Apologies for using Robert Ludlam’s name to draw you into this blog but The Lugano Convention does sound like one of his novels. Unfortunately it is, unlike them, boring. At least it is boring if you are not a lawyer or consumer.
The convention basically, lets legal judgements be enforced across borders, all EU countries and nearly all of EFTA are members. It means that consumers are able to take companies based in different countries to court domestically if they are unhappy with a product. For example if you have a problem with a German car which you bought in the UK, you don’t have to go to a German court to get the matter settled. The UK was a member by right of its membership of the EU but is not now as it left at the start of the year. The UK would very much like to rejoin, it is a dull but very handy way of settling disputes in an increasingly inter connected world.
Unfortunately for the UK the European Commission is recommending that the UK should not be allowed to join. The member states may overrule the Commission but that is unlikely. The EC’s reasoning is that the Convention is really limited to members of the Single Market and those very close to it. But it also warned “practitioners” and those dealing with cross border contractual issues that they might want to bear this in mind when “making a choice of international jurisdiction”
Stripped of its bland legalese that means, you can set up business in the UK if you really, really want but have you spoken to your lawyer about it?
It is just one more small turning of the screw, the EU is using its power, influence and weight to fix things to its advantage. The UK really should have sorted this out before leaving, because unfortunately the EU has a veto on who can join the Lugano Convention.
https://jonty.substack.com/