UK legal services exports see significant increase despite disruption
A recent report has revealed that UK legal services exports rose from £6.27bn in 2020 to £9.02bn in 2024 – a significant increase despite the disruption of Covid-19 and Brexit.
The figure – published in a report by the Law Society of England and Wales in September – represents the value of work carried out by the country’s lawyers working overseas or for foreign clients within the UK. By most estimates, the legal services market in the UK is the second-largest in the world, behind the US, and brings in billions of pounds annually through domestic and international work.
While legal services imports into the UK have dipped in the past three years, this figure is also up on a five-year basis – resulting in increasing trade balances from work carried out by lawyers. The increase also comes despite the UK experiencing sluggish economic growth overall in the same period, according to statistics from the World Bank.
‘English common law is so dominant in international markets, English as a spoken language continues to dominate and [the English legal system] continues to dominate in contracts and common law. That’s the driving force,’ says Paul Marmor, Co-Chair of the IBA Law Firm Management Committee. ‘The perception that the English judiciary are second to none and that the judiciary is unimpeachable beyond corruption and works to the highest standards continues to prevail, such that people are comfortable with English law in their contracts.’
Marco Cillario, International Policy Manager at the Law Society of England and Wales, highlights that in around 30 per cent of cross-border transactions neither party has enough leverage to impose their legal system on a contract – and the majority in those situations continue to use English law. They also have the certainty that any litigation will be overseen by independent, business-minded judges.
Although, post-Brexit, it can be more difficult for UK lawyers to market their services overseas – and to enable foreign lawyers to maintain a presence in the UK – Cillario says the country’s government has made it clear that it values legal services. The free trade agreement with the EU, for example, includes a section on legal services that specifically protects the ability of UK solicitors to practise in Europe. ‘The sector has been incredibly resilient to the shocks Brexit has caused,’ adds Cillario.
Marmor, who’s a partner at UK firm Sherrards, says the Law Society and the Bar Council of England and Wales have both been strong advocates internationally for the legal profession. ‘We’ve got strong voices and that’s a testament to both the Law Society and the Bar Council,’ he says, noting that ‘between them they’ve done an extraordinary amount of good in championing the UK’s standing in the world legally.’
‘They’re very good at trying to push down doors in allowing the English profession to practise overseas,’ adds Marmor. ‘Even if they’re not going to change a country’s views overnight they’re still establishing relationships early on, and they’re very good at proliferating relationships so that English law firms can operate overseas.’
In the international arena […] the essential element is the connection between the domestic and the international lawyer
Tomislav Šunjka
Member, IBA Legal Practice Division Council
In some jurisdictions it takes longer to establish the regulations allowing firms to establish on-the-ground presences. And where it’s harder for international firms to practise, there’s a stronger likelihood that they’ll pull out of that jurisdiction. Such has been the case in regions such as central and eastern Europe, where numerous international firms have slimmed down their presences or left in recent times.
Tomislav Šunjka, a Member of the IBA Legal Practice Division Council, says he’s seen relatively little use of English law in his region in recent years. ‘I see English law being used less on a daily basis, and I believe its use will continue to decline in the future,’ he says. Šunjka notes the increasing presence of Chinese investors in central and south-eastern Europe, adding that they insist on arbitration under the International Chamber of Commerce in Paris and refuse to accept the jurisdiction of the London Court of International Arbitration.
‘Their reasoning is that they do not trust English arbitration; they prefer something they perceive as more neutral – a view with which I professionally disagree,’ explains Šunjka, who’s the Founder of Serbian firm Šunjka Law. ‘I recently handled cases before GAFTA Arbitration, where English law was agreed as the governing law, and my experience was entirely positive.’
The Law Society figures also indicate a slow decline in the number of international arbitration and commercial court cases coming to London, although the city remains the key centre for cross-border disputes worldwide. Centres such as Singapore and Hong Kong are experiencing a consistent increase in litigation, which in the long term could boost the value of legal services to those jurisdictions. It’s notable, however, that English common law is often the foundation of systems being used elsewhere in the world.
Ultimately, soft diplomacy and relationship-building appear key to the legal profession maintaining the value of what they’re selling, regardless of where they’re offering it from and to whom. ‘In the international arena, it is crucial that the relationship is not only between the client and the domestic lawyer – the essential element is the connection between the domestic and the international lawyer,’ says Šunjka. He explains that if communication between them is difficult, the client won’t ultimately receive what they expect or what’s in their best interest.
Marmor highlights that English law firms have led the internationalisation of the profession over the past few decades but can still learn from their counterparts in accountancy and consultancy in terms of developing relationships. ‘It has helped that British firms are ambitious [and] willing to get on and get out there globally,’ he says.
He also says that overseas students reading law in the UK help act as ambassadors once they qualify, and praises universities for their role in building the soft power of the legal profession.
Cillario says the Law Society will continue to campaign for minimal barriers to entry, and to ensure lawyers can travel in and out of the UK to provide their services. ‘If you remove the barriers to exports you will see exports grow, because we know the product is strong,’ he says.
Mark Evans, President of the Law Society of England and Wales, adds that while the UK is ‘a leading international legal centre,’ there’s a need for the government ‘to invest more in the country’s court infrastructure and people to ensure we maintain our global standing.’
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