Export Strategy

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Export Strategy 2023 to 2026 Executive Summary
Export Strategy 2023 to 2026

Foreword

From ships to ormers and potatoes to trusts, Jersey has a long history of exporting goods and services, and our economic success is largely dependent upon them.

Yet despite their importance to the economy and Island, exports have never been the subject of a dedicated export strategy or vision. This document sets out both a vision and a plan for strengthening and diversifying Jersey’s export industries.

The vision is to increase the variety and value of exports from Jersey so that a more sustainable, innovative, outward-facing and prosperous economy can be developed. In doing so, we will help Jersey businesses to unlock greater economies of scale, improve productivity and grow the economy.

The publication of this strategy comes at a time of global economic uncertainty, where the importance of international trade is clear, and we are able to see the stark impacts of its disruption through higher prices.

Jersey is facing a number of challenges: low productivity, a rising cost of living, a skills deficit, and an ageing population. Without intervention, these challenges will lead us to have low or no economic growth and will ultimately lead to a reduction in living standards.

If we want Islanders to enjoy the same standard of living in 2040 as they do today, we have to take action now.

Jersey is in a strong position as our financial services and agricultural sectors are already of international repute giving us a foundation from which to develop and diversify into other export sectors. This strategy is the starting point for looking thematically across multiple sectors. It sets out a plan to help Jersey companies develop their exports and take advantage of our geographical position and business environment.

Exporting will enable businesses to reach scales of economic growth that would not be possible in our domestic market alone. As our economic history proves, exports are a clear route to unlocking productivity growth and enabling Islanders to enjoy a diverse and resilient economy.

The implementation of this strategy will only be possible through collaboration between Government, Jersey’s arm’s length bodies, and Jersey businesses. I therefore encourage and challenge all businesses to think about their export potential and to take advantage of the advice and support that will be available.

Recognising this as the opening chapter, I look forward to each annual update as our exporting capabilities develop to enable a more sustainable, innovative, outward-facing and prosperous economy.

Deputy Kirsten Morel
Minister for Economic Development, Tourism, Sport and Culture

Vision and summary

Our visions is to increase the variety and value of exports from Jersey, to develop a more sustainable, innovative, outward-facing and prosperous economy.

Jersey’s economic success is built upon exports. Due to the size of our Island population, for businesses to continue to grow and thrive they must access overseas markets and customers beyond our shores. Jersey’s exporting strength has long come from our ability to find market opportunities, having the skilled individuals to deliver premium products, and an agile government that utilises our self-determination.

Our rich exporting history proves that finding a niche and delivering high-quality products has consistently been Jersey’s route to economic growth. Many of these products are internationally recognisable such as knitted Jerseys, the Jersey Royal and our Jersey cows.

But we cannot take success for granted as history also proves that those opportunities can come to an end. Today, Jersey’s exporting success principally comes from Financial Services and Tourism. Which is counted as an export due to a foreign market coming to Jersey to purchase products.

Trade support is already available for Financial Services, whilst the Tourism sector has a uniqueness of challenges and opportunities that dictate specific attention.

This strategy therefore focuses on diversifying exports, products and services, from all other sectors, with the vision.

This strategy is not about picking winners within our economy or choosing specific markets to engage with. Instead, this strategy seeks to deliver the tools and support needed to help local companies develop their export capabilities and access the overseas markets that are right for them.

To this end we’ll be establishing a new Export Support Service (ESS). This will enable tailored and free advice to businesses looking to export their products or services and will help companies to navigate the practicalities, logistics and challenges involved in exporting. The ESS will link in with a wider stakeholder group, including Government departments and Arm’s Length Organisations (ALOs), to lower barriers to export and find new opportunities for promoting Jersey products and services.

The ESS is for:

new exporters
growing exporters
mature exporters

The types of support available through the ESS are:

export and market advice
financial support
sector-cooperation
market research and contacts
market access barriers

The Export Strategy also ties in with wider Government priorities including:

the Future Economy Programme
Ease of Doing business work
the Global Relations Strategy

The common theme across these being the ambition to grow our economy, by making it easier to access new markets and find new opportunities.

With a significant demographic challenge, the current cost of living crisis, the ongoing impact of the war in Ukraine and the Covid pandemic, increasing the variety and value of exports will play a vital role in supporting the resilience and diversity of Jersey’s economy. The UK’s exit from the EU is a further reason to take a fresh look at exports, ensuring Jersey takes full advantage of new opportunities and mitigates any barriers.

This Export Strategy, the first in Jersey’s history, begins the journey to greater awareness of exports, announces trials to kickstart Government support, and sets out 6 strategic themes to drive activity through to 2026. In each subsequent year of the strategy, the anticipated increase in export insight will shape its evolutions and will be set out in annual reports.

Executive summary of the Export Strategy
Export Strategy 2023-2026 (full document)

Why the Export Strategy is important

Growing a sustainable economy is essential to maintaining and improving living standards. We can do that by either increasing the number of workers as we have done in the past or we can focus on increasing productivity which will not place the same pressure on population.

For Jersey, increasing the number of workers is not a sustainable option therefore, increasing the productivity of our workforce is essential. We can support improvements in productivity through growing Export market opportunities for our products and services.

Introduction

Exporting has wider benefits than simply increasing the economy beyond its domestic size. Exporters typically conduct more research and development, innovate more and have higher productivity. This is because they can often achieve greater economies of scale and contribute to, and benefit from, innovations globally. This allows exporters to pay higher wages and offer sustainable employment.

International trade and investment, the economic rationale for government support on GOV.UK

Whilst Financial Services (FS) is the major contributor to Jersey’s exports, experimental analysis estimates that in 2021, non-FS and tourism-related exports contributed around £500 million to Gross Value Added (GVA), roughly 10% of the total economy. This is based on experimental Government analysis of 2021 GST data from working assumptions of export density by sector. This estimate should be treated as indicative only. This includes a combination of sectors from professional business services, creative and digital industries, to agriculture and marine sectors and beyond. However, there is currently a lack of data to accurately measure Jersey’s exports by value, sector and destination which restricts insight and effective decision making.

This Export Strategy, the first in Jersey’s history, begins the journey to greater awareness of exports, announces trials to kickstart Government support, and sets out 6 strategic themes to drive activity through to 2026. In each subsequent year of the strategy, the anticipated increase in export insight will help shape its evolutions that will be set out in annual reports.

This strategy covers all exported products, which are defined as goods and services produced in Jersey that are purchased by residents of another country, but it deliberately does not focus on FS or Tourism sectors beyond the Current Export Context section.

The importance of FS, which for Jersey includes accounting and legal services, means that export infrastructure is already in place for that sector and should be used as an example to learn from. Tourism is counted as an export due to a foreign market coming to Jersey to purchase products. However, because of this uniqueness, it has different challenges and opportunities which dictate specific attention. All other exported products, both goods and services, are in scope.

Summary of the strategic themes

Data

Increasing the understanding of current exports by greater use and combination of existing data sets and including a specfic export question in future Annual Business Surveys. This is an enabler of all other themes as a robust knowledge base will help drive effective future decision making.

Export support

Creating a one-stop-shop for export advice and support for new to well-established exporters, with a focus on identifying opportunities and removing barriers to trade. This network of key organisations will trial methods of support to develop going forward.

Raising the profile

Celebrating the quality of Jersey's products by increasing the profile of our export successes both on and of Island by supporting applications to renowned awards programmes and exploring promotional opportunities internationally.

Connectivity

Working with leads across Government, States-Owned Entities and industry to identify and overcome inefficiencies in connectivity. This includes a focus on sea links and seeking to connect Jersey to international payment and development platforms.

France and Europe

Recognising the sustainable and efficient potential that will come from our economic links with France and capitalising on our comparative strengths to create goods and services trade opportunities.

International engagement

Making the best use of our international engagements across Government to create opportunities for Jersey businesses and to help focus activity where an industry need is identified, whilst helping to raise the Island's international profile.

History of Jersey exports

Jersey's exporting history can be traced back over many centuries, but the first exporting of note was knitted stockings which, from the 1500s, were being sent to England, France and Spain. This industry gained such success that some people knitted full time, and many farmers and their wives knitted as an extra source of income. In 1608 the States of Jersey, worried by the neglect of agriculture, banned knitting during the harvest and vraicing (seaweed collecting) seasons.

The table below outlines the key export industries in Jersey from those knitted stockings in the 1500s, to the Financial and E-commerce industries of today.

Time period	Industry
1500s to 1700s	Textiles
1600s to present	Fishing
1700s to 1800s	Shipbuilding
1700s to present	Agriculture and overseas trading
1800s to present	Cattle and dairy products
1950s to present	Tourism
1960s to present	Financial Services
1973 to present	e-Commerce

Current export context

There is a lack of robust data on Jersey’s current export levels, therefore without enhanced sources of data, overall GVA statistics offer a starting place to estimate potential export value by sector.

Services

In 2021, Financial Services contributed £1,924 million to total GVA, the majority of which will have come from exports.

Other Business Activities, which are predominantly private sector service industries, contributed £627 million to GVA in 2021. Experimental internal analysis estimates that non-FS and tourism-related exports contributed around £500 million.

As a broad category the export contribution to GVA will vary as this includes digital firms that are naturally export-oriented as well as locally focused businesses such as private health services.

The value of Tourism cuts across multiple sectors such as retail, hospitality and transport. The total direct and indirect GVA was calculated at £425 million in 2019, based on Tourism's contribution to Jersey in March 2022.

Tourism's contribution to Jersey on Visit Jersey

Goods

Goods exports represent a smaller proportion of the total export value but play a wider role in the reputation and environment of the Island. For example, roughly 25% of land in Jersey is dedicated to growing Jersey Royals, our largest crop export. 99% of this crop is exported at a total value of £25 to 30 million per year. Dairy and marine products are other significant Jersey exports sold globally from France to Southeast Asia.

In recent history, businesses located in Jersey benefitted from Low Value Consignment Relief (LVCR) through which the fulfilment of goods had a competitive advantage. Whilst LVCR came to an end with the UK in 2012 and the EU in 2021, one of Jersey’s largest exporters by variety of products has evolved from this period into a successful e-commerce business. Although not a typical economic opportunity, waste for recycling is also a notable export from the Island making up at most a third of our goods exports by mass.

As goods exports largely rely on connectivity by sea, imports are the important other side of this equation and Jersey is a net importer of goods. Based on data from the Ports of Jersey, in 2021, Jersey imported over 350,000 tonnes of goods and exported just under 90,000 tonnes. The below graph clearly shows the impact of the Jersey Royal season on exports between May and July. Weight does not correlate to value, but this graph clearly represents the disparity in production on Island and a possible opportunity in utilising spare freight capacity. As with services, it is not currently possible to accurately track the value of goods being exported from Jersey.

Graphic showing Jersey Freight Goods imports and exports in tonnes for 2021

Destinations

Jersey does not have a central bank but the movement of money to and from the Island can be understood from wire transfer data, which is collected from certain institutions registered with the Jersey Financial Services Commission. This data highlights the strength of the connection with the UK, representing 48% of the incoming funds and 37% of the outgoing. The second highest was the USA, accounting for another 11% of incoming funds and 15% of outgoing payments. Given the nature of the business transacted, the jurisdictions with significant fund flows from Jersey are as expected and include 3 European neighbours:

Luxembourg
France
Germany

Bailiwick of Jersey National Risk Assessment of Terrorist Financing

This correlates with the destination responses in the Business Survey that strongly placed the UK as first, followed by the EU, of which France was the largest single country, and then the USA. Equally, the data available from Jersey Customs and Immigrations Services confirms the dominance of the UK with roughly 90% of goods being exported, at least initially, to the UK. Of the remaining goods that go south directly, France is the leading destination in Europe, which accounts for 9% collectively, and the remaining 1% goes onto the rest of the world.

Potential

Noting the experimental estimate of the current £500 million value in non-FS and tourism exports, categorical statements on potential are not possible. However, there are two areas of potential growth, increasing the value of existing exports and increasing the variety of new exporters and products. Annex B - Case Studies identifies a range of current and potential sectors of importance to the variety and value of Jersey’s export.

As an example of untapped potential, in 2021, the UK Government estimated up to 375,000 Small and Medium Enterprises (SMEs) have exportable goods but are not currently exporting, which could unlock an annual £290 billion for the UK economy. This is based on the Digital Trade: a Board of Trade report.

Digital Trade: a Board of Trade report by the UK Board of Trade

The Business Survey indicates the equivalent opportunity in Jersey with 58% of respondents not currently exporting saying they see opportunities to start in the next three years. As 94% of businesses in Jersey have fewer than 20 staff, this micro and SMEs export potential could unlock new growth for Jersey’s economy.

This growth should be underpinned by effective Government support to navigate barriers to exporting, particularly in the context of post-Brexit rules and the opportunity of new Free Trade Agreements. The 6 Strategic Themes below set out how this will be achieved.

Strategic themes

Data

What

Increasing the quality of export data gathered by Government to improve the evidence base for, and evaluation of, future export policy decisions. This is the single biggest constraint on making effective export decisions and is why this strategy will evolve as the quality of data increases.

Why

Currently the most detailed information on exports comes from the minority of goods that are exported directly to the continent. Due to the Customs Union with the UK, there is very limited reliable data captured for goods travelling to the UK, and onwards. Services exports are typically harder to track; globally these are estimated through a combination of bank transfer data and surveys, neither of which Jersey currently has for export purposes. Without a clear picture of the current context, targeting areas for support and measuring success is restricted.

How

Activity	Output	Delivery
Increase data capture	1.1 Request Statistics Jersey include questions on imports and exports in the Annual Business Survey	2023 to 2024
	1.2 Build in evaluation metrics where possible for export strategy outputs using robust methodology	Ongoing
	1.3 Include more detailed wire-transfer and GST data with existing sources to triangulate export destinations and types more accurately	2024
	1.4 Work with Jersey Customs and Immigration Service leads to improve the categorisation of goods exports	2024
	1.5 Every 3 years carry out an export deep-dive survey to compare against the Business Survey 2022 and previous Jersey Business Export Surveys	2025
International comparisons	1.6 Submit Jersey export data to the primary global trade bodies for inclusion in publications, where possible (Using the enhanced export data from 1.1-4 expected in 2024)	2024
	1.7 Begin tracking Jersey’s performance against benchmarks and find relevant comparisons to other jurisdictions	2024
	1.8 Combine data from the Inward Investment Strategy to create a Jersey trade dashboard of trade indicators	2024

Export support

What

Create an Export Support Service (ESS) and Oversight Working Group to co-ordinate the efforts of Government, Arms-Length Organisations (ALO) and business representatives to best support industry to increase its exports. The ESS will run as a 12-month pilot from April 2023 and be reviewed after a year to understand the impact of the support and decide on any future evolution.

This will function in a similar manner to a Trade Promotion Organisation (TPO), although not a separate, new body but a network of existing organisations brought together to focus thematically on exports. TPOs are typically agencies or state-owned bodies that come under the authority of a specific government department, which is the main source of finance. Based on the Comparative review of trade promotion organisations: phase 1 Report.

Why

Evidence suggests that TPOs have a positive effect on a country’s export variety and value. Based on The Impact of Publicly Funded Export Promotion Services.

For example, businesses accessing Canadian trade services can expect to export 17.9% more on average than comparable exporters who do not. Whilst other studies vary on the specific figure, the consensus is generally positive for the impact of government-led export support.

The underpinning logic is that market failures exist in private sector export support activity and government is best placed to address them. These market failures are:

information failures creating a lack of business insight into export opportunities
co-ordination failures stopping business collaboration and collective benefits
network failures that can be addressed by leveraging Government’s unique position
positive externalities from ‘spill over’ benefits of export promotion and exporting

In Jersey, the current support for exporters is sporadic, under-utilised, or indirect, and lacks the co-ordinating resource and focus to achieve Jersey’s full export potential.

Bringing together existing support is a cost and time effective way of improving delivery. Having a focused network also raises the understanding of export issues across Government as well as the profile of support available to Jersey businesses.

Historic export support has anecdotally been successful for individual businesses but learning from this is reliant on a handful of key individuals.

Responses to the Business Survey show Jersey businesses identify a high number of challenges to exporting that an export support service would typically help resolve.

Moreover, the third most common theme in the qualitative responses was asking for some form of export support.

How

Export support service (ESS)

The ESS will be a one-stop shop for Jersey businesses outside of FS and Tourism to access support with exporting. Whether that be as a completely new exporter, a fledgling exporter with potential to expand, or a mature exporter with years of experience.

Enquiries will be managed by Jersey Business and triaged internally to the most appropriate member of the ESS. This means the right level of support can be offered quickly for each individual business. Having a centralised system for managing communication will also generate a knowledge base of issues that can be reviewed for future policy action.

The ESS will offer support with any exporting issue, but it is likely they will fall into 1 or more of these 5 categories:

export and market advice. Typically for new exports, this advice will proactively use the resources on the Jersey Business website as well as the UK Government’s Open to Export and Find exports opportunities on Department for Business and Trade to identify routes to market opportunities
Financial Support. Businesses seeking financial support will be signposted to appropriate opportunities both on-Island or off-Island
sector Co-operation. A key theme for the ESS is that supporting a sector will be prioritised over supporting an individual business. Alongside being open to approaches from sectors, two sector specific trials are planned to test the process of proactive support and foster industry collaboration
market research and contacts. This covers both utilising existing resources and contacts and helping commission or identify new ones. This will also prioritise a sectoral approach
market access barriers. Principally working with External Relations and Environment colleagues on tariffs and non-tariff barriers, understanding their impacts, comparing this to the treatment of foreign businesses and reviewing options for addressing them

ESS Stakeholder Map

The stakeholder map for the Export Support Service outlines the inter-reliance between Jersey businesses, the input needed from the Export Industry Group, the core ESS Oversight Group and the wider Export Stakeholder Group, whose expertise or knowlege base will be called upon as required.

Infographic showing the Export Support Service stakeholder map

The ESS will be a collective of colleagues from the Economy and External Relations departments in Government and from Jersey Business and Digital Jersey. These 4 key stakeholders will also form an Oversight Group, led principally by the Economy Department, to co-ordinate, monitor, and progress work identified through the development of the Export Strategy.

The larger group outlined is the Stakeholder Working Group, made up of recognised stakeholders that will be engaged by the Oversight Group to assist with specific issues and projects. These wider stakeholders include Government Departments, States-Owned Entities, Arm's-Lenth Organisations, and representative business groups.

The Export Industry Group is separate from the Stakeholder and Oversight Groups in that it is convened by Government, but membership will be drawn from business leaders and representatives from Jersey exporters to share their insights and experiences.

Support principles

The support principles of the ESS are that it will be pro-active, targeted, focus on SMEs, year-round support rather than one-off, it will be tailored to a business need, will realise wider sector benefits and aims to increase value over quantity of exports.

Generated principally from the comparative analysis of other jurisdictions’ TPOs undertaken by Frontier Economics for the UK Government, as well as a specific review of the UK TPO. The principles are chosen to gain the best value for money from the way in which the ESS prioritises activity.

There is a focus on high-knowledge services exports and bringing more value-added processes onto the Island to increase the value of goods exported from current and potential sectors.

Activity	Output	Delivery
Establish the ESS	2.1 Establish the ESS Oversight Group processes and prioritise the export issues backlog generated from the consultation	Q3 2023
	2.2 Categorise all funding opportunities and review the terms of the Productivity Support Scheme to include exports more explicitly	2023
	2.3 Launch the ESS with Jersey Business with support from the wider network	Q3 2023
	2.4 Announce one goods and one services sector to trial proactive ESS support	Q3 2023
	2.5 Establish both the Stakeholder Working Group and Export Industry Group	Q3 2023
Develop the ESS	2.6 Create a Jersey export opportunities list by reviewing sectors of strength and countries with high import potential	2023
	2.7 Review the ESS and sectors trials for future development	Q2 2024
	2.8 Review opportunities to collaborate with the UK Government trade promotion activity and JFL global network	2023
	2.9 Publish a Jersey Export Report after each year that provides updates on the KPIs, priorities, and announces developments	Annually from 2024
Combine and Expand	2.10 Explore any potential benefits that may arise from the establishment of a Jersey Trade Promotion Organisation that combines Export support and inward investment activity	2024

Raising the profile

What

There are two different audiences for raising the profile of exporting: current and potential exporters in Jersey, and foreign buyers of Jersey products. Increasing awareness of the export opportunity, support and successes in Jersey will encourage more businesses to export. Increasing the profile of Jersey exports abroad will catalyse that by increasing demand for our products.

Why

The untapped potential of current and future exporters is outlined above. This theme specifically looks to tackle the profile of Jersey exports. The publication of an Export Strategy is the first step but there is much more that can be achieved.

Through anecdotal feedback during the consultation phase, there was reported to be a perceived contentment with just serving Jersey’s domestic market and a lack of ambition or confidence to export which was seen as a false cap on potential business expansion. Whilst there are certain businesses and sectors that cannot export, the ambition is to encourage all who can to do so. Jersey has a premium reputation that should be capitalised by co-ordinated efforts to raise the profile of Jersey’s exports.

How

Action	Output	Delivery
On-Island	3.1 Review the feasibility and sponsorship opportunities for a Jersey Export Awards	2023
On-Island	3.2 Support and enable Island producers to supply into commercial concessions at the Elizabeth Harbour and Jersey Airport. Ensure all new opportunities are communicated to the wider business community	Ongoing
Off-Island	3.3 Trial a grant scheme that pays for businesses to enter the Great Taste Awards	2024
	3.4 Trial identifying qualifying exporters and support their application to the King’s Awards for Enterprise	2023
	3.5 Meet with Guernsey counterparts to discuss exporting opportunities and barriers	Ongoing
	3.6 Scope opportunities to raise the profile of Jersey goods and services exports as well as Jersey as a location for research and development, through branded campaigns off-Island	2023

Connectivity

What

Address logistics barriers that face exporters through better co-ordination and transparency of connectivity services. This theme predominantly relates to goods exporters as logistics issues can be more tangibly addressed. However, with world-leading internet connectivity as an excellent foundation, there are still connectivity challenges for services exporters such as the lack of recognition of Jersey on some international payments and technology platforms.

Why

For goods, Jersey consumes far more than it produces; around 350,000 tonnes of goods are imported to the Island each year and less than 90,000 are exported. Although mass and value are not the same, this does mean there are an estimated 3,000 containers returning empty from Jersey that offer an export opportunity.

Results from the Business Survey show logistics issues vary depending on the sector and specific products, but issues typically focussed on the cost, time, and location of logistics connections.

Greater connectivity with the UK received the second strongest support of options that would be useful in helping businesses export. The recent Jersey Competition Regulatory Authority (JCRA) Freight Logistics Market Study recommendations represent a good starting place for further action. Based on the Freight logistics market study: recommendations.

Connectivity issues identified by services producers in the Business Survey revolved around the lack of recognition of Jersey for some international payment systems and leading technology platforms. This creates a barrier for entry and customers access meaning that some businesses reported having to set up foreign subsidiaries to overcome these barriers.

How

Activity	Output	Delivery
Goods	4.1 Assess the economic impact of any outcomes from the review of the P30 traffic corridor by Infrastructure and Environment (IE) which may consider options to increase capacity (aligned with JCRA recommendation 2)	2023 to 2024
	4.2 Work with relevant officials, the Ports Policy Group and industry representatives to support: the optimised efficiency of the maritime freight supply chain the continued growth in connectivity, in particular into Europe the reduction in emissions from connectivity being delivered in accordance with the Decarbonisation Roadmap any review of ferry services which will consider future export freight needs all future ferry service level agreements to include annual objectives relating to freight export sectors the continued optimisation of the Ports Masterplan for the future export freight needs of Jersey and that the redevelopment of Elizabeth Harbour is prioritised by Government to enable this	2023 to 2026
	4.3 A review of space and capacity options at La Collette in order to maximise the potential of local exporters	2024
	4.4 Continue to support the establishment of a Border Inspection Post in Granville.	2024
Services	4.5 Continue to support work of officers across Government and ALOs to identify solutions to address the lack of Jersey recognition from certain payment systems, for example, Shopify	2023
Services	4.6 Continue to support work of officers across Government and ALOs to identify solutions to address the lack of Jersey recognition from certain technology platforms, for example, Google	2023

France and Europe

What

Increase our trade links to France because it is our nearest market and serves as a gateway to continental Europe. Success in this will principally rely on greater transport links via air and sea. Historic peaks in trade and travel show there are clear opportunities to grow the economic links going forward.

Why

Working under the UK-EU Trade and Cooperation Agreement, the Government of Jersey has an increased focus on France with a planned cross-Government French engagement strategy. The Department for the Economy Ministerial Plan 2023 includes the priority of ‘deepening our cultural and economic links with France’. A strengthened trading relationship with France could also aid in navigating some of the challenges seen post-Brexit, such as fisheries complications. Increased trade links with France also provides a valuable opportunity to further trade with other European markets through increased connectivity into the European Union’s Single Market.

France is the seventh largest economy in the world and in 2021, imports to France were of a total value of $958 billion. Based on UNCTAD - Annual Exports and Imports of Goods and Services.

This is predicted to rise by around 3% per year over the next 5 years, based on International Monetary Fund - World Economic Outlook Data April 2022. According to the UK Department for International Trade Factsheet from September 2022, the top 3 services exports from the UK to France were:

other business services
Financial
Telecommunications, computer and information services

Based on Trade and Investment Fact Sheet - France.

These are sectors of strength for Jersey and indicate the potential for increasing our exports to France.

Our current lack of export data, especially for services, restricts analysis of the current level of Jersey trade with France. Government estimates indicate that around 5% of Jersey goods exports go directly to France and these are predominantly marine products, especially oysters, as well as recycled materials. This does not include goods that travel indirectly through the UK, but the lack of direct exports is represented most starkly by the estimate that Jersey currently exports more by mass of empty containers to the UK than goods directly to France. Although this is a natural by-product of Jersey having a predominantly UK-focused supply chain. Freight connectivity south notably relies more on containers craned on/off vessels than northbound freight which is predominantly transported in vehicles. This results in different operational requirements for vessels and harbour equipment to facilitate exports south.

With goods exports, connectivity is essential and imports coming from France, and their corresponding border regulations, are the other side of the equation. An estimated 6% of Jersey’s goods imports by mass come from France, perhaps reflective of the current level of ferry service with France. Passenger numbers, rather than freight, have historically driven the southern route from Jersey. However, sea passengers to and from France for January to September 2022 were only at 58% of the same period in 2019, indicating a slower or lower recovery.

However, there are clear signs for optimism that reignite the fundamental rationality of trading more with a large economy just 14 miles away. Jersey is renewing engagement with French counterparts, a successful direct flight to Rennes was trialled over summer 2022, and recommissioned in 2023 and a €150 million St Malo port redevelopment has begun and efforts are being made to install a Border Inspection Post in Granville, all indicating economic potential for Jersey.

How

Activity	Output	Delivery
French links	5.1 Work with operational leads to ensure recycled waste tenders are promoted to French companies and France is included in market feasibility reviews	Ongoing
	5.2 Work with Ports of Jersey to develop and support further European air connectivity	Ongoing
	5.3 Explore hospitality and tourism, digital, educational and vocational links with the departments of Ille-et-Vilaine and La Manche, and plan economic Ministerial visits accordingly	2023-26
	5.4 Conduct a feasibility study on increasing the Government’s trade support presence in France	2024
	5.5 Build relationships with trade groups such as the Trans Manche Development Group	Ongoing

International engagement

What

Aligning the increased export focus and data insights from the Department for the Economy with the experience, networks and relations strategies of External Relations to ensure resources are co-ordinated and targeted to best support Jersey exporters. Jersey’s existing and potential international agreements offer an opportunity for Jersey businesses that can be co-ordinated through the Export Support Service.

Why

Emerging markets are forecast to dominate the world’s top ten economies in 2050. The combination of better understanding Jersey’s current export strengths and the macro international trade context would enable greater targeting of activity, whilst also benefitting from External Relations’ networks and priority jurisdictions.

Jersey’s trademark exports enjoy global recognition, and we want to ensure that they can benefit from preferential tariff rates whilst reducing any barriers to market access more generally. The Jersey-UK Customs Union arrangements mean that Jersey must apply the same tariffs as the UK on all imports, and positions Jersey to benefit from all goods-related elements of new trade deals if we so choose.

According to the WTO, barriers to services trade on average remain around double those to goods trade, based on World Trade Report 2019: The future of services trade. Jersey’s service industry is well-renowned and as trading relationships deepen, FTAs have the potential to offer not only greater market access but enhanced protections for businesses over time. So far Jersey is covered within the UK-Japan CEPA, UK-EEA FTA, UK-New Zealand and the UK-Australia FTA, which all include Jersey for goods and allow for future extension of other chapters, particularly services. There could also be trade opportunities leveraged through Jersey’s international network, other small islands and across the Commonwealth.

How

Activity	Output	Delivery
Export Support Service	6.1 Assess the UK’s local and national level of export support for potential collaboration	2024
	6.2 Provide trade data and export business leads to inform activities and target countries	Ongoing
	6.3 Review Jersey’s diaspora network for export opportunities	2024
International links	6.4 Create a priority list of Jersey products for highlighting at international and diplomatic engagements	2023
	6.5 Review economic opportunities via existing channels such as the Commonwealth, Island Games and Twinned Towns	2023
	6.6 Explore Jersey’s potential applicability to the Paris Agreement on Climate Change, Trade and Sustainability UN Paris Agreement	2023
	6.7 Review Digital opportunities from the UK-Japan FTA and the WTO E-Commerce Joint Initiative	2023

Key Performance Indicators

Export Strategy KPIs

The table below covers all Jersey exports except Financial Services and Tourism.

KPI	Current level	Desired direction
Exporters (variety)	Data not yet available	To be set once baseline established
Exports (value)	£500 million in 2017	Increase
Services exports	Data not yet available	To be set once baseline established
Goods exports	Data not yet available	To be set once baseline established
Great Taste Stars	8	Increase

Depending on the outputs under Strategic Theme on Data, additional KPIs include:

the total number of exporters and total value of exports
number and value by sector
destination of exports

The earliest this could be published is 2024.

Export Support Service KPIs

KPI	Current Level	Desired Direction
Number of businesses supported	Data not yet available	To be set once baseline established
Annual value of exports from supported businesses	Data not yet available	To be set once baseline established
Difference in export value compared to pre-support	Data not yet available	To be set once baseline established
Issues log: identified, in progress or closed	Data not yet available	To be set once baseline established
Combined ESS website traffic	Data not yet available	To be set once baseline established

Annexes

Annex A: strategic themes and consolidated key outcomes

Activity	Output	Delivery
Increase data capture	1.1 Request Statistics Jersey include questions on imports and exports in the Annual Business Survey	2023 to 2024
	1.2 Build in evaluation metrics where possible for export strategy outputs using robust methodology	Ongoing
	1.3 Include more detailed wire-transfer and GST data with existing sources to triangulate export destinations and types more accurately	2024
	1.4 Work with Jersey Customs and Immigration Service leads to improve the categorisation of goods exports	2024
	1.5 Every 3 years carry out an export deep-dive survey to compare against the Business Survey 2022 and previous Jersey Business Export Surveys	2025
International comparisons	(Using the enhanced export data from 1.1-4 expected in 2024) 1.6 Submit Jersey export data to the primary global trade bodies for inclusion in publications, where possible	2024
	1.7 Begin tracking Jersey’s performance against benchmarks and find relevant comparisons to other jurisdictions	2024
	1.8 Combine data from the Inward Investment Strategy to create a Jersey trade dashboard of trade indicators	2024
Establish the ESS	2.1 Establish the ESS Oversight Group processes and prioritise the export issues backlog generated from the consultation	Q3 2023
	2.2 Categorise all funding opportunities and review the terms of the Productivity Support Scheme to include exports more explicitly	2023
	2.3 Launch the ESS with Jersey Business with support from the wider network	Q3 2023
	2.4 Announce one goods and one services sector to trial proactive ESS support	Q3 2023
	2.5 Establish both the Stakeholder Working Group and Export Industry Group	Q3 2023
Develop the ESS	2.6 Create a Jersey export opportunities list by reviewing sectors of strength and countries with high import potential	2023
	2.7 Review the ESS and sectors trials for future development	Q2 2024
	2.8 Review opportunities to collaborate with the UK Government trade promotion activity and JFL global network	2023
	2.9 Publish a Jersey Export Report after each year that provides updates on the KPIs, priorities, and announces developments	Annually from 2024
Combine and Expand	2.10 Explore any potential benefits that may arise from the establishment of a Jersey Trade Promotion Organisation that combines Export support and inward investment activity	2024
On-Island	3.1 Review the feasibility and sponsorship opportunities for a Jersey Export Awards	2023
On-Island	3.2 Support and enable Island producers to supply into commercial concessions at the Elizabeth Harbour and Jersey Airport. Ensure all new opportunities are communicated to the wider business community	Ongoing
Off-Island	3.3 Trial a grant scheme that pays for businesses to enter the Great Taste Awards	2024
	3.4 Trial identifying qualifying exporters and support their application to the King’s Awards for Enterprise	2023
	3.5 Meet with Guernsey counterparts to discuss exporting opportunities and barriers	Ongoing
	3.6 Scope opportunities to raise the profile of Jersey goods and services exports as well as Jersey as a location for research and development, through branded campaigns off-Island	2023
Goods	4.1 Assess the economic impact of any outcomes from the review of the P30 traffic corridor by I&E which may consider options to increase capacity (aligned with JCRA recommendation 2)	2023 to 2024
	4.2 Work with relevant officials, the Ports Policy Group and industry representatives to support: the optimised efficiency of the maritime freight supply chain the continued growth in connectivity, in particular into Europe the reduction in emissions from connectivity being delivered in accordance with the Decarbonisation Roadmap any review of ferry services which will consider future export freight needs all future ferry service level agreements to include annual objectives relating to freight export sectors the continued optimisation of the Ports Masterplan for the future export freight needs of Jersey and that the redevelopment of Elizabeth Harbour is prioritised by Government to enable this	2023 to 2026
	4.3 A review of space and capacity options at La Collette in order to maximise the potential of local exporters	2024
	4.4 Continue to support the establishment of a Border Inspection Post in Granville.	2024
Services	4.5 Continue to support work of officers across Government and ALOs to identify solutions to address the lack of Jersey recognition from certain payment systems (e.g. Shopify)	2023
Services	4.6 Continue to support work of officers across Government and ALOs to identify solutions to address the lack of Jersey recognition from certain technology platforms (e.g. Google)	2023
French links	5.1 Work with operational leads to ensure recycled waste tenders are promoted to French companies and France is included in market feasibility reviews	Ongoing
	5.2 Work with Ports of Jersey to develop and support further European air connectivity	Ongoing
	5.3 Explore hospitality and tourism, digital, educational and vocational links with the departments of Ille-et-Vilaine and La Manche, and plan economic Ministerial visits accordingly	2023 to 2026
	5.4 Conduct a feasibility study on increasing the Government’s trade support presence in France	2024
	5.5 Build relationships with trade groups such as the Trans Manche Development Group	Ongoing
Export Support Service	6.1 Assess the UK’s local and national level of export support for potential collaboration	2024
	6.2 Provide trade data and export business leads to inform activities and target countries	Ongoing
	6.3 Review Jersey’s diaspora network for export opportunities	2024
International Links	6.4 Create a priority list of Jersey products for highlighting at international and diplomatic engagements	2023
	6.5 Review economic opportunities via existing channels such as the Commonwealth, Island Games and Twinned Towns	2023
	6.6 Explore Jersey’s potential applicability to the Paris Agreement on Climate Change, Trade and Sustainability (UN Paris Agreement)	2023
	6.7 Review Digital opportunities from the UK-Japan FTA and the WTO E-Commerce Joint Initiative	2023

Annex B: case studies

In the absence of robust data on exports, the below is an illustrative list of specific industries chosen for their current or potential exporting importance to Jersey outside of FS and Tourism.

Jersey Dairy

With the opening of the new £12 million dairy processing facility in 2010, Jersey Dairy considerably increased its manufacturing capacity. With static demand for dairy products in Jersey, growth could only be achieved by creating new export markets. In 2011 36,000 litres of soft ice cream were sold in the UK, which increased ten-fold the following year to 360,000 litres.

In the ten years that followed, increased distribution via wholesaler networks and direct to some high-profile retail groups have increased export volumes of this product category to almost 3 million litres. From 5% of total revenue in 2010, export revenue represented over 30% in 2021, substantially increasing company revenue and future viability.

In recent years, export opportunities to Asia have grown to almost 2 million litres particularly from Hong Kong, South Korea and Japan.

The current geopolitical climate continues to create uncertainties and impact costs at the dairy and on farms. However, Jersey Dairy has built considerable export experience in marketing and logistics and will continue its efforts to grow export volumes.

Jersey Dairy

Jersey Royals

Jersey Royals have been grown in Jersey for over 140 years and received EU Protection of Designation of Origin status in 1996. Today there are approximately 11 Island farmers who grow Jersey Royals, many of whom grow only potatoes and no other crops. The potatoes are grown over approximately 15,000 vergées, around a quarter of the land in Jersey.

Jersey Royals

The Jersey Royal is Jersey's biggest crop export, accounting for around 70% of agricultural turnover. 99% of this production is exported to the United Kingdom. The value of annual potato exports is between £20 to 30 million with an export volume of around 25,000 to 30,000 tonnes.

Marine

The current value of capture fisheries (70%) and aquaculture (30%) is approximately £10 million. The industry employs 180 people and many more in associated industries such as engineering, maintenance and merchants.

Government of Jersey Marine Resources Annual Report 2018

Since January 2021, Jersey has been part of the UK-EU Trade and Economic Cooperation Agreement for goods and fisheries. Goods exported from Jersey into Europe are not subject to tariffs and Jersey is responsible for the management of its waters.

Medicinal cannabis

The European cannabis industry is estimated to be worth around US$600 million per annum and expected to exceed that of the US and Canada. There are now 20 countries in Europe that have approved the use of medical cannabis and the market is expected to reach US$3.9 billion per year by 2025.

In 2017 the Government of Jersey started exploring alternative high value crops, as part of the Rural Economy Strategy 2017 to 2021. This strategy has evolved to develop a responsible, well-regulated medicinal cannabis industry. It has now issued 5 licences for commercial cultivation of medicinal cannabis, putting Jersey at the forefront of the emerging European medicinal cannabis market. Medicinal cannabis provides Jersey and its businesses with a strong opportunity to build its export strength in a new industry, attracting business and investment across a developing market in Europe.

A continued commitment to developing the industry is referenced in the Ministerial Plan for the Department for the Economy and, if successful, could lead to the development of a highly regulated bio-technology sector.

Spirits

Market growth across the global spirits industry is 6% per annum, with a current market size of an estimated US$784 billion.

There are a small number of distillers producing spirits in Jersey, with more producing off-Island while maintaining links to Jersey. These micro-distilleries operate on a small scale but link to Jersey's celebrated produce and premium reputation, with some qualifying to use the Genuine Jersey mark.

An example of a globally successful spirit export can be seen in the Scotch Whisky market. Scotch Whisky is the world’s top spirits export, worth £4.5 billion in 2021 from 180 markets. More than 11,000 people are directly employed in the industry and it is notably important to the economies of the Scottish islands. This demonstrates potential learnings for a similar industry in Jersey.

Creative industries

Worldwide exports of creative goods exceeded US$500 billion in 2015. In the UK, the creative industries have become an increasingly international sector and, as of 2017, exports of creative goods and services accounted for nearly 45% of the GVA to the UK by the creative industries. This is based on Newcastle University.

In Jersey creative potential is clear, with an emerging market of dedicated digital / creative agencies based here. In addition, Jersey has also enjoyed the emergence of a prosperous gaming industry, highlighted in the sale of a Jersey gaming business for £174 million in 2022 and the merger of Twelve40. Equally, opportunities in Jersey’s film industry are shown in the success of Maple Rock Studios and PBS Broadcast.

The Arts Strategy for Jersey was published in March 2022, providing a vision for the development of the arts over the next five years. This followed the decision in 2019 by the States of Jersey to devote 1% of Government spending to arts, culture and heritage.

Education

Higher education students from Jersey generally study in the UK. On average, 1,200 Jersey students will be studying at higher education institutions in the UK at any one time. Around 250 students are enrolled in on-Island Higher education courses, with a further 30 students studying internationally.

Highlands University College Jersey offers a small number of courses accredited via UK universities. The Institute of Law offers a range of legal qualifications including an LLB degree. Several finance firms also enrol new recruits in accountancy and administration courses and Durrell Conservation Academy offer a further selection of courses for trainees. Jersey International Centre of Advanced Studies (JICAS) offers an MSc programme in partnership with the University of Exeter. There are many other links to higher education providers through health, digital, environmental and heritage sectors.

Globally, tertiary education is a growing industry and the UK is at the forefront. In 2019, there were 2.5 million students at UK universities. Of these students, 5.8% were from EU countries and 16.3% were from non-EU countries. The total gross benefit of the 2018 to 2019 cohort of international students to the UK economy was estimated at £28.8 billion.

This provides a potential opportunity for Jersey to build on existing strengths and deliver education as a service export through strategic partnerships with established academic institutions.

Renewable energy

The worldwide economic opportunities in renewable energy are significant, with over an estimated US$30 trillion of global investment funds already invested in sustainable assets.

Jersey already has businesses operating in the natural resources and renewables space, which benefit from the Island’s secure business environment and strategic geographic position as well as its international reputation as a centre for global operations. Examples include Sun Works and Jersey Electricity.

Jersey has favourable conditions for offshore renewable energy and has undertaken a significant amount of work in this space over the years which is reflected in the Carbon Neutral Roadmap and the Bridging Island Plan. As well as feasibility into a tidal barrage, work was undertaken on an offshore wind farm which is currently being refreshed. Advances in the economic case for offshore wind generation, including lower capital costs and a new generation of larger turbines, mean that a development could help the Island meet its energy security and sovereignty objectives, whilst also providing a valuable export.

JT Global

JT Global is headquartered in Jersey and majority government-owned, employing over 500 people across the world and operating a thriving international export business. JT has invested heavily in quality networks and infrastructure to keep Islanders connected, but those same networks have much greater capacity and capabilities than the population of the Channel Islands can use. JT International was created to sell and export innovative connectivity services to a growing global market.

The Internet of Things (IoT) division, created in 2014 was sold for a record sum in 2021 after doubling it in size each year, over its last 3 years. At the time, it had almost 10 million JT SIMs in active use and its growth story was a result of the company’s agility and ability to scale fast, whilst maintaining a premium service for Islanders. The sale aided Jersey’s growing global reputation for local digital talent, inward investment and global reputation as an incubator of successful digital businesses for the future.

Since the sale of JT IoT, the company has continued to invest in other emerging technology products and services, such as Fraud Prevention Services. Now a firm leader in the prevention of mobile fraud, JT’s solutions have grown on its success in the UK market where it holds extensive network coverage due to its agreements with major mobile operators such as Sky Mobile. They now also provide UK banks and financial service providers with specialist fraud prevention solutions, with further growth expected across Europe and Australia.

Digital opportunities

The digital economy is increasingly central to the global economy, representing as much as US$11 trillion or 15.5% of global GDP in 2019. The value of UK exports that are digitally delivered is £207 billion annually. In Jersey, Business Services, of which some are digital exports, contribute over £500m to GVA.

Digital exports are therefore a strong market in which Jersey could engage further for example, building on financial services trust management strengths with data stewardship and software as a service (SaaS). A clear demonstration of this opportunity is Pinpoint, a local technology company which now trades globally, developing software to help attract, hire, and onboard talent. The global SaaS market is expected to grow from US$131 billion in 2021 to US$717 billion by 2028, providing Jersey with a significant growth opportunity in this area.

Annex C: consultation and survey results

Consultation and survey highlights