The GFSB has long raised concerns about the impact of unlicensed cross-border trade on its members. Following representations made to the Minister for Business in July, and following meetings with a group of concerned members and traders, the issue was addressed in Parliament last week, where Business Minister Gemma Arias Vasquez outlined the Government’s strategy. The Gibraltar Chronicle reported on this exchange, highlighting the Government’s commitment to addressing the problem through a phased approach of education and enforcement.

Why does this matter?

Unlicensed cross-border trade from Spanish businesses operating in Gibraltar has created significant challenges for local businesses. Competing with companies not complying with Gibraltar’s licensing and registration laws has led to unfair market conditions across multiple sectors, from construction to retail. The issue, raised during a recent GFSB OFT seminar, the Brexit Townhall and in Parliament, underscores the need for stronger enforcement to protect Gibraltar’s economy.

What is the Government’s plan?

In response to these concerns, the Government unveiled a two-phase strategy:

• An informational video, displayed over 25,000 times on screens at the border and promoted on social media, reached 20,000 users and generated 70,000 impressions. The GFSB consulted with the OFT on the rollout of this campaign.
• A bilingual infographic, created in collaboration with the GFSB and the Chamber of Commerce, provides essential details on registration and licensing requirements. It has been shared with sister organisations across the border.
• Enforcement action will intensify from January 2025 through a multi-agency campaign involving HM Customs, the Department of Employment, and the Office of Fair Trading. Local businesses are encouraged to report evidence of unlicensed competitors to assist with targeted enforcement. 
• The planned enforcement actions reflect directly representations made by the GFSB together a group of concerned members and traders. 

What about consumers?

The Government also highlighted the role of consumers, noting that while goods from non-Gibraltar businesses can be delivered locally, services such as kitchen installations or furniture assembly can only be provided by registered and licensed Gibraltar businesses. A public education initiative will aim to clarify this distinction. The GFSB has called for the Fair Trading Act to be amended to oblige consumers to use properly licensed businesses. 

What happens now?

From January, enforcement will intensify with a visible campaign designed to level the playing field for Gibraltar’s business community. Speaking in Parliament, Minister Arias Vasquez acknowledged the concerns of small businesses and outlined a coordinated response to tackle this long-standing issue.

GFSB Advocates issue

The GFSB has been instrumental in raising this issue, engaging with the Government since July, contributing to the development of awareness materials, and working with a group of concerned members and traders to advocate on this issue. Local businesses have been actively consulted and are now encouraged to provide evidence of unlicensed competitors to help with enforcement efforts.

The GFSB strongly welcomes these positive steps taken by the Minister for Business and the OFT. 

What’s YOUR take? The GFSB invites members to share their experiences or concerns via the GFSB community platform and join the discussion today.