Gibraltar: UK-EU Negotiations

Baroness Bennett of Manor Castle Excerpts

Tuesday 12th March 2024 Lords Chamber

[Lord Ahmad of Wimbledon (Con)]

The noble Lord speaks with great insight. I can give him a cast-iron assurance that I agree with every word he has said. We work closely with the Chief Minister and his team. I believe he will also be visiting London this month and meeting various committees in that respect. As I said to the noble Baroness, Lady Northover, the UK is steadfast, and it will not agree anything that compromises Gibraltar’s sovereignty.

[Baroness Bennett of Manor Castle (GP)]

My Lords, one of the many areas that cause conflict between Spain and the UK over the issue of Gibraltar is tobacco smuggling. Gibraltar does not apply sales tax or other levies, while Spain says that smuggling costs it €400 million a year in lost import duties. This and a number of other dubious business practices associated with Gibraltar have an impact both on the EU and on the UK. Are the Government looking at how some of these issues might be addressed to help to progress the negotiations?

[Lord Ahmad of Wimbledon (Con)]

As the noble Baroness will know, there are provisions within the political framework for a level playing field. That will allow for mutual standards on matters covering labour, the environment and taxation, and it will cover all sectors.