Effect of Brexit on Gibraltar
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The effect of Brexit on Gibraltar concerns the status of Gibraltar after the United Kingdom's withdrawal from the European Union ("Brexit"). The UK left the EU on 31 January 2020, having formally notified the EU in March 2017 of its intention to do so. Gibraltar is not part of the UK, but unlike all other British Overseas Territories, it was a part of the European Union along with the UK. It participated in the Brexit referendum and it ceased, by default, to be a part of the EU upon the UK's withdrawal.
Gibraltar's position during the process of UK withdrawal from the European Union presented specific issues during Brexit negotiations. Gibraltar voted strongly to remain in the European Union during the referendum, and its unique situation presented potential difficulties due to the Spanish claim on Gibraltar, the large contribution of on-line gambling, offshore banking and duty-free shopping to the economy of Gibraltar, and the strong likelihood that Gibraltar would cease to be a part of the single market.
Gibraltar was not covered by the Brexit agreement made in December 2020 and formal negotiations took place until June 11, 2025 to determine its relationship with the EU. An agreement was reached and the EU and the UK finalized the full legal text on December 12, 2025. The treaty still has not been ratified and ended 2025 without reaching the UK and European Parliaments. A formal legal treaty would require ratification by the European Parliament, the UK and Gibraltar in addition to all 27 EU national parliaments, it is precisely this political and legal complexity that is currently stalling the process and increasing the risks of not being able to fully implement it as it is.