Gibraltar Treaty

Lord Redwood Excerpts

Tuesday 3rd March 2026 Lords Chamber

[Lord Collins of Highbury (Lab)]

There have been a number of occasions when the noble Lord and I have been in Gibraltar together, so I certainly understand and fully appreciate his commitment. However, I want to be clear that we were not willing to enter into an agreement that the Government of Gibraltar were not content with. They are fully supportive of the agreement, which they judge will be good for jobs and businesses in Gibraltar, for the people of Gibraltar and indeed, as I said earlier, for the prosperity of the whole region.

Gibraltar is not joining the EU single market or Schengen. It will align with some laws through its own domestic system, mainly in relation to immigration and customs. The Court of Justice of the European Union will not have jurisdiction over Gibraltar but will have a limited interpretative role in resolving disputes over EU law. Accordingly, Gibraltar courts will factor CJEU rulings into their consideration when ruling on matters that touch on EU-aligned law in Gibraltar.

However, let us be clear: we know that Gibraltar is a small place geographically, but it has huge potential for service industries. That is where the jobs are coming from and where Gibraltar exports, and this agreement will guarantee that for the future. With all parties agreeing to that, we can see a prosperous future for the people of Gibraltar.

[Lord Redwood (Con)]

What increases will there be in taxes, excise duties and handling charges? How much money will be sent to Spain for levelling up? What are the estimated costs of all the additional regulation? Is this not rather bad for business in Gibraltar?

[Lord Collins of Highbury (Lab)]

I do not think a single businessman in Gibraltar would agree to that. As the noble Lord said, 98% of the people in Gibraltar, through their referendum, supported the continuation of membership of the EU. The EU benefited Gibraltar in terms of cross-border trade and prosperity. The situation since Brexit has been five years of uncertainty that has impacted on businesses. What the Gibraltar Government fully understand, but perhaps the noble Lord does not, is that their service industry is their biggest export—that is what generates jobs. Other customs and tax issues are for the Gibraltar Government to agree, but they will work in concert where that does not impact on the trade that they seek to expand upon.