On 18 October 2018, Spanish Prime Minister Pedro Sánchez announced that he had reached an agreement with Britain, declared that the Gibraltar Protocol was “resolved” and added that the Spanish government would not oppose the UK`s exit from the EU, as Gibraltar is one of the British Overseas Territories and is currently within the EU.   Any dispute Spain has or may have over Gibraltar`s sovereignty no longer has any influence on a future trade deal between Britain and the EU.  After Brexit, certain agreements will apply during the transition period. However, agreements have yet to be negotiated between stakeholders.  The European Council published a set of guidelines for the EU-27 on withdrawal negotiations. In those guidelines, Central Principle 22 states that `after the withdrawal of the United Kingdom from the Union, no agreement between the EU and the United Kingdom may apply in the territory of Gibraltar without the agreement between the Kingdom of Spain and the United Kingdom`.  Jack Lopresti, a pro-Brexit Conservative MP, said it was shameful that the EU was trying to give Spain an effective veto over the future of British territory and ignore the will of the people of Gibraltar.  Foreign Secretary Boris Johnson reaffirmed the UK`s commitment to Gibraltar.  Since 2010, Spain has claimed that the trilateral dialogue is over and that it has returned to the original request for a bilateral agreement with the United Kingdom, with four-page ad hoc meetings, including campo de Gibraltar. The source said any deal to create a “common prosperity zone” in Gibraltar, the British territory over which Spain claims sovereignty, was unlikely before a full Brexit deal. Spain insists on a bilateral agreement on sovereignty with the UK, while the UK will only discuss sovereignty if Gibraltar is involved in the talks.
In April 2018, Spanish Foreign Minister Alfonso Dastis announced that Spain hoped to sign a bilateral agreement with Britain on Gibraltar before October so as not to hinder an interim Brexit deal. Talks between London and Madrid were well advanced. While reaffirming Spain`s long-term goal of “re-establishing” Gibraltar, he said Spain would not take Gibraltar “hostage” for EU negotiations.  The Government of the United Kingdom will never conclude a sovereignty agreement without the agreement of the Government of Gibraltar and its people. Indeed, without this agreement, we will never enter into a trial. The word “never” sends a substantial and clear commitment and has been used for purposes. We have conveyed this message with confidence to the peoples and Governments of Gibraltar and Spain. This is a sign of the maturity of our relationship, now that it is accepted as the UK`s position. MADRID (Reuters) – Time is running out to find a Brexit deal between Spain and Britain on Gibraltar, Spanish Foreign Minister Arancha Gonzalez Laya said on Thursday.
The two governments have agreed to re-establish direct communication in the region. The Spanish Government has decided to suspend the application of the measures currently in force. . . .