Strategically important, Gibraltar was reluctantly ceded to Great Britain by Spain in the 1713 Treaty of Utrecht; the British garrison was formally declared a colony in 1830. In a referendum held in 1967, Gibraltarians voted overwhelmingly to remain a British dependency. The subsequent granting of autonomy in 1969 by the UK led to Spain closing the border and severing all communication links. Between 1997 and 2002, the UK and Spain held a series of talks on establishing temporary joint sovereignty over Gibraltar. In response to these talks, the Gibraltar Government called a referendum in late 2002 in which the majority of citizens voted overwhelmingly against any sharing of sovereignty with Spain. Since late 2004, Spain, the UK, and Gibraltar have held tripartite talks with the aim of cooperatively resolving problems that affect the local population, and work continues on cooperation agreements in areas such as taxation and financial services; communications and maritime security; policy, legal and customs services; environmental protection; and education and visa services. Throughout 2009, a dispute over Gibraltar's claim to territorial waters extending out three miles gave rise to periodic non-violent maritime confrontations between Spanish and UK naval patrols. A new noncolonial constitution came into effect in 2007, and the European Court of First Instance recognized Gibraltar's right to regulate its own tax regime in December 2008. The UK retains responsibility for defense, foreign relations, internal security, and financial stability.

Southwestern Europe, bordering the Strait of Gibraltar, which links the Mediterranean Sea and the North Atlantic Ocean, on the southern coast of Spain

more than 10 times the size of The National Mall in Washington, D.C.

Mediterranean with mild winters and warm summers

a narrow coastal lowland borders the Rock of Gibraltar

limited natural freshwater resources: large concrete or natural rock water catchments collect rainwater (no longer used for drinking water) and adequate desalination plant

strategic location on Strait of Gibraltar that links the North Atlantic Ocean and Mediterranean Sea

Spanish, Italian, English, Maltese, Portuguese, German, North Africans

English (used in schools and for official purposes), Spanish, Italian, Portuguese

Roman Catholic 78.1%, Church of England 7%, other Christian 3.2%, Muslim 4%, Jewish 2.1%, Hindu 1.8%, other or unspecified 0.9%, none 2.9% (2001 census)

29,034 (July 2012 est.)

14.22 births/1,000 population (2012 est.)

8.27 deaths/1,000 population (July 2012 est.)

-3.31 migrant(s)/1,000 population (2012 est.)

1.94 children born/woman (2012 est.)

overseas territory of the UK

none (overseas territory of the UK)

National Day, 10 September (1967); note - day of the national referendum to decide whether to remain with the UK or join Spain

5 June 2006; came into force 2 January 2007

the laws of the UK, where applicable, apply

18 years of age; universal; and British citizens who have been residents six months or more

unicameral Parliament (18 seats: 17 members elected by popular vote, 1 for the speaker appointed by Parliament; members serve four-year terms)

Supreme Court; Court of Appeal

Gibraltar Liberal Party [Joseph GARCIA]; Gibraltar Social Democrats or GSD [Fabian PICARDO]; Gibraltar Socialist Labor Party or GSLP [Joseph John BOSSANO]; Progressive Democratic Party

Chamber of Commerce; Gibraltar Representatives Organization; Women's Association

Interpol (subbureau), UPU

none (overseas territory of the UK)

two horizontal bands of white (top, double width) and red with a three-towered red castle in the center of the white band; hanging from the castle gate is a gold key centered in the red band; the design is that of Gibraltar's coat of arms granted on 10 July 1502 by King Ferdinand and Queen Isabella of Spain; the castle symbolizes Gibraltar as a fortress, while the key represents Gibraltar's strategic importance - the key to the Mediterranean

Self-sufficient Gibraltar benefits from an extensive shipping trade, offshore banking, and its position as an international conference center. Tax rates are low to attract foreign investment. The British military presence has been sharply reduced and now contributes about 7% to the local economy, compared with 60% in 1984. The financial sector, tourism (almost 5 million visitors in 1998), gaming revenues, shipping services fees, and duties on consumer goods also generate revenue. The financial sector, tourism, and the shipping sector contribute 30%, 30%, and 25%, respectively, of GDP. Telecommunications, e-commerce, and e-gaming account for the remaining 15%. In recent years, Gibraltar has seen major structural change from a public to a private sector economy, but changes in government spending still have a major impact on the level of employment.

$1.275 billion (2008 est.)

$1.203 billion (2007 est.)

$1.106 billion (2006 est.)

12,690 (including non-Gibraltar laborers) (2001)

43% of GDP (2008 est.)

2.1% of GDP (2008 est.)

7.5% of GDP (2008 est.)

13.5% of GDP (2006 est.)

tourism, banking and finance, ship repairing, tobacco

$271 million (2004 est.)

(principally reexports) petroleum 51%, manufactured goods

$2.967 billion (2004 est.)

fuels, manufactured goods, and foodstuffs

Gibraltar pounds (GIP) per US dollar -

164 million kWh (2009 est.)

152.5 million kWh (2009 est.)

36,000 kW (2009 est.)

100% of total installed capacity (2009 est.)

0% of total installed capacity (2009 est.)

0 bbl/day (2011 est.)

0 bbl/day (2009 est.)

0 bbl (1 January 2012 est.)

0 bbl/day (2008 est.)

24,920 bbl/day (2011 est.)

0 bbl/day (2008 est.)

27,000 bbl/day (2008 est.)

0 cu m (1 January 2012 est.)

3.908 million Mt (2010 est.)

Gibraltar Broadcasting Corporation (GBC) provides TV and radio broadcasting services via 1 TV station and 4 radio stations; British Forces Broadcasting Service (BFBS) operates 1 radio station; broadcasts from Spanish radio and TV stations are accessible (2008)

Royal Gibraltar Regiment (2009)

defense is the responsibility of the UK; the Royal Gibraltar Regiment replaced the last British regular infantry forces in 1992

in 2002, Gibraltar residents voted overwhelmingly by referendum to reject any "shared sovereignty" arrangement; the government of Gibraltar insists on equal participation in talks between the UK and Spain; Spain disapproves of UK plans to grant Gibraltar even greater autonomy