Latest news from Simply Accounts & tax
UK businesses to save time and money on cross-border legal disputes
Lord Bellamy, representing the UK, has now signed the 2019 Hague Convention, which the UK originally committed to joining in November 2023. Once ratified there is a wait of 12 months for the Convention to come into force in the UK, but at that point, it will apply to any judgments commenced after that date.
The Hague Convention is a private law convention that sets out common rules to recognise and enforce foreign judgments in civil and commercial cases between the signatory states of the Convention. For instance, a judgment made by a court in the UK about a company will be recognised and enforced by the court of another nation that has signed up to the treaty.
Businesses that trade internationally with businesses in other countries that have signed up to the Convention will benefit from this treaty. They will have greater certainty when dealing with litigation on contracts for international business and will save time and money if they need to enforce a judgment in another country.
Lord Bellamy, the Justice Minister, said: "Joining the Hague Convention marks a significant step forward for the UK within private international law and strengthens our appeal to businesses as a centre for dispute resolution.
"The robust and reliable regime the Convention offers for the recognition and enforcement of judgments will provide confidence to people and businesses who are involved in civil and commercial disputes as they live, work and do business across borders."
Currently, there are 29 parties to the Hague Convention - the 27 EU Member States, the EU and Ukraine. Uruguay also joins from 1 October 2024. Israel, Costa Rica, the Russian Federation, and the United States have also signed the Convention and, like the UK, await ratification before joining.