Treaty removes ‘physical barriers of bygone era’, CM says

Chief Minister Fabian Picardo laid the draft text of UK/EU treaty in Parliament in “a seminal moment”, he said, that provides certainty, fluid movement for people and the freeflow of goods.

Mr Picardo told Parliament this marks a new relationship with Europe that will enable Gibraltar to operate socio-economically in a way that will deliver opportunities for the success of current and future generations of Gibraltarians.

The 1018-page document was laid in Parliament and published on the Government’s website on Thursday morning, and Mr Picardo expects to move a motion to debate the text next week.

Mr Picardo outlined how the treaty will affect the economy, trade, frontier workers and movement, including the introduction of Schengen border rules in a tailored agreement between the UK and EU.

“We are removing the physical barriers of a bygone era of friction,” Mr Picardo said.

“But we are keeping the keys to our own front door firmly in our own pockets.”

“We choose cooperation, but we maintain control.”

He said local businesses have been briefed on new arrangements for goods to move in and out of Gibraltar and new rates of indirect taxation, although business organisations say they need more detail and clear explanations on the changes.

Mr Picardo acknowledged there will be a shorter transition than Gibraltar wished for businesses to adapt to the new criteria.

He said this is because the EU’s Entry Exit System will come into operation as from April 10 and the hope is to have the treaty provisionally implemented by then. With the treaty in place, Gibraltar faces a hard border and serious disruption at the border.

Mr Picardo said Brexit had left Gibraltar “exposed” and as “sitting ducks”, adding that the agreement “is not perfect”.

He said anyone asking whether this is the right agreement for Gibraltar, “should also ask themselves, what is the alternative?”

“This Agreement, imperfect though it no doubt is, therefore presents us with a viable, useful and enviable opportunity to leverage a position of weakness into a position of viability and growth,” Mr Picardo said.

“It provides a springboard to stability, certainty and modern partnership with the EU.”

“And it does so without affecting our fundamental, inalienable right to remain British in every respect.”

He stressed the need to avoid a hard border, adding that in a globalised world isolation is not independence but rather “a dead end”.

“By securing access to a market of 480 million people, we are giving our businesses the platform they need to compete and win,” he said.

“This isn't just about trade; it’s about a modern, vibrant Gibraltar taking its place at the heart of the European economy.”

The Agreement establishes further changes such as a bespoke customs model between Gibraltar and the EU, removing tariffs, duties and quotas on goods moving between them and an aviation chapter to enable flights between Gibraltar and the EU.

He also added the treaty has cleared the way for the equalisation of pensions for men and women at the age of 60, which will be given effect to in the next Appropriation Bill to be taken in the House.

He said that British Sovereignty was “not in any way compromised”, adding the treaty was achieved “working hand in glove” with successive UK administrations.

Mr Picardo pointed to articles in the treaty, underscoring that the agreement “makes absolutely clear” that nothing in the agreement or any supplementing arrangements shall affect sovereignty.

“This is the tightest ‘without prejudice’ clause which we have seen in the history of EU documentation on Gibraltar,” he said.

“But it is not the only reference to sovereignty in the text.”

Mr Picardo said the Agreement defines the overall purpose of establishing a mutually cooperative relationship between Gibraltar and the EU that promotes shared prosperity for Gibraltar and the surrounding region in Spain.

He said the agreement recognises shared values on the principles of democracy, the rule of law, and respect for human rights, as well as commitment to fight against climate change and cooperate on counterterrorism.

GARCIA AND BOSSANO

Deputy Chief Minister Dr Joseph Garcia called this a “watershed moment” in local modern political history, describing how the transitional agreement had shielded Gibraltar from the consequences of a hard Brexit.

When Gibraltar left the EU on January 31, 2021, the border did not suddenly harden and the transitional agreement the prevented a cliff edge, which protected jobs and livelihoods.

“There was no immediate rupture, no abrupt dislocation to daily life. And that was not accidental,” he said.

“The bridging measures which cushioned Gibraltar were the product of a sustained negotiation.”

“They were carefully designed to shield us from the most disruptive consequences of Brexit.”

Without an agreement, he said, there would have been permanent immigration checks, customs friction, biometric registration, electronic processing, and systematic controls.

Dr Garcia said the treaty must be judged not against theoretical perfection, not against the ideal, but against the realistic alternative.

“The only alternative to this text was a hard external Schengen border,” Dr Garcia said.

“More friction, greater cost, legal uncertainty, operational strain. The agreement replaces uncertainty with structure.”

Dr Garcia underscored that the disappearance of the physical frontier infrastructure does not mean the disappearance of the border.

“The framework provides for a structured cooperation, enhanced information exchange, strengthened law enforcement coordination and increased surveillance capacity,” he said.

He welcomed the publication of the treaty that provides Gibraltar with certainty, stability and a forward path.

“It is not perfect, but it represents a safe, secure and beneficial outcome for our people, and it possesses Gibraltar to move confidently into the next chapter of our history,” Dr Garcia said.

The Minister for Economic Development, Sir Joe Bossano, described how he remembered Gibraltar’s entry into the EU in 1972, describing how entering the EU helped Gibraltar bring down barriers and build an economy.

Sir Joe said there is potential for economic development, but that this does not guarantee results, highlighting the need to provide public services and maintain a strong economy.