The Agreement in respect of Gibraltar between the European Union and the United Kingdom was officially signed in Brussels on Tuesday, 14 July, with a ceremony to celebrate its entry into force. The Agreement is applicable from 15 July. This means that in practice it will take full effect and only one formality remains: ratification by the European Parliament.
Although the Agreement was signed by the European Union and the United Kingdom, Spain played a key role in the negotiations. The final text of the Agreement, which was published on 26 February, sets out a comprehensive legal framework to foster economic development, strengthen social guarantees and bolster cooperation between the parties, while Spain maintains its claim to sovereignty intact.
Removal of the Fence and free movement of people
The Agreement provides for the removal of the Fence, the last such division in continental Europe:
- The Agreement provides for the free movement of people between Campo de Gibraltar and Gibraltar, benefiting 300,000 Andalusians from the district of Campo de Gibraltar and the people of Gibraltar, and especially the 15,000 or so cross-border workers who travel between the two every day.
- There will be no passport controls between the two territories.
- Spain will assume responsibility for the Schengen controls at the airport and the port of Gibraltar.
- The Spanish authorities will have the last say on issuance and renewal of residence permits.
Free movement of goods
The treaty regulates movement of goods through a system of harmonized controls:
- Spain will perform the customs checks on goods entering Gibraltar.
- Luggage checks will be established for persons travelling to the European Union and Gibraltar, guaranteeing security and compliance with EU law.
Convergence in tax matters
- Gibraltar will introduce an indirect tax equivalent to VAT (“transaction tax”), starting at 15% upon the entry into force of the Agreement and increased over a three-year period until alignment is fully achieved.
- Specific rules for tobacco, in accordance with European law. These measures aim to prevent economic distortion and enhance equity throughout the area.
Environment
- The Agreement provides for adaptation to EU environmental law and for the creation of a joint environmental impact assessment mechanism.
- The Agreement ensures compliance with European environmental standards, strengthening protection of the shared natural environment.
Social guarantees and compliance mechanisms
Measures are included in the Agreement to ensure balanced and fair development:
- Creation of a financial mechanism to support training for employment and other social measures to offset income equality.
- Strengthened coordination on social security.
- Measures to specifically protect cross-border workers.
- Spain will perform a key role in the application of the Agreement, including with respect to remedial measures such as the suspension of its application, the application of safeguards, or termination of the Agreement.
- In addition, Spain is maintaining its position on sovereignty in full, as explicitly set out in the Agreement.