Since 1 January 2021, EU trade agreements have no longer applied to the UK and therefore the Bailiwick of Guernsey.
The UK is seeking new trade relationships around the world and there is an option for the Bailiwick to be included within these agreements, many of which are UK Free Trade Agreement (FTAs). FTAs set out the rules that cover trade between two or more countries. The purpose of these agreements is to reduce the restrictions on imports and exports between parties, enabling easier trade between them.
If the Bailiwick participates in all or part of a UK FTA it will have the same advantages as the UK for trade with that trading partner.
Whilst membership will mean there are certain obligations to meet, extension of these agreements to the Bailiwick will ensure that current and future trade interests are protected and promoted; provide trade stability; and open-up future trading opportunities with the FTA trading partner(s).
At present, the Bailiwick has been included in all UK FTAs but only for the trade of goods.
Now, under close consultation with local industry, Economic Development is pursuing Guernsey's inclusion in FTA chapters such as Financial Services, Investment and Cross-Border Trade in Services.
The list of all UK trade agreements with non-EU countries is available on the UK Government website.
The Bailiwick's inclusion in the UK's World Trade Organisation membership
The UK has extended its World Trade Organisation (WTO) membership to the Bailiwick of Guernsey. As WTO membership forms the basis of any FTA, the Bailiwick is well placed to be included in any trade agreements that the UK may negotiate post-Brexit.
For more information, you can read the Policy & Resources Committee's policy letter 'Extending the United Kingdom's membership of the World Trade Organization'.
The Bailiwick's inclusion in the UK's Free Trade Agreements
Many of the UK FTAs are a copy of the agreements the UK had with Third Countries when it was a member of the EU. These are referred to as "Roll-Over FTAs". In addition to these, the UK has been negotiating improved FTA agreements with some of these countries as well as new agreements with countries it hasn't had an FTA with before. The UK has identified these agreements as having the most opportunity and the Bailiwick has the chance to be included.
The Bailiwick cannot enter FTAs with partner countries independently, it must have the UK's membership extended to it.
Please see the below drop-downs which indicate the status of the Bailiwick's inclusion in the UK's FTAs. These drop-downs also shows which FTA countries the Bailiwick also has Bilateral Investment Treaties and Double Taxation Agreements with.
More information on Guernsey's approach to UK FTAs can be found within 'The Bailiwick's Participation in UK Free Trade Agreements' policy letter.
Bilateral Investment Treaties
Bilateral Investment Treaties (BITs) are widely adopted between jurisdictions as a way to promote, and facilitate, foreign investment by creating greater certainty and reducing investor risk.
Guernsey already has a number of BITs extended to it through the UK.
Double taxation agreements
A Double Taxation Agreement (DTA) is an official international agreement between two jurisdictions on how to administer taxation rules when the domestic tax laws of two jurisdictions apply simultaneously to a particular issue or taxpayer. DTAs are intended to eliminate double taxation.
More information is available on the States of Guernsey's Double Taxation Arrangements (DTA) page.
The Bailiwick of Guernsey's inclusion in all UK negotiated FTAs to date
UK - Japan
- The agreement has been signed and is in force - the following parts of the UK FTA agreement have been extended to Guernsey:
- Market Access
- Rules of Origin
- Customs Procedures and Trade Facilitation
- Sanitary and Phytosanitary measures
- This agreement has also been extended to Sark and Alderney.
- The Bailiwick does not have a Bilateral Investment Treaty with Japan.
- The States of Guernsey has a partial DTA with Japan.
EEA EFTA Separation Agreement
- The agreement has been signed and is in force - the following parts of the UK FTA agreement have been extended to Guernsey:
- Market Access
- Rules of Origin
- Customs Procedures and Trade Facilitation
- Sanitary and Phytosanitary measures
- Technical Barriers to Trade
- This agreement has also been extended to Sark and Alderney.
- The Bailiwick does not have a Bilateral Investment Treaty with these countries.
- The States of Guernsey has a full DTA with Liechtenstein, a partial DTA with Norway and a partial DTA with Iceland.
UK - Australia
- The agreement is due to be implemented - the following parts of the UK FTA agreement have been extended to Guernsey:
- Market Access
- Rules of Origin
- Customs Procedures and Trade Facilitation
- Sanitary and Phytosanitary measures
- This agreement has also been extended to Sark and Alderney.
- The Bailiwick does not have a Bilateral Investment Treaty with Australia.
- The States of Guernsey has a partial DTA with Australia.
UK - New Zealand
- The agreement is due to be implemented - the following parts of the UK FTA agreement have been extended to Guernsey:
- Market Access
- Rules of Origin
- Customs Procedures and Trade Facilitation
- Sanitary and Phytosanitary measures
- This agreement has also been extended to Sark and Alderney.
- The Bailiwick does not have a Bilateral Investment Treaty with New Zealand.
- The States of Guernsey has a partial DTA with New Zealand.
