Gibraltar will remain British but must follow EU rules under its new Brexit deal, the full legal text of the agreement has revealed.
Madrid deems the British Overseas Territory as Spanish but Article 2 of the deal says nothing signed “shall constitute the basis for any assertion or denial of sovereignty” over the Rock, despite the removal of its land border with EU member Spain.
Despite the “sovereignty clause”, Gibraltar, which was ceded by Spain to the British crown in 1713 under the Treaty of Utrecht, must align with EU single market rules and be subject to the jurisdiction of the European Court of Justice.
Cigarettes and alcohol will no longer be as cheap on the Rock as minimum EU excise rates will be applied from April 10, when the deal enters into force.
The agreement ensures Gibraltar’s border with Spain remains open and the 15,000 people and workers who cross it every day will not need to have their passports stamped.
Border checks will be moved to Gibraltar’s airport as the Rock effectively becomes part of the EU’s Schengen zone of passport-free movement.
Show passports twice
The Telegraph had previously revealed Spanish border guards would have the final say on whether a UK citizen could enter the territory.
British tourists entering Gibraltar will have to show their passports twice, once to a Gibraltarian and again to a Spanish guard, as part of a “dual” entry system.
That was confirmed in the legal text which was first reported by El Confidencial, a Spanish newspaper.
Spanish guards would be able to “make arrests and take other coercive measures”, the text said.
The deal also allows British military personnel to enter and leave Gibraltar and by extension the EU’s Schengen Area without passports, visas or checks.
Spain and the EU will not be able to monitor British or allied military operations after London made unrestricted control of the naval base and the military airfield a red line.
Gibraltar will enter into a bespoke customs union with the bloc, which will allow for free movement of goods between it and EU member Spain.
Gibraltar will introduce a new transaction tax on imports or the manufacturing of goods in the territory, starting at 15 per cent and reaching 17 per cent in 2028.
There is currently no VAT on goods manufactured in Gibraltar , which have traditionally been lightly taxed.
Customs processing for imports and exports will take place at designated customs points on the EU side, listed in the treaty as Algeciras, La Linea, Sagunto near Valencia and a further location in Portugal still to be designated.
The deal protects Gibraltar residents and Spaniards from post-Brexit rules that limit visa-free travel to 90 days every 180 days by removing the border.
Spanish workers are vital for Gibraltar’s economy, and the Rock is a vital source of employment for the poor region that neighbours it.
Via The Telegraph
