The House of Commons International Trade Committee (Committee) has published the Government’s response to the Committee’s March 2017 first report on UK trade options beyond 2019. In its report, the Committee recommended that, in the proposed free trade agreement between the UK and the EU, the Government should seek the nearest achievable approximation to the existing passporting framework and clarify how complex disputes in the financial services sector will be resolved without the involvement of the Court of Justice of the European Union.
In its response, the Government:
- indicates that it will seek an agreement on mutual market access arrangements and comments that the fact that the UK has the same rules and regulations as the rest of the EU in financial services forms a solid starting point for seeking agreement on this;
- states that a future dispute resolution mechanism must reflect the bespoke arrangement unique to the UK in its relationship with the EU that the Government is seeking. The Government also refers to its August 2017 paper on enforcement and dispute resolution for possible approaches to the enforcement of rights by individuals; and
- states that it is mindful of the particular need for a smooth and orderly exit in the area of financial services.