Volkswacht Bodensee - EU, Britain to face off in post-Brexit fishing battle case

The bitter arbitration case over sandeels 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 Hague-based Permanent Court for Arbitration also marks the first courtroom trade battle between the 27-member trading bloc and Britain since it left the EU in 2020.

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

London in March ordered all fishing to stop, saying in court documents 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.

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.

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.

"The EU does not call into question the right of the UK to adopt fisheries management measures in pursuit of legitimate conservation objectives," Brussels' lawyers said in court papers.

"Rather, this dispute is about the UK's failure to abide by its commitments under the agreement."

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 said.

Brussels is backing Denmark in the dispute, whose 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.

- 'Important issue' -

The case will now be fought out over three days at the PCA's stately 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 case before the PCA "will not have been taken lightly and reflected the political importance it places on fishing rights", writes Joel Reland, a senior researcher at UK in a Changing Europe, a London-based think tank.

In a number of "influential member states -- including France, the Netherlands and Denmark -- fishing rights are an important issue, with many communities relying on access to British waters for their livelihoods".

"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 in the case is expected by the end of March.

H.Gerber--VB