{"id":206578,"date":"2025-06-23T02:23:08","date_gmt":"2025-06-23T02:23:08","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/206578\/"},"modified":"2025-06-23T02:23:08","modified_gmt":"2025-06-23T02:23:08","slug":"the-last-piece-of-the-eu-exit-jigsaw","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/206578\/","title":{"rendered":"The Last Piece of the EU Exit Jigsaw?"},"content":{"rendered":"

Brexit has had numerous consequences, many of which were scarcely discussed in the lead-up to the 2016 referendum. The British Overseas Territories<\/a> (BOTs) were not exempt from the repercussions following the decision to leave the European Union (EU). All BOTs maintained a formal relationship with the EU through the 2013 Overseas Association Decision<\/a>, which provided a range of benefits\u2014including economic and environmental cooperation, development assistance, policy dialogue, and the free movement of goods, services, and people. For Gibraltar, the end of free movement raised concerns about the future of its open border with Spain. Interim measures were introduced to maintain a \u2018fluid\u2019 border when the UK formally exited the EU in 2020. However, without a comprehensive agreement, there remained a real risk that the border would become much harder\u2014especially with the EU\u2019s upcoming implementation of the new Entry\/Exit System<\/a> (EES).<\/p>\n

Indeed, there were signs that managing the border was becoming increasingly difficult. For instance, Spanish authorities began to intensify checks<\/a> on people crossing the border, resulting in long delays and queues. Approximately 15,000 people commute daily from Spain to Gibraltar for work, comprising over half of Gibraltar\u2019s workforce. Additionally, waste disposal<\/a> in Gibraltar was becoming more problematic, as much of it is transported across the border. Many older Gibraltarians recall the border closure<\/a> between 1969 and 1982, a decision made by General Franco. Although Gibraltarians demonstrated flexibility and resilience in adapting to the closure, it caused significant short- to medium-term economic hardship and separated families and friends. Spanish workers also suffered during this period. The desire to protect the economies of both Gibraltar and Spain was therefore a key factor in the push to secure a post-Brexit agreement.<\/p>\n

Negotiations that began under the UK Conservative Government were protracted, with key obstacles including the precise role of Spanish officials conducting Schengen checks in Gibraltar and the status of Gibraltar Airport, which also serves as an RAF base. However, on 11 June 2025, an agreement<\/a> was reached on the core aspects of a future treaty. The overarching goal is to enhance prosperity across the Gibraltar\u2013Spain region by removing physical barriers and checks on people and goods, while safeguarding the Schengen Area, the EU Single Market, and the Customs Union. The hope is that the deal will provide legal certainty, stimulate economic growth, and strengthen cooperation between Gibraltar and Spain.<\/p>\n

More specifically, the agreement includes the following commitments: First, joint border checks at Gibraltar\u2019s port and airport will replace controls at the Gibraltar\u2013La L\u00ednea crossing, easing daily travel. Spain will conduct Schengen checks, while Gibraltar will maintain UK checks. One outcome<\/a> of this will be that UK nationals visiting Gibraltar will be counted as part of the time-limited allowance (90 days) for short stays in the Schengen area. Second, a customs union between Gibraltar and the EU will eliminate goods checks and ensure tax alignment\u2014particularly on tobacco\u2014to prevent market distortions and support regional development. Third, guarantees on fair competition in areas such as labour, the environment, anti-money laundering, transport, and social security. The agreement also establishes a financial mechanism to support training, employment, and regional cohesion.<\/p>\n

    \n

    On announcing the agreement, UK Foreign Secretary David Lammy<\/a> said: \u201cAlongside the Government of Gibraltar, we have a reached an agreement which protects British sovereignty, supports Gibraltar\u2019s economy and allows businesses to plan for the long-term once again\u201d. He also took a swipe at the previous Conservative government: \u201cThis government inherited a situation from the last government which put Gibraltar\u2019s economy and way of life under threat. Today\u2019s breakthrough delivers a practical solution after years of uncertainty\u201d. Gibraltar\u2019s Chief Minister, Fabio Picardo<\/a>, who played a central role in the negotiations, also welcomed the deal. While Jos\u00e9 Manuel Albares<\/a>, the Spanish foreign affairs minister, said it would bring down \u201cthe last wall\u201d on the continent.<\/p>\n

    To her credit, Conservative Shadow Home Secretary, Priti Patel<\/a>, did not dismiss the deal, but reserved judgement until full details were available. However, others on the right went to their usual default position. Former Tory Home Secretary Suella Braverman<\/a> said: \u201cWe are absolutely furious about this deal. It\u2019s another unbelievable and unimaginable betrayal\u201d. Reform UK<\/a> described the agreement as a \u201ctotal surrender\u201d, while Conservative Armed Forces spokesperson Mark Francois<\/a> declared: \u201cFirst Chagos, now Gibraltar\u2014and next, probably the Falklands. Labour used to sing The Red Flag\u2014now they just wave a big white one instead\u201d.<\/p>\n

    Previously<\/a>, I have argued that this narrative\u2014linking decisions about one BOT to others\u2014is misleading and overlooks the important differences between them. Many Brexiteers\u2019 opposition to this deal is a classic case of wanting to \u2018have their cake and eat it.\u2019 They voted for Brexit (which Gibraltar<\/a> strongly opposed), demanded a hard Brexit, yet seem either unable or unwilling to acknowledge and address the problems it has caused. Without a pragmatic border deal, Gibraltar\u2019s political and economic position\u2014which the right claims to staunchly defend\u2014would almost certainly have been hurt longer term. Right-wing voices<\/a> in Spain are also opposed to the agreement, but they feel it concedes too much to the UK and Gibraltar.<\/p>\n

    Interestingly, this is not the first instance in which a complex border issue has been successfully addressed between the UK and an EU member state. The Sovereign Base Areas (SBAs) of Akrotiri and Dhekelia<\/a>, located on the southern coast of Cyprus, form a single BOT. These areas were retained by the UK following Cyprus\u2019 independence and are home to a non-permanent British population as well as a permanent Cypriot community. Prior to Brexit, the border between the SBAs and the Republic of Cyprus was entirely open. Given the unique characteristics of the territory, it was essential to maintain this openness. To preserve the status quo, a specific Protocol<\/a> was included in the Withdrawal Agreement negotiated under Prime Minister Boris Johnson. This Protocol ensures the continued application of EU law in key areas such as taxation, goods, agriculture, and fisheries within the SBAs, with enforcement carried out by the Republic of Cyprus.<\/p>\n

    Although Gibraltar has been described as \u201cthe last piece of the EU exit jigsaw<\/a>,\u201d several Brexit-related issues concerning the BOTs remain unresolved and, hopefully, will soon be addressed. Perhaps the most pressing of these involves the Falkland Islands and its fisheries exports to the EU. At the time of Brexit, none of the BOTs were included in the UK-EU Trade and Cooperation Agreement. While only a few BOTs engage in trade with the EU, the Falklands is a notable exception\u2014particularly in its trade with Spain. Over the years, the Falklands has developed strong ties with Spanish fishing fleets and importers. As a result, more than 90% of the fish caught in its waters\u2014primarily Loligo squid and various finfish\u2014are exported to Spain. This industry is vital to the Falklands\u2019 economy, contributing around 40% of the government\u2019s annual revenue. It is also significant for Spain, which sources over 30% of its imported calamari from the Falklands.<\/p>\n

    Before Brexit, Falklands fisheries exports entered the EU tariff-free. Now, they are subject to the EU\u2019s common external tariff, which ranges from 6 to 18%, amounting to approximately \u20ac15 million annually\u2014a substantial burden for a small economy. There is hope that, as part of a broader reset in UK-EU relations, the trade status of the BOTs can be improved. In a recent parliamentary response, David Lammy<\/a> stated, \u201cwe are always seeking to reduce tariff burdens for our overseas territories, and we are in ongoing discussions with the European Union in particular\u201d.<\/p>\n

    Further Reading on E-International Relations <\/p>\n","protected":false},"excerpt":{"rendered":"Brexit has had numerous consequences, many of which were scarcely discussed in the lead-up to the 2016 referendum.…\n","protected":false},"author":2,"featured_media":206579,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[802,2000,299,5187,14093,104,15],"class_list":{"0":"post-206578","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-brexit","9":"tag-eu","10":"tag-europe","11":"tag-european","12":"tag-gibraltar","13":"tag-spain","14":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114730303735102590","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/206578","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=206578"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/206578\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/206579"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=206578"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=206578"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=206578"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}