Britain and the European Union are set to go head-to-head over contested fishing rights in the first legal spat over trade since leaving the bloc.
The United Kingdom has banned European vessels from catching the sandeel, a food of choice for British seabirds, in order to protect wildlife.
Brussels has challenged the move, arguing that it is in contravention of the post-Brexit trade deal and will discriminate against Danish fishing vessels.
The issue will now be heard at a three-day tribunal hearing, after formal talks failed to resolve the impasse.
A panel of three mutually-agreed international judges will review the dispute from next Tuesday at a court in the Hague.
They will have the opportunity to either uphold Britain’s position, to ask for amends or to order the UK to drop its ban altogether.
The EU could retaliate with tariffs on British exports if Ministers refuse to comply with the ruling.
The Permanent Court of Arbitration must deliver a verdict by the end of April, although it could make a decision earlier.
Neither side will have the right to appeal if they disagree with the judgement.
Under the existing trade deal, the sandeel – or sand eel – is a jointly managed fish stock.
It is not caught for food, unlike fish, in Britain or across Europe, but is eaten by seabirds like puffins and other fish, like cod.
Rishi Sunak’s government banned all vessels from catching the fish in English waters last year in an effort to help conserve endangered species.
A similar move was adopted by the Scottish government.
Britain is currently preparing for negotiations with the bloc over catch limits to be agreed before the current arrangements expire in June of next year.
Last month, it was reported that the EU would urge Britain towards following European Court of Justice jurisdiction in return for their approval on a new deal.
The hardline stance was set out in a document seen by The Times, presented to a council of European ministers.
It made clear Brussels would demand key concessions on fishing, the European Court of Justice and youth mobility.
Charles Clover of the Blue Marine Foundation said the measures would leave British fishing waters at the mercy of ‘French trawlers’, adding that the demands are ‘absolutely outrageous’.
The document said Britain would also be required to abide by rulings from the European Court of Justice on EU law.
Charles Grant of the Centre for European Reform said: ‘It would set a precedent for much closer co-operation across a range of other areas, such as energy.’
He added that meeting the demands will be difficult for the Prime Minister as the reset could ‘anger the Conservatives and Reform’.