The European Council has published a set of guidelines for EU-27 withdrawal negotiations. These guidelines state in Basic Principle 22 that “after the UK`s withdrawal from the EU, no agreement between the EU and the United Kingdom can be applicable to the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom.”  The pro-Brexit Conservative, M.P. Jack Lopresti, found it shameful that the EU was trying to give Spain an effective veto over the future of british territory, ignoring the will of the people of Gibraltar.  Foreign Secretary Boris Johnson again reacted to the UK`s commitment to Gibraltar.  On 18 October 2018, Spanish Prime Minister Pedro Sénchez announced that he had reached an agreement with Britain by declaring the Gibraltar Protocol “resolved” and stating that the Spanish Government would not oppose the UK`s withdrawal from the EU, particularly with regard to Gibraltar, as one of the British overseas territories and currently within the EU.   Any dispute that Spain has or might have over Gibraltar`s sovereignty will no longer concern any future trade agreement between Britain and the EU.  The United Kingdom has launched the formal process of withdrawal negotiations by formally indicating to the European Council its intention to leave the EU. After Brexit, some agreements will apply during the transition period. However, after the transition period, agreements still need to be negotiated between stakeholders.
 This agreement is subject to ratification by the British Parliament and the European Parliament. In the meantime, planning will continue if the UK and Gibraltar leave the European Union without this agreement. Gibraltar`s position in the process of the UK`s withdrawal from the European Union raises concrete questions during the negotiations. Gibraltar voted strongly in favour of remaining in the European Union in the referendum and its unique situation could lead to difficulties in the Brexit negotiations, with Spaniards telling Gibraltar that online gambling, offshore banking and duty-free trade are no longer part of the internal market for Gibraltar`s economy.