Historic agreement on Rock's post-Brexit future is 'a moment of progress, clarity and optimism'

A historic political agreement was reached on Wednesday for a treaty on Gibraltar’s post-Brexit relations with the EU.

The agreement comes after nearly four years of prolonged and intense negotiation and seeks to guarantee fluidity across the border for both people and goods, laying a foundation for cross-border prosperity.

Chief Minister Fabian Picardo said it represented "a moment of progress, clarity and optimism" for Gibraltar and its people.

The political agreement between the UK and the EU, which has yet to be turned into a final treaty text, was finalised in Brussels during a high-level meeting between UK Foreign Secretary David Lammy, European trade commissioner Maros Sefcovic, Spain’s Minister for Foreign Affairs Jose Manuel Albares and Chief Minister Fabian Picardo.

A clause agreed by all sides makes "explicitly clear" that the final treaty is without prejudice to the respective legal positions of the UK and Spain in respect of sovereignty and jurisdiction.

“The main objective of the future agreement is to secure the future prosperity of the whole region,” the four negotiating parties said in a joint statement.

“This will be done by removing all physical barriers, checks and controls on persons and goods circulating between Spain and Gibraltar, while preserving the Schengen area, the EU Single Market and Customs Union.”

“This will bring confidence and legal certainty to the lives and well-being of the people of the whole region by promoting shared prosperity and close and constructive relations between the Gibraltar and Spanish authorities.”

The spirit of the agreement was captured in a photo of the four politicians grasping hands and grinning as they stood in front of an EU flag.

It was shared on social media by Mr Picardo, Mr Albares and Mr Sefcovic.

For the UK and the EU, it reinforced the Brexit reset announced last month and the need for close cooperation at a time when the focus is on unity in the face of Russian aggression and the risk of war spreading beyond Ukraine.

For Gibraltar and Spain, it signalled hopes for better relations that will fuel economic prosperity on both sides of the border despite over 300 years of often fractious history.

There is no doubt the agreement will draw flak from many quarters, not least because it lacks the detail that both individuals and businesses are yearning for.

But there was also no doubt yesterday that the development delivered a fulsome boost to the goodwill and shared purpose that, for nearly four years, have driven this negotiation despite its obvious political sensitivity and technical complexity.

In comments to reporters, all four politicians stressed that from the outset, negotiators had kept at the forefront of their talks the interests of people on both sides of the border.

Mr Picardo said the most important factor was “the human aspect, the people who voted to stay in the European Union”, a reference to Gibraltar’s 96% vote for Remain in the 2016 Brexit referendum.

“We've got relationships across that frontier that go beyond business,” he told reporters.

“We needed to ensure that we did not become a victim of Brexit.”

For Mr Albares, it was about the 15,000 cross-border workers and the wider Campo communities who he hoped would find opportunity in this new relationship.

‘DUAL BORDER CHECKS’

The agreement foresees a fluid border between Gibraltar and Spain that will not require checks on people crossing.

The parties have agreed to establish “dual Gibraltar and Schengen border checks” at Gibraltar’s port and airport, to be carried out in full cooperation between the EU and UK/Gibraltar authorities, removing all checks at the border between Gibraltar and La Linea for the many thousands of people who travel across daily in both directions.

“For the EU, full Schengen checks will be carried out by Spain,” the joint statement said.

“For the UK, full Gibraltar checks will continue to be carried out as they are today.”

The parties have also agreed arrangements for visas and permits and close cooperation between the police and law enforcement authorities.

On goods, the parties agreed on the principles underpinning a future bespoke customs union between the EU and Gibraltar, “providing for strong cooperation between the respective customs authorities and removing checks on goods”.

There was also agreement on the principles of indirect taxation to be applied in Gibraltar, including on tobacco, that “will avoid distortions and contribute to the prosperity of the whole region”, the joint statement said.

“Other important areas of the future EU/UK agreement include level playing field commitments on state aid, taxation, labour, environment, trade and sustainable development, anti-money laundering, and transport – including the airport; the rights of frontier workers and social security coordination.”

“Specific cooperation will also be included in environmental matters.”

“The creation of an appropriate financial mechanism to promote cohesion and support training and employment in the region has also been agreed.”

In a separate statement, the Foreign, Commonwealth and Development Office said immigration and law and order in Gibraltar “will remain the exclusive responsibility of Gibraltar’s authorities”.

"Spanish officials will be responsible for ensuring the integrity of the Schengen Area, in a model similar to French police operating in London’s St Pancras station,” the FCDO statement said.

The agreement also guarantees "full operational autonomy of the UK’s military facilities in Gibraltar", which play a vital role in protecting regional security and important trade routes, the FCDO statement added.

The agreement also opens up the opportunity for flights to operate from Gibraltar airport to EU destinations, "increasing Gibraltar’s connectivity to the continent and improving its prosperity". 

The announcement came with little detail on the actual content of the treaty text itself, which is well advanced but has yet to be finalised before being translated into the EU’s 24 languages and undergoing legal checks.

Only once that is completed will the treaty be signed and published, a normal process that will likely take several more months, not least because the Commission shuts down for August.

Once that is completed, the treaty will have to be ratified by the UK, EU and Gibraltar parliaments.

Mr Sefcovic told reporters the treaty would be “swiftly” finalised by negotiators.

He said he was “absolutely convinced” the final treaty would be ratified “because it is a good agreement” that addressed “every little detail”.

DAWN START

The prospect of a significant announcement on Wednesday became evident when the Foreign Secretary flew to Gibraltar accompanied by Europe Minister Stephen Doughty late on Tuesday night.

The two travelled to the Rock on a UK Government passenger plane used to ferry UK Royals and ministers on official business, adorned with a union flag on its tailfin.

UK officials were at pains to temper expectations, stressing the negotiations were still under way.

But the highly unusual trip made clear something was afoot.

Mr Lammy and Mr Doughty participated in a cabinet meeting in No.6 Convent Place to agree the final parameters for the negotiation.

They also met with the Leader of the Opposition, Keith Azopardi, and with business and labour representatives, hearing directly from them about their hopes and concerns about Gibraltar’s relationship with the EU after Brexit.

From there they boarded the plane at Gibraltar International Airport together with the Gibraltar delegation and flew to Brussels.

The meeting with Mr Sefcovic and Mr Albares started a little behind schedule but was in any event short.

By 4.45pm, it was clear they were finally in agreement after a protected and complex negotiation that commenced in October 2021.

Mr Lammy said the agreement was a “breakthrough” after years of uncertainty and that the UK’s commitment to Gibraltar “remains as solid as the Rock itself”.

"This government inherited a situation from the last government which put Gibraltar’s economy and way of life under threat. Today’s breakthrough delivers a practical solution after years of uncertainty," he said.

“Alongside the Government of Gibraltar, we have a reached an agreement which protects British sovereignty, supports Gibraltar’s economy and allows businesses to plan for the long-term once again.

“I thank the Chief Minister and his Government for their tireless dedication throughout the negotiations. The UK’s commitment to Gibraltar remains as solid as the Rock itself.”

Chief minister Fabian Picardo called the deal a “historic agreement”.

“I’m delighted we have finalised a conclusive political agreement which will bring legal certainty to the people of Gibraltar, its businesses and to those across the region who rely on stability at the frontier," he said.

“I have worked hand in glove with the UK Government throughout this negotiation to deliver the deal Gibraltar wants and needs – one that will protect future generations of British Gibraltarians and does not in any way affect our British sovereignty."

“Now is the time to look beyond the arguments of the past and towards a time of renewed cooperation and understanding. Now the deal is done, it’s time to finalise the treaty.”

"As the only UK overseas territory which shares a border with the EU, today’s political agreement provides a practical solution for the unique situation faced by the people of Gibraltar whose livelihoods depend on a fluid border."

Mr Picardo said the agreement “will not depart from any fundamental principle”.

“It is about our future relationship with the European Union and with our nearest EU neighbour, Spain,” he said.

“It has come about because the United Kingdom voted to leave the European Union in 2016.”

“The UK already obtained its trade deal and this is Gibraltar’s own trade and mobility deal.”

“The Government of Gibraltar extends its sincere gratitude to all those who have worked tirelessly and with unwavering dedication over many years to help deliver this historic treaty.”

“We also wish to thank all those who have stood by Gibraltar throughout these negotiations, within the UK Government, across European institutions, and here at home.”

“This agreement is a moment of progress, of clarity, and of optimism for our nation and our people.”

“It also presents a chance for re-set between us and Spain which can lead to economic and social partnership and cooperation over confrontation.”

Spanish Foreign Minister Jose Manuel Albares echoed the messages from the UK camp.

"With this agreement, the fence — the last wall in continental Europe — will disappear, and the free movement of people and goods is guaranteed,” Mr Albares said, although while some of the border fence will be removed once checks are lifted there, most of the border will remain fence given it is adjacent to military and airport infrastructure.

"Today we have reached a historic agreement" that "marks a before and after for stability, cooperation and well-being," and "is also a new beginning in the relationship between Spain and the United Kingdom," he told reporters.

Mr Albares said "a shared prosperity zone has been achieved (...), with the 15,000 people who travel daily between Gibraltar and the Campo de Gibraltar and the 300,000 Andalusians in the area in mind."

Maros Sefcovic, the EU trade commissioner and chief negotiator for the Gibraltar treaty, said the agreement “clearly reflects a strategic and cooperative approach” by the UK and the EU “aimed at strengthening our relations” after Brexit and “reinforces a new chapter in our relationship”.

“There is no alternative given today’s realities and challenges,” he said.

Spanish Prime Minister Pedro Sanchez also welcomed news of the agreement.

"Today is a great day for the Campo de Gibraltar," he said, underscoring that Spain's core position on sovereignty - which the UK and Gibraltar rejevt - remained unchanged.

The President of the European Commission, Ursula von der Leyen, also reacted to news of the agreement.

In a post on X, she said: “It safeguards the integrity of Schengen and the Single Market, while ensuring stability, legal certainty and prosperity for the region.”

This is a developing story. Check back for updates.