Getty ImagesThe lowly sandal is set to take center stage in the first courtroom trade battle between the UK and the EU since Brexit.
The UK has banned European ships from catching silverfish species in North Sea waters to protect marine wildlife that depend on them for food.
But the European Union is challenging the move, arguing that it discriminates against Danish vessels that commercially fish sandel, in breach of the post-Brexit trade deal.
The dispute now heads to a three-day commercial court hearing, after formal talks to resolve the dispute failed.
Without a last-minute settlement, this will be the first time the two sides have resorted to arbitration under the 2021 trade agreement agreed by Boris Johnson.
The case is scheduled to be heard from Tuesday next week at the Permanent Court of Arbitration, a dispute resolution body based in The Hague, by a panel of three mutually agreed international trade judges.
They could back the UK's position – or order the UK to change or drop its embargo, in which case Brussels could ultimately retaliate by imposing tariffs on British 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 tough negotiations with the EU over new fishing limits from June next year, when current arrangements under the trade deal end.
Sir Keir Starmer is also hoping to persuade EU leaders to strike new deals in areas such as security and food trade, as part of a wider “reset” of relations with the UK.
Environmental desirability
Sandeels, a group of small eel-like fish species, are a jointly managed fish stock under the trade agreement. It is not poached for culinary reasons and is unlikely to be found on restaurant menus in European capitals.
But it is a favorite food for 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 these species since 2021 through its licensing regime, on the basis that it is required to prevent overfishing and protect the North Sea ecosystem.
The Conservative government led by Rishi Sunak then banned all vessels from catching the species in English seawaters in March last year, with a similar ban in Scottish waters introduced by ministers in the Scottish National Party-led Scottish Government.
It has won plaudits from UK dialogue groups, which have long campaigned for a total ban, and Sir Keir's Labor government has maintained the ban since taking power in July.
But it has angered Danish fishermen, who sell sandelfish to animal feed and fish oil producers and, under the post-Brexit trade deal, are entitled to fish the vast majority of the EU quota of the species in UK waters.
Little fish, big row
The dispute centers on whether the UK's right to restrict fishing vessels on conservation grounds unnecessarily restricts fishing rights agreed in the EU.
In its submissions to the court, the EU argued that the geographical scope of the ban was not justified by scientific modeling of stock levels, or the “economic and social impacts” on Danish fishing communities.
The UK government's detailed response has not yet been published, but a spokesperson told the BBC that the government was committed to protecting the environment in line with its trade commitments.
Its decision to continue the ban was supported by an unlikely coalition of three political parties, environmental groups and Brexiteers.
The renewable energy industry has also shown interest, arguing that the ban helps achieve the necessary level of seabird “capability” to allow more wind farms to be built while still meeting conservation goals.
The UK has previously estimated the value of sandalfish caught in its waters at £45 million a year, a small industry in the context of the wider trade relationship.
But the dispute will be closely watched to see how the judges balance the UK's right to take environmental conservation measures with economic rights.
