The constitutional relationship with the Crown Dependencies – Report Summary

Summary

The Justice Committee regularly examines the relationship between the Crown Dependencies and the UK Government, taking an in depth look at issues as they arise. Since our last inquiry, and the UK’s withdrawal from the EU, trade policy for the Crown Dependencies looks significantly different, with the UK Government now undertaking trade negotiations on their behalf. Accordingly, this report focuses on the Crown Dependencies’ experiences of these negotiations—specifically the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)—as well as examining their relationship with the Ministry of Justice and other UK Government departments.

In terms of trade negotiations, we found that all three Crown Dependencies had quite serious concerns about the Department for Business and Trade’s approach to bringing them into CPTPP and other free trade agreement (FTA) negotiations. For future negotiations, improvements to the process for the Crown Dependencies can and should be made. We recommend that mutually agreed principles—underpinning, for example, communication, updates and timing—should guide effective engagement during the negotiation process. Overall, we recommend that the Crown Dependencies should be represented by specifically designated officials, either from the UK Government or the Crown Dependencies.

We note that the outcome of the CPTPP negotiations—inclusion for trade in goods from the outset, but not for services—was not the one that the service industry predominant Crown Dependencies had hoped for. The UK Government’s aim for all future FTAs should be for the Crown Dependencies to be covered by services, as well as goods chapters, from the outset. Where this does not prove possible, we recommend that mechanisms to extend services chapters at a later date should routinely be sought.

Turning to the working relationship between the Crown Dependencies and the Ministry of Justice, we found this to be very positive, with good levels of engagement and communication. The relationship could be improved yet further by the establishment of regular contact with senior Ministry of Justice officials and a further increase in team staffing to manage the additional work associated with trade deals. We also found the Ministry of Justice to be very effective at supporting relationships which have developed between the Crown Dependencies and other UK Government departments. Where matters are urgent and require coordination between several UK Government departments, we put forward the suggestion that the Cabinet Office could potentially step in to provide additional support.

Relationships between the Crown Dependencies and other UK Government departments are generally good and we heard various examples of positive developments flowing from these. However, UK Government departments must make efforts to consult and engage with the Crown Dependencies on a particular issue as early as possible, and regularly thereafter, and we recommend that the Ministry of Justice emphasise this approach in their guidance to Whitehall.

The inclusion of a Permissive Extent Clause (PEC) in the Fisheries Act 2020, which concerned the Governments of Guernsey and Jersey, was one of the very few relationship flashpoints in recent years. We consider this to have been extremely regrettable and contrary to the constitutional relationship and expect that the usual approach of consultation and consent with regards to all future PECs will now prevail.

Our inquiry renewed our deep appreciation for the Crown Dependencies and respect for their unique constitutional relationship with the UK. They are valuable members of the British family and their important cultural and economic contributions deserve greater recognition. The UK Government should grasp the real and very significant opportunity, which has been presented by taking responsibility for its own international trade policy, to make the most of its economic relationship with the Crown Dependencies.