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Withdrawal of the United Kingdom from the European Union Glossary of terms |
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[1] and formal negotiations are taking place to determine its relationship with the EU.[2][3][needs update]