Gibraltar Businesses Want “Urgent Action” Ahead of UK-EU Treaty Implementation
Gibraltar’s business community has called on the Government of Gibraltar to take "urgent action" to support local businesses ahead of the implementation of the UK-EU Treaty on 10 April 2026.
In an open letter to the Chief Minister and the Minister for Business, the business community reaffirmed its strong support for the Treaty and its clear preference for a negotiated outcome. Businesses welcomed the certainty the Treaty offers after a decade of uncertainty regarding Gibraltar’s future relationship with Europe.
However, the letter warns that the compressed timetable, short three-month transition period and late confirmation of the implementation date “have significantly increased the risks facing businesses, particularly in retail, wholesale, logistics, services and goods based sectors.”
A joint statement from the GFSB and the Chamber of Commerce continued:
Severe Immediate Pressures
Businesses face an overnight increase in import duty due to the transaction tax, rising to 15% from previous rates as low as 0%, alongside higher excise taxes. Many will experience supply chain disruption, unsellable stock, cashflow pressure and losses on existing contracts.
The business community also expressed growing frustration at the lack of detailed guidance, noting that promised FAQs and clear guidelines for business have not been issued and that the Treaty text has still not been published.
Five Urgent Commitments Requested
Following an emergency meeting of representatives from across Gibraltar’s business sector last Thursday, convened by the Gibraltar Federation of Small Businesses and the Gibraltar Chamber of Commerce, businesses are seeking five urgent commitments from Government:
1. Targeted Financial Support
Direct financial assistance for businesses most severely affected by the transaction tax and compressed transition period, particularly during the initial months following implementation.
2. Clear, Practical Guidance
The rapid publication of user-friendly, sector-specific guidance on the Treaty, supported by a centralised, fully resourced implementation taskforce to provide authoritative interpretation and fast responses to business queries.
13. Robust Regulatory Enforcement
Strong and consistent enforcement of Gibraltar’s business licensing and regulatory regimes to ensure a level playing field for all businesses operating in Gibraltar, regardless of origin.
4. A Strategic Plan to Maximise Treaty Benefits
A publicly articulated strategy to increase high-value footfall, improve transport and frontier infrastructure, enhance visitor circulation, and help businesses access the wider European market.
5. Protection of Gibraltar’s British Commercial Identity
Commitments to preserve Gibraltar’s distinctive British commercial character, including UK focused supply chains, product standards, EU certification, labelling and overall British retail identity, supported by bridging measures during the post-implementation adjustment period.
Call for Immediate Engagement
While stressing confidence in the Government’s negotiating efforts and reaffirming their willingness to work constructively to make the Treaty a success, business leaders cautioned that without these commitments, the Treaty risks causing serious harm to businesses, employees and the wider economy.
“With fewer than seven weeks remaining before implementation on the 10th April,” the letter states, “this is a narrow but critical window in which practical business realities can still be addressed.”
The signatory organisations have called for a prompt response and stand ready to engage collaboratively and energetically with the Government to ensure the Treaty delivers the best possible outcome for Gibraltar.
