Spain and United Kingdom Reach Agreement on Gibraltar

acerinox campo gibraltar

After three and a half years of negotiations, Spain and the United Kingdom, Brussels, and Gibraltar have reached a “definitive political agreement” on the Rock of Gibraltar. This agreement, which still needs to be ratified, will eliminate goods controls between Gibraltar and the EU via Spain.

“The Fence, the last wall in continental Europe, will disappear,” celebrated Albares, the Spanish Minister of Foreign Affairs. In order to “guarantee the future prosperity of the entire region,” the agreement aims to eliminate “all physical barriers, checks, and controls on people and goods circulating between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market, and the Customs Union.”

The agreement explicitly states the establishment of “dual” border controls—carried out by Gibraltarian and Spanish agents—at both Gibraltar’s port and airport. Meanwhile, all controls at the border crossing between Gibraltar and La Línea will be abolished “for the many thousands of people who cross it daily in both directions.”

The dual border control model has already been tested: as explained by the British Government, it will be implemented similarly to the system already in place with French police operating at London’s St. Pancras train station, from where the train connecting the British capital with Brussels and Paris departs. In Gibraltar’s case, Spain will be responsible for “carrying out full Schengen controls.” On the UK side, those full Gibraltarian controls will continue “as before.”

Albares announced that the agreement between the EU, Spain, and Gibraltar includes a fiscal convergence process because the Rock “will integrate into the customs union.” This aims to prevent indirect taxes applied in Gibraltar, “including tobacco,” from distorting competition in the area. In addition, the agreement reached this Wednesday includes commitments on a level playing field for state aid, labour, environment, trade, anti-money laundering, and transport—a point that includes the airport, an infrastructure that has always caused friction between Madrid and London.

“This is an agreement that benefits everyone and will bring legal certainty and confidence for people and businesses in the region,” highlighted European Commissioner Maros Sefcovic, who was responsible for the negotiations on the European side.

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The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.