7 December

If the UK were to opt out of the European Union its position, as a global financial hub would not be undermined these were the words last week of Axel Weber, the Chairman of Zurich-based UBS - a hold company for the said group.

Webber adding, "It won't undermine the UK as a financial centre but it would be more challenging to get market access," said as the former head of the German Bundesbank addressed delegates at a Wall Street Journal event.

The UK and Gibraltar are used to gain access to the single market and as a base from which to sell financial products and services. It is in these areas that potentially, financial Investments and banking could be at risk if Britain opts out of the EU.

It could also prompt clients to rethink their position in this respect.

Not Everyone Agrees Brexit Means the End of the World

Weber also said last week "if the UK were to leave the European Union a financial services trade agreement would likely be put in place, there would be two or three years of heightened uncertainty but pretty much the same (access) rights,"

"The UK would get a very favourable deal with the EU to maintain a large part of market access to the EU" said Weber.

Gibraltar would no doubt, would also be able to negotiate (with the support of the UK) similar deals to reinforce its own position in the event of an EU exit by the UK. This is not going to happen overnight, it will take years, if it happens at all.

However, Brexit could open many other opportunities in this respect and in a much larger and possible more dynamic playing field!

Economic globalisation has brought benefits to many countries and industries around the world, and promises more in the future. The continued opening of markets to trade and investment and the spread of value-adding technology have spurred global development in recent years.

Cameron suggests a Greater Role for the Commonwealth

Two years back, faced with a slowing economy, UK Prime Minister David Cameron seemed to suggest a greater role for the Commonwealth than we have seen till now, but with huge economic and political investments in the European Union, Britain has till now refrained from making any leaps of faith.

In fact, last year David Cameron wrote in 'the Global' "I believe the Commonwealth is uniquely placed to make the case for trade and to catalyse (or accelerate) an increase in investment and trade which quite frankly is the single biggest and most important stimulus we can give our economies right now"

UK's Interest in Trading and Investing with the Commonwealth Diminished

Britain, in the aftermath of World War II wanted the Commonwealth to stay alive not only as a symbol of its former glory, but also as a guarantee of the economic ties it then had with its former colonies.

However, as Britain veered towards membership of the European Union in 1973, its interest in the Commonwealth as a trading and investment forum diminished. With the founder losing interest, the rest of the Commonwealth started looking for other regional groupings.

Canada and Australia started becoming America-centric in their policies and in terms of trade, Asia-centric. India quite naturally started looking eastwards for its economic and political space. African nations looked towards an African Union, Malaysia and Singapore towards Asian.

Things have changed since then. Some economists believe that whilst the UK is in intense debate whether the country should remain in the EU or have looser ties with it, a situation that would allow it to join either The North American Free Trade Agreement (NAFTA or set up a Commonwealth Free Trade Pact remains to be seen.

The Case for a Closer Trade Compact with the Commonwealth

Whatever the results of the on-going debate, statistics show it may still make sense for Mr Cameron and other Commonwealth nations to think seriously on some kind of a closer trade compact. The fact is that despite accusations that it is turning into a nostalgic talking shop, the Commonwealth does continue to do serious business without really realising it:

· Between them, Commonwealth countries traded around $4 trillion worth of goods and that was in 2010 these figures have risen since

· Intra-Commonwealth trade accounts for about one-sixth of total Commonwealth members' trade, with an average for each member of around one-third.

· The share of intra-Commonwealth trade has grown steadily from around 12 per cent in 1990 to around 20 per cent in 2014.

· The Commonwealth dominates trade in some countries; for example more than four-fifths of Botswana's and Namibia's imports come from other Commonwealth countries; and more than 90 per cent of the exports from St Vincent and Samoa go to other Commonwealth countries.

· Last year India bought some $70.15 billion of goods from Commonwealth countries and exported $55.65 billion worth. The Commonwealth countries accounts for 28 per cent of India's total exports as well as nearly 20 per cent of its imports.

However, experts believe that being spread around the world and not in a geographically contiguous area as in the EU is possibly, the biggest drawback that the Commonwealth has in transforming itself into a trading agreement. But having said the latter, and in the light of giant regional trade bodies being contemplated such as the Asia-Pacific Free Trade Pact, where huge oceans separate countries, the distance now between the Commonwealth nations could be of little importance. Globalisation in this sense comes in many forms.

Last week The 24th Commonwealth Heads of Government Meeting (CHOGM) met in Malta the theme of the summit 'Adding Global Value'

Could Gibraltar Capitalise From Commonwealth Trade Finance Boost?

Could Gibraltar capitalise from one important agreement made by the Commonwealth Enterprise and Investment Council during the CHOGM?

Last week an important initiative was agreed. A new trade finance facility to help small Commonwealth countries. The success of the initiative will depend on a pledge-target of $20 million being met in the coming weeks/months.

Malta, India, Sri Lanka and Mauritius have already pledged these are yet undisclosed amounts there will be lobbying for more countries to join the initiative. A declaration of intent was signed to support the trade finance proposal and to provide the initial contribution to get the ball rolling.

The facility will provide the Commonwealth's smallest states like first nations who signed up to the agreement to access to trade finance, which would otherwise be difficult to obtain from domestic financial institutions.

Smaller Nations Face Problems to Access Finance in the Global Economy

Experts are of the opinion that smaller nations like Malta, who similar to Gibraltar for instance, face problems to access finance in the global economy because they do not have critical mass and most often banks shy away from the risk.The new plan is for private financial institutions to administer the facility and deal directly with trade companies from Commonwealth countries.

Commonwealth Secretary General Kamalesh Sharma said the initiative went to the core of the Commonwealth's values to ensure that the smaller states are also helped. He said the team of experts who worked on the initiative, included the World Bank.

I am not in a position to say if Gibraltar has the same problems experienced by other small commonwealth states, resulting in the initiative announced last week. Although as a small nation, Gibraltar I think would qualify to be part of the new commonwealth trade financial facility. This if the Gibraltar Government thought it advantageous to the Rocks present and future circumstances.

In fact, the 'Commonwealth Business Forum', was launched earlier in the year in London at the headquarters of the Commonwealth they are behind the new initiative masterminded by the Commonwealth Enterprise and Investment Council (CWEIC) the council serves as a platform for countries to showcase investment opportunities and is an opportunity to influence the global debate on trade.

Opportunities in the Vastness of the Commonwealth?

According to the commonwealth business forum chairman, Adrian Hillman,

'With a combined population in excess of 2.3 billion, GDP of more than US$10 trillion and an estimated average annual growth of 7.3 per cent for Commonwealth countries over the next five years, intra-Commonwealth trade and investment has the potential for significant growth'.

Mr. Hillman adding, that while the Commonwealth was not a natural trade bloc, historical ties and familiar legal, banking and commercial practices made it easier to do business between Commonwealth countries. "The so-called Commonwealth Factor makes it up to 20 per cent cheaper to do business with another Commonwealth country. As countries seek to secure an export-led recovery from the global financial crisis, the Commonwealth not only provides a powerful international voice for free and fair trade, but also provides access to free and friendly markets,"

Gibraltar could do worse then to look into the new Commonwealth financial initiative, especially with the possibility of a Brexit on the horizon. On paper, it appears as a serious option.

The Rock has a solid and proven product. Our own story is one of growth, few barriers, sound finance, no punitive taxation, easy communication, solid regulation and transparency!

There's nothing to lose here, if Gibraltar is able to capitalise…Why Not?

07-12-15 PANORAMAdailyGIBRALTAR

What is being said in Spain: Letizia is Gibraltar's rightful Queen!

December 07, 2015

When Felipe VI became king of Spain he inherited 30 other titles - including King of Gibraltar. That is what they are saying in Spain, adding that Letizia and not Queen Elizabeth II is the rightful Queen of Gibraltar!

Now, this may appear far-fetched, but with Felipe and Letizia due to visit Britain next year - which is just round the corner - this is an issue that ought to be placed in a modern context and cleared once and for all.

Referring to the visit, Spanish commentators say that what the Spanish Crown will not discuss is to whom does the title of king/queen of Gibraltar belongs to.

When Felipe VI became Spanish king he inherited over 30 other titles, it is said in Spain. And the Spanish constitution recognises all these titles, when it refers to 'titles traditinally belonging to the Spanish Crown.'

One such title is that of 'King of Gibraltar'.

This goes back to the arab rule of Spain. It is said that in 1355 Isa Ibn al-Hassam proclaimed himself to be 'King of Gibraltar and its land', thus Gibraltar became a kingdom.

In 1462, the Spanish conquered lands from the arabs, including the kingdom of Gibraltar, which was one of the titles incorporated to the Crown of Castille. Spanish sources say that although Gibraltar went on to become a Briish dependency, the title of King of Gibraltar remained within the Spanish Crown "and this is reconised by the British Crown."

Is it the case that it is recognised by the British Crown? It is said that in 1479, the Spanish Queen Isabel la Catolica' was also named Queen of Gibraltar - and other Spanish kings have also adopted King of Gibraltar in the long name to the title of 'King of Spain'.

Is all this a lot of nonsense or is there something to it? The Foreign Office, which as everybody knows, bends over backwards so as not to offend Spain and is agreeable to the Spanish monarchy officially visiting Britain, but not to our Queen visiting Gibraltar, ought to be asked to make a formal statement about it.

07-12-15 PANORAMAdailyGIBRALTAR