy in The Hague.

• The Chief Minister and the Minister for External Relations attended the annual British-Irish Council Summit.

• The Minister for External Relations attended meetings with the Ambassadors of France, Switzerland, Austria and Finland at their respective embassies in London. Key areas of discussion included tax and financial services, as well cultural and social exchange opportunities.

• European Relations official, along with Digital Jersey, attended a conference on economic transformation in small and insular economics in Malta.

• The Chief Minister signed a Protocol of Co-operation between the Portuguese Camoes – Instituto da Cooperacao e da Lingua and the Government of Jersey. The agreement outlines the provision of 4 Portuguese teachers in Jersey and will remain in place for the next 5 years.

• Ministerial  visit  to  Brussels  for  discussions  with  EU27  Permanent Representatives, principally with a Brexit focus and how Jersey would be impacted.

• The Minister for External Relations and the Chief Minister attended the Annual Summit  with  Normandy,  building  on  our  close  and  well-established relationships  with  our  regional  French  neighbours.  Discussions  focused significantly on Brexit and the potential impact of Jersey-French trade.

Some key future engagements planned for early 2020 include –

• The  Polish  and  Croatian Ambassadors  will be  making visits  to Jersey in Q1 of 2020. Discussions will include tax-related matters, EU nationals living in Jersey, and opportunities for cultural connection.

• Ministerial visit to Brussels from 4–5th March 2020 which will have a strong focus on Phase 2 of Brexit and the UK-EU future negotiations.

• Officer and Minister outward visits to Germany and France.

SECTION IV – BEYOND BREXIT

Related but distinct from the future UK-EU FTA is the work that the UK, and in parallel Jersey, is progressing to develop trade into third-country, or non-EU, markets. Once the UK leaves the EU, Jersey's approach to external trade will need to continue to adapt, and that is why Jersey is building capacity and investing resources in this field.

Background

Both inbound and outbound trade are vital to Jersey's economy and to the lives of Islanders, and will continue to be so. Frictionless trade between Jersey and the UK is an essential part of Island life, as recognised under the Customs Arrangement between Jersey and the UK.

Jersey is able to make its own choices with regard to trade policy as consistent with the Island's relationship with the UK. Choices on trade that create rights also create obligations, and Jersey is committed to continuing to act as a responsible jurisdiction which meets, and is seen to meet, its international obligations.

For much of its history, Jersey has existed – and succeeded – outside formal trade structures. This has already changed significantly as a result of Brexit and will continue to do so, as the UK develops its future trade policy. Future UK FTAs present significant new opportunities to elevate trade links with third countries. The UK and Jersey are committed to working together to maximise these opportunities and mitigate any risks.

Extension of World Trade Organization ("WTO") membership

The previous Brexit report in July 2019 indicated that discussions were ongoing with regard to the extension of the UK's WTO membership to Jersey to help place Jersey on the strongest possible footing as we explore global trading opportunities post-Brexit.

On 15th October 2019 the UK Foreign Secretary formally wrote to the WTO, notifying them that the UK intends to extend the territorial scope of its WTO membership to Jersey and the other Crown Dependencies. This formal notification confirmed that if the UK leaves the EU without an agreement then the extension will take effect immediately.

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

This significant milestone, the conclusion of a political and diplomatic process and objective of the Government of Jersey for over 20 years, helps protects Jersey's strategic interests.

Along  with  the  at-border  measures  secured  through  the  Customs  Arrangement preserving our ability to trade freely with the UK, WTO extension will further Jersey's global outreach and ability to engage with countries around the world, avoids the risk of punitive tariffs being applied, and places the Island in a stronger position when the UK leaves the EU.

Future engagement with the UK on trade

Future trade work will grow and place increasing demands on the Government of Jersey. As part of our scoping, officials from Jersey and the UK Department for International Trade have been discussing the development of a further agreement setting out an understanding between the UK Government and the Government of Jersey regarding future co-operation between  the  Parties in the  context of third-country free trade agreements.

The starting-point for our ongoing engagement with the UK Government on future trade will be around a set of key principles, to –

• seek targeted representation

• maintain the constitutional relationship

• recognise, promote and protect Jersey's distinct international identity

• retain and protect free and frictionless trade with the UK and the EU

• adopt only measures relevant to Jersey's trade

• protect and strengthen relationships with established and new trade partners

• adopt an agile and flexible approach

• work in partnership with stakeholders.

Developing our understanding of the trade landscape will require greater levels of stakeholder input.

The Let's talk Trade' consultation and campaign had 4 primary objectives – to seek input from stakeholders to inform the trade priorities for Jersey; to provide information about the trade in the post-Brexit context; to inform stakeholders about Brexit-related changes to the UK's future international trade policy; and to seek views on the priorities to shape our future approach. As mentioned in the previous section, the results of the consultation, which focusses on our interests in both EU and third-country FTAs, will be published soon.

This work is expected to continue apace following the UK election, when the UK Government is expected, alongside negotiations with the EU, to move quickly to progress  free  trade  agreements  with,  amongst  others,  the  USA,  Australia  and New Zealand,  and  to  consider  accession  to  the  Comprehensive  and  Progressive Agreement for Trans-Pacific Partnership.

Jersey stands ready to engage positively and constructively in these negotiations and to ensure that our offensive and defensive positions are actively considered.

Global Markets

2019 has also seen an extensive programme of engagement to implement our Global Markets Strategy. Whilst the objectives of this strategy look beyond European markets, the increasing emphasis on the UK's future international trade policy post-Brexit will inevitably bring this work into a similar orbit as the Government's Brexit and trade work. Jersey will be looking for opportunities to positively engage in the UK's future FTA negotiations – where appropriate for the Island – and developing our relationships in non-EU markets will continue to be of great value. Some examples of Global Markets engagement undertaken in the second half of 2019 include –

• Officials visited Kenya from 4–6th September for negotiations on a Double Taxation  Agreement  ("DTA"),  facilitated  by  Global  Markets'  in-country co-ordinator based in Nairobi.

• The Minister for External Relations attended the World Economic Forum Africa held in South Africa on 4–6th September where he participated in several seminars and panel discussions with other global leaders.

• The UK-India Business Council held a roadshow in Jersey on 19th September, conducting  meetings  with  Jersey  companies  about  market  entry  and development in India.

• Following a meeting between the Chief Minister and the Chinese Education Association for International Exchange ("CEAIE") in Beijing in 2018, the CEAIE  brought  36 principals  from  Chinese  schools  to Jersey  on  25–26th September. The CEAIE delegation was joined by officials from the Education section of the Chinese Embassy in London, and participated in a workshop with local educators, as well as visiting schools.

• Global Markets participated in a side event at the G20 Anticorruption Working Group in Paris on 9th October in order to highlight Jersey's positive role in Asset Return. Officials spoke to Jersey's role in the Framework for the Return of Assets from Corruption and Crime in Kenya ("FRACCK") which was entered into by Jersey, Kenya, the UK and Switzerland in 2018.

• The SelectUSA Roadshow visited Jersey on 10–11th October and discussed business opportunities in America with local firms.

• The Minister for External Relations visited Washington D.C. to participate in the annual meetings of the International Monetary Fund and World Bank on 15–20th October, where he held Ministerial-level meetings with 7 of Global Markets' priority markets. This visit coincided with the opening of Jersey Finance's New York Office, which the Minister also attended.

• Following a visit to Nigeria in July, officials visited the country again on 22nd– 25th October to begin negotiations on a DTA.

• In October, 2 senior lawyers from Jersey's Law Officers' Department visited Kenya to identify areas of support in prosecuting financial crime cases, and in November analysts from the Kenya Financial Reporting Centre visited Jersey to learn more about intelligence processing.

• On his visit to China and Singapore on 4–8th November, the Chief Minister signed  a  Memorandum  of  Understanding  with  the  CEAIE  to  strengthen educational exchanges between Jersey and China. The Chief Minister met with a range of stakeholders on his visit to support political, cultural and economic relationships with the region.

• The Government of Jersey received an award from the Indo-European Business Council for Delivering Economic Transformation by Embracing New Global Opportunities', which the Chief Minister accepted on behalf of the Government on 18th November.

Future engagement includes a visit to Bahrain, Oman and the United Arab Emirates in December, a planned visit by the Chief Minister to the USA in January 2020, and participation in the Commonwealth Heads of Government Meeting in Rwanda in June.

SECTION V – CONCLUSIONS

In the 3½ years since the UK voted to leave the European Union, the political landscape of the UK has changed immeasurably. It has been, as the previous Brexit report highlighted, "unprecedented political times", categorised by unpredictability and ever- changing developments. While there appears, on the surface, to be a clearer path to the resolution of a negotiated UK exit, the events over the last few years indicate that this is by no means a certainty.

The concluding section of the Brexit Update Reports usually refer to the comments and predictions made at the time of writing of the previous report. The report in July 2019 highlighted the unpredictability of the events from January to July, the numerous extensions and the increased threat of a No Deal in October 2019. While the Article 50 extension to the end of January 2020 alleviated the possibility of a No Deal exit in the short term, it is the outcome of the UK General Election on 12th December 2019 – a possibility that was also mooted in the last report – that has drastically reduced the likelihood of such an outcome.

However, despite the developments over the last few weeks and months, and the path that Brexit has now taken, it would have been irresponsible for the Government of Jersey not to continue our preparations for such an eventuality as a No Deal. Since July, these preparations  have  only  increased  in  intensity,  complexity  and  detail.  The  cross- government planning on our Island supply chains – particularly in relation to the continued supply of food and medicine – is some of the most comprehensive ever undertaken by the Government of Jersey. All of our No Deal work, co-ordinated by an effective One Government team of officials, has included establishing support networks for vulnerable members of our community; maintaining our key trading relationship with the UK; securing our critical national infrastructure in the event of any disruption; and engaging with businesses and the Public. This vast breadth of crucial work has – by way of an unintended positive outcome – highlighted the strengths and weaknesses in the  Government's  planning,  and  illustrated  the  areas  where  further  review  and improvement is required. Jersey is, as a result of the threat of a No Deal, now far better prepared to deal with emergency scenarios than before.

Although the possibility of a No Deal has reduced, officials remain on standby to commence  this  work,  should  the  political  landscape  change  once  again.  In  the meantime, departments across the Government of Jersey are now looking forward, building on the analysis and scoping undertaken ahead of the next phase of negotiations. Jersey has already placed itself in a favourable position. The signing of the Jersey-UK Customs Arrangement in November 2018 ensures the preservation of Jersey-UK trade, and the extension of the UK's membership of the World Trade Organization provides the reassurance that Jersey businesses can continue to trade with other WTO members.

The bulk of the work for officials and Ministers now lies on assessing key chapters in the proposed UK-EU Free Trade Agreement, and where Jersey would wish to be included –  in  the  interest  of  the  Island's  economy,  culture  and  constitutional relationships – and where it would not be appropriate. This work will dominate the coming weeks and months, as officials look to ensure that the Island's interests are considered, and that Jersey's involvement in any future relationship is proportionate to the needs of the Island's economy.

The coming months are going to be crucial to the future prosperity of Jersey. Our well- established working relationships with colleagues in the UK and the other Crown Dependencies will be of considerable importance, as we look to work closely to reach agreement on a wide range of areas. These negotiations – much like all the work that has  been  completed  throughout  the  Brexit  process –  are  unprecedented,  and  the Government of Jersey is entering a phase where there is no previous work or blueprint to build upon. While it may be daunting to look at the next phase of negotiations in this manner, the breadth of work that has been completed to prepare the Island for Brexit is a testament to the Island's ability to be agile and respond to an ever-evolving political climate.

19 DECEMBER 2019

ANNEX

KEY ACTIVITY TIMELINE