Protocol 3

Protocol 3 to the UK’s Act of Accession

Article 1

1. The Community rules on customs matters and quantitative restrictions, in particular those of the Act of Accession, shall apply to the Channel Islands and the Isle of Man under thesame conditions as they apply to the United Kingdom. In particular, customs duties and charges having equivalent effect between those territories and the Community, as originally constituted and between those territories and the new Member States, shall be progressively reduced in accordance with the timetable laid down in Articles 32 and 36 of the Act of Accession. The Common Customs Tariff and the ECSC unified tariff shallbe progressively applied in accordance with the timetable laid down in Articles 39 and 59 of the Act of Accession, and account being taken of Articles 109, 110 and 119 of that Act.

2. In respect of agricultural products and products processed therefrom which are the subject of a special trade regime, the levies and other import measures laid down in Community rules and applicable by the United Kingdom shall be applied to third countries.

Such provisions of Community rules, in particular those of the Act of Accession, as are necessary to allow free movement and observance of normal conditions of competition in trade in these products shall also be applicable.

The Council, acting by a qualified majority on a proposal from the Commission, shall determine the conditions under which the provisions referred to in the preceding subparagraphs shall be applicable to these territories.

Article 2

The rights enjoyed by Channel Islanders or Manxmen in the United Kingdom shall not be affected by the Act of Accession. However, such persons shall not benefit from the Community provisions relating to the free movement of persons and services.

Article 3

The provision of the Euratom Treaty applicable to persons or undertakings within the meaning of Article 196 of that Treaty shall apply to those persons or undertakings when they are established in the aforementioned territories.

Article 4

The authorities of these territories shall apply the same treatment to all natural and legal persons of the Community.

Article 5

If, during the application of the arrangements defined in this Protocol, difficulties appear on either side in relations between the Community and these territories, the Commission shall without delay propose to the Council such safeguard measures as it believes necessary, specifying their terms and conditions of application.

The Council shall act by qualified majority within one month.

Article 6

In this protocol, Channel Islander or Manxman shall mean any citizen of the United Kingdom and Colonies who holds that citizenship by virtue of the fact that he, a parent or grandparent was born, adopted, naturalised or registered in the Island in question; but such a person shall not for this purpose be regarded as a Channel Islander or Manxman if he, a parent or grandparent was born, adopted, or naturalised or registered in the United Kingdom. Nor shall he be so regarded if he has at any time been ordinarily resident in the United Kingdom for five years.

The administrative arrangements necessary to identify those persons will be notified to the Commission.

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2004

Laurie Morgan, President of the Advisory and Finance Committee, today made a statement to the States regarding the Island’s constitutional relationship with the European Union, as enshrined in Protocol 3 to the UK’s Act of Accession. He announced that a new draft Protocol will be put to the EU Inter-governmental Conference considering the draft Treaty establishing a new Constitution for Europe. This draft Protocol preserves the position enshrined in the current Protocol 3.

As part of negotiations concerning the draft Treaty there has been a parallel technical process to review and up date the existing Protocols annexed to the current EU Treaties and the five Acts of Accession. The Piris Group, which is the technical group of legal advisors working on the draft Treaty, has produced three draft Protocols to be annexed to the draft Treaty. One of these will incorporate the revised Protocol 3 which enables Guernsey to remain outside the EU, while providing principally for the free movement of goods between the Islands and the European Community.

In his statement, Deputy Laurie Morgan stated that:

‘The clear effect of the new draft Protocol is to preserve the position achieved by Protocol 3. I think that we can all agree that Protocol 3 has served a very useful purpose both in acting as a bulwark against unwanted E.U. legislation and in supporting the development of our international business base.’

‘In recent weeks Guernsey, Jersey and the Isle of Man have worked very closely with each other – with Her Majesty’s Government- and with officials in the European Commission responsible for reviewing the protocols so as to ensure that the text of Protocol 3 be amended to the absolute minimum necessary to bring it into line with the new draft Treaty without altering its effect. Both HM Government and the European Commission have repeatedly underlined to the Islands that there is no desire or intent to change the Islands’ relationship with the European Union.’

‘The Islands have made a series of interventions over recent weeks to ensure that the scope and effect of Protocol 3 is not altered. Our requirements have been fully accepted by the U.K. and by the Piris Group and we are confident that they will be acceptable to the Inter-governmental Conference.’

‘The task of progressing the proposed Treaty and the revised Protocols is now with the Irish Presidency. The technical adaptations will not be formally agreed until the political impasse on the more contentious issues of the draft Treaty are resolved. So the position is that nothing is agreed until everything is agreed. This may happen under the current Irish Presidency or under the Dutch Presidency which commences on 1 July 2004. All 25 Member States must then complete the ratification process and as part of this the States will be formally consulted by the UK in accordance with constitutional convention. The new Treaty is not expected to come into force before 1 January 2006.’

‘What our negotiators have achieved, subject to the ratification process to which I have just referred, is to ensure that the new Treaty will apply to the Channel Islands and Isle of Man only to the extent necessary to ensure implementation of the arrangements originally set out in Protocol 3 at the time of the U.K.’s accession.’