UK Says It's Staying Out Of Gibraltar-Spain OECD Dispute

Panorama Online Daily

09 July 2001

This story is reproduced by kind permission of Panorama Online Daily at: http://www.panorama.gi

The UK has said that the Spanish action over Gibraltar in the OECD does not require a unilateral response from London. "It's not something specific for the UK," said a UK treasury spokeswoman.

The Spanish ambassador to the OECD Elena Pisonero said last week that Spain will veto an agreement on the 'harmful taxes' unless Britain steps in to guarantee that Gibraltar respects it.

As previously reported by us, the Gibraltar government has been in touch with the OECD in the past regarding the list of 32 countries which are being required to give a commitment about the said tax practices. Other overseas territories are likewise acting as best suits them, without London having to interfere in domestic matters.

But Spain has this penchant about Gibraltar - any action by Gibraltar in the international field she deems as recognition of Gibraltar's international status. Spain claims the sovereignty of Gibraltar.

With the OECD backing a new initiative on the matter, a deadline for June 30 has been extended to November 30 - but Spain is hampering the work of the OECD due to her attitude over Gibraltar.

Another source said last week that the Spanish attitude does not address the issue at stake, but is rather a political/diplomatic stance over Gibraltar.

The OECD has meanwhile stopped making an announcement while talks continue with Spain to try and resolve the issue.

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