New era for Gibraltar with removal of 118-year-old border controls with Spain

A new treaty removing border checks between Spain and the British overseas territory of Gibraltar came into effect at midnight, ending a 118-year-old land border fence. The agreement, signed in Brussels and negotiated over more than four years by the UK, Spain, Gibraltar and the EU following Brexit, brings Gibraltar into the EU's Schengen free-movement area and customs union, easing crossings for goods, tourists and the roughly 15,000 Spanish workers who commute daily into the territory. Gibraltar's Chief Minister Fabian Picardo pulled down part of the fence at midnight as crowds gathered to celebrate; the deal still requires provisional implementation approval from the UK and European Parliaments. Under the new arrangement, goods sold in Gibraltar must comply with EU regulations, and a new transaction tax starting at 15% (rising to 17%) is replacing import duty due to the territory's lack of VAT.