Answer ... The most significant development is the United Kingdom’s exit from the European Union, which has changed the rules in relation to the recognition and enforcement of EU judgments given after 11:00pm on 31 December 2020, as explained in question 1.1.

On April 2020, the United Kingdom applied to rejoin the Lugano Convention 2007. If the United Kingdom were to accede to the Lugano Convention, this would then apply between the United Kingdom and the European Union and the United Kingdom and Norway, Switzerland and Iceland. The 2005 Hague Convention on Choice of Court Agreements would in those circumstances no longer apply between the United Kingdom and EU member states, and would revert to applying only between the United Kingdom and Mexico, Singapore and Montenegro.

In order to rejoin the Lugano Convention, the United Kingdom requires the agreement of all parties to the convention and as of July 2022 the European Commission has not agreed. In a ‘note verbale’ to the Swiss Federal Council as depository of the Lugano Convention dated June 2021, it stated: “The European Commission, representing the European Union, would like to notify to you that the European Union is not in a position to give its consent to invite the United Kingdom to accede to the Lugano Convention.”

We understand that the decision as to whether to consent to the United Kingdom’s accession is ultimately a decision for the Council of the European Union to take by qualified majority voting. However, unless and until a proposal is put to a vote by the Council (and the Council votes in favour of giving its consent), the United Kingdom will remain unable to accede.

The United Kingdom may in the future become a party to the 2019 Hague Judgments Convention. This convention complements the 2005 Hague Convention on Choice of Court Agreements by allowing the enforcement of judgments in much broader circumstances. In particular, in contrast to the 2005 convention, it does not require an exclusive jurisdiction clause in favour of a contracting state, and employment and consumer contracts are within scope. It could therefore significantly streamline the enforcement of judgments between the United Kingdom and the European Union in the event that the European Union does not consent to the United Kingdom rejoining the Lugano Convention 2007.

On 29 August 2022, the European Union acceded to and Ukraine ratified the 2019 Hague Judgments Convention. The convention will come into force on 1 September 2023 between all EU member states (except Denmark) and Ukraine, and will apply to the enforcement of judgments in proceedings commenced after 1 September 2023.

The UK government is considering its position on the 2019 Hague Judgments Convention and it is believed likely that it will consult on possible accession in the coming months.

However, implementation of the 2019 Hague Judgments Convention in relation to the United Kingdom remains some way off, even if the United Kingdom does ratify it. It will not come into force for any state until (approximately) 12 months after ratification. Even then, it will not apply unless the proceedings were started (as opposed to the judgment being issued) when the convention was in force for both the state of origin and the state of enforcement. This means that it will be some considerable time before it has any impact in practice.

The 2019 convention has also been signed but not ratified by Costa Rica, Israel, the Russian Federation, the United States and Uruguay.