UK, EU clash in first post-Brexit trade dispute over north sea fishing rights

Nevin Al Sukari - Sana'a - The case over sandeel fishing is seen as a bellwether for other potential litigation between London and Brussels in a perennial hot-bed industry, experts said. — Reuters file pic

THE HAGUE, Jan 28 — The European Union and Britain crossed swords today at the world’s oldest arbitration body over rights to fish a tiny North Sea species, with Brussels accusing London of “inconsistencies” over a key post-Brexit trade deal.

The case over sandeel fishing is seen as a bellwether for other potential litigation between London and Brussels in a perennial hot-bed industry, experts said.

Tuesday’s clash at the Permanent Court for Arbitration (PCA) in The Hague also marked the first courtroom trade battle between the 27-member trading bloc and Britain since it left the EU in 2020.

“The EU’s position is that the prohibition of all sandeel fishing in UK waters of the North Sea nullifies the EU’s right of full access” to those waters, said Brussels’ representative Anthony Dawes as the hearings opened.

“That nullification is inconsistent with the UK’s obligation” under post-Brexit trade deals, said Dawes.

Brussels has dragged London before the PCA following a decision last year to ban all commercial sandeel fishing in British waters because of environmental concerns.

London in March ordered all fishing to stop, arguing that “sandeels are integral to the marine ecosystem of the North Sea.”

Because of climate change and commercial fishing, the tiny fish “risked further decline... as well as species that are dependent on sandeels for food including fish, marine mammals, and seabirds”.

This included vulnerable species like the Atlantic puffin, seals, porpoises and other fish like cod and haddock, Britain’s lawyers said.

Full access

But Brussels is accusing London of failing to keep to commitments made under the landmark Trade and Cooperation Agreement, which gave the EU access to British waters for several years during a transition period after London’s exit.

The TCA grants “the rights to full access of vessels of one party to the waters of the other party to fish each and every stock to which the parties have agreed on a quota,” said Dawes.

Under the deal, the EU’s fishing fleet retained access to British waters for a five-and-half-year transition period, ending mid-2026. After that, access to respective waters will be decided in annual negotiations.

London failed to apply “evidence-based, proportionate and non-discriminatory measures when restricting the right to EU vessels to full access to UK waters to fish sandeel”, the EU lawyers added.

Brussels is backing Denmark in the dispute. Danish vessels take some 96 percent of the EU’s quota for the species, with sandeel catches averaging some £41.2 million (49 million euros) annually.

“The loss of access to fisheries in English waters could affect relations with the EU, including Denmark, as they are likely to lead to employment losses and business losses overseas,” the EU’s lawyers warned.

Britain’s representatives will give their counter-argument at the arbitration panel on Wednesday.

Important issue

The case will be fought out over three days at the PCA headquarters at the Peace Palace in The Hague, which also houses the International Court of Justice.

Set up in 1899, the PCA is the world’s oldest arbitral tribunal and resolves disputes between countries and private parties through referring to contracts, special agreements and various treaties, such as the UN Convention on the Law of the Sea.

The EU’s decision to open a PCA case “will not have been taken lightly and reflected the political importance it places on fishing rights”, wrote Joel Reland, a senior researcher at UK in a Changing Europe, a London-based think tank.

“This dispute is an early warning that the renegotiation of access rights, before the TCA fisheries chapter expires in June 2026, will be critical for the EU,” said Reland.

A ruling is expected by the end of March. — AFP