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As Gibraltar’s post-Brexit border treaty with Spain nears signing, concerns on both sides about a bad deal could still derail negotiations.
Details remain scarce on the outlines of the agreement, which is described as a “general political line”.
But it is thought that this would remove the hard border between Spain and Gibraltar in exchange for the Spanish border checkpoint being relocated to the airport.
The British fear that the move will mean they effectively lose control of Gibraltar’s border, while the Spanish worry that the agreement will lock in Gibraltar’s status as a tax haven and effectively legalize tobacco smuggling.
David Cameron and Fabian Picardo are prepared to accept a deal that could “severely undermine British sovereignty”, British MPs were told yesterday.
Perhaps the most hotly contested issue is that of the airport, which is currently under full British control.
Currently, tourists arriving by air can only land on British territory and can only be met by Spanish officials at the Spanish border.
But proposals to move Schengen controls to the airport itself have sparked fears that arriving Britons and Gibraltarians could be forced to undergo EU biometric registration without ever setting foot on Spanish soil.
This could effectively hand control of the rocky border to the EU and render British sovereignty “in name only”.
read more: Watch: When and how will the Strait of Gibraltar disappear, according to scientists
The European Scrutiny Committee cited these concerns in calling for a suspension of negotiations with Spain and the European Union.
In a letter to Overseas Territories Minister David Routley, the House of Commons select committee added that it was still unclear “whether the time spent by British citizens in Gibraltar counts towards the 90 days of a non-EU citizen’s 180-day stay in the Schengen area”.
Chief Minister Fabian Picardo tried to reassure voters that British sovereignty over Gibraltar would not be violated, but concerns remain.
Meanwhile, across the border, they have their own worries as they seek “a deal, yes; but just no deal.”
The PP likened empty talk of a “shared prosperity zone” between Gibraltar and Campo to a Miss World contestant wishing for “world peace”.
For Spain, key unresolved issues include tobacco smuggling, tax equality, pensions and eradicating Gibraltar’s reputation as a tax haven.
A Spanish waiter who has lived in Spain all his life and earns 1,050 euros a month in a restaurant in Gibraltar can only receive a pension of 200 euros.
The PP is demanding a unified tax policy with Gibraltar, as different tax levels could be damaging for the Campo de Gibraltar region – something Picado is unlikely to agree to
They are also concerned about a potential increase in tobacco smuggling and the impact of removing border fences.
Tobacco smuggling has become a sore spot for both sides, as cigarettes are much cheaper in Gibraltar.
They fear that the lack of any checks could lead to the business becoming legal.
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