The prime minister has set a clear path for the UK: a hard Brexit that will remove the UK from the EU’s single market. Much has been written about the consequences for the economy, the Union, and the Irish border. Less consideration has been given to the impact on Gibraltar.
Gibraltar is a British Overseas Territory situated at the southern tip of the Iberian Peninsula. The territory was seized by English troops during the War of the Spanish Succession in 1704 and ceded by Spain to Britain ‘in perpetuity’ by the 1713 Treaty of Utrecht.
Gibraltar has a unique relationship with the EU. It does not participate in the customs union and is exempt from the EU’s common agricultural policy, common fisheries policy and VAT requirements. Essentially this means that Gibraltar has free movement of people, services and capital within the EU, but not of goods. As Gibraltar’s economy is largely service-based, it is not significantly affected by its non-membership of the customs union; its main industries are tourism, insurance, investment funds and online gaming.
Gibraltar’s economy is very much reliant on free movement, with around half of the total workforce commuting across the border each day. These workers faced significant disruption when the Spanish government introduced stringent border checks in 2013. Mariano Rajoy, the prime minister of Spain, has already told Theresa May that, whatever deal the UK negotiates with the EU, no special EU arrangements should apply to the Rock unless it signs up to a sovereignty deal.
Therefore, I see multiple dangers ahead for Gibraltar: loss of single market access; potential new border controls; a Spanish government with the ability to close or interfere with the Gibraltar-Spain border as part of Brexit negotiations.
Make no mistake, the Spanish government has already shown us that they will sacrifice their own citizens’ economic well-being to make a political point.
Gibraltar voted overwhelmingly to remain in the EU, and the chief minister has since argued for an arrangement with the EU that would see it retain free movement and full, unfettered single market access. Without such, I worry that a key UK territory could be compromised, which is why I welcome Open Britain and British Influence engaging with these issues now. Their paper, launched today, outlines six priorities the UK government should have for Gibraltar in negotiations.
Most important is retaining free movement of people on the Spanish border. Gibraltar recognises and encourages this free flow of people as fundamental to the proper functioning of its economy. Any stringent border controls would give Spain a brand new opportunity to lock Gibraltarians, and Spanish citizens, out at the border. This must be avoided. Indeed, the UK government should commit to ensuring that there will be no new border restrictions for Gibraltar in the same way that it has with Northern Ireland.
Securing maximum freedom for Gibraltar to participate in the single market is also essential. Given Gibraltar’s service-dominated economy, even a non-physical separation from the territory’s main trading bloc could be disastrous.
Gibraltar benefits significantly from EU funding. It is unclear how far the UK government would replace any of this funding stream, but there should be a commitment that there will be no reductions over the long term.
Minimising the risk of joint sovereignty over Gibraltar must of course be a priority. Only the Gibraltarian people will determine Gibraltar’s future, as they did in the 2002 referendum. Their enormous enthusiasm for both the UK and EU should be respected during the negotiations, and the UK government should guarantee that it will not agree to trade-offs or quid-pro-quos that harm Gibraltar or treat it as collateral damage. Certainly, the UK government must not agree to anything which dilutes Gibraltar’s sovereignty – we must protect their right to self-determination.
Finally, representation is also vital. Gibraltarian representatives should continue to be included and consulted at every stage of the UK’s negotiations with the EU where decisions may affect them, to guarantee the territory’s interests and to ensure that its status in the EU can be as protected as possible.
It is ironic that many of those in the UK parliament who are strong supporters of Gibraltar are also enthusiastic Brexiters. Now is the time for them to come forward with practical solutions, not just messages of support.
My message to the UK government is clear: Gibraltar’s Brexit priorities must be a central part of the UK’s Brexit plan. If departure from the single market will hurt Britain, it could devastate Gibraltar.
ENDS
(This article was published in today’s Times Red Box.)
