Brexit fishing heads in commercial court

In the first court trade battle between the UK and the EU since Brexit, the humble cypress will take center stage.

The UK has banned European vessels from catching silverfish in its North Sea waters to protect the marine wildlife it relies on for food.

But the EU is questioning the move, arguing it discriminates against Danish vessels that fish commercially for sandeel, breaking a post-Brexit trade deal.

The dispute now heads to a three-day trade court after formal talks to resolve the dispute failed.

With no last-minute compromises, it will be the first time the two sides have gone to arbitration under the 2021 trade deal agreed by Boris Johnson.

The case will be heard from next Tuesday at the Permanent Court of Arbitration, a dispute settlement organization based in The Hague, by a panel of three international trade judges.

They can uphold the UK’s position, or order the UK to change or lift its ban, in which case Brussels could eventually retaliate with tariffs on UK exports if ministers refuse to comply.

Under the trade agreement, a final ruling must be made by the end of April, although it could be made earlier. There is no right of appeal.

It comes as the UK prepares for difficult negotiations on new catch limits from June next year, when current trade deal arrangements expire.

Sir Keir Starmer is also hoping to persuade EU leaders to strike new deals on areas such as security and food trade as part of a wider “reset” of relations with the UK.

Sandeel, a group of small eel-like fish species, is a jointly managed fish stock under the trade agreement. It is not caught for culinary reasons and is unlikely to be found on restaurant menus in European capitals.

But it is a favorite food of other fish species such as cod and haddock, as well as threatened seabirds such as puffins and kittiwakes.

The UK has effectively banned its vessels from fishing for the species from 2021 through its licensing regime due to the need to prevent overfishing and protect the North Sea ecosystem.

Rishi Sunak’s Conservative government then banned all vessels from catching the species in English waters in March last year, with a similar ban in Scottish waters brought in by ministers in the SNP-led Scottish government.

It won plaudits from UK talk groups, which have long campaigned for a total ban, and Sir Keir’s Labor government has kept the ban in place since taking power in July.

But it has angered Danish fishermen, who sell the bait to animal feed and fish oil producers and, under a post-Brexit trade deal, have the right to fish the vast majority of the EU’s share of the species in UK waters.

The dispute examines whether the UK’s right to limit trawlers for conservation reasons unnecessarily reduces agreed EU fishing rights.

In submissions to the court, the EU has argued that the geographical extent of the ban is not justified by scientific modeling of stock levels, or by the “economic and social impacts” on Danish fishing communities.

The UK government’s detailed response has yet to be published, but a spokesman told the BBC it was committed to protecting the environment in line with its trade commitments.

The decision to continue the ban has been backed by an unlikely coalition of three political parties, conservation groups and committed Brexiteers.

The renewable energy industry has also taken an interest, arguing that the ban helps achieve the level of seabird “resilience” needed to build more wind farms while meeting conservation goals.

The UK has previously estimated that sandeel caught in its waters is worth around £45m a year, a small industry in the context of the wider trade relationship.

But the case will be closely watched for how the judges balance the UK’s right to take conservation measures with economic rights.