External Relations Common Policy Report

STATES OF JERSEY

EXTERNAL RELATIONS COMMON POLICY REPORT

Presented to the States on 8th September 2022

by the Minister for External Relations and Financial Services

STATES GREFFE

2022  R.124

REPORT

External Relations conducted by the Government of Jersey  

Introduction  

1. The States Assembly established the post of Minister for External Relations, through Regulations, in 2013. The Minister's function is to conduct external relations, concurrently with the Chief Minister, in accordance with a Common Policy on External Relations (CPER) agreed by the Council of Ministers.
2. The Minister for External Relations ensures that the Council of Ministers discusses and agrees the CPER.
3. The  current  version  of  the  CPER  is  available  online1 (and  at  Annex  1). Following the election of the new administration, and consistent with the Chief Minister's 100 Day Plan, a new policy is under consideration. States Members' input would be valuable prior to the policy being presented to the Council of Ministers, particularly given the importance of broad-based support and, as far as  possible,  consensus  in  the  approach  to  representing  Jersey's  interests internationally.
4. To discuss the high-level issues, an In-Committee Debate is proposed for 13 or 14 September 2022. This short background report is published in advance to help inform the debate.

Section 1: International context

5. Jersey's  rich  history,  outward-facing  economy,  diverse  communities,  and geographical location have meant that the island has always cultivated strong relationships  with  international  partners.  Promoting  Jersey's  international identity, reputation and profile has been key to ensuring the Island's role as a responsible global citizen is recognised and can be celebrated, and that we can pursue and protect Jersey's interests through our engagement with international partners.
6. Jersey has a long tradition of trading in high-quality goods and services with customers from around the world. From the export of our unique and world- famous Jersey Royal New Potatoes and Jersey Cows, to more recent demand for Jersey oysters and high-quality business and professional services – the common theme is the acknowledgement of the need to win business beyond our shores.
7. Maintaining strong relationships with other jurisdictions, based on trust and shared interests, encourages increased trade in goods and services, which in turn drives jobs and growth in Jersey. Natural partnerships are found in proximity, connectivity, and commonality – thus Jersey's relationships with its closest neighbours – the United Kingdom and France – as well as its fellow Channel

1 External Relations: Common Policy (gov.je)

Islands in the Bailiwick of Guernsey, are of fundamental importance. These are historic ties that continue to drive the Island's present-day commercial and political interests.

8. Today, governments around the world face significant external challenges. And Jersey is no exception. Many of the most pressing issues are driven by powerful international factors, such as Russia's war against Ukraine, the socioeconomic effects of the pandemic and the impact of Brexit. The rising cost of living, the housing crisis, employment and skills shortages across industry, migration and population issues are pressures replicated across many other jurisdictions.
9. Responding  to  global  issues  requires  strong  cooperation  between,  and engagement with, international partners – and Jersey can benefit from engaging with and learning from others facing similar challenges. Interlinked issues, such as managing the ongoing repercussions of Brexit, global developments and commitments  in  respect  of  climate  change,  and  emerging  EU  and  global positions in respect of international tax, are all areas on which Jersey must engage  internationally  or  face  significant  adverse  economic,  social  and/or environmental impacts.
10. External Relations plays a key role in working with other departments and Arms-Length Organisations (ALOs) in facilitating and supporting engagement on international matters to achieve the best outcomes for Jersey.

Section 2 – The importance of Jersey's external relationships

11. As outlined above, strong and enduring external relationships, based on respect, common  understanding  and  shared  objectives,  will  be  critical  factors  in assisting Jersey to navigate the challenges ahead.
12. Jersey's  deepest  ties  are  with  the  UK,  which  remains  the  Island's  most important partner. The relationship is mature and multifaceted – spanning all levels of society. The UK is our largest trading partner (total trade in goods and services between the UK and Jersey was £7.1 billion in the four quarters to the end of Q1 2022), where most Islanders seek further education, and where almost one-third of the Island's population was born.
13. The  UK  Government  is  the  sovereign  partner  in  international  agreements (which should only be extended to Jersey with our consent) and is formally responsible for representing Jersey's interests under the UK-EU Trade and Cooperation Agreement, including in discussions relating to fishing in the waters surrounding the Island. The importance of Jersey's bilateral relationship with France is also critical here. Our customs arrangement with the UK enables vital, unrestricted trade in goods; and our thriving business and professional services centres in London and St Helier facilitate strong flows in trade and investment in services.
14. Whilst Jersey's historical connection to the UK chiefly flows through the Crown, the management and success of the working relationship is achieved in practice by regular engagement with the UK Government, formally through the

Ministry of Justice. Strong cross-party political engagement is also key, to help ensure Jersey's constitutional position, and the mutually beneficial nature of our relationship with the UK, is understood.

15. The External Relations' London Office leads on the Island's interaction with stakeholders in the UK Government and Parliament, which includes supporting other departments' engagement with their UK counterparts, in areas including health, education, environment, sustainability, financial services, taxation and broader economic matters. Maintaining a strong working relationship with the UK Government has assisted in the defence of Jersey's interests; and the Government  of  Jersey  is  committed  to  maximising  any  opportunities  that emerge from Brexit.

16. Jersey's participation in new trade deals that are being struck between the UK and key third countries (or trading blocs) is being considered on a case-by-case basis, informed by analysis of the costs and benefits of each agreement for the Island's economy. Through such agreements, Jersey will reinforce its position as a connected and outward-looking Island.

17. A positive relationship with the UK presents many opportunities for Jersey, be they political, commercial, or socio-cultural. Yet the London Office also plays an important role in monitoring and mitigating potential threats to the Island, such as the previous attempt in Westminster to legislate for Jersey without its consent.

18. On the other side of the Channel, Jersey's relationship with France is second only to that with the UK, and likewise stretches back many centuries. Regional links with Normandy and Brittany, built on shared history and culture, are particularly strong. However, it should be recognised that aspects of the Brexit negotiations, and the post-Brexit environment, have placed our relationship under some strain.

19. Working to restore our French relationship to pre-Brexit norms will be critical. Specifically, protecting and promoting two-way trade in goods between Jersey and France is a top priority, especially for Jersey's fisheries sector and for ensuring  broader  supply  chain  resilience  for  goods  and  energy.  Pursuing improved transport connectivity with France, including through efforts to ease entry requirements for French visitors, are important areas to consider further. By maintaining joint representative offices of the Channel Islands in Caen (Normandy) and Brussels – both key locations for Jersey's political engagement

– we  continue  to  show  commitment  and  investment  in  maintaining  and enhancing these important connections.

20. Jersey and Guernsey can, where appropriate, offer a united front on key issues and maximise positive visibility amongst priority stakeholders in the region. Wherever possible, the Government of Jersey seeks to coordinate and align with the other Channel Islands, and most closely with Guernsey, in areas such as fishing, transport connectivity, renewable energy opportunities, environmental stewardship (Geopark application), cultural collaboration, tax and transparency, where interests and approaches are shared.

21. The Government of Jersey also recognises the importance of working with counterparts  not  only  in  Guernsey  but  also  in  the  Isle  of  Man,  together representing the three British Crown Dependencies, to pursue the interests of the islands in the context of our unique constitutional relationships with the UK. In this regard, Jersey, Guernsey and the Isle of Man work together closely in our  engagement  with  multilateral  bodies,  such  as  the  Organisation  for Economic Cooperation and Development (OECD), the Financial Action Task Force (FATF), and the European Union (EU).
22. Supplementing these efforts, the Ministry of External Relations' dedicated European Relations team – in tandem with the Channel Islands offices in Caen and Brussels– continues to build a diverse network of political, cultural and trade relationships for Jersey in France; with countries across Europe such as Portugal,  Poland,  Romania  and  Ireland;  and  with  the  institutions  of  the European Union.
23. The team's work reflects Jersey's proud history as part of the European family and longstanding good neighbour' policy with Europe. It includes support for the sizeable diaspora communities from the continent who call the Island home; while also drawing upon the strengths of Jersey's own diaspora across the UK, Europe and beyond. The Government of Jersey's work across Europe and more widely is enabled through excellent links with the UK's network of Embassies and High Commissions.
24. Also sitting within External Relations, the Global Relations Team leads on developing the Government's priority relationships outside the UK and EU. The team is split between Jersey and London, enabling officials to engage with both on-Island colleagues and counterparts from the global diplomatic community based in the UK.
25. In this context, it is crucial that Jersey is both visible and active in the emergent centres of global growth, wealth creation, and political influence. The work of the Global Relations team is vital in developing government-to-government links to support Jersey's objectives overseas and raise the Island's profile in jurisdictions where the Island may not be as well-known. The team will also explore the potential for developing new relationships with other small island nations.  The  Global  Relations  team  will  continue  to  broaden  and  deepen Jersey's relationships with priority jurisdictions across the full range of sectors, including in culture, education and capacity-building in areas of expertise or shared interest.
26. The work of the Global Relations team, in conjunction with colleagues within the Economy Department, ensures the Government is responding effectively to the continued shift in global economic growth to the east and south. By 2050, it is estimated that South Asia, Asia Pacific and China & Hong Kong will collectively account for 56% of the global economy. While North America and Europe fall in relative terms – Africa, South Asia and China are expected to continue  an  upward  trajectory.  Financial  services,  and  those  available  to booming  populations  and  middle-income  groups  in  Asia  and  Africa  in

particular, will remain among one of the fastest growing sectors and drivers of economic growth.

27. External Relations also plays a key role in coordinating the Island's approach to engaging with important multilateral organisations, such as the OECD, IMF/World Bank and Commonwealth institutions. This ensures consistency in Jersey's engagement with these bodies and helps to protect the Island's good reputation as a trusted and responsible international partner. To achieve this, External Relations works closely with other departments, such as Revenue Jersey on OECD matters, to ensure that Jersey's engagement has the right balance of policy and diplomatic expertise.
28. Jersey's engagement with the Commonwealth has increased significantly in recent years. External Relations provides support to the States Greffe to assist States Members' participation in Commonwealth Parliamentary Association events and to CYPES and EDTSC to assist with Jersey athletes' participation in the Commonwealth Games. More recently, External Relations has expanded Jersey's  participation  in  the  Commonwealth  family  by  spearheading  the Island's  engagement  with  the  Commonwealth  Enterprise  and  Investment Council (CWEIC), which promotes intra-Commonwealth trade.
29. These efforts build upon the priorities identified in the 2007 Framework for Developing the International Identity of Jersey - Framework for Developing the International  Identity  of  Jersey  (gov.je)  -  in  which  the  UK  Government recognised the distinct nature of Jersey's global personality and agreed to support the evolution of that identity even where it differed from the UK's own. A celebration of the unique and distinct qualities that make Jersey special have also recently been explored in the Island Identity Report. There is significant potential, with a concerted cross-Government effort, to expand Jersey's positive international profile and reputation with the delivery of key commitments and recommendations within the Report.

Section 3: Themes for engagement  

30. The Ministry of External Relations leads engagement, on behalf of GoJ, with a wide range of overseas partners to protect and promote the Island's interests. The  team  works  closely  with  other  GoJ  departments  and  Arms'  Length Organisations  (ALOs)  to  ensure  Jersey  builds  positive  and  enduring partnerships and allies across our key stakeholders in the UK, the EU and further afield, underpinned by collaboration and cooperation across a broad range of policy areas.
31. The following is a non-exhaustive list of areas on which it is suggested the GoJ should  continue  to  engage,  or  develop  its  engagement  with  international partners, further. The States is invited to discuss and exchange high-level areas for prioritisation to inform the development of framework for the Common Policy, and thus GoJ's priorities for international engagement, over the current term.

Economic Challenges

32. The combined effects of Brexit, the pandemic and the cost-of-living crisis has resulted in global shortages of workers across a range of sectors, notably hospitality,  construction,  and  agriculture.  The  Government  is  considering possible  responses  to  these  challenges,  within  the  context  of  the  Chief Minister's 100 Day Plan and the development of the Common Strategic Policy. As part of this work, there is potential, in collaboration with colleagues in JHA and Economy, to: explore the flexibility available within current domestic legislation to facilitate flows of temporary workers; engage with the UK Home Office to understand requirements within the visa system; and look at whether modernisation of the Island's reciprocal agreements on areas such as social security can better support such workers. There is also scope to consider whether further Memoranda of Understanding (MoUs) can be developed, like that  agreed  with  the Government  of  Antigua and  Barbuda,  to  facilitate a reciprocal flow of workers to support key areas of industry.
33. Strong government-government relationships support and strengthen flows in cross-border trade and investment. The Ministry of External Relations will continue to work with the Economy Department and ALOs such as Jersey Finance Ltd (JFL), Jersey Business, and the Jersey Chamber of Commerce to promote  opportunities  for  Jersey  businesses  to  do  more  trade  in  priority overseas markets. External Relations works especially closely with JFL given its network of overseas offices and the importance of the financial services sector to Jersey's economy. Jersey makes a significant contribution to the global economy, enabling capital to move around the world, generating employment, taxation,  and  economic  growth  across  hundreds  of  jurisdictions.  In  2020, Jersey's combined financial services sector allocated £1.44tr of capital around the world, increasing from £1.30tr in 2017. £529bn was allocated to the UK alone.

Children and Young People

34. The Government is committed to Putting Children first. External Relations has worked closely with CYPES to ensure we are maximising opportunities through our external relationships to pursue this objective across a range of areas e.g. school exchanges with countries including the United States and China; the securing of home' fees (rather than generally higher international' fees) at all English universities, and via a programme of in-school visits to explain the Ministry's work and the international challenges facing the Island. External Relations will seek to work with CYPES to identify and develop new school and student exchange opportunities.
35. There is potential scope to consider widening initiatives, such as the Protocol of Cooperation with the Camões Institute– a Portuguese international institution that promotes the Portuguese language, culture, and international aid, on behalf of the Government of Portugal - with other jurisdictions, particularly where we have sizable communities on island.
36. Young people growing up in Jersey do so in an internationally-connected jurisdiction – they take pride in their own history and traditions, while also benefiting from opportunities to experience the wider world. We should seek,

in line with the Chief Minister's 100 Day Plan, to ensure that young people understand the importance and impact of external forces on the fortunes and success of Jersey, and that they are involved in policy formulation and decision making in respect of our approach to international engagement.

Diaspora communities and internationalism

37. Positioned at the crossroads of Europe, Jersey has proportionately among the largest diaspora communities – both outbound and inbound – in the OECD. Links with the UK and France stretch back centuries; and newer ties link the Island with other European countries, the Middle East, Africa, and many other places around the globe.
38. Jersey's international relationships have long been grounded in a tradition of people-to-people  links,  not  least  through  the  Island's  extensive  diaspora communities in the UK, Europe and worldwide. During the pandemic, which precluded  in-person  engagements,  External  Relations  launched  the  online Always Jersey campaign to strengthen diaspora links. Building on this, the London Office is taking forward a renewed programme of events as a focus for the Jersey community in the UK.
39. The commitment to establish a Cultural Diversity Centre within the Chief Minister's 100 Day Plan will also be an important focal point for information, engagement, and collaboration across all of Jersey's communities, including the Honorary Consul network, and External Relations has an important role to play in helping bring this to fruition.

Climate

40. The impact of climate change represents a key consideration across all aspect of the Government of Jersey's work. In 2019, the States Assembly declared a climate emergency, and on 1 June 2021, the Report of the Citizens' Assembly on Climate Change was presented to the States Assembly. The Carbon Neutral Roadmap, which was passed by the States Assembly in April 2022, sets out the trajectory for Jersey on its path to net-zero by 2050.
41. Yet domestic action on its own, however ambitious, cannot solve the global climate challenge. In April 2022, the States Assembly approved the extension of the Paris Agreement to Jersey. As well as protecting Jersey's reputation, this provides the Island with a firm basis on which to join with like-minded partners in promoting global action. The industrial transition required across economies worldwide can be supported by – and provide opportunities for – Jersey's growing sustainable finance industry.
42. External  Relations  can  support  policy  colleagues  by  facilitating  regular engagement  with  their  international  counterparts  –  such  as  the  webinar convened prior to the COP26 climate summit in 2021 featuring participants from Bahrain, Madeira, and Antigua and Barbuda – through which participants can exchange knowledge and develop initiatives to help address the climate emergency.

Cultural cooperation and diplomacy  

43. Cultural diplomacy can be an effective tool in building wide-ranging and long- term friendships with external partners, and Jersey has a rich pool of history, heritage, and culture on which to draw. The influence of Normandy and Brittany are seen in Jersey's street names, legal system, and culture. More recent history links the Island with place names from North America to the South Pacific. Today, the Island's role in the international finance industry and in agriculture are world famous. The Global Relations team will continue to pursue broad- based Memoranda of Understanding to promote collaboration with priority partners across a range of sectors, including in culture and education.
44. Cultural links with France will be a particularly important lever in rebuilding our relationship, given the centuries of commercial, linguistic, and historic connections, especially at the regional level. There is great potential to do more in supporting initiatives to enhance collaboration including cultural festivals, twinning programmes including with the Island's parishes, international school partnerships, and bilateral projects to boost artistic and cultural exchange with priority overseas partners. This should provide a foundation from which to overcome some of the challenges we have faced in the post-Brexit environment by using our shared heritage to look to the future.
45. In general, the potential for Arts, Culture, and Heritage to catalyse the formation of new international relationships, strengthen existing ones, and raise Jersey's international profile is significant. Recognising this, as set out in the Chief Minister's 100 Day Plan, the new Cultural Diversity Centre, celebrating our cultural  identities and  bringing  islanders  together,  will  be  a very  positive development. We will seek to work with Jersey's network of Honorary Consuls to contribute to this initiative.

International trade and investment

46. The Ministry of External Relations has worked to maximise Jersey's post- Brexit opportunities, while managing risks. That includes with respect to post- Brexit trade agreements, where the Ministry has sought to secure participation

– to the extent advantageous to Jersey – in Free Trade Agreements concluded between the UK and other countries.

47. In  addition,  External  Relations  has  worked  to  develop  Jersey's  bilateral partnerships outside the UK and European Union. This is of ever-increasing importance, particularly during the ongoing period of transition since Brexit, and in the wider context of macro-economic shifts. As has been recognised by leading international studies – including the UK Government's own Global Trade  Outlook  published  in  September  last  year  –  global  growth  is  in  a transitional phase. By 2040, it is anticipated that the world's 7 largest emerging economies will have overtaken the established G7 in terms of total GDP.

48. External Relations has led on the negotiation and conclusion of Jersey's own Bilateral Investment Treaties and Double Taxation Agreements, working in close coordination with the UK both in London and through the UK's overseas diplomatic posts.

49. It  should  be  recognised  that  concluding  such  agreements  usually  requires sustained engagement over a significant period of time, and External Relations continues to facilitate the expansion of Jersey's treaty network. Recently, this has included the Island's first Bilateral Investment Treaty – signed with the United Arab Emirates in November 2021 – and securing Jersey's inclusion in UK Free Trade Agreements with both Australia and New Zealand. With further agreements currently under negotiation, this will remain a key pillar of the Ministry's work.
50. Expanding Jersey's treaty network, particularly Double Taxation Agreements (DTAs),  provides  greater  certainty  to  businesses  looking  to  trade internationally, and to individuals looking to live and work in Jersey. Such agreements are therefore supportive of broader efforts to support flows of appropriately skilled workers to relieve shortages in the domestic economy.

Reputation and Profile: compliance with international norms and standards  

51. Maintaining Jersey's alignment with the UK and international partners on implementing international norms and standards is an essential part of the work of External Relations in protecting the Island's reputation as a responsible global actor. Jersey has a strong track record in compliance with international standards across a broad range of areas such as tax transparency and beneficial ownership, sanctions implementation, anti-money laundering and countering financial crime, and human rights.
52. Jersey has demonstrated its support for internationally recognised human and labour rights, including racial and gender equality. The extension to the Island of the UN Convention on the Elimination of All Forms of Discrimination Against Women in 2021 reflects Jersey's ongoing efforts to align with global best practice and use this international engagement to drive positive change domestically. External Relations will also support departments in seeking the extension  of  priority  international  treaties/conventions,  for  example  the Lanzarote and Istanbul Conventions, and the UN Convention on Biological Diversity.
53. Jersey has long stood for the rule of law and has sought to play its part in upholding the rules-based global order. In response to Russia's invasion of Ukraine in February 2022, Jersey has implemented in full all UK sanctions in support of objectives to uphold the international rule of law, human rights, respect for democratic principles and international peace and security.
54. The Minister for External Relations is the Competent Authority for financial sanctions. The Sanctions and Asset-Freezing (Jersey) Law 2019 (the "Sanctions Law") and the Sanctions and Asset Freezing (Implementation of External Sanctions) (Jersey) Order 2021, which is made under the Sanctions Law, are the key pieces of legislation under which all UN sanctions and autonomous UK sanctions are implemented in Jersey.
55. There are more than 30 different sanctions regimes' implemented in Jersey, which include those in place against Russia (autonomous UK regime) and those against the Democratic People's Republic of Korea (UN regime).

56. Jersey takes seriously the part it can play in driving positive change in the world through the development and implementation of international standards in tax and tackling financial crime. Both in the OECD and in the FATF, Jersey has for over 20 years played an active part in leading working groups, contributing to policy debate and providing best practice examples. This is publicly recognised in the documents published by those international organisations.

Health cooperation

57. External Relations played an important role in assisting the public health response to the pandemic in Jersey, notably through consistent engagement with the UK Government and its devolved agencies during the immediate health crisis, as well as with international counterparts to support Jersey's reconnection as the pandemic receded. This ensured that key issues – such as PCR testing capacity, border testing models, access to vaccinations, antivirals, and PPE – were raised and addressed with UK counterparts as a priority.
58. Through good working relationships, Jersey's technical leads were also able to liaise with NHS colleagues on the development of our respective Covid-19 status certification, helping to ensure that Islanders could travel to/from the UK without  barriers  thanks  to  an  equivalence  arrangement  with  the  UK Government. As the immediate public health threat receded, External Relations also supported the reconnection of Jersey's links with jurisdictions across the world.  This  was  achieved  by  enabling  the  recognition  of  Jersey  status certification  separately  and  alongside  that  of  the  UK  and  other  British territories, which was possible thanks to ER's strong relationships with bilateral partners and the UK platform in those jurisdictions.
59. External Relations will explore other areas of possible cooperation with the Health  and  Community  Services  department,  such  as  the  negotiation  of reciprocal health agreements and sharing of good practice in medical research and healthcare innovation.

Security

60. There is potential for collaboration between External Relations and the Justice and Home Affairs department to help build and widen the island's informal networks post Brexit, and to expand cooperation in areas that support Jersey's national security resilience, our ability to conduct swift and comprehensive vetting and barring, and our emergency planning. Overseas aid.
61. The Jersey Overseas Aid (JOA) Commission has a separate status and it is important that the clear distinction between trade and aid is maintained. At the same time, there exists excellent and necessary collaboration between JOA and External Relations.
62. The   Bailiff 's  Ukraine  Appeal,  having  so  far  raised  nearly  £1m  in  public donations, is the latest demonstration of the desire of the people of Jersey to help those in need around the world. The appeal fundraising total has been supplemented by funds directly from the Government of Jersey and from the JOA emergencies budget.

63. This dovetails with the wider work of the Jersey Overseas Aid Commission in poverty reduction and capacity building activities in developing countries – complemented  by  engagement  undertaken  at  a  government-to-government level by the Ministry of External Relations, and which includes ongoing efforts to  improve  recognition  of  Jersey's  distinct  contribution  to  humanitarian assistance across the world.

Consular Assistance  

64. An important element of the Ministry's work relates to Jersey residents who – for a wide variety of reasons – may need consular-type assistance. Cases can relate to international travel to or from the Island, or other types of difficulties which Islanders may encounter overseas.
65. In particular, External Relations played an active role during the early part of the  COVID-19  pandemic,  supporting  over  700  individuals  who  needed assistance to return to or from Jersey in the face of global travel and transport difficulties.
66. The Ministry works in lockstep with the UK's overseas platform, which is formally responsible for providing assistance to British citizens resident in Jersey whilst they are abroad, to ensure that the needs of such residents are addressed appropriately.

Annex 1: Common Policy on External Relations, October 2012  

The Council of Ministers,  

Noting  that  the  functions  of  the  Chief  Minister  shall  include conducting  external relations in accordance with the common policy agreed by the Council of Ministers;

Recalling the distinct history of Jersey, which was part of the Duchy of Normandy from 933 AD through the conquest of England in 1066, and elected to remain loyal to the English Crown when King John lost Normandy in 1204, and was granted its Royal Seal in 1279;

Noting further that Jersey is not a sovereign state and cannot in general bind itself internationally  without  the  consent  of  the  sovereign  state,  but  has  had  domestic autonomy since 1204, and acquired fiscal autonomy through a series of Royal Charters, and is a self-governing, democratic country with the power of self-determination;

Bearing in mind the framework for developing the international identity of Jersey signed by the United Kingdom and Jersey on 1 May 2007, in particular that Jersey has an international identity which is different from that of the United Kingdom and that the United Kingdom supports the principle of Jersey further developing its international identity;

Observing  the recommendations of the Second Interim Report of the Constitution Review Group presented to the States Assembly on 27 June 2008 by the Council of Ministers, noting that it is not Government policy to seek independence from the United Kingdom, but rather to ensure that Jersey is prepared if it were in the best interests of Islanders to do so;

Acknowledging that Jersey has the right, under terms of the entrustment from the United Kingdom of Great Britain and Northern Ireland dated 23 November 2009, to negotiate and conclude Tax Information Exchange Agreements, and other agreements relating to taxation that provide for exchange of information on tax matters to the OECD standard; and that Jersey was also entrusted on 20 August 2012 to conclude an agreement with the Government of the United States of America regarding the sharing of legally confiscated or forfeited assets;

Recognising  that  international  identity  is  developed  effectively  through  meeting international standards and obligations;

Noting the Government of the United Kingdom's response to the House of Commons Justice Select Committee's report on the Crown Dependencies (November 2010), in particular Jersey's status as a Dependency of the British Crown, that is neither part of the United Kingdom, nor, except to a limited extent, the European Union;

Noting also from the same document that the Government of the United Kingdom agrees with the increased use of entrustment, whereby the Crown Dependencies are granted powers to negotiate treaties on their own behalf:

1. Decides on the following principles for the conduct of external relations, namely to:

1. Protect  Jersey's  unique  constitution,  and  its  domestic  and  fiscal autonomy;
2. Promote  Jersey's  international  identity  and  good  reputation  as  a responsible country committed to the rule of law, international standards, and respect for internationally recognised human and labour rights;
3. Serve Jersey's best economic interests by promoting a strong, diversified economy, safeguarding its competitive position and promoting growth through trade and inward investment;
4. Promote Jersey's national and cultural identity abroad;
5. Join with others in supporting sustainable development and poverty reduction in developing countries;
6. Abide by internationally agreed standards of environmental stewardship.

2. Also decides, in accordance with these principles, to:

1. Engage positively with the UK Government, Whitehall departments and Parliament;
2. Be a good neighbour, on the basis of reciprocity, to the United Kingdom, France and other European States, promoting and protecting Jersey's interests in Europe through the Channel Islands Brussels Office;
3. Maintain positive relations with the Bailiwick of Guernsey and the Isle of Man, coordinating on matters of mutual interest in external relations, and working with the Bailiwick of Guernsey to deliver common services to the benefit of the people of the Channel Islands;
4. Promote international cultural relations by building on Jersey's shared history and longstanding links around the world;
5. Sustain a strong international profile, supported by relevant international agreements  and  by  relationships  with  the  international  diplomatic community,  to  enhance  recognition  of  Jersey's  commitment  to international standards;
6. Engage with multilateral institutions, including the European Union, Council of Europe, International Monetary Fund (IMF), World Trade Organisation  (WTO),  Organisation  for  Economic  Co-operation  and Development  (OECD)  and  the  Global  Forum  on  Transparency  and Exchange  of  Information  for  Tax  Purposes,  to  contribute  to  the development of international policy;
7. Participate actively in the British Irish Council;

viii)  Promote  Jersey's  relationship  with  existing  and  emerging  major

economies, and develop the Island's international reputation as a centre of excellence and an outstanding place to do business;

9. Implement UN sanctions and EU restrictive measures in support of international objectives to address activities or policies that threaten the international rule of law, human rights, respect for democratic principles or  international  peace  and  security,  or  to  prevent  and  suppress  the financing of terrorists and terrorist acts;

10. Assist in the identification, monitoring and reduction of external systemic risk to the Jersey economy;
11. Ensure that Jersey is prepared for external change that may affect the Island's formal relationship with the United Kingdom and/or European Union;
12. Share  Jersey's  experience  as  a  well-run  small  island  state  and international financial centre with other countries and seek to learn from the success of others;

xiii)  Engage  in  poverty  reduction  and  capacity  building  activities  in

developing countries by supporting the work of the Jersey Overseas Aid Commission, and through technical assistance;

14. Support the Law Officers' Department in the provision of Mutual Legal Assistance to other countries and in the lawful recovery and return and/or sharing of forfeited or confiscated assets, where reciprocal agreements exist;
15. Build on the current, active participation in the Commonwealth, through the Secretariat, Law Association, Parliamentary Association and other Commonwealth bodies;
16. Support the work of Members of the States Assembly with the Assemblée Parlementaire de la Francophonie and the British-Irish Parliamentary Assembly.

Council of Ministers October 2012