Govt disagrees with Sir Peter that termination clause causes "great uncertainty" for Gib businesses

The Government disagrees with Sir Peter that the termination clause causes "great uncertainty" for Gibraltar businesses.

It states the termination clause in the EU UK Treaty is identical to that in the EU UK Trade & Cooperation Agreement, which it says is not considered by businesses in the UK to create great uncertainty.

The Government states both clauses are word for word identical. Article 334 of the Gibraltar Treaty is a copy of Article 779 of the EU UK TCA.

Both read as follows:

"Each party may terminate this Agreement by written notification through diplomatic channels. This agreement and any supplementing agreement shall cease to be in force on the first day of the twelfth month following the date of notification."

It adds, similar clauses in other EU agreements, such as the MERCOSUR Agreement, have even shorter termination provisions, providing only for nine months of notice prior to termination. Such termination clauses are therefore common, and do not create uncertainty for the businesses that operate under them involving BILLIONS of pounds and it should not concern businesses in Gibraltar.

The Government believes that without such a termination clause, a Treaty could become a trap if it were not working out well for Gibraltar, exactly the other point, it says, which the Government will ensure is not the case by protecting Gibraltar’s right to determine British rights of termination under the Concordat it's been negotiating for some time.