Every working day, thousands of Spaniards cross the border into Gibraltar – which often meant long waits. One of them is Shilpi Chotrani, who cycles every weekday morning from her home in the Spanish town of La Linea to Gibraltar. The journey is short, but it means crossing an international border.
Read more „Health Challenge“: an opportunity not only to start but also to see your changes
Gibraltar is a British overseas territory with about 40,000 inhabitants. Border control is carried out when entering and leaving it.
This means that during the morning and afternoon peak hours, when about 15,000 Spaniards working in this territory cross the border, long, time-consuming queues can form.
“The fact that there is a border between us is absurd,” says Chotrani, who works in human resources at a Gibraltar shipping and tourism company. “I don’t think a fence should separate people from one place to another.”
Behind her, the 426-meter-high Rock of Gibraltar can be seen shrouded in early morning clouds. It stands at the southern edge of the mainland of Western Europe, just 14 kilometers from Morocco, where the Atlantic Ocean meets the Mediterranean Sea.
This is a place that has seen military battles, sovereignty disputes, and a 13-year blockade imposed by Spain.
But from July 15th, a new change is planned here – the removal of the border, allowing free movement between Spain and Gibraltar.
This is part of a carefully coordinated agreement between the European Union and the United Kingdom following the UK’s withdrawal from the bloc. Since Gibraltar has a land border with the European Union, it became a special challenge after Brexit.
“It will be a big step forward for both Spain and the British side,” says Chotrani. “All of us living in La Linea think it’s a great idea. It should have been done a long time ago.”
It will be a big step forward for both Spain and the British side.
Gibraltar has one of the highest per capita incomes in the world. However, La Linea and the surrounding area are among the poorest parts of Spain.
Unemployment, which is already high throughout the southern Andalusia region, here reaches almost 30 percent. Therefore, it is expected that the removal of the border will bring significant economic benefits, ease the movement of people back and forth, and perhaps help partially reduce the imbalance between these two territories.
“This is a historic moment, we have had a border zone since 1908,” says La Linea mayor Juan Franco, wanting to emphasize the local economy’s dependence on the British territory.
“It should be understood that the average business in this town gets a third of its income from customers in Gibraltar,” he says.
It was before Brexit
After a decade of uncertainty about Gibraltar’s future relations with Spain following the UK’s decision to leave the EU, Franco says he believes “this Brexit decision will ultimately have a positive impact on us.”
The people of Gibraltar were strongly against Brexit – in the 2016 referendum, 96 percent voted to remain in the EU. This firmly pro-European stance was partly due to concerns that leaving the bloc would encourage Spain’s claims to sovereignty over the Rock of Gibraltar.
But another important factor was the already existing close trade ties Gibraltar had with the EU – especially in areas such as online gambling, shipping, and financial services – and fears about the logistical difficulties Brexit would cause.
After years of negotiations involving Spain, the EU, and the UK, the decision was to align Gibraltar with the European Customs Union and the Schengen free movement area.
Travelers arriving from non-Schengen countries, such as the United Kingdom, will have to show passports to Gibraltar and Spanish officials at Gibraltar airport and seaport.
Read more As the school year approaches, you can receive a 148 euro benefit: who is eligible
Gibraltar’s Chief Minister Fabian Picardo says the new arrangement – whose temporary implementation still depends on approval by the UK and European parliaments – means “huge changes” for this territory.
“One of the most defining things for the last eight generations of Gibraltar’s people has been border restrictions,” he told the BBC at the Gibraltar government headquarters.
One of the most defining things for the last eight generations of Gibraltar’s people has been border restrictions.
Picardo describes the agreement as introducing “complete and absolute free movement of people and goods” between Gibraltar on one side, and Spain and the EU on the other.
Expecting more arrivals
The most obvious economic benefit for Gibraltar, according to Picardo, will be an increased number of arrivals: “Businesses in Gibraltar can now expect a higher flow of visitors, unhampered by possible queues entering or border queues exiting.”
Since Spain disputes the UK’s sovereignty over Gibraltar, this issue sometimes flares up in the political arena. The most famous recent episode of bilateral tension was the blockade imposed by Spanish dictator Francisco Franco in 1969, lifted only in 1982, long after his death.
The Chief Minister presents the new arrangement as the opposite of a blockade – a logical, mutually beneficial opening of the border.
“It will be hugely significant for people’s relations, hugely significant for business, hugely significant for border workers, it will be a new dawn in Gibraltar’s relations with Spain and the EU,” says Picardo.
A new era
Spain’s Foreign Minister José Manuel Albares described it similarly, speaking of a “new era” for the Rock of Gibraltar.
However, the agreement also means that goods sold in Gibraltar will have to comply with EU regulations, which was not the case until now.
Additionally, because Gibraltar does not have a value-added tax, a new transaction tax is introduced, replacing import duties. It will apply to all goods sold in Gibraltar and will start at 15 percent this year, eventually rising to 17 percent. Some goods will also be subject to higher excise rates.
John Isola, CEO of Anglo Hispano Company, which runs several restaurants and bars in Gibraltar, says there is a sense of relief in the Gibraltar business community that the long-standing Brexit issue has finally been resolved.
He considers the new arrangement a “good compromise” that will encourage more people to come to Gibraltar, thus increasing business opportunities.
However, Isola admits there is also concern about the new rules and tax regime, which he believes will affect competitiveness. “For everyone importing goods, the situation completely changes regarding the documents that will need to be submitted to bring goods in,” he says.
He also thinks the new requirements to comply with EU standards are “a challenge for anyone importing goods from the UK or any other country outside the EU.”
The people of Gibraltar and La Línea de la Concepción have had plenty of time to get used to the idea of the new arrangement. In recent weeks, machinery has been dismantling the border fence every night in preparation for July 15th.
This territory, which has seen so many dramatic events in the past, will soon find out what significance the latest turn in its history will have.
Read more Vilnius «Rytas» said «goodbye» to Ignas Sargiūnas
3 facts about Gibraltar:
- Area: Gibraltar covers only about 6.8 square kilometers.
- Population: About 34,000 people live in Gibraltar.
- Highest point: The famous Rock of Gibraltar is about 426 meters high.
