Hundreds of people gathered in Gibraltar on Wednesday for national day celebrations, the first since the European Union and the United Kingdom reached a deal in June to ease travel and trade across the territory's border with Spain.

The festivities, which mark the 1967 referendum in which Gibraltarians voted overwhelmingly to remain part of the United Kingdom, took on added significance as officials and residents look ahead to the dismantling of a fence that separates the Rock from Spain. Gibraltar Chief Minister Fabian Picardo said the celebrations this year "carry added significance."

Under the June agreement, the EU said all physical barriers, checks and controls on people and goods moving between Spain and Gibraltar will be removed. The deal is expected to take effect in the first half of 2026, at which point the fence that some 15,000 people cross daily is slated to be dismantled.

Britain left the European Union in 2020 without a resolution on Gibraltar's post-Brexit relationship with the bloc, and talks preceding the June accord made only halting progress. Gibraltar, a British Overseas Territory ceded under the 1713 Treaty of Utrecht, has long been claimed by Spain, and its sovereignty has been a point of contention for centuries.

The tiny territory of roughly 34,000 residents relies heavily on access to the European market. In Britain’s 2016 referendum on EU membership, 96% of voters in Gibraltar supported remaining in the bloc.

The June deal drew attention not only for its practical implications but for its symbolic departure from a trend of increased border fortifications elsewhere in Europe and beyond. Officials said removing border checks would facilitate daily crossings for workers and shoppers and simplify the movement of goods that sustain Gibraltar's economy.

Spanish and British officials have said the agreement preserves Gibraltar's interests while addressing practical cross-border concerns. Implementation will require administrative and logistical steps on both sides of the frontier before the planned dismantling in 2026.

National day events Thursday included parades and public gatherings that reflected both local pride in Gibraltar's vote to remain British and cautious optimism about the prospect of easier travel and trade with neighboring Spain once the agreement is fully implemented.