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The UK has agreed that no goods can enter Gibraltar except after Spanish checks as part of its deal to remove border controls for people moving between the two territories, according to British and European officials.
The Rock’s airport will be almost entirely closed to cargo, and trucks and ships will need to stop at Spanish customs near the border, said a European Commission official.
The British territory will also lift its sales tax from 3 per cent to at least 15 per cent within three years of the deal’s ratification to avoid unfair competition with Spain where VAT is higher, the European official added.
The Gibraltarian authorities have backed the deal since almost all goods already enter by land, the European official said, and the changes will allow its citizens to travel unhindered to Spain and to work in bordering areas.
A UK official confirmed that Gibraltar had accepted the terms on sales tax and that goods imported to the territory will be checked and cleared by EU customs officers in Spain. A Gibraltar official did not immediately comment.
There will be exemptions from checks for particular products, such as cars that are imported, refitted and exported again — a key segment of the Gibraltarian economy. It will also be possible to ship goods with a stop at the nearby Spanish port of Algeciras for checks.
