Gibraltar's imports have been arriving by land and sea since the early 19th century (Shutterstock)
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Gibraltar: the history of an import-led marketplace

Gibraltar’s businesses have long thrived on the demand for imported good, first from the British Royal Navy, and today from its bustling mix of 30,000 inhabitants and millions of tourists. Edward Macquisten of the Gibraltar Chamber of Commerce explains how this market has developed.

To keep the 30,000 people who live and work in Gibraltar supplied with everything from fresh meat to toner cartridges is a feat of modern logistics. Virtually everything is imported into Gibraltar.

The only manufacturing of any note is Gibraltar Crystal, which does a roaring trade in selling high quality crystal products to tourists from its premises in Casemates Square. Through the internet, this home-grown business now sells its unique figurines, decanters and glasses to customers all over the world. It encapsulates what is at the very heart of Gibraltar’s business community – trading nous. This is perhaps Gibraltar’s only natural resource; the ability to identify a market need and exploit it vigorously.

Back in the early 19th century, the British garrison in Gibraltar was supplied by merchants from the British motherland, specifically those based around the north western cities of Manchester and Liverpool.  This was fine for higher value or non-perishable items but transport by galleon was hardly fast nor was it always safe from interception from those pesky French and Spanish navies.

Traders from the established Mediterranean ports of Genoa, Valetta and Barcelona soon began calling at Gibraltar to supply goods as well. Over time some of these traders brought their families and they settled in Gibraltar, bringing with them their customs and cultures too. Over time they blended with the British and neighbouring Spanish cultures, and thus we have the modern Gibraltarian.

Importing goods into Gibraltar is a sight to behold. The queues of trucks waiting to enter Gibraltar, especially after a weekend, stretches for nearly a kilometre. For a town not much bigger than East Grinstead, it certainly imports a lot. A study published by the Gibraltar Chamber of Commerce in 2009 found that Gibraltar businesses bought over £174m worth of goods and services from Spain in 2007; everything from sand and cement to shoes and dog food.

However, the UK is still the territory’s primary trading partner. The branch of Morrisons in Gibraltar is a destination store for many locals, and also for the hundreds of thousands of European expats who live on the costas but crave a truly British retail experience. On any given day there are around 18 HGVs travelling from the UK to Gibraltar. Sending goods 1,300 miles from its UK depot to the Gibraltar store takes some doing, but it is evidently worth it for the company.

Some local companies like Saccone & Speed were set up specifically to supply the Royal Navy and the British diplomatic corps. And wherever they became established Saccone & Speed followed:  Malta, Cyprus, Africa and the Far East.  Today, even after 175 years, it is still one of the dominant importers and distributors of wines, spirits, tobacco and food on the Rock.

Locals grumble that prices for many goods are higher in Gibraltar than in Spain or the UK, but these merely reflect the higher costs of doing business in Gibraltar. For example, with space at a premium, warehousing costs are much higher than in Spain. In fact, Gibraltar has a fiercely competitive retail and wholesale market. Product sales reps visit their retail customers every weekday to secure sales, check stocks and also make sure that their competitors are not doing better than them.

That said, the exclusivity which an official importer or distributor used to enjoy has largely disappeared because of parallel trading (goods which are imported and distributed by unofficial agents) and online shopping. Indeed, internet sales into Gibraltar have boomed in the last 10 years. So much so that some of the Rock’s shopkeepers buy their stock from other online retailers and then sell it at a discount to the recommended retail price in their shops.

Currently the internet represents quite a significant threat for a number of the shops on Main Street. However, like Gibraltar Crystal, the instinct of local traders means that they will adapt so that their businesses can thrive. It is simply the Gibraltarian way.

Edward Macquisten is chief executive of the Gibraltar Chamber of Commerce

Photo: Getty
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Gibraltar and Europe: caught in the slipstream?

The British papers are full of who has the lead in the European in or out campaigns – Guy Clapperton considers the fallout for the smaller territories

Let’s start by acknowledging that there is no clear pattern emerging in the Europe debate, as long as we understand “Europe debate” to mean whether the UK should stay in or leave the European Union. This week alone we’ve seen Boris Johnson “warning Obama off” (as the BBC put it) getting involved in the debated, the same London Mayor and MP having a radio spat with Chuka Umunna involving telling each other to man up and various insults traded as either side accuses the other of scaremongering or making it up as they go along.

Divining who’s going to win is more difficult. The Daily Telegraph reports that “out” has it by a tiny margin but, crucially, the anti-Europe vote is likely to be more motivated so will actually show up on the day, expanding the margin by which it will win. Meanwhile the Times’ daily Red Box email points to Elections Etc. whose research suggests a 58% “remain” vote but with a plus or minus 14% error margin; so somewhere between 44% and 72% will go for staying in the EU. This, readers will note, tells us precisely nothing.

So the outcome, even if there weren’t 100 days in which Presidents and world leaders will offer counsel, claims and counterclaims will be made and the “leave” campaign will eventually decide who the official “leave” group actually is (there are two factions at the moment, doing the best impression of the Monty Python Judean People’s Front and the People’s Front of Judea that they can manage), we wouldn’t want to call a snap referendum even if it were to be called this afternoon.

What’s clear is that the outcome will ripple beyond the British mainland’s shores, and the ramifications of an “out” vote are already being felt on Gibraltar. Anyone doubting this should check today’s Times (subscription required), in which the Gibraltarian Chief Minister Fabian Picardo highlights recent Spanish statements about what would happen in the event of a Brexit.

Spain actually caused a few eyebrows to raise and some other people to panic just a little with its recent statements. Essentially the country’s foreign minister, José Manuel García-Margallo, suggested that there would be conversations on the sovereignty of Gibraltar the “day after” an announcement of a British exit, according to the Daily Mail and other reports. He also said (much, much further down the report) that he didn’t want Britain to leave: “God forbid” is the phrase he uses.

He raised the idea of joint sovereignty once again more recently, reports the Gibraltar Chronicle, this time suggesting that if Britain leaves Europe then Gib could do what it nearly did (he says) in 2002 and start transitioning towards Spain. This is an interesting definition of “nearly” when 98.48% of the electorate actually voted not to do so, but remaining British when this might exclude the Rock from Europe would inevitably raise different issues if not a different final outcome.

Outside Gibraltarian interests the effect could be more severe than that. SNP leader and Scottish First Minister Nicola Sturgeon has made no secret of her wish to make a fresh case for Scottish independence. The once-in-a-generation referendum on this was lost in 2014 but should Britain exit Europe with a majority of Scots clearly demonstrating that they want to stay in, the case becomes stronger (although the collapse of the oil price would blow the original blueprint out of the water).

So we could end up with Scotland as well as Gibraltar wanting to remain in Europe while Britain made its exit. Whether this would be legally possible if both stayed tied to Britain is untested as yet – and with Spain eager to enter talks the day after an exit is agreed but the Gibraltarians implacably opposed to becoming Spanish, the way forward would not be clear.

Guy Clapperton is the freelance journalist who edits the New Statesman’s Gibraltar hub. You can also find him in the Guardian, Computer Business Review and Professional Outsourcing which he edits.