The humble sandeel will take center stage in the first court trade battle between the UK and EU since Brexit.
The United Kingdom has banned European vessels from catching silverfish species in its North Sea waters to protect marine life that depends on them for food.
But the EU is questioning the measure, arguing that it discriminates against Danish vessels fishing for sandeel commercially, violating the post-Brexit trade deal.
The dispute now heads to a three-day hearing in a commercial court, after formal talks to resolve the dispute failed.
Without a last-minute compromise, it will be the first time the two sides have gone to arbitration under the 2021 trade deal agreed by Boris Johnson.
The case will be heard starting Tuesday next week at the Permanent Court of Arbitration, a dispute resolution body based in The Hague, by a mutually agreed panel of three international trade judges.
They could defend the UK’s position or order it to change or remove its ban, in which case Brussels could ultimately retaliate with tariffs on British exports if ministers refused to comply.
Under the trade agreement, a final ruling is due by the end of April, although it could be issued sooner. There is no right to appeal.
It comes as the UK prepares for complicated negotiations with the EU over new catch limits from June next year, when current arrangements under the trade deal expire.
Sir Keir Starmer also hopes to persuade EU leaders to reach new deals in areas such as security and food trade, as part of a wider “reset” in relations with the UK.
Environmental applause
Sand eels, a group of small eel-like fish species, are a jointly managed fish population under the trade agreement. It is not caught for culinary reasons and is unlikely to be found on restaurant menus in European capitals.
But it is the favorite food of other fish species such as cod and haddock, as well as threatened seabirds such as puffins and seagulls.
The UK has effectively prevented its own vessels from fishing for the species since 2021 through its licensing regime, arguing that it is necessary to prevent overfishing and protect the North Sea ecosystem.
Rishi Sunak’s Conservative government then banned all vessels from catching the species in English offshore waters in March last year, with a similar ban in Scottish waters introduced by ministers in the SNP-led Scottish government.
It won plaudits from UK talk groups, which had long campaigned for a complete ban, and Sir Keir’s Labor government has maintained the ban since coming to power in July.
But it has outraged Danish fishermen, who sell sand eels to feed and fish oil producers and, under the post-Brexit trade deal, have the right to fish the overwhelming majority of the species’ share in UK waters.
Small fish, big row
The dispute centers on whether the UK’s right to restrict trawlers for conservation reasons unnecessarily restricts fishing rights agreed with the EU.
In its submissions to the court, the EU has argued that the geographical scope of the ban is not justified by scientific models on 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 it was committed to protecting the environment in line with its trade commitments.
Their decision to continue with the ban has been backed by an incredible coalition spanning three political parties, conservation groups and committed Brexiteers.
The renewable energy industry has also taken interest, arguing that the ban helps achieve the necessary level of seabird “resilience” to allow more wind farms to be built while meeting conservation goals.
The UK has previously estimated that sandeel caught in its waters are worth around £45 million a year, a small industry in the context of the wider trading relationship.
But the dispute will be watched closely to see how the judges balance the UK’s right to take conservation action with economic rights.
