Analysis: The explosive Brexit spat that no one is talking about could slam the UK economy

The agreement in question is called the Lugano Convention, and essentially it establishes the jurisdiction of national courts, guaranteeing the legal recognition and enforcement of a wide range of civil and commercial judgments in cross-border disputes. London is widely regarded as the global capital for international dispute resolution, thanks to England’s world-class legal system and courts. It is a broad and highly lucrative industry, dealing with everything from family disputes to international business operations. And a long-term failure to rejoin the Lugano Convention could represent a grave threat to the UK’s world-beating legal services sector, as well as creating difficulties for large companies and ordinary people alike.The UK dropped out of the treaty as a consequence of Brexit, and applied to rejoin in April 2020. Yet, while the non-EU signatory states (Iceland, Norway and Switzerland) agreed to its re-admission, to date the European Commission has recommended that the EU deny this request, and said that the bloc was “not in a position” to give its consent to UK accession. ‘);$vidEndSlate.removeClass(‘video__end-slate–inactive’).addClass(‘video__end-slate–active’);}};CNN.autoPlayVideoExist = (CNN.autoPlayVideoExist === true) ? true : false;var configObj = {thumb: ‘none’,video: ‘world/2021/03/30/northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx.cnn’,width: ‘100%’,height: ‘100%’,section: ‘international’,profile: ‘expansion’,network: ‘cnn’,markupId: ‘body-text_7’,theoplayer: {allowNativeFullscreen: true},adsection: ‘edition.cnnbusiness_business_inpage’,frameWidth: ‘100%’,frameHeight: ‘100%’,posterImageOverride: {“mini”:{“width”:220,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-small-169.png”,”height”:124},”xsmall”:{“width”:307,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-medium-plus-169.png”,”height”:173},”small”:{“width”:460,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-large-169.png”,”height”:259},”medium”:{“width”:780,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-exlarge-169.png”,”height”:438},”large”:{“width”:1100,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-super-169.png”,”height”:619},”full16x9″:{“width”:1600,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-full-169.png”,”height”:900},”mini1x1″:{“width”:120,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210330115628-northern-ireland-brexit-good-friday-agreement-robertson-pkg-intl-ldn-vpx-00000712-small-11.png”,”height”:120}}},autoStartVideo = false,isVideoReplayClicked = false,callbackObj,containerEl,currentVideoCollection = [],currentVideoCollectionId = ”,isLivePlayer = false,mediaMetadataCallbacks,mobilePinnedView = null,moveToNextTimeout,mutePlayerEnabled = false,nextVideoId = ”,nextVideoUrl = ”,turnOnFlashMessaging = false,videoPinner,videoEndSlateImpl;if (CNN.autoPlayVideoExist === false) {autoStartVideo = false;autoStartVideo = typeof CNN.isLoggedInVideoCheck === ‘function’ ? 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According to the Law Society, legal services added nearly £60 billion ($83 billion) to the UK economy in 2018, while in 2017 exports of legal services hit £5 billion ($6.9 billion).Scott Devine, from The City UK, a body representing UK-based financial and professional services, says the legal services sector employs over 350,000 people, with two thirds of those jobs outside of London. These positions are not all in major commercial law firms. The sector, Devine says, “is anything from a big multinational law firm” working on international contracts and mergers to “the high street solicitor sole operator dealing with family issues,” such as wills and property. The reputation of English law has, Devine says, made it the “preferred law of business and international contracts.” According to Devine, in 2019, 77% of claims issues in the commercial court had one party from outside England and Wales, while 43% were based entirely externally. Some of Brexit’s most ardent critics are concerned that the failure to join Lugano and the poor relationship between the UK and European countries following Brexit could diminish the standing of this important sector. Dominic Grieve, the former attorney general for England and Wales, says his concern is the long-term “viability of London as a center for dispute resolution.” He continues that the longer it goes on, “the more potentially damaging it may become, because there’s no doubt that the UK, when it was in the EU, was seen as the place of dispute resolution of choice for EU litigation of every conceivable kind.”One problem London now faces is that outside of the convention and no clear sign of a decision any time soon, EU nations can directly compete with the UK capital for business. ‘);$vidEndSlate.removeClass(‘video__end-slate–inactive’).addClass(‘video__end-slate–active’);}};CNN.autoPlayVideoExist = (CNN.autoPlayVideoExist === true) ? true : false;var configObj = {thumb: ‘none’,video: ‘world/2021/02/01/uk-vaccine-coronavirus-nic-robertson-pkg-qmb-vpx.cnn’,width: ‘100%’,height: ‘100%’,section: ‘international’,profile: ‘expansion’,network: ‘cnn’,markupId: ‘body-text_18’,theoplayer: {allowNativeFullscreen: true},adsection: ‘edition.cnnbusiness_business_inpage’,frameWidth: ‘100%’,frameHeight: ‘100%’,posterImageOverride: {“mini”:{“width”:220,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-small-169.jpg”,”height”:124},”xsmall”:{“width”:307,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-medium-plus-169.jpg”,”height”:173},”small”:{“width”:460,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-large-169.jpg”,”height”:259},”medium”:{“width”:780,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-exlarge-169.jpg”,”height”:438},”large”:{“width”:1100,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-super-169.jpg”,”height”:619},”full16x9″:{“width”:1600,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-full-169.jpg”,”height”:900},”mini1x1″:{“width”:120,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210201185551-vaccine-uk-robertson-pkg-small-11.jpg”,”height”:120}}},autoStartVideo = false,isVideoReplayClicked = false,callbackObj,containerEl,currentVideoCollection = [],currentVideoCollectionId = ”,isLivePlayer = false,mediaMetadataCallbacks,mobilePinnedView = null,moveToNextTimeout,mutePlayerEnabled = false,nextVideoId = ”,nextVideoUrl = ”,turnOnFlashMessaging = false,videoPinner,videoEndSlateImpl;if (CNN.autoPlayVideoExist === false) {autoStartVideo = false;autoStartVideo = typeof CNN.isLoggedInVideoCheck === ‘function’ ? 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London and Galvez Pascual in Spain.”This Lugano limbo the UK finds itself in is the worst situation possible as lawyers on both sides have no clarity on what will happen in the long term. I think the EU wants to make the UK suffer and give EU jurisdictions the opportunity to take business from England.” Galvez believes that over time, more difficulties will arise that could undermine confidence in English courts. He points to a recent decision in a Swiss court, where an English ruling was not upheld, which he believes shows “the rough ride ahead for UK judgments to be enforced across Europe … I’m afraid Brexit has brought a goat trail where there was a highway for UK judgments.”Others are more optimistic. Devine says that “the confidence in our judiciary” which is seen as “incorruptible” and “experts in the commercial field” should mean the UK retains its appeal.However, Devine and others have wider concerns about the UK’s status outside of Lugano. ‘);$vidEndSlate.removeClass(‘video__end-slate–inactive’).addClass(‘video__end-slate–active’);}};CNN.autoPlayVideoExist = (CNN.autoPlayVideoExist === true) ? true : false;var configObj = {thumb: ‘none’,video: ‘world/2021/02/01/brexit-shellfish-industry-stewart-dnt-vpx.cnn’,width: ‘100%’,height: ‘100%’,section: ‘international’,profile: ‘expansion’,network: ‘cnn’,markupId: ‘body-text_25’,theoplayer: {allowNativeFullscreen: true},adsection: ‘edition.cnnbusiness_business_inpage’,frameWidth: ‘100%’,frameHeight: ‘100%’,posterImageOverride: {“mini”:{“width”:220,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-small-169.jpg”,”height”:124},”xsmall”:{“width”:307,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-medium-plus-169.jpg”,”height”:173},”small”:{“width”:460,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-large-169.jpg”,”height”:259},”medium”:{“width”:780,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-exlarge-169.jpg”,”height”:438},”large”:{“width”:1100,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-super-169.jpg”,”height”:619},”full16x9″:{“width”:1600,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-full-169.jpg”,”height”:900},”mini1x1″:{“width”:120,”type”:”jpg”,”uri”:”//cdn.cnn.com/cnnnext/dam/assets/210122164228-brexit-fisherman-small-11.jpg”,”height”:120}}},autoStartVideo = false,isVideoReplayClicked = false,callbackObj,containerEl,currentVideoCollection = [],currentVideoCollectionId = ”,isLivePlayer = false,mediaMetadataCallbacks,mobilePinnedView = null,moveToNextTimeout,mutePlayerEnabled = false,nextVideoId = ”,nextVideoUrl = ”,turnOnFlashMessaging = false,videoPinner,videoEndSlateImpl;if (CNN.autoPlayVideoExist === false) {autoStartVideo = false;autoStartVideo = typeof CNN.isLoggedInVideoCheck === ‘function’ ? 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playerInstance,containerClassId = ‘#’ + containerId;CNN.VideoPlayer.handleInitialExpandableVideoState(containerId);CNN.VideoPlayer.handleAdOnCVPVisibilityChange(containerId, CNN.pageVis.isDocumentVisible());if (CNN.Features.enableMobileWebFloatingPlayer &&Modernizr &&(Modernizr.phone || Modernizr.mobile || Modernizr.tablet) &&CNN.VideoPlayer.getLibraryName(containerId) === ‘fave’ &&jQuery(containerClassId).parents(‘.js-pg-rail-tall__head’).length > 0 &&CNN.contentModel.pageType === ‘article’) {playerInstance = FAVE.player.getInstance(containerId);mobilePinnedView = new CNN.MobilePinnedView({element: jQuery(containerClassId),enabled: false,transition: CNN.MobileWebFloatingPlayer.transition,onPin: function () {playerInstance.hideUI();},onUnpin: function () {playerInstance.showUI();},onPlayerClick: function () {if (mobilePinnedView) {playerInstance.enterFullscreen();playerInstance.showUI();}},onDismiss: function() {CNN.Videx.mobile.pinnedPlayer.disable();playerInstance.pause();}});/* Storing pinned view on CNN.Videx.mobile.pinnedPlayer So that all players can see the single pinned player */CNN.Videx = CNN.Videx || {};CNN.Videx.mobile = CNN.Videx.mobile || {};CNN.Videx.mobile.pinnedPlayer = mobilePinnedView;}if (Modernizr && !Modernizr.phone && !Modernizr.mobile && !Modernizr.tablet) {if (jQuery(containerClassId).parents(‘.js-pg-rail-tall__head’).length) {videoPinner = new CNN.VideoPinner(containerClassId);videoPinner.init();} else {CNN.VideoPlayer.hideThumbnail(containerId);}}},onContentEntryLoad: function(containerId, playerId, contentid, isQueue) {CNN.VideoPlayer.showSpinner(containerId);},onContentPause: function (containerId, playerId, videoId, paused) {if (mobilePinnedView) {CNN.VideoPlayer.handleMobilePinnedPlayerStates(containerId, paused);}},onContentMetadata: function (containerId, playerId, metadata, contentId, duration, width, height) {var endSlateLen = jQuery(document.getElementById(containerId)).parent().find(‘.js-video__end-slate’).eq(0).length;CNN.VideoSourceUtils.updateSource(containerId, metadata);if (endSlateLen > 0) {videoEndSlateImpl.fetchAndShowRecommendedVideos(metadata);}},onAdPlay: function (containerId, cvpId, token, mode, id, duration, blockId, adType) {/* Dismissing the pinnedPlayer if another video players plays an Ad */CNN.VideoPlayer.dismissMobilePinnedPlayer(containerId);clearTimeout(moveToNextTimeout);CNN.VideoPlayer.hideSpinner(containerId);if (Modernizr && !Modernizr.phone && !Modernizr.mobile && !Modernizr.tablet) {if (typeof videoPinner !== ‘undefined’ && videoPinner !== null) {videoPinner.setIsPlaying(true);videoPinner.animateDown();}}},onAdPause: function (containerId, playerId, token, mode, id, duration, blockId, adType, instance, isAdPause) {if (mobilePinnedView) {CNN.VideoPlayer.handleMobilePinnedPlayerStates(containerId, isAdPause);}},onTrackingFullscreen: function (containerId, PlayerId, dataObj) {CNN.VideoPlayer.handleFullscreenChange(containerId, dataObj);if (mobilePinnedView &&typeof dataObj === ‘object’ &&FAVE.Utils.os === ‘iOS’ && !dataObj.fullscreen) {jQuery(document).scrollTop(mobilePinnedView.getScrollPosition());playerInstance.hideUI();}},onContentPlay: function (containerId, cvpId, event) {var playerInstance,prevVideoId;if (CNN.companion && typeof CNN.companion.updateCompanionLayout === ‘function’) {CNN.companion.updateCompanionLayout(‘restoreEpicAds’);}clearTimeout(moveToNextTimeout);CNN.VideoPlayer.hideSpinner(containerId);if (Modernizr && !Modernizr.phone && !Modernizr.mobile && !Modernizr.tablet) {if (typeof videoPinner !== ‘undefined’ && videoPinner !== null) {videoPinner.setIsPlaying(true);videoPinner.animateDown();}}},onContentReplayRequest: function (containerId, cvpId, contentId) {if (Modernizr && !Modernizr.phone && !Modernizr.mobile && !Modernizr.tablet) {if (typeof videoPinner !== ‘undefined’ && videoPinner !== null) {videoPinner.setIsPlaying(true);var $endSlate = jQuery(document.getElementById(containerId)).parent().find(‘.js-video__end-slate’).eq(0);if ($endSlate.length > 0) {$endSlate.removeClass(‘video__end-slate–active’).addClass(‘video__end-slate–inactive’);}}}},onContentBegin: function (containerId, cvpId, contentId) {if (mobilePinnedView) {mobilePinnedView.enable();}/* Dismissing the pinnedPlayer if another video players plays a video. */CNN.VideoPlayer.dismissMobilePinnedPlayer(containerId);CNN.VideoPlayer.mutePlayer(containerId);if (CNN.companion && typeof CNN.companion.updateCompanionLayout === ‘function’) {CNN.companion.updateCompanionLayout(‘removeEpicAds’);}CNN.VideoPlayer.hideSpinner(containerId);clearTimeout(moveToNextTimeout);CNN.VideoSourceUtils.clearSource(containerId);jQuery(document).triggerVideoContentStarted();},onContentComplete: function (containerId, cvpId, contentId) {if (CNN.companion && typeof CNN.companion.updateCompanionLayout === ‘function’) {CNN.companion.updateCompanionLayout(‘restoreFreewheel’);}navigateToNextVideo(contentId, containerId);},onContentEnd: function (containerId, cvpId, contentId) {if (Modernizr && !Modernizr.phone && !Modernizr.mobile && !Modernizr.tablet) {if (typeof videoPinner !== ‘undefined’ && videoPinner !== null) {videoPinner.setIsPlaying(false);}}},onCVPVisibilityChange: function (containerId, cvpId, visible) {CNN.VideoPlayer.handleAdOnCVPVisibilityChange(containerId, visible);}};if (typeof configObj.context !== ‘string’ || configObj.context.length 0) {configObj.adsection = window.ssid;}CNN.autoPlayVideoExist = (CNN.autoPlayVideoExist === true) ? true : false;CNN.VideoPlayer.getLibrary(configObj, callbackObj, isLivePlayer);});CNN.INJECTOR.scriptComplete(‘videodemanddust’);