Eurotunnel withdraws suit after $43 mn Brexit deal

London, March 1

The UK government agreed Friday to pay £33 million ($43 million) to settle a lawsuit that claimed it improperly awarded contracts to run extra ferry services in the event that Britain leaves the European Union without an agreement on future relations.

Eurotunnel filed the suit after the government announced three contracts to provide additional ferry capacity for trucks, including one with a company that had no ships.  Eurotunnel alleged it had been unfairly excluded from bidding on contracts totaling £108 million.

The settlement agreement requires Eurotunnel to improve security and traffic flow at the border, helping to speed the flow of urgent shipments, as well as the goods needed by British businesses, the government said.

“While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world,” Transport Secretary Chris Grayling said while announcing the settlement.

Eurotunnel said the agreement “enables the development of infrastructure, security and border measures that will guarantee the flow of vehicles carrying urgent and vital goods.” — AP