The Impact for Commercial Clients of the Hague Convention's Implementation in England and Wales

The Recognition and Enforcement of Judgments (2019 Hague Convention etc.) Regulations 2024 (“the Hague Convention”), came into force in England and Wales on 1 July 2025, and marks a significant shift in the legal landscape for commercial clients following the United Kingdom’s exit from the European Union in December 2020 (“Brexit”).

In this article we consider the changes brought about by the Hague Convention, the situation prior to its implementation, and how these changes will benefit commercial clients.

Pre-1 July 2025: The Legal Landscape Post-Brexit

Before we look at the implications of the introduction of the Hague Convention into law in England and Wales, it is essential to understand the legal context in the jurisdiction before 1 July 2025, particularly in the aftermath of Brexit. 

The United Kingdom officially left the European Union on 31 January 2020. There followed a transition period which ended on 31 December 2020. This departure resulted in a shift in the legal framework governing commercial transactions and also how any resulting disputes were dealt with under the differing jurisdictions.

Prior to Brexit, the UK was part of the EU's legal framework, which included the Brussels I Regulation Recast (“the Regulations”). The Regulations provided a comprehensive system for the recognition and enforcement of judgments in civil and commercial matters across EU member states. However, following Brexit, the UK was no longer part of this framework, leading to uncertainty and potential complications for commercial clients who found themselves in a dispute scenario.

The UK’s exit from the EU was formally recorded in the UK-EU Trade and Cooperation Agreement (“the TCA”) which was officially signed on 30 December 202 in Brussels and London; the TCA provisionally applied from 1 January 2021 – the day after the end of the transition period – and formally took effect once ratified by both parties on 1 May 2021.

The absence of the Regulations meant that the recognition and enforcement of judgments between the UK and EU member states was no longer straightforward, particularly given the TCA did not include specific provisions for the mutual recognition and enforcement of judgments in civil and commercial matters. 

This omission means that, following the end of the Brexit transition period, the UK and EU member states no longer benefitted from the streamlined processes that were previously in place under EU regulations such as the Regulations when it came to recognition and enforcement of judgments. 

The UK instead had to rely on a patchwork of international agreements and domestic legislation. 

This situation created a challenging environment for businesses engaged in cross-border transactions, as they faced increased legal complexities and uncertainties should they find themselves embroiled in a legal dispute.

The Hague Convention: A New Era

The implementation of the Hague Convention on 1 July 2025 represents a significant step towards simplifying the cross-border legal landscape for commercial clients in England and Wales. The Hague Convention aims to provide greater certainty and predictability in international commercial transactions between member states which, at the time of writing is all EU states bar Denmark which opted out of the EU's judicial cooperation in civil matters. 

The Hague Convention applies to judgments issued in proceedings commenced on or after the later of the dates on which the relevant instrument entered into force for the state whose courts issued the judgment and the state where enforcement is being sought. 

For England and Wales therefore the provisions of the Hague Convention apply to proceedings which are commenced on or after 1 July 2025.

Key Provisions of the Hague Convention

The Hague Convention introduces several key provisions that are particularly relevant to commercial clients:

• Choice of Court Agreements: The Convention ensures that choice of court agreements between parties are respected and enforced. This means that if parties have contractually agreed to litigate their disputes in a specific court, this agreement will be upheld.
• Recognition and Enforcement of Judgments: The Convention establishes a streamlined process for the recognition and enforcement of judgments issued by courts designated in choice of court agreements. This reduces the legal hurdles and uncertainties that previously existed before the 1 July 2025. In order to be recognised and enforced, judgments must fall within the Convention’s material scope and there are some exceptions such as intellectual property or insolvency matters. 
• International Cooperation: The Convention promotes cooperation between courts in different countries, facilitating the smooth resolution of cross-border disputes.

Benefits for Commercial Clients

The implementation of the Hague Convention brings several advantages for commercial clients in England and Wales:

• Legal Certainty: The Convention provides greater legal certainty for businesses engaged in international transactions. By ensuring that choice of court agreements are respected and judgments are recognised and enforced, businesses can operate with increased confidence, knowing that should a dispute arise it is more certain that their legal rights will be upheld.
• Reduced Legal Complexity: The streamlined process for the recognition and enforcement of judgments reduces legal complexity and associated costs. Businesses no longer need to navigate a patchwork of international agreements and domestic legislation which should simplify the legal landscape.
• Enhanced Cross-Border Trade: The Convention promotes cross-border trade by providing a reliable legal framework for resolving disputes. This encourages businesses to expand their operations internationally, knowing that their legal interests are protected.
• Cost Savings: The reduction in legal complexity and the streamlined enforcement process can lead to significant cost savings for businesses who find themselves in litigation. This is particularly beneficial for small and medium-sized enterprises (SMEs) that may have limited resources and funds for legal advice.

Conclusion

The Hague Convention's implementation on 1 July 2025 marks a new era for commercial clients in England and Wales. By providing greater legal certainty, reducing complexity, and promoting international cooperation, the Convention enhances the business environment for companies engaged in cross-border transactions. In the post-Brexit landscape, this development is a welcome relief for businesses seeking to navigate the challenges of international commerce.