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The Extension of the UK-Kazakhstan Strategic Partnership and Cooperation Agreement

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STATES OF JERSEY

THE EXTENSION OF THE UK- KAZAKHSTAN STRATEGIC PARTNERSHIP AND COOPERATION AGREEMENT

Presented to the States on 28th June 2024 by the Minister for External Relations

STATES GREFFE

2024  R.112

REPORT

This Report to the States Assembly provides an overview of the United Kingdom- Kazakhstan Strategic Partnership and Cooperation Agreement (SPCA) and its extension to Jersey.

It provides States Members with an overview of –

the context of continuity agreements post-Brexit and how they impact Jersey;

the Strategic Partnership and Cooperation Agreement between the United Kingdom (UK) and Kazakhstan and its extension to Jersey; and,

the provisions of Jersey's inclusion in post-Brexit trade agreements as agreed by the States Assembly in 2021 with an update on progresses being made in this area and the ongoing work with the Legislation Advisor Panel ("LAP").

MINISTER FOR EXTERNAL RELATIONS  28th JUNE 2024

Post-Brexit Continuity Agreements

Annex A contains a list of international agreements that were entered into by the European Union (EU) of which the UK was a part of at the time, and relevant partner countries. These existing EU international agreements applied to Jersey by virtue of our relationship  with  the  UK  and  the  previous  Protocol  3  relationship  with  the  EU. Therefore, in order to deliver continuity of effect at the time of the UK's exit from the EU, the agreements listed in Annex A applied to the Crown Dependencies to the same extent and under the same conditions as the existing EU international agreements. This work on continuity has not set any form of precedent for the extension of any new agreements since Brexit.

The UK-Kazakhstan Strategic Partnership and Cooperation Agreement

The UK-Kazakhstan SPCA is part of the wider HMG programme to deliver continuity across a number of international agreements that the UK previously participated in as a member of the EU. This programme is nearing completion, but with some further cooperation agreements expected this year.

The  UK-Kazakhstan  SPCA  is  a  post-Brexit  continuity  agreement  which seeks  to replicate  the  previous  EU-Kazakhstan  Enhanced  Partnership  and  Cooperation Agreement (EPCA). As with the previous EU agreement, this SPCA is a political agreement  which  does  not  include  preferential  trade  provisions.  The  agreement encourages  dialogues  covering  politics,  economy,  trade,  culture,  education,  and security. It outlines mechanisms for regular consultations and collaboration between the two countries on issues of mutual interest. Key objectives include promoting economic development, enhancing trade relations, facilitating investment, strengthening cultural ties, and cooperating on regional security challenges.

Negotiations around this agreement have been ongoing since before Brexit, however due to some obstacles on the Kazakhstan side, the UK have only recently managed to conclude negotiations and the SPCA was signed on 24 April 2024 by the Foreign Secretary during his visit to the region.

As was the case under the original EU agreement (Protocol 3), the UK-Kazakhstan SPCA applies to the Crown Dependencies from a "goods only" baseline to ensure the dialogues maintain the integrity of the UK Customs Union. Members should note that no new obligations are expected of Jersey for its inclusion within this agreement, and any material impacts which may arise in the future from the provisions of this SPCA will not apply to Jersey where it goes beyond the remit of goods trade.

Territorial application was discussed back in 2021, however given the time that has elapsed since then, UK officials have contacted the Minister for External Relations to ask the Government of Jersey's consent for Jersey to be included in the agreement. Members will wish to be aware that fellow Crown Dependencies have consented to the extension of the SPCA.

Provisions of Jersey's Inclusion in Trade Agreements and Work with the LAP

In 2021, the States Assembly agreed to the principles as outlined in P.94/20211 and as a result, to date, Jersey has agreed to participate from day-1 for goods provisions of new UK trade agreements which mirrors Jersey's inclusion under Protocol 3 as outlined above. In addition, the Government has secured the ability to have services – and other chapters – extended to Jersey at a later date, via an extension mechanism. This approach ensures that Jersey exports immediately benefit from the same preferential tariffs as UK exports, and the Government of Jersey have consented to the extension of the UK- Kazakhstan SPCA on the basis that goods-only will be extended from the outset as agreed by the States Assembly in 2021.

In March 2023 the States Assembly endorsed paragraph (b) of P.6/2023 as amended, which  requested  the  LAP,  in  consultation  with  the  Privileges  and  Procedures Committee,  to  bring  forward  legislation'  enabling  the  Assembly  to  ratify  all international agreements and treaties binding upon Jersey.2

Given the LAP's work to finalise its proposal for an appropriate legislative process to govern approval mechanisms for international agreements is ongoing, the Minister for External Relations wishes to ensure Members are briefed and sighted on the background to, and detail of, the proposed SPCA's extension to Jersey.

1 Principles for Jersey's Participation in United Kingdom Free Trade Agreements

2 Assembly Consideration of the Bilateral Investment Treaty with the United Arab Emirates

(P.6/2023) Second Amendment

Annex A

Continuity Agreements:

Andean

Australia MRA

Bosnia & Herzegovina

Cameroon

Canada

CARIFORUM

Central America

Chile

Cote D'Ivoire

EAC Kenya

Economic Partnership Agreement (EPA) between the UK and the Pacific States

Egypt

ESA EPA

Faroes FTA

Georgia

Ghana

Israel TPA

Jordan

Kosovo

Lebanon

Liechtenstein FTA

Mexico

Moldova

Montenegro

Morocco

New Zealand MRA

North Macedonia

Palestinian Authority FTA

SACU + M

Serbia

Singapore

South Korea

Swiss FTA

Tunisia

UK – Norway & Island Trade Agreement

Ukraine

US MRA

Vietnam