A ‘Frictionless’ Border for Gibraltar: Stumbling Blocks and Solutions Following Brexit

Abstract

Gibraltar is a British Overseas Territory of around 6 square kilometers, inhabited by 30,000 people. Despite its size, it is an important issue within Brexit negotiations. In Gibraltar, 96% of the voters voted to ‘remain’ within the European Union (‘EU’), but are now set to leave when the EU and the United Kingdom (‘UK’) reach a withdrawal agreement. This article examines the question of what stumbling blocks will arise for Gibraltar following Brexit, and which solutions could be considered in order for Gibraltar to have a ‘frictionless’ border with the EU. As Gibraltar’s economy concentrates on the services sector, where not only Gibraltarians but also a lot of Spanish and other EU nationals work, the free movement of services and persons are of particular importance. This article analyses their trade-related consequences, and then focuses on two models that can provide some insight on the future relationship between the EU and the UK, with special consideration for Gibraltar: (1) the ‘reverse Greenland-model’, and (2) the Norwegian model. It concludes that there will definitely be some stumbling blocks on the way, but that the softer the Brexit, the less friction there will be on the border.