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Gibraltar Government Welcomes Move On Competent Authorities
by Robert Lee, Tax-News.com, London

10 January 2008

The government of Gibraltar has welcomed an agreement on the longstanding problematic issue of Spain’s objection to the application of international treaties, conventions and agreements to Gibraltar and the role of Gibraltar’s own competent authorities in their administration.

The Gibraltar government explained in a statement on Monday that the matter has been resolved by an agreement that extends the 'Competent Authority/Post-boxing' arrangements of 2000 (which applied only to EU Agreements and measures) to all international agreements. As under the 2000 agreement, Gibraltar and the Spanish Competent Authorities will channel their formal, written communications through the UK Post Box established in 2000.

The agreement will not alter the fact that the policy, executive and administrative acts and decisions will continue to be taken exclusively in Gibraltar by the Gibraltar Competent Authority, the government added. However, unlike the 2000 agreement, the new agreement applies only to formal communications between Gibraltar and the Spanish competent authorities. Those between Gibraltar and every other country will remain direct.

According to Gibraltar, the EU’s adherence to many important international conventions is obstructed because Spain has hitherto objected to Gibraltar’s participation acting with its own competent authority. Spain’s position has been that all countries should deal with Gibraltar through the UK.

“We are delighted with these agreements which work very well for all sides," stated Gibraltar's Chief Minister Peter Caruana. "Consistent with the excellent relations that now exist with the FCO (UK Foreign and Commonwealth Office), the Gibraltar Government has been fully consulted throughout and the British Government has agreed only to what the Gibraltar Government has confirmed during the negotiating process that it agrees to."

"These agreements remove a whole area of traditional problems and difficulties between Spain, Gibraltar and the UK in the diplomatic arena, and will allow international business to be conducted more fluidly," Caruana continued.

"Our right to operate through our own authorities remains fully intact, including with Spain. In the case of Spain only, those Gibraltar authorities will physically send their formal written communications to their Spanish counterparts and vice versa through UK diplomatic channels, called “the Post Box”, as has been happening in relation to EU business since April 2000," the Chief Minster noted in conclusion.

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