The Withdrawal Agreement and Gibraltar: What it Means for UK and EU Relations
The Withdrawal Agreement between the United Kingdom and the European Union has been a hot topic since the UK voted to leave the EU in 2016. Negotiations have been ongoing since then, with both sides aiming to finalise an agreement that would outline the terms of the UK`s departure from the EU. One of the key issues in these negotiations has been the status of Gibraltar, a British Overseas Territory located on the southern tip of the Iberian Peninsula.
Under the Withdrawal Agreement, Gibraltar is classified as a “special case”, with a separate protocol outlining the specific arrangements for the territory. The protocol states that Gibraltar will be included in the transitional arrangements that apply to the rest of the UK, meaning that during the transition period (which runs until 31 December 2020), Gibraltar will continue to be part of the EU`s customs union and single market.
This means that trade between Gibraltar and the EU will continue as it does currently, with no tariffs or restrictions on goods and services. However, it also means that Gibraltar will be subject to EU laws and regulations during the transition period, even though it is not a member of the EU.
One issue that has caused concern for Gibraltar is the future status of its border with Spain. Currently, there is a border between Gibraltar and Spain, but it is open and allows for the free movement of people and goods. However, there have been fears that this could change after Brexit, with Spain potentially using its veto power to block any EU agreements that include Gibraltar.
Under the Withdrawal Agreement, the border between Gibraltar and Spain will remain open, with no additional checks or restrictions on movement. However, this arrangement is only guaranteed during the transition period. Once the transition period ends, the future of the border will depend on the outcome of negotiations between the UK, Spain and the EU.
Another issue that has been raised in relation to Gibraltar is its status as a tax haven. The EU has been cracking down on tax havens in recent years, and there have been concerns that Gibraltar could be added to the EU`s “blacklist” of tax havens. However, the protocol in the Withdrawal Agreement states that Gibraltar will not be subject to any restrictions on its tax regime during the transition period.
Overall, the inclusion of Gibraltar in the Withdrawal Agreement is a positive development for UK and EU relations. It provides certainty for the people and businesses of Gibraltar, ensuring that they will be able to continue trading with the EU as they do currently. However, there are still some uncertainties around the future status of the territory, particularly in relation to its border with Spain. The next few years will be crucial in determining the future of Gibraltar and its relationship with the EU.