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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Aim to keep UK’s status as financial services powerhouse

Andy-Jalil
Andy-Jalil
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The City of London Corporation will attempt to boost trade ties with the United States and Switzerland as it tries desperately to safeguard UK’s status as a financial and professional services powerhouse after the UK leaves the European Union.


The corporation’s director of economic development, Damian Nussbaum, revealed plans to woo the two countries with promises of policy and investment talks, and more regular visits from top officials from London’s financial district (known as the ‘City’) after Britain exits the EU next March.


A report presented to the economic development committee said the strategies would allow the Corporation to help set the agenda for the future of UK’s trade relations with both markets. It also flagged the Corporation’s unique position as a non-political local authority as a major advantage in facilitating negotiations between government, business and trade associations.


The strategies were unveiled after Lord Mayor Charles Bowman visited Africa as part of a delegation of UK business leaders, led by Prime Minister Theresa May, to boost trade links by pledging £4bn worth of UK investment. Now it seems the City will shift its focus on some of the major players outside the EU, with a spokesperson for the Corporation declaring efforts to boost ties with the US and Swiss “a priority”.


“The US and Switzerland are two hugely important partners for the UK,” the spokesperson said. “These new strategies outline the work we will be doing to drive trade and improve co-operation on international issues in support of the UK’s financial and professional services sector.”


The US accounted for a third of all UK financial services foreign direct investment in 2016 and will be the UK’s single largest trading partner when Britain leaves the European Union.


The report estimated the UK’s financial and professional services exports to the US have the potential to jump from £16bn to total value of £74bn if the City can improve industry engagement and business intelligence, among other factors flagged for action. In May this year, the Lord Mayor toured New York, Chicago and Boston to promote trade and develop partnerships in the insurance technology sector.


Switzerland, meanwhile, has been painted as the posterchild for a European financial powerhouse operating outside of the EU, as well as a natural ally for the City to drive bilateral trade partnerships and maintain access to the bloc.


The spokesperson for the City Corporation said the Swiss strategy would focus on wealth management, banking, cyber, insurance, fintech, insurtech, regtech and development finance. The report estimates the UK’s financial services exports to Switzerland could reach £17bn, up from the current £1.9bn.


Meanwhile the Mayor of London, Sadiq Khan, has said it is “vital” that businesses get the support they need to start planning in case the UK leaves the EU without agreeing a deal. Even though the government has now been issuing papers advising on such a scenario, he believes more can be done. The Mayor has asked the London Resilience Forum — the group responsible for ensuring London is prepared in emergencies — to establish the impact of a no-deal Brexit.


The Mayor has criticised, saying the advice and support should have come earlier so that businesses could have been making plans for managing a possible no-deal with the EU — mostly the threat it would pose to European employees.


Calling the Government’s Brexit negotiations “completely mishandled”, Khan said: “It is vital that businesses get the advice and support they need to start planning for the chaos of a no-deal Brexit now — before its too late.


“The biggest threat facing businesses is the growing chance that they could lose their European employees. If talks were to breakdown, the three million EU citizens living in the UK, around one million of whom are Londoners, would have no guarantee that their rights to stay and work would be protected.” People born in the rest of the European Economic Area make up approximately 750,000 jobs in London’s economy.


Khan said: “Businesses regularly report the difficulties they face in getting the talented workers they need, and to now threaten the Europeans they currently employ is completely and utterly reckless. He added: “I am calling on Theresa May to do the only sensible and humane thing and extend the offer of settled status to EU citizens currently living in the UK now, regardless of the outcome of the negotiations.”


(The author is our foreign correspondent based in the UK. He can be reached at andyjalil@aol.com)


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