EU and UK sign Treaty on Gibraltar, to be provisionally applied this Wednesday

Eduardo González The European Union and the United Kingdom signed the Treaty on the future status of Gibraltar after Brexit this Tuesday in Brussels. The treaty envisions the removal of the border fence, the last wall on the European continent, and eliminates passport controls between the two territories. The agreement will be provisionally applied starting this Wednesday, coinciding with the demolition of the border fence. The Vice-President of the European Commission, Maroš Šefčovič, and the UK Minister of State for Europe, North America and the UK Overseas Territories, Stephen Doughty, signed the agreement in the presence of the Chief Minister of Gibraltar, Fabian Picardo, and the Minister of Foreign Affairs, José Manuel Albares. The agreement will be provisionally applied starting at 00:00 on July 15. In any case, once signed, and despite its provisional application, the text remains pending final ratification by the EU, which requires approval from the Council and consent from the European Parliament. As it is an agreement under the exclusive competence of the Union, it does not require ratification by national parliaments. Separately, the demolition of the border fence in La Línea de la Concepción will take place this Wednesday, in the presence of the Prime Minister, Pedro Sánchez, Maroš Šefčovič, and Albares. It is currently unknown whether there will be any representation from the United Kingdom, following the recent resignation of Prime Minister Keir Starmer, who remains in office in a caretaker capacity while his Labour Party chooses his successor. It was Starmer who managed to unblock the negotiations when they appeared to have reached an impasse. Speaking to Cadena SER radio on Tuesday, Albares asserted that the agreement is “absolutely historic” and “closes the book on Brexit and opens a new bilateral relationship between Spain and the United Kingdom, and between the EU and the UK.” Meanwhile, the government spokesperson and Minister of Inclusion, Social Security, and Migration, Elma Saiz, celebrated the removal of the Gibraltar border fence on Tuesday, declaring at the press conference following the Council of Ministers meeting that the agreement “will allow us to look to the future with optimism” and represents “good news for Spain, for Europe, and for the more than 15,000 people who cross it daily in both directions.” The Treaty The Treaty, whose full text was published on February 26 by the European Commission, envisions the removal of the border fence, the last wall of continental Europe, and establishes that there will be no passport controls between the two territories. Spain will assume Schengen controls at Gibraltar’s airport and port, and Spanish authorities will have the final say on the issuance and renewal of residence permits. In addition, the agreement regulates the movement of goods through a system of harmonized controls. Spain will carry out customs controls on goods entering Gibraltar, and baggage checks will be established for travelers bound for the European Union and Gibraltar, guaranteeing security and compliance with EU regulations. Regarding tax convergence, the treaty incorporates convergence measures for indirect taxation on goods. Gibraltar will apply an indirect tax equivalent to VAT, starting at 15% upon the treaty’s entry into force and completing convergence within three years. Furthermore, specific provisions are established for tobacco in accordance with European regulations. The text also provides for adaptation to EU environmental regulations and the creation of a joint environmental impact assessment mechanism. It also guarantees compliance with European standards in this area, reinforcing the protection of the shared natural environment. The treaty also establishes a financial mechanism for job training and other social measures to compensate for income inequalities, strengthens coordination in social security matters, and includes specific protection measures for cross-border workers. Furthermore, the treaty states in its preamble that the elimination of “all physical barriers to the movement of persons and goods between the territory of the Union and Gibraltar,” including “cooperation in the areas necessary to establish an area of shared prosperity,” will be carried out “without prejudice to the positions of sovereignty and jurisdiction of Spain and the United Kingdom.” Therefore, it clarifies, “the Agreement, or any activity or measure adopted in application of or as a result thereof, does not imply any modification of the legal position of the Kingdom of Spain with regard to sovereignty and jurisdiction over Gibraltar.” In addition, the treaty contains a specific chapter on sovereignty which states that any supplementary agreement, any administrative agreement or other agreement related to this Agreement, and any measure, instrument or conduct taken in application of or as a result of, or pursuant to, this Agreement, “shall be without prejudice to, and not otherwise affect, the respective legal positions of the United Kingdom of Great Britain and Northern Ireland or the Kingdom of Spain with respect to sovereignty and jurisdiction, and shall not form the basis for any assertion or denial of sovereignty, including in judicial or other proceedings.” The negotiations The process leading to the signing began on December 31, 2020, when Spain, the United Kingdom, and Gibraltar reached an agreement in principle that avoided a scenario of abrupt rupture following the UK’s departure from the European Union. This agreement then served as the basis for the European Commission’s negotiations with the United Kingdom, which formally began in October 2021. After almost four years of negotiations, with periods of progress and others of stagnation, the European Union (represented by Maroš Šefčovič and José Manuel Albares) and the United Kingdom (represented by the then Foreign Secretary, David Lammy, and Fabian Picardo) announced on June 11, 2025, that they had reached a “final” political agreement on the fundamental aspects of the Treaty. On April 1, 2026, the representatives of the Member States in the Council of the EU authorized the signing and provisional application of the agreement.

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