EU Takes Legal Action Against Violation of Brexit Withdrawal Agreement

The European Union notified the United Kingdom about its breaching of provisions of the Protocol on Ireland and Northern Ireland in the withdrawal agreement signed following Britain's departure from the EU. The March 15 letter of formal notice said the U.K. has violated the terms of the Ireland and Northern Ireland provisions regarding the movement of goods and pet travel, the European Commission said in a March 16 news release. The EU gave the U.K. a month to respond to the notice. The EU is challenging the U.K.'s extension of the Brexit grace period on food imports to Northern Ireland. EC Vice President Maros Sefcovic sent a separate letter to David Frost, U.K. co-chair of the Joint Committee, calling on the U.K. to end the Brexit grace period and imploring “good faith” consultations with the Joint Committee.

If the U.K. does not respond to the letter of formal notice, the EU Court of Justice could impose a lump sum or penalty payment, the release said. If the U.K. does not enter into “good faith” negotiations “with the aim of reaching a mutually agreed solution by the end of this month, the EU may provide written notice to commence consultations” under the Brexit withdrawal agreement. The EU could refer the dispute to binding arbitration, which might result in financial sanctions.

“The Protocol on Ireland and Northern Ireland is the only way to protect the Good Friday (Belfast) Agreement and to preserve peace and stability, while avoiding a hard border on the island of Ireland and maintaining the integrity of the EU single market,” Sefcovic said. “The EU and the UK agreed the Protocol together. We are also bound to implement it together. Unilateral decisions and international law violations by the UK defeat its very purpose and undermine trust between us.”

Ross Denton, head of the international trade practice at Ashurst, said some provisions of the withdrawal agreement, including those related to the “application of EU customs law to Northern Ireland, remain subject to the jurisdiction of the Court of Justice, even after the expiry of the Implementation Period,” which ended Dec. 31. “It is likely that the UK will argue that its actions were permissible under the safeguard provisions” in the agreement, he said.