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Jeremy Hunt plans to negotiate a banking agreement with Switzerland after Brexit, which will facilitate the entry of UK financial companies into the Swiss market and vice versa.
On Thursday, the chancellor will be in Bern to sign a mutual recognition agreement regarding financial laws and regulations.
According to the Financial Times, the Treasury is aiming to significantly enhance the City of London by establishing a system for international trade in financial services.
Despite losing access to the EU’s single market, Mr. Hunt will credit Brexit for the UK’s ability to negotiate its own agreements with significant financial centers.
After Britain exited the bloc, there was a possibility of losing the advantages of its previous trade agreements with Switzerland, which were established according to EU regulations despite not being a member country.
According to the Treasury, the Bern Financial Services Agreement was made possible by the UK’s newfound freedoms after leaving the EU. They also stated that this agreement will strengthen the already successful financial services partnership between the UK and Switzerland.
The statement emphasized that the bond between the two countries is based on a dedication to global guidelines and a mutual understanding of the importance of transparent and strong financial markets.
Jeremy Hunt will claim that the Swiss agreement is only achievable due to Brexit.
The image is from the Agence France Presse via Getty Images.
The agreement between the chancellor and Swiss finance minister Karin Keller-Sutter is expected to be signed. This new agreement will permanently restore the UK’s access to Switzerland’s financial sector and is believed to pave the way for a broader trade agreement.
Paul Blomfield, a Labour MP and co-convener of the UK Trade and Business Commission, stated that the deal will be positively received by the financial hub and is a valuable recognition from the government that it must ensure regulatory stability.
However, the experienced member of Parliament cautioned that there is still a lot of work to be done in dismantling trade barriers for UK companies that are facing difficulties due to the complications of Brexit.
According to Mr. Blomfield, the European Union is the primary foreign market for many British businesses. In order to safeguard their interests, it is necessary to establish favorable regulatory alignment. This will help to eliminate barriers, lower expenses, and unleash the considerable potential of the UK economy.
The British Chambers of Commerce (BCC) have urged Rishi Sunak and Mr. Hunt to explore various alternative agreements with the European Union in order to address the current trade issues.
The latest Brexit report from the BCC reveals that nearly 66% of UK exporters have faced increased difficulty in selling to the EU in the past year.
The primary business organization suggested making multiple deals with Brussels, including ones regarding carbon taxes, VAT regulations, and food inspections, in order to lessen the effects of Boris Johnson’s trade agreement.
The source is from the Independent.
