Overview
- Published on 26 February, the draft treaty still requires signature and ratification by Gibraltar, the UK and the European Parliament, with provisional application signalled if processes slip past the EU’s 10 April border‑system deadline.
- The plan removes routine passport checks at the land frontier for roughly 15,000 daily cross‑border workers, with the text also reported to allow demolition of the long‑standing fence separating Gibraltar from Spain.
- Arrivals by air and sea would undergo dual checks by Gibraltar authorities and Spanish officials safeguarding Schengen, with Spain able to refuse entry to non‑EU travellers and veto residency on security, public health or international relations grounds.
- The UK and Gibraltar governments say the treaty does not affect sovereignty and protects the autonomy of key military facilities, while introducing a tailored customs model to cut goods checks at the land border.
- Fiscal measures require Gibraltar to align indirect taxation with EU rates, including an IVA‑equivalent starting at 15% and converging over three years, as Spain conducts customs and baggage controls per EU rules; UK opposition figures demand full parliamentary scrutiny including over dynamic alignment and Spanish roles at the airport.