The GSD says that "justifiable concerns" emanating from the business community about the "lack of meaningful consultation and clarity surrounding the proposed Treaty" are reaching the GSD.

A statement continued: "In particular, there are concerns as to uncertainty in the processes and the consequent unnecessary strain on local companies, particularly the retail sector.

"Despite the significance of the possible Treaty for trade, customs procedures and border operations, formal engagement with businesses has been limited. The Business Transition Advisory Group (BTAG) has met only three times to date, with the most recent meeting held last week. This level of consultation falls well short of what businesses expected for a change of this magnitude. Businesses fear the compressed deadline will not ensure a smooth and well-managed transition for Gibraltar’s economy.

"While Government today announced a Town Hall style meeting for the business community on Wednesday 4th February 2026, it is taking place only around 40 working days before the speculative implementation date. Although the meeting is welcomed, many in the business sector view it as too little, too late.

"Key questions remain unanswered. Is Government fully prepared? Do HM Customs and other departments have clear, fully mapped processes in place? Are guidance documents, procedural manuals and briefing notes ready for immediate dissemination to businesses? To date, no comprehensive sector-specific guidance has been issued, leaving many business owners unclear about the operational changes they will be required to implement.

"Importantly, the Treaty has yet to be published, debated and approved in Gibraltar Parliament, and must still be ratified by both the UK and EU Parliaments. The Treaty detail is not available for businesses to study and pore over. Despite this, businesses are being asked to prepare for imminent implementation without the certainty, detail or transition support originally envisaged. Oral assurances are an insufficient basis for preparation and it would have been expected that there would be a reasonable period of time for businesses to adjust and prepare once the Treaty was published and the detail could be studied.

"Many business owners, particularly retailers, feel they have been left to absorb the commercial and administrative risk, describing the timelines involved as “horrific” and, in some cases, saying they are “lost for words.” A longer, phased transition period had been widely expected, but Government now appears caught unprepared, with the cost of that unpreparedness likely to fall on businesses."

Craig Sacarello said, “Collectively, everyone is keen to make this work, but Government needs to up its game. Businesses need clarity, certainty and time. A calm and smooth transition is essential if the business community, and ultimately every Gibraltarian, is to benefit from the new proposed Treaty.”