Brexit will hit the UK Overseas Territories hard – why is no one talking about it?

when Brexit referendum results When the decision was announced last June, I was researching the Turks and Caicos Islands, one of the UK’s overseas territories in the Caribbean. Residents of the archipelago, which consists of about 40 tropical islands, eight of which are inhabited, were shocked by the result. They were annoyed that they had not had the opportunity to vote and worried about their future.

It is clear that neither party in the campaign had given serious thought to the impact on such territories, and the situation has not improved since then. There are indeed some serious issues that need to be put on the agenda.

The 14 British Overseas Territories (OTs) are remnants of the empire, mostly in tropical regions. Gibraltar is the only one that is part of the European Union. Face Well-documented concerns include the possible closure of the border with neighboring Spain and the loss of the right to provide services such as finance and online gambling to the rest of the EU.

The rest of the territories are mostly in remote areas and receive less attention from the British media. With the exception of three territories without civilians – the British Antarctic Territory, the British Indian Ocean Territory and South Georgia and the South Sandwich Islands – the others have different reasons to be nervous.

In the Caribbean, the British Virgin Islands and the Cayman Islands perform well in professional financial and business services, as does Bermuda to the north. They are therefore most likely to be affected if Brexit weakens the UK’s influence in shaping the current international rules and regulations governing these activities – something that is highly likely given that the EU is one of the major players here.

Fund Management

Of the other three Caribbean islands, Anguilla and Turks and Caicos have healthy tourism, while Montserrat is still struggling to recover from a major volcanic eruption 20 years ago. However, each region is more or less dependent on tourism. EU aid program Provides support to all but the wealthiest overseas territories of EU member states. (Technically, the funding is outside the main EU budget, but the EU supports this through its Department of International Development and Cooperation.

Brexit means the current aid package may be the last for these and other overseas companies – they will no longer be eligible when the next round of contracts comes into force in 2021. Anguillathis Turks and Caicos Islands besides The British Virgin Islands all need “Substantial reconstruction funding” to make up for the damage caused by recent Hurricane Irma.

Elsewhere, the loss of EU funds would hit only some countries and not others. Bermuda is wealthy enough not to need EU funds, but their concerns about banking and financial market regulation are similar to those of the British Virgin Islands and the Cayman Islands.

The Falklands, on the other hand, appear to be one of the losers. They may just get by, depending on where the fishing licenses they currently sell go. Most of these licenses go to Spanish vessels, which are partly attracted by the Falklands’ current tariff-free trade with the EU. This situation may depend on the UK’s post-Brexit fishing regime.

Funding for the Angolan islands of St. Helena and Ascension appears to be at risk. already The UK recently built an airport in a place where the winds were too strong for planes to land, a move that has attracted unwelcome attention, although at least they may now be making the airport viable. Also threatened is the tiny island of Pitcairn, which is Bounty Rebel San Juan Island in the South Pacific. With only 50 residents, funding cuts could force them to leave.

Earlier this month, the House of Lords European Committee Write to Brexit Secretary David Davis has sought assurances that “lost” EU funding could be replaced, but has so far received nothing. Continuous pressure about the UK public finances, and some Media criticism Regarding the UK’s international development aid programme, it is hard to believe that new funding will emerge.

Trade issues

The Caribbean could also face trade issues because the region borders the European Union. That’s because several French Caribbean territories, including Guadeloupe and Martinique, are legally part of metropolitan France, not autonomous regions, and therefore part of the EU.

The extent to which this will cause problems in practice varies. For Monserrate, for example, its exports to Guadeloupe should not be affected, as Monserrate is a full member of Caribbean trade bloc CARICOM and a party to the EU-CARICOM trade partnership. Anguilla’s situation, on the other hand, may be more complicated. Anguilla is not a member of EU-CARICOM and it is unclear how its future trade with the French overseas territories will be managed.

These questions are a bit like Influence Northern Ireland and its future relationship with the Republic of Ireland. It is hoped that a solution can be found that facilitates normal trade and commercial links without erecting new barriers. More generally, the outlying territory currently enjoys tariff-free trade with the EU – this could also end depending on the outcome of the Brexit negotiations.

The Overseas Territories are diverse places, proud of their British heritage and identity. They are fiercely loyal to the UK and keen to maintain ties, but also want to be treated as if they were in the UK.

That may be a bit much, but the UK undoubtedly has a responsibility to these regions. Officials will have to consider how to manage future aid and trade with these regions during Brexit discussions. Otherwise, the financial viability of some regions could be threatened – with potentially destabilizing consequences. More thought and consideration at this stage could avoid some unnecessary crises in the future.