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The French government has stepped back from a threat to impose disruptive port checks on lorries and boats after the UK threatened to take legal action in a row over post-Brexit fishing licences.

Key talks between the two sides will take place later this week aimed at resolving the disagreement, but the risk of further escalation remains.

Sky News examines what is behind the row between the UK and France and what measures London could take if the impasse rumbles on.

What is the dispute about?

Under the terms of the Brexit trade deal, which came into force on 1 January, EU access to UK waters and UK access to EU waters is now managed through a licensing system for fishing vessels.

The current row erupted after the UK authorities refused to give licences to some French fishing vessels to operate in UK waters because they believed they did not meet the requirements.

According to the French government, the UK has only issued half the fishing licences that Paris believes it is entitled to.

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Environment Secretary George Eustice told Sky News last week that the UK has issued post-Brexit licences to 1,700 vessels, including 750 French fishing boats, which amounts to 98% of applicants.

But the row deepened when the Cornelis Gert Jan scallop trawler was detained by French authorities last Thursday near the port of Le Havre.

The owners of the British vessel denied French claims that it did not have the correct licence to fish in French waters and said the Cornelis was being used as a “pawn” in the wider UK-France fishing dispute.

France initially said that if the UK did not grant more licences for its fishing vessels it would, from Tuesday, block its ports, carry out security checks on British vessels, reinforce controls of lorries to and from the UK, reinforce customs and hygiene controls, and raise tariffs.

However, Paris has stepped back from introducing these measures.

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France postpones sanctions over fishing row

Downing Street says talks will take place with France on Wednesday about the situation, as well as other “issues important to the UK-EU relationship, including the Northern Ireland Protocol”.

What are dispute resolution measures?

It is against this backdrop that the UK has threatened to take legal action.

The prospect was raised by Prime Minister Boris Johnson last week and repeated by the Foreign Secretary Liz Truss in a Sky News interview on Monday.

The foreign secretary set a 48-hour deadline for the fishing dispute to be resolved, although it’s not clear if that deadline still stands in light of recent moves from Paris.

If legal action were to be taken, this would involve the UK triggering the dispute resolution measures contained in the Brexit trade deal, officially known as the Trade and Cooperation Agreement (TCA).

The measures are designed to be used when one side feels that the other is in breach of the TCA.

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PM ‘worried’ that treaty may have been broken on fishing

Initially, this would mean a 30-day period of consultation between the two sides which can be extended if both parties agree.

The aim of this first step is to resolve any disagreement through dialogue.

But if a solution cannot be found, the complainant can progress things further and ask for an independent arbitration tribunal to be set up.

This would be made up of three members: one nominated by the UK, one put forward by the EU and a jointly-agreed chair.

The tribunal would then rule within 130 days of being set up, although an interim report would be issued earlier.

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Minister: French reaction ‘unacceptable’

One side can ask for this timeline to be sped up, which would see it cut in half.

Tribunal rulings are legally binding and if a side is found to have breached the agreement they have 30 days to set out how they will comply.

Sam Lowe, a senior research fellow at the Centre for European Reform think-tank, said of the process: “In terms of the legal mechanisms we are very much talking about a process here that could drag on for a while.”

What happens if one side does not comply?

The other party can ask for compensation or suspend certain obligations contained in the agreement in areas like trade, aviation, road transport and fisheries.

The tribunal can be asked to rule on whether the suspension is appropriate, while the suspension should be rescinded if the other side then decides to follow its ruling.

There are also specific steps that one side can take in relation to fishing.

What measures can be taken on fishing?

One side could decide to entirely suspend access to its waters and scrap the preferential tariff agreement that applies to fishery products.

Again, an arbitration tribunal could end up getting involved, with it ruling if the measure is a proportionate response.

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Brexit: Fishermen frustrated by fishing row

The UK, or indeed France, could choose to go further and apply tariffs on fisheries and non-fisheries products or even suspend elements of the TCA relating to trade and road transport.

Either side can also decide to bin the agreement on fisheries with a notice period of nine months.

What would the impact be on UK-EU relations long-term?

According to Sam Lowe: “If the UK feels the diplomatic route has been exhausted, proceeding with dispute resolution within the confines of the TCA is the proper way to go about things.

“At least in the TCA there are rules, processes to be followed; much better than spilling out into an unconstrained trade war with both the EU and UK free to do whatever they want.”

However, he warned that a simmering dispute could have a wider impact, adding: “These disputes do have political ramifications: they chip away at the good will necessary to reach a compromise on other outstanding issues such as Northern Ireland.”

Are the dispute resolution mechanisms different when it comes to Northern Ireland?

Yes.

The UK and EU are currently locked in talks over potential changes to the protocol, which is designed to avoid a hard border on the island of Ireland.

The protocol is part of the withdrawal agreement between the two sides and is separate from the TCA.

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Do we need a new Northern Ireland Protocol?

If these talks break down or do not prove fruitful, either side has the option of activating Article 16 of the protocol.

This states that if the protocol is causing “serious economic, societal or environmental difficulties that are liable to persist”, or leading to a “diversion of trade” then either the UK or EU can introduce “appropriate safeguard measures” to tackle the problems.

Brussels at one stage proposed using Article 16 to stop COVID vaccine exports from the EU moving to Great Britain from Northern Ireland, but stepped back from this after a backlash.

Opponents of the protocol in Northern Ireland have been calling on the UK government to invoke Article 16 to stop checks and controls on goods.

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‘Make or break’: Chancellor warned businesses can’t take more tax hikes in budget

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'Make or break': Chancellor warned businesses can't take more tax hikes in budget

Rachel Reeves has been warned that firms face a “make-or-break moment” at next month’s budget.

The British Chamber of Commerce (BCC) urged the chancellor, who is widely expected to announce tax hikes in November’s budget to fill a gap in the public finances, to steer clear of increasing levies on businesses.

Ms Reeves raised taxes by £40bn last year and the BCC said business confidence had not recovered since.

“Last year’s budget took the wind from their sails, and they have been struggling to find momentum ever since,” BCC director-general Shevaun Haviland said.

She said firms felt “drained” and could not plan ahead as they expected “further tax demands to be laid at their feet” when the budget is delivered on 26 November.

“The chancellor must seize this moment and use her budget to deliver a pro-growth agenda that can restore optimism and belief amongst business leaders,” Ms Haviland added.

“This year’s budget will be a make-or-break moment for many firms.”

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Labour might U-turn on farming tax: What do farmers think?

The BCC also called for a reform of business rates and the removal of the windfall tax on gas and oil introduced by the last government.

In its submission, the industry body outlined more than 60 recommendations, including the proposal of further infrastructure investment, cuts to customs barriers and action on skill shortages.

Earlier this year, Prime Minister Sir Keir Starmer announced Labour would aim to approve 150 major infrastructure projects by the next election, with Labour already pledging to support expansions of both Heathrow and Gatwick airports – another of the BCC’s requests.

While the Treasury would not comment on budget speculation, a spokesperson insisted Ms Reeves would “strike the right balance” between ensuring funding for public services and securing economic growth.

She has vowed to stick to Labour’s manifesto pledges not to raise taxes on “working people”.

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Is Britain heading towards a new financial crisis?

Household spending on the wane

The BCC’s plea to halt further tax rises on businesses comes as retail sales growth slowed in September.

“With the budget looming large, and households facing higher bills, retail spending rose more slowly than in recent months,” Helen Dickinson, chief executive of the British Retail Consortium (BRC), said.

“Rising inflation and a potentially taxing budget is weighing on the minds of many households planning their Christmas spending.”

Total retail sales in the UK increased by 2.3% year-on-year in September, against growth of 2% in September 2024 and above the 12-month average growth of 2.1%, according to BRC and KPMG data.

While food sales were up by 4.3% year-on-year, this was largely driven by inflation rather than volume growth.

Non-food sales growth slowed to 0.7% against the growth of 1.7% last September, making it below the 12-month average growth of 0.9%.

Total retail sales in the UK increased in September compared to the year before. File pic: PA
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Total retail sales in the UK increased in September compared to the year before. File pic: PA

Read more:
Goldman chief delivers warning to Reeves over tax hikes
Reeves urged to break election pledge and raise major tax

Online non-food sales only increased by 1% against last September’s growth of 3.4%, which was below the 12-month average growth of 1.8%.

“The future of many large anchor stores and thousands of jobs remains in jeopardy while the Treasury keeps the risk of a new business rates surtax on the table,” Ms Dickinson said.

“By exempting these shops when the budget announcements are made, the chancellor can reduce the inflationary pressures hammering businesses and households alike.”

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Starmer and other leaders have fallen into line on Trump’s Gaza plan – now it must deliver

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Starmer and other leaders have fallen into line on Trump's Gaza plan - now it must deliver

I’ve been around a while and seen a lot of the insides of international summits over the years, but this one was truly extraordinary.

Over 20 leaders flew to Sharm el-Sheikh in Egypt from all over the world – Indonesia, Pakistan, Norway, Canada – to witness the signing of Donald Trump’s peace plan.

Gaza deal signed – as it happened

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‘We have peace in Middle East’

This historic day was pure theatre for Trump from start to finish. Flying in from Israel, where he had met hostage families and then addressed the Israeli parliament, he arrived a whopping three hours late, keeping a gaggle of world leaders waiting.

We stood around in corridors watching them move from one room to another to hold meetings with each other, presumably to talk about phase two of Trump’s peace deal.

Testimony to the power of Trump

At one point, Sir Keir Starmer’s meeting with his Turkish counterpart included France’s Emmanuel Macro. That then somehow morphed into a summit which also brought in the Germans, Italy’s Prime Minister Giorgia Meloni, and the leaders of Egypt and Qatar. More chairs kept coming into the room until there was the equivalent of a cabinet table of leaders and advisors sitting in a long line facing each other.

What they were talking about was how each country could help in phase two of the peace effort. Now Trump had, alongside fellow signatories of this deal – Egypt, Qatar, and Turkey – ended the war, could they maintain the peace?

As Starmer put it: “We can’t treat today as historic and let it drop tomorrow.”

But these mini summits in the margins happened by fault rather than design. This day really was designed to bear witness – and offer acknowledgement – to Trump. All of these leaders turned up pretty much in the dark as to what the day held, with his peace summit convened 48 hours earlier.

That they dropped plans to make their way to Egypt is testimony to the power Trump wields.

World leaders at the Gaza peace summit
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World leaders at the Gaza peace summit

He was utterly omnipotent. First, there was the greeting ceremony, in which each leader filed in individually for a photo and handshake with him before all returning to the stage for the family photo.

Then, at the signing ceremony, Trump sat with his three fellow signatories as the world leaders stood behind him.

“This took 3,000 years to get to this point. Can you believe it?” Trump said as he signed that deal. “And it’s going to hold up, too. It’s going to hold up.”

Finally, in another giant hall, Trump gave a speech in which he ran through all the leaders who had turned up – praising them or fondly poking a bit of fun at them accordingly, as (most) of them stood behind him.

He teased Macron for sitting in the front row rather than joining the others on the stage, joking it wasn’t like him to be low-key. He described Meloni as a “beautiful young woman”.

“I’m not allowed to say it because usually it’s the end of your political career if you say it – she’s a beautiful young woman,” said Trump mid-speech. “You don’t mind being called beautiful, right? Because you are,” he turned to say to her – her reaction obscured from view.

Now for the ‘easy part’?

Soon after, the prime minister of Pakistan, invited to say a few remarks by Trump, renewed his call for the US president to be awarded the Nobel Peace Prize.

Having brokered the deal, Trump took the moment and made it into his summit on his terms, as fellow leaders fell into line, literally standing behind him. And in his characteristic bullishness, he told his audience in this final speech that the hard part – the ceasefire – had been done, and rebuilding Gaza was the easy part.

U.S. President Donald Trump talks to Prime Minister Sir Keir Starmer
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U.S. President Donald Trump talks to Prime Minister Sir Keir Starmer

That isn’t really what the rest of them believe: 92% of Gazans have been displaced, the Gaza Strip is a wasteland. Organising a peacekeeping force, getting Hamas to disarm and Israel to withdraw from the strip, putting together a technocratic team and peace board to oversee the running of Gaza still needs to be done.

This was a largely celebratory day, but there are concerns whether this deal will hold up. Trump says Hamas needs to disarm and disband, and yet one of their most senior leaders told Sky News a few days ago, it won’t.

Meanwhile, there is a growing humanitarian crisis in Gaza. The UK has in short order sent in £20m of aid to try to help with sanitation.

On the British side, the prime minister said he had offered to help demilitarise the strip, saying the UK can take a role in “monitoring the ceasefire but also decommissioning the capability of Hamas and their weaponry, drawing on our experience in Northern Ireland”.

“It’s really important we keep that focus. We mustn’t have any missteps now,” he said.

Drone footage of Gaa
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Drone footage of Gaa

Trump’s peace board is still in its infancy – Starmer told me he isn’t going to sit on it, with the make-up still being discussed, while Tony Blair’s participation is controversial.

Trump said on the way over to Egypt that he was going to canvass opinion to make sure everyone is happy with the former prime minister’s presence. It comes after Bassem Naim of Hamas told Sky News that Blair was not welcome in Gaza after his role in the invasion of Iraq.

When I asked Starmer if he thought Trump should be awarded the Nobel Peace Prize he said “there’ll be plenty of people, I’m sure, nominating him” – as he paid tribute to him for getting “leaders to this position”.

Now the task for them all is to implement what Trump has set in train. If his plan works, he would be sitting on an achievement that has eluded successive US presidents for decades.

Trump should rightly be lauded for ending the war, now he must bring the peace.

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California governor signs laws establishing safeguards over AI chatbots

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California governor signs laws establishing safeguards over AI chatbots

California governor signs laws establishing safeguards over AI chatbots

The laws will likely impact social media companies and websites offering services to California residents, including minors, using AI tools.

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