The States could now face a substantial bill for costs following a three-and-a-half-year legal battle that began in the Royal Court and reached the European court in Luxembourg.
Economic Development Committee president Deputy Gerald Voisin says the States’ bill for handling the challenge by the Jersey Potato Marketing Organisation Ltd is almost certain to run into six figures.
And the judgment could have ramifications for other agreements between Jersey and the UK, as Deputy Voisin says the court has effectively ruled that agreements between the UK and Jersey could come under the remit of the EU.
On Tuesday the court ruled the Jersey Potato Export Marketing Scheme (JPEMS) illegal because it forced producers to register with the Jersey Potato Marketing Board if they wanted to export potatoes, and because the board could levy fees based on the quantity produced and the amount of land in use.
They said it fell under EU jurisdiction because potatoes could be exported to the UK, and then re-exported to other member countries.
