‘Treaty will deliver certainty, security and stability to Gibraltar’, Deputy Chief Minister tells Parliament

A UK/EU treaty on Gibraltar’s future relationship with the bloc will bring certainty, security and stability, a closer relationship with the EU, and has cushioned from the worst effects of Brexit, the Deputy Chief Minister Dr Joseph Garcia told Parliament on Tuesday.

Dr Garcia delivered his budget address focusing on a future treaty and the measures within the political agreement.

He outlined transitional changes which Gibraltar will see as a treaty comes to fruition, while recognising concerns from the public.

“It is not unusual to worry about the prospect of change,” he said.

“The Government understand this. The message to the public from their Government is that the matter is in hand and that there is nothing to worry about.”

Dr Garcia highlighted that the Government has devoted thousands of hours to protect and cushion Gibraltar from the full impact of life outside of the European Union.

He recognised that this is a period of global instability, and knock-on effects on the other side of the world will affect Gibraltar, including the cost-of-living crisis, inflationary pressures, and war in Europe.

“We need to be conscious of the world we live in,” he said.

For negotiators, the political agreement for Gibraltar was starkly different to the relationship the UK set out with the EU.

Dr Garcia said that while the UK’s deal focused on goods, Gibraltar wanted a very different trade and mobility deal focused on persons.

“The UK wanted barriers, controls and check-points,” he said.

“Gibraltar wanted no barriers, no controls and no check-points. The UK wanted to curtail workers from the EU.”

“Here 15,000 cross border workers contribute to the existing economic model. So Honourable Members should not underestimate the first challenge we faced.”

He said the treaty will bring closure to the period of disruption which opened with the 2016 Referendum and that the new relationship tailor-made falls short of membership.

Although Gibraltar will not join Schengen, what has been negotiated is effectively a common travel area with the Schengen zone, allowing for “unparalleled fluidity” where Gibraltar residents will enjoy the best of both worlds.

Dr Garcia described how the EU Entry Exit System, EES, is set to be implemented in October.

This will provide for the electronic scanning of passports as opposed to traditional wet stamping. EES is an EU-wide measure where machines will replace immigration officers.

Dr Garcia said there are serious concerns that the new electronic systems may collapse entry points in and out of Schengen.

EES is a two step process, where travellers are expected to register in a booth, which involves biometrics, fingerprints, facial scans and other relevant data.

The second step will see the traveller will then proceed to an e-gate to scan their passport in order to enter or leave the EU.

The first-time registration is expected to take longer and this two-step approach of booth followed by scanner will remain each and every time a non-EU traveller, or resident, enters or exits Schengen.

“In the context of the land border between Gibraltar and Spain, that would have translated into lengthy delays for persons and vehicles,” he said.

Dr Garcia said the new treaty will spare Gibraltar from this hard border scenario as local residents will be exempt from the EES.

He also underscored that the removal of immigration or customs controls will not lead to less security, and that “in fact it will mean the very opposite”.

There will be a new sub-police station near the border, facial recognition technology, number plate recognition cameras, and law enforcement patrols.

Access points to Gibraltar will remain the same, namely Kingsway Tunnel and the airport runway.

“Those narrow access points are a solid guarantee of our enduring safety and security,” he said.

“That geography will facilitate and simplify any electronic and physical monitoring of persons and vehicles.”

Dr Garcia said a unique system of dual immigration controls will be implemented. And Gibraltar will remain responsible for its own immigration controls.

A new building will straddle the border “equidistant into Gibraltar and into Spain” and the airport will become the new border crossing point into the whole of the European Schengen area.

“Gibraltar residents who choose to fly from here to the Schengen zone, will enjoy another bonus of a common travel area,” he said.

“When flying to Paris, Rome, Madrid or Barcelona, they will not be subject to immigration controls at all.”

He added that Gibraltarians and local residents cannot be refused entry into Gibraltar and the Schengen authorities will not be able to arrest or detain Gibraltarians or local residents.

When it comes to goods, the treaty will mean Gibraltar will not join the Customs Union, there will be no VAT, but instead import duty by another name, a transaction tax will be levied at the lowest rate in the EU.

Dr Garcia said adapting to a Treaty will be a test for citizens and businesses.

“The Government does not underestimate this for one moment,” he said.

“It will require changes to the way in which interact with the European Union. Yet no Treaty at all would take this challenge to a whole new level. I think the business community has understood that. So change is inevitable. One way or the other. Treaty or no Treaty. And one thing is abundantly clear. The certainty afforded by a Treaty outcome will be better for citizens and for businesses as well.”

The treaty will also result in major difference in local aviation as previously flights from Gibraltar an the EU have traditionally been blocked by Spain.

The agreement will eliminate that veto and create the framework for new, direct connections to airports in the European Union.

A joint-venture will be set up in Ireland on a 50/50 basis between Gibraltar and Spain.

The Irish company will award a tender for a separate commercial company to operate the airport.

“It will not have ownership of the terminal. This will remain with the Government.”

Reflecting on the agreement as a while, Dr Garcia said there is absolutely no treat to Gibraltar’s sovereignty, jurisdiction or control.

He stressed that the treaty is safe, secure, and beneficial to Gibraltar.

“A very tough opening clause will protect our position on sovereignty,” he said.

Dr Garcia said the treaty has come at an emotional toll to all those involved in the negotiations.

“We have laughed and cried together in the rollercoaster of emotions that the last few years have been,” he said.

“And we have experienced the tension, endured the stress, resisted the pressure, and shared many moments of high drama. This all-consuming process took its personal, mental, physical and emotional toll. And this can only be really understood by the people who have lived it.”

“Will bring certainty and stability to Gibraltar, through a new relationship with the EU that falls short of membership.”