The UK-EU Gibraltar Treaty - Explained in Plain English

The Border Fence Is Coming Down

Article 7 of the treaty says it plainly: "All physical barriers shall be removed." The fence, the queue, the passport checks at the land border - gone. Around 15,000 people cross this border every day, many of them workers commuting from La Linea and the Campo de Gibraltar. Without this deal, the EU's new Entry/Exit System (EES) launching on 10 April would have required mandatory fingerprint and facial scans for every non-EU national crossing, creating hours-long queues that would have devastated Gibraltar's economy.

Border Controls Move to the Airport and Port

Instead of checking people at the land border, Spain sets up Schengen border crossing points at Gibraltar's port and airport (Article 29). So if you fly into Gibraltar from the UK, you'll go through two checks: one from Gibraltar immigration, and one from Spanish police on behalf of the EU (similar to how French police operate at London's St Pancras for Eurostar).

The land border becomes an "internal border" - like crossing from France into Germany. No routine checks.

Gibraltar Joins an EU Customs Union

Article 240 creates a formal customs union between Gibraltar and the EU. This is massive. It means:

• No customs duties on goods moving between Gibraltar and the EU (Article 243)
• No quantitative restrictions - no limits on what or how much you can import/export (Article 244)
• Gibraltar becomes its own customs territory (separate from the UK) within the EU customs framework
• EU customs rules apply
• Goods must enter Gibraltar by land through designated EU customs posts (Algeciras, La Linea, Sagunto, and one in Portugal)

All Goods in Gibraltar Must Meet EU Standards

Article 256 is a game-changer for every business selling physical products in Gibraltar. All goods placed on the market in Gibraltar must now comply with EU product rules and standards - the same CE marking, safety, food safety, and product regulations that apply across the EU.

Exceptions:

• Food produced in Gibraltar for local consumption is exempt (but must be labelled "Not for EU")
• Goods made in Gibraltar exclusively for export outside Gibraltar/EU are exempt
• UK-authorised medicines can still be sold in Gibraltar if labelled "UK only"

Gibraltar Gets a Transaction Tax (Not VAT)

Gibraltar will NOT have VAT. Instead, it gets a transaction tax on goods produced in or imported into Gibraltar (Article 248). Goods subject to EU excise duties (alcohol, fuel, tobacco) also face Gibraltar excise duties.

An independent consultative body (jointly established by Gibraltar and Spain) will annually review whether Gibraltar's tax rates are causing trade distortions compared to Spain. If they are, Gibraltar must adjust its rates.

The Airport Gets a Joint Venture

Article 274 creates something unprecedented: a joint venture company shared between Spain and the UK (in respect of Gibraltar) to oversee Gibraltar Airport. Key points:

• The JV company will be constituted in an EU member state (not Spain, not the UK)
• It will run public tenders to select a commercial company for day-to-day airport management
• EU airlines can fly routes between Gibraltar and EU destinations
• UK airlines can fly routes between Gibraltar and the UK
• EU-banned airlines are prohibited from operating there
• ICAO safety and security standards apply

Frontier Workers Get Full Legal Protection

Part Four of the treaty creates comprehensive rights for cross-border workers:

• EU citizens living in Spain can work in Gibraltar with equal treatment to UK nationals - same pay, same conditions, same rights (Article 292)
• UK nationals in Gibraltar can work in Spain with equal treatment to Spanish nationals
• This covers: non-discrimination in employment, pay, dismissal, trade union membership, vocational training, social and tax advantages
• Family members get derivative rights too (Article 293)
• Workers get an official document (can be digital) certifying their frontier worker status (Article 296)
• Social security is coordinated between both sides through a dedicated protocol

A Development Fund for Gibraltar and the Campo

Article 299 establishes a financial mechanism to "promote cohesion between Gibraltar and the contiguous frontier zone", specifically mentioning training and employment. Both parties will contribute funding.

Think of it as a mini EU cohesion fund specifically for the Gibraltar/Campo de Gibraltar region. The Cooperation Council (the treaty's governing body) will set the details.

Tobacco Gets Special Treatment

Gibraltar's history with tobacco smuggling means the treaty has a dedicated section (Article 258). Gibraltar must:

• Set up a tobacco traceability system equivalent to the EU's
• Share tracking data on tobacco product movements with EU authorities
• Cooperate with the EU to fight smuggling
• Adopt EU-style picture warnings on packaging

Sovereignty Is Explicitly Protected

Article 2 couldn't be clearer: nothing in this treaty affects the UK's or Spain's positions on sovereignty over Gibraltar. The treaty cannot be used to claim or deny sovereignty in legal proceedings or otherwise. The dispute settlement mechanism (Part Six) specifically cannot rule on sovereignty matters. If either party raises a sovereignty objection, the arbitration tribunal must immediately declare it has no jurisdiction on that point.