63 Acknowledged

We ask the Government to set out, in its reply to this Report, what options...

Recommendation
We ask the Government to set out, in its reply to this Report, what options it has raised, or intends to raise, with the European Union to further reduce barriers to trade and investment in the following areas: • Regulatory non-tariff barriers to trade in goods, in particular for chemicals and pharmaceuticals, as well as measures to reduce the impact of VAT and customs formalities for trade with the EU; • UK accession to the Lugano Convention to improve cross-border recognition of commercial judgements; • Steps to improve short-term mobility between the UK and EU for services providers and closer cooperation on financial services matters. (Recommendation, Paragraph 180)
Government Response Summary
The government says it will continue to strengthen its relationship with the EU in order to improve our economic and strategic relationship, but they did not consent to the UK's application to accede to the Lugano Convention. Cooperation with the EU in this area now takes place primarily through multilateral frameworks, in particular the Hague Conference on Private International Law.
Government Response
Acknowledged
HM Government Acknowledged
Improving our economic and strategic relationship with the EU remains a top government priority. We’re clear that for growth, deeper integration with the EU is within the UK’s national interest. This means reducing barriers that have stopped businesses trading and investing with our closest partner and biggest market. The Government is committed to delivering this, as set out within its manifesto. Future summits will provide us with opportunities to continue to strengthen our relationship. The Government continues to engage constructively with the EU on Private International Law matters, also known as civil judicial cooperation. In 2021, the European Commission did not consent to the UK’s application to accede to the Lugano Convention. Cooperation with the EU in this area now takes place primarily through multilateral frameworks, in particular the Hague Conference on Private International Law. A significant step in strengthening cooperation in the area of cross-border recognition of commercial judgments was the entry into force, on 1 July 2025, of the 2019 Hague Convention on the Recognition and Enforcement of Foreign Judgments in Civil or Commercial Matters. This applies between the UK and the EU (except Denmark), and provides that judgments within scope of the Convention handed down in one Contracting Party can be recognised and enforced in another. It offers greater certainty that UK judgments will be enforced in the EU, and vice versa, and will reduce transactional and litigation costs in relevant cross-border disputes. It will also save time in the resolution of disputes. It is the first new agreement to apply in this area of law between the UK and the EU since EU Exit. The importance of this cooperation was noted in the Common Understanding agreed at the 2025 Summit.