On December 31, 2020, the United Kingdom officially left the European Union, and with that, a new agreement was put in place between the two entities. One aspect of this agreement that has garnered attention is the status of Gibraltar.

Gibraltar is a small British Overseas Territory located on the southern coast of Spain. It has been a point of contention between Spain and the United Kingdom, with Spain claiming sovereignty over the territory. The new EU-UK agreement includes provisions for Gibraltar`s status, ensuring its continued ties to both entities.

Under the agreement, Gibraltar will remain part of the UK`s customs territory, meaning that goods can be transported between Gibraltar and the UK without custom checks. However, it will also be part of the Schengen area, allowing for the free movement of people between Gibraltar and the EU. This will be facilitated by a new border control agreement between Spain and the UK, which will allow for the seamless movement of people and goods across the Gibraltar-Spain border.

Additionally, the agreement includes provisions for cooperation between the UK and Spain on issues such as the environment, law enforcement, and border security. The UK has also agreed to provide financial support to Gibraltar to help it offset the economic impact of Brexit.

Overall, the EU-UK agreement on Gibraltar is a welcome development, as it ensures the continued smooth operation of the territory and its ties to both the UK and the EU. While there may still be disagreements between Spain and the UK over Gibraltar`s sovereignty, this agreement provides a framework for cooperation and peaceful coexistence.