Four years of deep negotiations marked by tug-of-war, tension and fear of not being able to reach an agreement that would leave British and Spanish citizens in limbo on both sides of the Fence. Gibraltar. That path was completed in June of last year when that regulates the future relationship -actually current, because the British exit from the European Union has been a reality for five years- between the colony of the United Kingdom and Spain.
This Thursday, the latest aspects of the international agreement that were unknown until now. Different media, such as have had prior access to the final text of a treaty in which it is confirmed that Spain will have greater control over these relationships and movements of people in a scenario in which – the greatest novelty of all – the Gate will be demolished to create an area of free movement within the Schengen area.
Madrid will have the last word on an issue that until now is the sole responsibility of the British authorities, the veto on travelers and those people from third countries who apply for or renew their residence permit in the colony. It will be a , provided that it alleges that it has identified a potential risk to security, public health or international relations itself.
However, this agreement is accompanied by another series of issues that make up a relationship that will unite the United Kingdom and the Gibraltarian authorities with Spain through legal, economic-commercial, political and institutional links. The agreement goes beyond tearing down a wall, since it seeks to lay the foundations to build a future based on the following keys.
‘Lower the Gate’? No, demolish it: what about the 15,000 daily cross-border workers?
The great headline that accompanied the agreement is well known, the end of the fence of Gibraltar, “the last wall of continental Europe”, as the Minister of Foreign Affairs, José Manuel Albares, defined it this morning. Article 7 of this agreement states that “all physical barriers will be removed in application of the plan contained in the administrative agreement between the United Kingdom and Spain regarding Gibraltar”, although it should be remembered that the demolition was already expected for last January.
It’s the great news for the 15,000 cross-border workers that every day they are obliged to carry out the control to access both sides. An issue that greatly affects Spain and the inhabitants of Campo de Gibraltar, since 10.000 of them are spanish. Furthermore, these will have the same rights as the Britishso they cannot be discriminated against in matters such as employment, remuneration or working conditions, in addition to social benefits and taxes.
Is sovereignty mentioned?: towards close collaboration with the cooperation council and cohesion fund
Another of the most difficult issues whenever we have to sit down and talk about Gibraltar is the question of the -British- sovereignty of the colony. The first article of the agreement states that the meta go through the shared prosperity and establish close and constructive relationships, but the second article makes it very clear that the previous will not be able to stand to any question about the debate of the sovereignty.
It is a matter of legal safeguard for future conflicts or those disputes that are in court. Nothing contained in the agreement can serve for the claims of Spain and the United Kingdom regarding jurisdiction and sovereignty, so they are also deactivated as legal arguments for eventual demands that may arise.
But this close collaboration will also materialize in the form of joint political bodies such as the future Cooperation Council. This body, which must meet annually for the application and development of the treaty through joint recommendations and decisions, will be made up of a European commissioner and a minister from the United Kingdom. Fundamentally, they will address issues related to free movement, trade and aviation.
On the economic level, a cohesion funda financial mechanism contained in article 299 of the treaty and that must be developed subsequently. It is not specified how much the contributions of each party will be to promote investments in areas related to work and training. It is made clear that it will be accompanied by control measures so that fraud or illegal activities do not occur with these economic injections.
The airport obstacle has been overcome: who will manage it and who will carry out police control?
During the long conversations, there was a monumental obstacle in what has been one of the biggest points of friction in recent decades between London and Madrid: the airport built on an isthmus that the United Kingdom claims as its own. The solution to the conflict has been based on the recipe of shared management. Travelers arriving in Gibraltar by boat or plane must undergo the control of both the Gibraltar and Spanish police.
These controls will be carried out in the airport space and both parties, that is, both police forces may deny entry in the Rock of travelers, even whether they are British or Spanish or from third countries. Of course, Spain will not be able to deny entry to citizens of the Schengen area. In this way, those Gibraltarian residents or residents of community countries will have automated controls to avoid generating queues and delays. Also They will be able to access without a visa in Gibraltar for a maximum of 90 daysin a period of 180.
As for one’s own airport managementit will be a business alliance of both countries -specifically, in the format of joint venture-, which must also have its headquarters, necessarily, in a country of the European Union. This company will not only deal with the supervision and facilities managementalso of the tenders for operations daily.
Finally, another historical problem is also overcome. The United Kingdom does not welcome the fact that Spanish police officers are on the Rock in uniform, an issue that will be avoided with the controls carried out in the airport facilities. Another recurrent shock is the one generated by those british military or from other countries visiting Gibraltar. Now They will not have to go through controlsthey must show a document that identifies them at the entrance and the relevant order of the Ministry of Defense from the United Kingdom. Of course, London must inform Spain of these movements through liaison officers.
Residence permits: Spain will have the right to veto in these cases
Regarding the great novelty, that right to veto with which he will come to count Spain about the third country citizens who wish to access Gibraltar or want get or renew your residence permitthe requirement will be that a potential risk to security, public health or international relations is detected. But it also affects community powers by opening another area of free movement that concerns all the countries of the Union, in addition to Iceland, Liechtenstein, Norway and Switzerland.
As it is a treaty that involves opening the Schengen area to a country that decided to leave the community club, the final text must be put to a vote both in the British lower houseas in Strasbourg, in the European Parliament. Furthermore, the agreement will also go through the gibraltarian assemblyalthough it will not be necessary for it to be voted on in the Spanish Congress when resolved in the community bodies.
Gibraltar ‘gets VAT’, from Brexit to returning to the Customs Union and having a new tax
The authentic revolution, beyond the aspects of free circulation, explodes at the level of taxes and customs. Gibraltar will have to go through the hoop of community taxes. What does this mean? That will enter the customs union of the EU, but also You will have to establish a VAT on your products. In general terms, Gibraltarians win in terms of get rid of the bureaucracy of controls on the free movement of goods and merchandise.
But there will be internal controlthe location of the centers where the review of the products that are going to enter or leave the Rock will be carried out, which will be in La Línea de la Concepción, Algeciras and Saguntowith the possibility of opening another facility in Portugal. Inspections may also be carried out by European authorities to ensure that there is no non-compliance with the rules of the single market. The possibility is also reserved for Brussels to re-establish the old controls in the event of conflicts in this matter.
Regarding VAT, Gibraltar will have a new tax this spring. From April you will have to implement the Transaction Taxan equivalent to the community tax. To avoid cases of dumpingthis tax may not be lower than the minimum VAT rate applied by any member of the Twenty-Seven. The first year it will be 15%, to go to 16% in the second and 17% in the third. The door is opened for the British authorities to set super-reduced rates on some products, but, in general, the reduced rate can never go below 5%.
Police cooperation between both parties and a plan to ‘smoke out’ tobacco smuggling
Police cooperation does not remain only in the airport area. Joint patrols and operations are coming, in addition to a reinforcement of collaboration within Europol and the courts. But not only that, because from now on both surveillance and persecution of any person may continue that crosses the border, but have committed any of the crimes that will be included in a list. It prevails for both Spanish and British agents.
The problem of tobacco smuggling in the Rock of Gibraltar, an issue that will seek to be resolved from the fiscal level, specifically, by betting on a progressive tax harmonization in said product. That is, with a new special tax which as a rule will have to meet this minimum: it will not be able to go below 115 euros for every thousand cigarettes.
The text of the treaty states that “the price difference [entre ambos mercados] resulting from the application of the special tax will not exceed 0.80 euros or 15% per packagewhichever makes the least difference.”
Gibraltar will have to level up in the fight against climate change: what about seabed landfills and floating gas stations?
If it seemed that the economic aspects and free movement of people were one of the most difficult issues to address at the negotiating table, what was agreed on environmental matters suggests that it has been another highly complex issue. In this sense, Gibraltar will also assume community commitmentsmainly in terms of protection and emissions.
The Gibraltarian authorities are committed to maintaining environmental protection standards which should be similar to those in Brussels. In the same way, another of the changes that you must introduce goes through a carbon equivalent pricing system to the community. These are issues that most affect the problem of business competition between the requirements on both sides of the colonial border and in which it is striking that important environmental demands are not included.
For example, does not limit cement fills to increase the Gibraltar maritime space, which represents a direct attack on the work and livelihood of Spanish fishermen. It also does not addressthe practice of refueling in ‘floating gas stations’ or the unloading and mobilization of nuclear weapons in port, by British submarines.
