Sand eel is set to take center stage in the first courtroom trade battle between the UK and EU since Brexit, reports the BBC.

The UK has banned European vessels from catching the fish in its North Sea waters, saying the move aims to protect marine wildlife that depend on it for food. However, the EU is challenging the move, arguing that it discriminates against Danish vessels that fish sand eel commercially, breaching the post-Brexit trade deal.

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EU wants formal talks with UK over sand eel fishing ban

The dispute is now heading for a three-day trade tribunal hearing after formal talks to resolve the wrangle failed. Without a last-minute compromise, it will mark the first time the two sides have gone to arbitration under the 2021 trade agreement.

The case is due to be heard by a panel of three mutually agreed-upon international trade judges from Jan. 28 to Feb. 1 at the Permanent Court of Arbitration, a dispute resolution body based in the Hague.

They could uphold the UK's position or order the UK to change or drop its ban, in which case Brussels could ultimately retaliate with tariffs on British exports if UK ministers refused to comply.

Under the trade deal, a final ruling must be delivered by the end of April, although it could be issued earlier. There is no right to appeal.

It comes as the UK prepares for tricky negotiations with the EU over new catch limits from June next year when current arrangements under the trade deal run out.

UK prime minister Keir Starmer is also hoping to persuade EU leaders to strike new deals in areas such as security and food trade as part of a wider "reset" in relations with the UK.