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Spain and the British territory of Gibraltar have entered a new phase in their relations, following the implementation of a historic agreement to abolish inspection and control procedures on the land border between the two sides, in a step considered the most significant since Britain's exit from the European Union, and which would end years of restrictions that hindered the movement of people and goods across the border crossing.

According to Euronews, the agreement came into effect after midnight (Wednesday), as dozens of people and vehicles crossed from the Spanish side into Gibraltar without undergoing customs or inspection procedures for the first time, amid celebratory atmospheres in which hundreds of people participated, raising Spanish flags in celebration of the agreement.

Gibraltar's Chief Minister Fabian Picardo described the agreement as a historic turning point, saying, 'Europe is back,' stressing that the removal of border restrictions would end years of daily hardship faced by residents and workers on both sides of the border.

The agreement was the fruit of years-long negotiations between Britain, Spain, and the European Union, and was signed in Brussels in the presence of European Trade Commissioner Maroš Šefčovič, ministers from London and Madrid, and the Chief Minister of Gibraltar.

For his part, Spanish Foreign Minister José Manuel Albares considered the agreement the start of a 'new era' of cooperation, noting that it would open wide economic horizons for both Gibraltar and the neighboring Spanish region, which has close economic and social ties with the territory.

Gibraltar has a population of about 40,000, while its economy relies on more than 15,500 workers who cross the border daily from Spain. Long waiting lines and strict inspection procedures were among the most prominent challenges facing the movement of workers and businesses, especially after Britain's exit from the European Union.

Chairman of the Gibraltar Federation of Small Businesses Owen Smith said that ending border restrictions would give companies greater flexibility in attracting and retaining workers, describing the agreement as 'very positive' for the local economy.

Under the agreement, Gibraltar will apply the Schengen area's free movement regime, while those arriving from outside the area will still be required to present their passports upon arrival at Gibraltar's airport and port, as part of new security arrangements agreed upon by the parties.

Spanish Prime Minister Pedro Sánchez is expected to visit the border area, where work has begun to remove the metal fence that separated the two sides for decades, after he described the agreement as bringing down 'the last wall inside the European Union' and opening the door to a shared area of growth and economic prosperity.

The dispute over Gibraltar dates back more than three centuries, since Spain ceded the territory to Britain under the Treaty of Utrecht in 1713. The border was completely closed in 1969 by order of Spanish dictator Francisco Franco and remained closed for 13 years before being reopened, but strict inspection procedures continued with every political crisis between London and Madrid.