Gibraltar, a British Overseas Territory located at the southern tip of the Iberian Peninsula, stopped being part of the European Union after Brexit or the withdrawal of the United Kingdom from the supranational political and economic union. This created legal and practical uncertainties which further placed Gibraltar in a vulnerable position. A new agreement was reached on 11 June 2025 between the European Union and the British government on the status of the overseas territory of Gibraltar to end years of uncertainties.
Gibraltar Agreement: A New Chapter for the Rock Post-Brexit
Background
The territory was not part of the post-Brexit UK-EU Trade and Cooperation Agreement. This left it with no legal arrangement governing the movement of people across the Gibraltar–Spain border for either work or tourism, customs and tax coordination, and law enforcement coordination. The economic stability of Gibraltar is also sensitive to regulation and access to the EU market.
It is also worth noting that Spain and the U.K. have long disputed the status of Gibraltar. It has been a British Overseas Territory since 1713 after the Spanish government ceded it to Britain under the Treaty of Utrecht. Spain later considered Gibraltar as a symbol of lost national territory which was taken during a time of weakness following the War of the Spanish Succession.
Residents of Gibraltar overwhelmingly wish to remain British based on referendums. The steadfast assertion of Spain has shaped its relationship with the U.K. for over 300 years. This has driven geopolitical tensions around border control, migration or the movement of European people, sovereignty, and relevant political and economic negotiations and cooperation.
New Agreement
The European Union and the United Kingdom finalized a post‑Brexit deal on 11 June 2025. This deal was aimed at resolving the ongoing friction over border arrangements involving Gibraltar. Spain acted as the primary interlocutor and enforcer of several responsibilities as defined in the agreement. The following are important details of the Gibraltar Agreement:
• Land Border Free-Flow: The deal removed all land border controls between Gibraltar and Spain. Gibraltar residents can cross using residence cards, and Spanish citizens with a national ID. No passport stamp is required.
• Dual Checks at Ports: Travelers arriving by air or sea will pass both the border control of Gibraltar and the Schengen checks conducted by Spanish authorities. This is similar to the dual-control setup at France’s Eurostar terminal in London’s St. Pancras.
• Legal Certainties: The deal does not affect British sovereignty over Gibraltar. It is meant to maintain business stability and support cross-border economic activity. The agreement also benefits 15000 daily cross-border workers.
• Customs and Tax Issues: The deal also laid down a blueprint for a future customs union between Gibraltar and the European Union. It also seeks a tighter indirect tax alignment to eliminate regulatory arbitrage and improve overall collection efficiency.
Implications
The new EU-UK agreement concerning Gibraltar is considered to resolve the last major unresolved issue from Brexit concerning the British Overseas Territory. Fabian Picardo, the Chief Minister of Gibraltar, expressed his satisfaction with the agreement, stating it would protect future generations of British Gibraltarians and the economic security of the territory.
Gibraltar will essentially have open land border crossings and dual controls at ports and airports or exit and entry points. This essentially aligns it closer to Schengen without granting sovereignty or impacting the claim of the United Kingdom to the territory. The agreement provides confidence and certainties, bolsters the local economy, and mends a critical post-Brexit gap.
Remember that around 15000 individuals cross the Spain-Gibraltar border each day from Spain to Gibraltar for work and tourism. Hence, without a clear border control framework, workers and residents faced the risk of border checks, travel setbacks, and other restrictions. The deal eliminates land border controls. This provides and preserves a seamless cross-border flow.
It is important to underscore the fact that the Gibraltar Agreement does not grant Spain sovereignty or joint control over Gibraltar. It will not become part of the EU or the more specific Schengen area. Gibraltar remains a British Overseas Territory under complete British sovereignty. This has been underscored by both the U.K. and Gibraltar governments.
FURTHER READINGS AND REFERENCES
- Foreign, Commonwealth, and Development Office and The Rt Hon David Lammy MP. 11 June 2025. “UK-EU Agreement in Respect of Gibraltar: Joint Statement.” UK. Available online
- HM Government of Gibraltar. 11 June 2025. “UK-EU Gibraltar Trade and Mobility Agreement – 434/2025.” HM Government of Gibraltar. Available online
- Latona, D. and Tabahriti, S. 12 Jube 2025. “EU, Britain Seal Post-Brexit Deal Easing Gibraltar Border Flow.” Reuters. Available online