Commenting ahead of the Government’s Future Partnership Paper on principles for enforcement and dispute resolution post-Brexit, Allie Renison, Head of Europe and Trade Policy at the Institute of Directors, said:
“While we accept it is the Government’s intention to end the direct jurisdiction of the CJEU as a consequence of leaving the EU, it is imperative that this be done in a measured and pragmatic way. The emphasis here should be on ending its direct effect, not trying to throw off the influence of the Court altogether.
“The UK and EU are likely to end up in a situation that marries established precedents with political flexibility. So while we welcome an outlining of options – looking at existing mechanisms in other free trade agreements – we hope that both sides remember we are facing an unprecedented set of circumstances with two deeply interwoven legal systems which will require compromise to reach a deal. And we would expect that any transitional period would continue to allow for the application of the CJEU or EFTA court’s jurisdiction.
“While we have had our criticisms of the Court of Justice in the past, we also recognise that it affords both businesses and individuals an important right of direct legal redress in the application of EU law. Therefore, it is essential that our new partnership deal with the EU allows them similar direct rights in any disputes arising out of this agreement so that the CJEU is not simply replaced with dispute resolution between governments.”