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BREXIT: POTENTIAL SIGNIFICANCE FOR LONDON-SEATED INTERNATIONAL ARBITRATION By John Magnin and Sean Kelsey (London) The UK’s Brexit decision has had a seismic political impact already. It will be some time before a number of its other consequences— including its legal consequences—become clear. For the moment, however, there is a clear consensus emerging that the vote for the UK to leave the EU is likely to have little, if any, impact on international arbitration. Indeed, at least as far as London as a legal forum is concerned, Brexit could potentially shift the balance substantially in favour of international arbitration, and away from litigation, at least in the short- to medium-term. The principal reason for this is the uncertainty that the 23 June 2016 vote has created, and will continue to sustain, pending clarification of the terms on which Brexit will be implemented, and a new relationship forged between the UK and the EU. As a result of that uncertainty, it remains unclear exactly how, and on what basis, judgments of the English courts will, in the future, be recognised and enforced by the courts of EU member states. For the moment, there is no change: English judgments remain enforceable under the Brussels Regulation recast (the “Regulation”), and will remain so either until such time as Brexit takes effect, 24 | K&L Gates: ARBITRATION WORLD or such earlier date as the UK and the EU may agree. It is not currently known when that will be. It is equally unclear what will happen afterwards. There are a number of hypothetical possibilities identifiable at present. All of them would, to some greater or lesser extent, broadly replicate the position as currently applies under the Regulation. Whether or not the UK joins the European Free Trade Area, or participates on some other basis in the European Economic Area, it could in theory accede to the Lugano Convention, which provides for a regime of cross-border enforcement of court judgments comparable with those under the Regulation. It is conceivably possible that the terms of Brexit result in the application of the predecessor to the Regulation, the Brussels Convention (the “Convention”) to the question of reciprocal enforcement of UK and EU court judgments (although