Gibraltar’s business community have jointly 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.

Click here to view the ‘Open Letter to the Chief Minister and the Minister for Business‘

Click here to view the ‘Submissions to HMGoG on Relief Mechanisms for SMEs under EU Law‘

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.
3. 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.