Policy background
Private international law ("PIL") – sometimes known as "conflict of laws" – comprises rules applied by courts and parties involved in legal disputes for dealing with cases raising cross-border issues. The rules generally apply in the context of civil law, including specialist areas such as commercial, insolvency and family law. PIL typically includes rules to establish whether a court has jurisdiction to hear a claim which has cross-border elements, which country’s law applies to such a claim, and whether a judgment of a foreign court should be recognised and enforced. It can also encompass rules on co-operation between courts and other public authorities in different countries involved in dealing with cross border issues, such as service of documents or taking of evidence abroad, or establishing efficient procedures to assist with the resolution of cross-border disputes, for example, in the family law area.
	Most countries have their own domestic PIL rules dealing with matters such as jurisdiction, applicable law and recognition and enforcement of foreign judgments, but they also enter into international agreements under which states agree to apply the same PIL rules to ensure reciprocal treatment, avoid parallel legal proceedings and conflicting decisions for private litigants, and establish streamlined cross-border co-operation. Such agreements mean that, for example, child maintenance obligations imposed by a court or public authority in one state can be recognised and enforced in another state; divorces can be recognised in other countries; and businesses feel confident entering into cross-border transactions knowing that, in the event of a dispute, there is a clear mechanism for deciding how it will be resolved and the outcome respected in different countries. Having internationally agreed rules on these issues creates legal certainty in cross border situations and saves time and costs, which benefits UK businesses, individuals and families.
	Since the 1920s the UK has entered into bilateral treaties with Commonwealth and European countries on recognition and enforcement of civil judgments, service of documents and the taking of evidence. In addition to this, the Hague Conference on Private International Law ("the Hague Conference"), founded in 1893, has been working "for the progressive unification of the rules of private international law", which cover civil, administrative and family proceedings. The work of the Hague Conference consists of developing new multilateral instruments and refreshing existing Conventions and guidance. The Hague Conference also supports States in the application of Conventions and works to promote wider accession by both member and non-member states. The UK has been a member of the Hague Conference for over 60 years and currently participates in 13 Conventions (a full list is provided at Annex C). Agreements containing PIL rules may also be negotiated through the Council of Europe, the United Nations Commission on International Trade Law (UNCITRAL) and the Institute for the Unification of Private Law (UNIDROIT).
	Multilateral conventions between European states on jurisdiction, recognition and enforcement of civil judgments and the law applicable to contractual obligations were adopted from the 1960s within the framework of the European Communities. The EU subsequently adopted a comprehensive set of internal EU PIL rules and exercises competence on behalf of EU member states to enter into several multilateral PIL conventions with third countries.
	PIL agreements cover a discrete area of law that is narrowly defined. Agreements on PIL are generally considered beneficial and are typically predictable in topic and scope. Key stakeholders, including representatives of the legal sector, have consistently made clear the importance of the UK continuing to take a leading role internationally on PIL.
	During the transition period, the UK has continued to participate fully in the EU’s extensive framework of PIL rules, including those international agreements to which the EU is the contracting party. The UK has taken the necessary steps to ensure its continued participation in two of the international agreements covered by section 1 of the Act, namely the 2005 and 2007 Hague Conventions (see paragraphs 11 to 16).
	From 1st February 2020, the UK has regained full competence to enter into international agreements on PIL in its own right. This will allow the UK to agree ambitious new PIL frameworks with international partners all over the world and to remain at the forefront of efforts to promote global cooperation and best practice in this area.
	As the UK develops its wider trading policy with the EU and rest of the world, agreements on PIL will be key to supporting cross-border commerce by providing businesses, investors and consumers with greater confidence that disputes across borders can be resolved in a clear and efficient way. This Act will ensure that new PIL agreements which the UK decides to join can be implemented in a timely manner as well as providing a clearer implementation of the 1996, 2005 and 2007 Hague Conventions from the end of the transition period (see paragraph 11). These measures, which are explained in greater detail below, will support the Government’s ambition for the UK to be at the forefront of the development of international cooperation and best practice on PIL with countries all over the world. The Act will also allow UK businesses, individuals and families to harness the benefits of new agreements as quickly as possible, after the Government has taken a decision to participate in any such agreement and subject to any necessary Parliamentary approval and scrutiny under the Constitutional Reform and Governance Act (CRAG) 2010 (see paragraph 29).