International Trade ♦ Online 62 Va. J. Int’l L. Online 1 (2021)

The Recovery of the City of London's Competitive Advantage in Global Capital Markets: Renouncing Inherited EU Law to Restore English Common Law

BEPI PEZZULLI AND RAFFAELLA TENCONI

In the aftermath of Brexit, British Prime Minister Boris Johnson and the ruling Conservative Party have formulated an ambitious political agenda called “Global Britain,” which calls for making the City of London the world's most competitive global financial services center and making the United Kingdom (UK) pivotal in international trade. The Global Britain agenda is predicated upon the restoration of full national sovereignty. Granted, the UK can now take back control of its law-making, but inherited European Union (EU) law remains part of the legal system and acts as a roadblock to Britain's newly set ambitions.

Soft power may help the UK achieve its global goals at the political level, but English common law has proven over the centuries to be Britain's most powerful tool of economic statecraft. Unless the UK renounces EU law legacy that encumbers English common law, it may hinder the success of the City of London as a global center for financial services and undermine its Global Britain agenda.

This Essay explains how and why English common law has helped the UK build a competitive advantage in the financial services sector, allowing it to punch above its weight in international trade. It also illustrates the correlation between legal systems and capital market efficiency. Finally, it calls for the restoration of English common law in full.