Madam Speaker,

 

A few moments ago, I have had the honour to lay in this Parliament the draft Agreement in respect of Gibraltar between the United Kingdom of Great Britain and Northern Ireland, of the one part, and the European Union and the European Atomic Energy Community, of the other part.

 

What I have laid in this Parliament is the UK version of the text.

 

The same text has been deposited in the libraries of the House of Commons and the House of Lords also in the last few moments.

 

The European Union has today, also at 10am, published on its website, the EU version of this draft Agreement.

 

As the House and the public are aware, I have provided a copy of the text to the Hon Leader of the Opposition, on Privy Council terms, which he was free to share with his MPs ahead of publication today.

 

A copy was also shared with the news editors of the National Broadcaster, GBC, and the newspaper of record, the Gibraltar Chronicle – on terms of a strict embargo so that they could familiarise themselves with the text and report its content to our people.

 

I thank both of those responsible news organisations for having respected the embargo imposed.

 

The UK and Gibraltar on the one hand and the EU and Spain on the other hand are working hand-in-hand together to ensure this Agreement can be brought into effect as soon as possible and provide certainty for the people and economy of Gibraltar.

 

In this context the UK and we in Gibraltar are publishing the draft Agreement alongside the EU while legal teams complete the final legal review and translation of the text.

 

This is to ensure that all the Parliaments with an interest have access to it on the same timeline.

 

In the UK, the final version of the Agreement will be laid before Parliament for scrutiny before the ratification process commences in accordance with the Constitutional Reform and Governance Act 2010.

 

Madam Speaker, the text of the Treaty we have spent the better part of half a decade negotiating is now public.

 

Our people can see it for themselves.

 

The text will now be on the Government’s own website and a dedicated treaty website.

 

www.treaty.gov.gi

 

Everyone can now read the text.

 

All 1018 pages of it in the UK formatting.

Everyone can now understand what the new, proposed arrangements for immigration and movement of goods will be.

 

And this is what this Agreement is about.

 

New arrangements for fluidity of people and a free-flowing frontier on goods.

 

Of course, that will require new arrangements for passport and border checks and new arrangements for Customs formalities.

 

A new facility for passport checks will be built at our airport so we can carry out cumulative passport checks on arrivals from third countries.

 

Madam Speaker, a nation that cannot control its own borders ceases to be a nation.

 

That is why, in this Agreement, the first hand on the gate remains a British hand.

 

The first check is a British check.

 

We are removing the physical barriers of a bygone era of friction.

 

But we are keeping the keys to our own front door firmly in our own pockets.

 

We choose cooperation, but we retain control.

 

This will require the construction of a new addendum to the Airport which will be equidistant between Gibraltar and Spain.

 

I have dealt with those issues in some detail since the New Year’s Eve Agreement of 2020.

 

A temporary facility will be established ahead of completion of works on the final Second Line Checks facility.

 

This is what has slipped into the local lexicon as ‘the Schengen Shack’ for shorthand for some time.

 

Those are the things we announced then.

 

This is the technical detail behind those arrangements.

 

Additionally, the treaty provides for new arrangements for goods to move in and out of Gibraltar.

 

New rates of indirect taxation.

The abolition of import duties.

 

The introduction of a new ‘Transaction Tax’.

 

But Gibraltar remaining entirely VAT free.

 

The application will come of EU excise duties.

 

Again, all of these things have already been announced.

 

Business has been briefed.

 

We will have a shorter transition than we wished for businesses to adapt to the new criteria.

 

But this is not by choice of the Government.

 

It is by dint of the operation of the calendar which requires the application of the EU’s Entry Exit System from 10^th April.

 

And we will be working with businesses and their representatives to ameliorate the effect of this tighter than anticipated timeline for implementation.

 

Because this Agreement, Madam Speaker, is a very positive opportunity to move our country forward from Brexit.

 

But it is not perfect.

 

We have to be clear that this is not an Agreement that we chose to negotiate.

 

It is an Agreement that we have HAD to negotiate.

 

Because the UK’s departure from the EU has required that we address the alternative to the daily, full application of the Schengen Border Code and the EES.

 

Because BREXIT left us exposed.

 

It left us as sitting ducks.

 

We needed to avoid a hard border.

 

That is the reality of the situation in which we have found ourselves for the past, desolate decade.

 

Because in a globalized world, isolation is not independence—it is a dead end.

 

By securing access to a market of four hundred and eighty million people, we are giving our businesses the platform they need to compete and win.

 

This isn't just about trade; it’s about a modern, vibrant Gibraltar taking its place at the heart of the European economy.

 

It’s about jobs that produce PAYE and Social Insurance payments that will grow our public finances.

 

It’s about investment.

 

And it’s about the future.

 

And whenever anybody asks themselves whether this is the right Agreement for Gibraltar, they should also ask themselves:

 

What is the alternative?

 

Indeed, what is the viable alternative?

 

And, perhaps more relevant: what is the negotiable alternative?

Because we can all imagine alternatives. 

 

We can all wish for different terms.

 

But these are the terms which are negotiable and deliverable.

 

I have said before, we have not spent five years dictating to Spain and the EU the terms that they HAVE to accept from us.

 

Not even the UK was able to do that when it sought its own TCA.

 

We saw the opposite play out in the news on our television screens.

 

But this is the Agreement that is negotiable whilst each of the sides has been maintaining our separate fundamentals and those of our negotiating counterparts who also have obligations to maintain and red lines to observe.

 

And this Agreement, imperfect though it no doubt is, therefore presents us with a viable, useful and enviable opportunity to leverage a position of weakness into a position of viability and growth. It is safe, it is secure, and it is beneficial to Gibraltar.

 

It provides a springboard to stability, certainty and modern partnership with the EU.

 

And it does so without affecting our fundamental, inalienable right to remain British in every respect.

 

Indeed, the Agreement makes absolutely clear that nothing in the Agreement or any supplementing arrangements shall affect sovereignty.

 

Let’s be clear about how important that is.

 

ARTICLE 1 of the Treaty sets out the purpose of it.

 

Honourable Members will see that it sets out that ‘the objective of this Agreement is to establish a mutually cooperative relationship between the Parties, which also promotes shared prosperity and close and constructive relations in respect of Gibraltar and the adjacent area in the Kingdom of Spain, in particular the territory of the municipalities that make up the Mancomunidad de Municipios del Campo de Gibraltar.’

 

Immediately after that, in Article 2, a specific article on Sovereignty.

 

‘This Agreement, any supplementing agreements as referred to in Article 3, any administrative arrangements or other arrangements related to this Agreement, and any measures or instruments or conduct taken in application or as a result thereof, or pursuant thereto, shall be without prejudice to, and shall not otherwise affect the respective legal positions of the United Kingdom of Great Britain and Northern Ireland or of the Kingdom of Spain with regard to sovereignty and jurisdiction, and shall not constitute the basis for any assertion or denial of sovereignty including in legal proceedings or otherwise.’

 

It could not be clearer Madam Speaker.

And note that the clause refers not just to the Agreement and any agreements or arrangements flowing from it being ‘without prejudice’ to the respective legal positions of UK and Spain on sovereignty and jurisdiction.

 

It is also any CONDUCT taken in application or as result thereof.

 

This is the tightest ‘without prejudice’ clause which we have seen in the history of EU documentation on Gibraltar.

 

But it is not the only reference to sovereignty in the text.

 

That clause is repeated by way of footnote in Article 271 on the Airport.

 

Paragraph 6 of Article 301 on the scope of the Dispute Settlement aspects of the Treaty provides another carve out on sovereignty.

 

It states specifically that ‘[t]his Part does not apply to any disputes with regard to sovereignty and jurisdiction. If the respondent Party submits a reasoned statement to the arbitration tribunal, to the effect that the request may affect the legal position of the United Kingdom or of the Kingdom of Spain or with regard to sovereignty and jurisdiction, the arbitration tribunal shall not decide on the dispute with regard to sovereignty and jurisdiction or on any matter that requires or implies a decision on sovereignty or jurisdiction and shall immediately declare its lack of jurisdiction on the matters regarding sovereignty and jurisdiction or having an effect thereon.  Any decision adopted in the framework of this Part, including decisions and rulings by an arbitration tribunal, shall not produce any legal effects direct or indirect, on the legal position of the United Kingdom or of the Kingdom of Spain with regard to sovereignty and jurisdiction.’

 

 

Also in ANNEX 37, in the PROTOCOL ON MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS, ARTICLE PCUST.11 sets out ‘Exceptions to the obligation to provide assistance’ and paragraph 1(a) provides that ‘[a]ssistance under this Protocol may be refused or may be subject to the satisfaction of certain conditions or requirements in cases where a Party is of the opinion that such assistance would: (a) be likely to prejudice the sovereignty of the United Kingdom, in respect of Gibraltar, or that of a Member State which has been requested to provide assistance under this Protocol’.

 

So Madam Speaker, the premise on which we entered into this negotiation is secured.

 

British Sovereignty is not in any way compromised.

 

And we have achieved that, Madam Speaker, working hand in glove with successive administrations of His Majesty’s Government of the United Kingdom.

 

We have been one integrated, UK-Gibraltar negotiating team.

 

And the fruit of that work is now before the House and our people.

 

Madam Speaker, a high-level overview of this text might be useful to the House and to the people of Gibraltar.

I therefore want to share with the House the summary that the United Kingdom is providing alongside the document in the libraries of both of the Houses of Parliament in the United Kingdom.

 

PART ONE — Common and Institutional Provisions

Part One of the Agreement defines the overall purpose of establishing a mutually cooperative relationship between Gibraltar and the EU that promotes shared prosperity for Gibraltar and the surrounding region in Spain.

It recognises shared values on the principles of democracy, the rule of law, and respect for human rights, as well as commitment to fight against climate change and cooperate on counterterrorism.

As I have already explained, article 2 of the Agreement makes clear that nothing in the Agreement or any supplementing arrangements shall affect sovereignty.

There is no direct application of EU law to Gibraltar through the Agreement or enforcement role for the Court of Justice of the European Union in Gibraltar.

Part One contains provisions confirming how Gibraltar’s domestic legal system will incorporate EU law where alignment is required and confirms it will be enforced by Gibraltar’s own authorities and courts.

This is hugely important, Madam Speaker.

The laws that will give effect to this Treaty will be the laws of this Parliament.

This Part also contains provisions covering the protection of personal data to enable the necessary free flow of personal data between Gibraltar and the EU to make the provisions of the Treaty operationally viable, without the need for a data ‘adequacy’ decision for Gibraltar, in return for Gibraltar’s continued alignment with key EU data protection rules.

In addition, the Agreement creates the governance structures needed to manage and oversee cooperation.

It establishes a Cooperation Council, supported by three Specialised Committees, to supervise implementation, facilitate dialogue, and adopt decisions where the Agreement provides for them.

PART TWO — Circulation of Persons

Part two of the Agreement establishes a new system for the movement of persons, designed to remove all routine immigration checks and physical barriers at the land border while maintaining stability and security across Gibraltar and the Schengen Area.

Gibraltar will remain outside both Schengen and the EU, but Schengen border rules will apply at its external border under a tailored arrangement between the UK and EU.

The Agreement provides that all necessary immigration checks will take place at Gibraltar’s Airport – and if needed, the Port – rather than at the land border.

But we will ensure that those checks are never needed at the Port by restricting traffic to the quantities that can be handled properly at the Airport facility alone.

This will ensure that people cleared at the airport will be able to travel freely between Gibraltar, Spain and the wider Schengen Area, meaning an end to often lengthy queues for businesses, workers and visitors crossing the land border.

Separate arrangements in this Part ensure that relevant military personnel are exempt from Schengen border checks. 

The operation of border crossing points, the sequencing of checks by Gibraltar and Spain, the use of automated systems, and the arrangements for second-line checks are also further defined.

The Agreement includes provisions on visa-free travel, residence rights for persons resident in Gibraltar, and coordinated procedures for the approval of new or renewed residence permits.

These provisions will ensure that residence permits that will allow access to the Schengen area are granted in line with key provisions of EU law designed to protect public safety and security.

I want to say a little more about this, given some media reporting on it.

First of all, let’s be clear, any rules on residence do NOT apply to Gibraltarians.

The issue of ID cards for registered Gibraltarians is a matter EXCLUSIVELY for Gibraltar without any requirement to check against any system.

If you are born a Gibraltarian, you are registered as a Gibraltarian by Gibraltar.

FULL STOP.

The issue of residence permits for foreign nationals seeking to reside in Gibraltar will also remain, under Gibraltar law, exclusively a matter for the Gibraltar authorities. 

We will, nonetheless, now agree – under this Treaty - to a consultation with the Schengen authorities in respect of foreign nationals seeking to reside in Gibraltar, to ensure there are no issues of public health, public security or public policy which might lead us to want to revoke or not grant such a permit.   

That consultation which we will carry out is, unsurprisingly, standard between Member States of Schengen who are required to check new applications for residence on the Schengen System. 

We shall do it through Spain, as the neighbouring Member State. 

It is, in effect, Madam Speaker, a consultation with the SIS database and all Schengen States, but done through our neighbour.

The right to seek to prevent the grant of a future residence permit or a renewal of an existing one – is NOT a veto. 

It is subject to the individual’s right of appeal.

And it is based on a reproduction of part of the language of Article 27 of Regulation 2018/1861.

Member States of Schengen can ‘veto’ the grant of a short stay Visa by another Member State of Schengen – again, subject to the right of appeal of the individual in question.

That is what will apply here.

On public health and public security, the terminology speaks for itself.

On public policy grounds, the reasoning may be more complex, but it cannot be based on any fanciful grounds.

The reasons for such objections are at the very highest level of concern for the protection of civil society.

And that is specifically provided for in the Treaty, as the relevant footnote sets out by spelling out what the Court of Justice of the European Union has said, namely, that ‘[m]easures taken on the grounds of public policy shall be proportionate and shall be based exclusively on the personal conduct of the individual concerned, which must represent a genuine, present and sufficiently serious threat affecting one of the fundamental interests of society.’

There is no higher test in EU law than this one.

Madam Speaker, I cannot imagine circumstances in which we would want to grant a residence permit to such an individual.

But, if we wanted to, we could, of course – although that would breach the Treaty and it could bring consequences if not resolved via the dispute resolution aspects of it.

Far from that approach, I hope we will all, instead, welcome this additional layer of protection for our people as we will be able now to check against two data bases, not one, before granting such permits.

In the area of security and cooperation the Agreement provides for enhanced law enforcement cooperation to address shared threats, based on arrangements agreed between the UK and the EU in the TCA and expanded where needed.

The Agreement also creates mechanisms for evaluation, monitoring and, where required, temporary suspension of obligations in cases of serious non-compliance or security threats.

PART THREE — Economy and Trade

Part Three of the Agreement establishes a comprehensive framework for economic and trade cooperation that supports open and fair competition, sustainable development and fluid movement of goods across the land border as well as containing important provisions on transport.

The Agreement establishes a bespoke customs model between Gibraltar and the EU, removing tariffs, duties and quotas on goods moving between them.

It delivers enhancements to Gibraltar’s existing indirect taxation system that brings certain rates closer to those in the EU, without adopting VAT or any form of sales tax.

To achieve fluid movement across the border operationally, the majority of goods destined for Gibraltar will be cleared by EU customs offices in Spain, as they are today, so they can enter Gibraltar without further checks.

Separate bespoke arrangements in this Part ensure the continued movement of military goods to Gibraltar.

The Agreement also includes provisions on labour standards, taxation and sustainability, environmental protection, climate commitments and state aid control.

Under this framework, Gibraltar will maintain high standards, for example, by establishing an independent state aid regime, while maintaining regulatory flexibility.

In addition, the Agreement contains an aviation chapter that will provide new economic opportunities for the region by enabling flights between Gibraltar and the EU, which have, for the most part, been suspended for decades.

A joint venture company will be established between Gibraltar and Spain to select, through regular public tender, and supervise the commercial company in charge of day-to-day management of the Airport and Gibraltar will incorporate a small number of EU civil aviation rules into its domestic regime.

The RAF base at the airfield is not in scope of the Agreement. 

In addition to aviation, there are chapters covering maritime and road transport services between Gibraltar and the EU.

PART FOUR — Frontier Workers

The Agreement defines the rights of workers who live in one territory and work in the other, ensuring they continue to benefit from clarity, certainty and fair treatment. It provides mechanisms for social security coordination so that contributions, entitlements and benefits can be administered without disruption.

These provisions mean that cross-border workers enjoy a secure framework for employment, supporting the integrated labour market between Gibraltar and the surrounding region.

IMPORTANTLY, as a result of this Treaty, we are now able to move to equalisation of the pensionable age between men and women at the age of 60 in Gibraltar.

Equalisation will be given effect to in the next Appropriation Bill to be taken in this House. 

PART FIVE — Financial Provisions

Part five of the Agreement establishes a financial mechanism to promote cohesion between Gibraltar and the surrounding region.

The Parties will contribute to this mechanism by funding initiatives such as education and training.

PART SIX — Dispute Settlement

Part 6 provides a mechanism for resolving disputes, including a process of consultations between the Parties and referral to an independent arbitration tribunal.

It also includes provisions on compliance and proportionate remedies in case there is non-compliance.

PART SEVEN — Final Provisions

This Part sets out the necessary legal and administrative provisions for the Agreement’s operation, including rules on procedures for review, entry into force and termination.

The territorial scope of the Agreement makes clear that it applies to the territory of Gibraltar, and not the wider UK.

ANNEXES

There are a range of Annexes, Appendices and Protocols to the Agreement, numbering 43 in total.

These supplement the main chapters of the Agreement with further detail regarding how they will function in practice.

 

Madam Speaker, it is not up to every citizen to read this text – although everyone is free to do so.

 

Indeed, I imagine that ChatGPT, Gemini, Claude and DeepSeek will soon know it off by heart as it is fed into them by citizens, politicians and journalists around the world.

 

Different prompts will produce different AI answers, no doubt.

 

But let us be clear about what our responsibilities are in this House.

 

We, on this side of the House, were elected into Government to negotiate the treaty alongside our UK colleagues.

 

We all, on both sides of the House, are elected to scrutinise it.

 

We are elected to make a decision on whether to call on the UK to ratify this text.

 

And we will do that when the time comes to consider the text in the debate on the Motion.

 

 

I am today giving Notice of that Motion the text of which will read as follows:

 

“THIS HOUSE calls upon His Majesty’s Government of the United Kingdom of Great Britain and Northern Ireland to ratify, for the benefit of Gibraltar and its People, the Agreement in respect of Gibraltar between the United Kingdom and the European Union following negotiations conducted by the Government of Gibraltar, alongside the United Kingdom, for and on behalf of Gibraltar, and which His Majesty’s Government of Gibraltar has tabled in this House on 26th February 2026.”

 

I have shared the text of the Motion with the Leader of the Opposition before I have presented it to the House today.

 

I expect I will be moving that Motion during the course of next week.

 

And so, today is but one of a number of seminal moments for this Parliament. 

 

Indeed, this is likely only the first of a number of such moments that we are going to face in coming days and weeks.

 

Because we are coming to consider the new relationship with Europe that will enable us to operate socio-economically in a way that will deliver opportunities for success for current and future generations of Gibraltarians.

 

And, if the Motion to seek ratification passes, we will have to deliver new laws to implement that ratification.

 

But it is not the first time that the House will have had to consider these types of economy changing issues.

 

In October 1972, the House of Assembly considered the Bill for a European Communities Ordinance.

 

It was the first meeting for business of the first AACR Government under the 1969 Constitution.

 

It was the first meeting of the House for business attended by a man then in his early thirties, now the Father of the House.

 

In ending his presentation of that Bill, Sir Joshua Hassan said a number of things which are as pertinent today, when contemplating this Treaty, as they were then in contemplation of our accession to the EEC.

 

I want to wind down my Statement to the House today quoting exactly the words that Sir Joshua uttered then

 

He said this:

 

“The enlarged united Europe of which Gibraltar will soon be a small part is a great enterprise and one in which we should all be glad and proud to share.

 

I have dealt in my speech on the second reading of this Bill with a number of technical matters affecting our laws.

 

We are also, of course, considering as my Hon Friend the Minister for Tourism said in his statement yesterday, the economic aspects of Gibraltar's membership with a view to ensuring that the new arrangements do not work to our economic detriment.

 

But we must not, I think, allow our preoccupation with the legal and economic technicalities of entry into the Common Market - important though these are for our material welfare and for the orderly progress of our society - to obscure the wider and less tangible possibilities and benefits which can accrue to us all as a result of this amalgamation of economic interests.

 

It may be many years before a wider appreciation of the brotherhood of man comes about and before physical and other national barriers are removed, but at least we are starting on the right road and I am certain that future generations, while wondering why it took us all so long, will thank us for having taken it in the end.

 

Although Gibraltar will be only a minute part of this new enlarged Community, we here have perhaps a particular interest in the long-term aims and effects of this gathering together, for the common benefit, of peoples of different nationalities but of similar historical backgrounds, civilisation and culture.

 

We can therefore, I think, only welcome this movement towards a united Europe, express the hope that the development of its political and human aspects will gather speed and momentum and, from a local point of view, that it will eventually lead to a solution of our difficulties.

 

I am sure that the patience we have exercised in the past and which we will need to continue in the future will, at some future date, be rewarded.

 

It is in this spirit that I earnestly commend this bill to the House.”

 

 

Madam Speaker, Joshua Hassan was not contradicted by Joe Bossano on those matters.

 

Indeed, I think he spoke, 54 years ago for what many of us may think now about this Treaty.

 

The years have passed.

 

The barriers have finally come down between many countries.

 

The alternative to this Treaty is that we allow harder barriers to go up between us and the rest of the European continent.

 

That is not the future.

 

That is the past.

 

Now we have a chance to make the opposite the reality.

 

After years of political and diplomatic hostilities, physical barriers can come down between us and our neighbour.

 

Just as physical barriers have come down between those who suffered years of war between them in central and northern Europe.

 

Today, they live in harmony, respect and peaceful co-existence.

 

Today, this is our chance also to start to live in harmony, respect and peaceful co-existence with our neighbours too.

 

That patience Sir Joshua so eloquently talked about as a Jewish man who had lived through the horrors of the Second World War.

 

The human aspects he referred to.

 

All of those references by him resonate around this House today as powerfully in his memory as they would have done in his voice half a century ago.

 

This is our chance Madam Speaker.

 

I trust that when we come to debate the Motion, the whole House will be up to the task of working not in the partisan interest but ready to take a step in the direction of that road Sir Joshua referred to that he was certain ‘that future generations, while wondering why it took us all so long, will thank us for having taken it in the end.’

 

Because it is time to now stop looking at history and start looking up at the future.

 

Because politics is at its best when it stops looking in the rearview mirror and starts looking straight out through the windshield.

 

Seeing through the fog of now to the future beyond.

 

Looking straight at this text and not getting stuck like a deer in the headlights of the opportunities it presents us with.

 

Madam Speaker, this Treaty is not perfect.

 

No Treaty is.

 

But there is nothing to fear here.

 

There are no hidden traps.

 

And the ghosts of the past – though we should stay conscious of the harm they did us - should not be allowed to dampen our ambition for a better future for our children.

 

This is the right, viable and negotiable alternative to facing the European Entry Exit system and long delays, every day, at the frontier.

 

This is a better alternative to the full application of the Schengen Border Code.

 

This is a better way forward for British Gibraltar than the morass of frontier formalities that would be in our way without it.

 

I will be happy to answer any questions Honourable Members may have at this stage or clarify any aspect of this Statement, Madam Speaker.

 

But, for all of those reasons, I look forward to the debate to come on the Motion I have given notice of today and I commend this Statement to the House.

 

 

ENDS