UPC Agreement to be ratified by the UK

UK Government ministers have announced at the Competitiveness Council today that the UK will ratify the UPC Agreement. We infer that the UK Government thinks that it will be able to negotiate with the other contracting states and the EU to permit the UK to remain involved in the UPC after Brexit.

28 November 2016

Publication

This also means that the UK Government is happy to accept that EU law will continue to apply, and the Court of Justice will still have jurisdiction, after Brexit at least on matters within the narrow jurisdiction of the UPC. These are requirements for the UK to remain in the UPC, for the reasons set out in the Opinion of Richard Gordon QC and Tom Pascoe. It is possible that the Government’s willingness to accept EU law in defined areas may be a pattern for the Brexit negotiations going forward.

The Government will have to agree with the other Member States for certain amendments to the UPC Agreement. It will also have to come to an agreement with the EU which will continue to allow the UPC to refer questions to the Court of Justice under the Article 267 of the TFEU procedure, even though a non-Member State will be involved. Alongside these preparations, the Government will also be negotiating suitable transition provisions in case, after Brexit, the UK has to leave the UPC.

For the UPC to come into effect, only the UK and Germany need to ratify the Agreement. The German ratification is progressing, and it may be in a position to ratify by the early summer. Once they are in a position to ratify, the sunrise period can start (see here). There can then be an orderly progression to the court opening for business six months thereafter.

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