What Could a No-Deal or Hard Brexit Look Like for the Channel Islands and The Isle of Man?

What Could a No-Deal or Hard Brexit Look Like for the Channel Islands and The Isle of Man?

The Job Market / March 5th, 2019

If you’re looking to relocate for work reasons to the Channel Islands or the Isle of Man, jobs in the eGaming and finance industries are high in demand, offering both stability and an attractive salary. However, the UK’s decision to leave the European Union – a political and economic partnership of 28 countries – for which the British voted by a margin of 52% to 48% to leave, poses a wide range of questions, namely those relating to the effects Brexit will have on the Isle of Man and the Channel Islands.

The Channel Islands, an archipelago of British dependency islands situated off the northwest coast of France, are divided into two British Crown Dependencies – the territories (or bailiwicks) of Guernsey and Jersey. As Crown Dependencies, the Channel Islands are self-governing and have their own laws and courts. The Channel Islands, as well as the Isle of Man, do not form part of the EU in their own right, and neither financially contribute to, nor receive any funding from the union. However, they do have a limited relationship with the EU under what is known as ‘Protocol 3’.

Protocol 3 to the UK’s Act of Accession

Both the Channel Islands and Isle of Man’s relationship with the EU is set out in Protocol 3, which allows the Islands to be part of the EU customs area which permits the free movement of manufactured goods and agricultural products in trade between the Islands and the Union. 

Protocol 3 requires the authorities in Guernsey and Jersey to treat natural and legal persons of the EU in a non-discriminatory way, which means that EU citizens are free to visit the Channel Islands, but the islands’ employment and housing policies differ from those in the UK.

The effect Brexit will have on offshore dependencies

As the Channel Islands only benefit from the UK’s membership through the provisions of Protocol 3 concerning trade in goods, Brexit will have no direct impact on the Channel Islands’ financial services industries; however, it will have a limited impact on how goods are traded to EU member states. Fisheries (of which most exports go to France) is the main sector expected to be affected by the termination of Protocol 3. The Customs and Excise Agreement between the Isle of Man and the UK will continue, though it has been modified to provide for the UK’s withdrawal from the EU.

When the UK leaves the EU, the current Protocol 3 arrangement will cease to have any effect and a new settlement will have to be negotiated between the Channel Islands, Isle of Man, the UK and the EU to replace Protocol 3.

Time for a Change? Head to the Channel Islands or the Isle of Man: Jobs, a New Home and an Exciting Change in Surroundings Await You!

Times of great change, such as the UK’s departure from the EU, can be challenging – they also present new opportunities. If you’re looking to relocate, take a look at our vacancies in Jersey and avaliable Isle of Man jobs.

Boston Link is a specialist recruitment and relocation company with offices in Malta, United Kingdom and the Isle of Man. Contact us today for more information on how we can help you!