Gibraltar Businesses Voice Concerns Over Post-Brexit Treaty Implementation
Gibraltar’s small business community is grappling with uncertainty as the treaty with the EU nears ratification. A recent joint forum between the Gibraltar Federation of Small Business (GFSB) and the Gibraltar Chamber of Commerce revealed widespread anxieties about the practical implications of the agreement, particularly regarding import costs, trade logistics, and the potential impact on the local economy.
A Climate of Uncertainty and Frustration
The forum, held at Gibtelecom, was characterized by a strong sense of frustration, concern, and even anger among attendees. Businesses fear the ripple effects will extend beyond importers and retailers, impacting licensing, cross-border service providers, and the overall competitive landscape. Maintaining a level playing field and ensuring accountability were key concerns raised.
The GFSB described the session as less a question-and-answer format and more a continuous stream of questions, highlighting the significant number of unanswered issues. Businesses are seeking clarity before implementation, not after.
Impact on Key Sectors: Hospitality and Retail
The hospitality sector is particularly worried about rising food and alcohol import costs under the new treaty. Ian Ballentine, president of the Catering Association, noted that dining out in Gibraltar could turn into more expensive. Despite optimism about potential increases in visitor numbers due to a smoother border, concerns remain about the need for greater tourism investment, catering training, and reduced administrative costs.
Retail and wholesale businesses are also bracing for higher import costs, potentially requiring them to navigate import procedures through the Spanish Tax Agency in Algeciras. This adds another layer of complexity and potential expense.
The 10th of April Deadline and Cross-Border Workers
A critical date looming over these discussions is April 10, 2026, when the EU’s Entry/Exit System will be fully implemented. The GFSB and Chamber of Commerce are pushing for the treaty’s provisional application or ratification before this date to avoid a “hard border” scenario.
Protecting the free movement of the approximately 15,000 cross-border workers is paramount, as their daily commute is vital to the economies of both Gibraltar and the surrounding region. The Group Transfronterizo (Cross-Border Group) has consistently emphasized the catastrophic consequences of a no-deal situation.
Government Engagement and Next Steps
The Gibraltar government has held informational sessions with stakeholders, providing details on customs changes and import procedures. The Chamber of Commerce welcomed this initiative and expressed hope that addressing the raised concerns would minimize disruption during the transition.
The GFSB and Chamber of Commerce are now analyzing the issues raised in the forum and previous discussions to compile a list of questions for the government. They aim to secure answers and clarity before the treaty’s implementation.
Protecting Gibraltar’s Identity and Economic Strengths
Businesses are also concerned about preserving Gibraltar’s unique identity and economic strengths, particularly its British component, which is seen as a key asset for local commerce. They are calling for a fair and consistent application of the treaty, avoiding competitive distortions, and a strategy to maintain visitor flow.
FAQ
Q: What is the main concern for Gibraltar businesses regarding the treaty?
A: The primary concern is the lack of clarity surrounding the practical implementation of the treaty and its potential impact on costs, trade, and competitiveness.
Q: What is the significance of April 10, 2026?
A: This is the date the EU’s Entry/Exit System comes into full effect. Businesses fear a “hard border” if the treaty isn’t ratified before then.
Q: Which sectors are most affected by the treaty?
A: The hospitality and retail sectors are particularly concerned about rising import costs.
Q: What are the GFSB and Chamber of Commerce doing to address these concerns?
A: They are compiling a list of questions for the government to seek clarification and ensure a smooth transition.
Did you know? The treaty aims to provide an alternative framework to Brexit, but its success hinges on addressing the practical concerns of businesses on both sides of the border.
Pro Tip: Stay informed about the latest developments regarding the treaty by following updates from the GFSB, the Chamber of Commerce, and the Gibraltar government.
We encourage you to share your thoughts and concerns in the comments below. Explore our other articles on Gibraltar’s economy and Brexit impacts for further insights. Subscribe to our newsletter for regular updates.
