Bethel Finance: Gibraltar flagged ships banned from Argentina

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The current war, thankfully just of words, between Argentina and the UK over the Falklands will hit ships that are registered in Gibraltar and fly the Rock’s flag.

The Confederación Argentina de Trabajadores del Transporte announced on Monday its members would take immediate steps to boycott British registered vessels docking at the nation’s ports. This is the union’s response to the posture of London with regards to Las Malvinas as Argentina chooses to call them.

ENFLAMED

In an enflamed statement the president of the union Omar Viviani declared: “From that date we have resolved to boycott any ship with the English flag…or registered in any of the flags of convenience that the British pirates use (Bermuda, Cayman Islands, Gibraltar, Panama, Malta etc).”

Whilst Bermuda and the Cayman Islands are British Overseas Territories, I am confused right now as to what Gibraltar’s status is, but certainly all three are under the British Crown. However as far as I am aware Panama has never been British: I think it started out life under Spain and whilst Malta was a British possession it achieved independence in 1964 and became a republic ten years later. So what these two nations will make of the action by the CATT union is anybody’s guess.

The confederation, which has around 30 member unions, believes its action will significantly affect ships flying the British and associated flags and its members are expected to refuse to load or unload cargoes or man tugs or pilot vessels guiding them in to ports in Argentina.

All of this sent me scrabbling through my email files as I was sure I received a press release from the Europa Trust Company in early January extolling the advantages of flying the Gibraltar flag in those troubled waters. Indeed I did and it reads: “A few days before Christmas 2011, Brazil, Argentina, Paraguay and Uruguay decided to close their ports to vessels flying the Falkland flag. Naturally, this led to ambassadors and other diplomats being hastily summoned to explain. A former head of the Royal Navy also went so far as to call for a nuclear submarine to be sent to the region.

“Events such as these emphasise the importance of choosing the right flag for your vessel or that of your client.

“The advantages of registering a yacht or ship in Gibraltar are many. British registration is recognised as one of the most popular means of safeguarding a marine investment.

“Any foreign national, through a Gibraltar company, can own and register a vessel on the British Register of Shipping. Gibraltar is a British port of registry where vessels can enjoy British registration without being liable for payment of VAT.

“Benefits also derive from Gibraltar's status as part of the European Community, such as the freedom to transport cargoes under the cabotage system. The Gibraltar Ship Register is fully recognised as an EU Member States' Register.”

BLACKING

Which is fine except the Argentine union is now blacking all vessels flying the British ensign or indeed that of such countries as Gibraltar. However the Europa Trust also points out that vessels registered in Gibraltar fly the Red Ensign defaced with the armorial bearings of Gibraltar and as such, are entitled to Royal Navy protection.

The Ministry of Defence recently dispatched the Royal Navy’s state-of-the-art destroyer HMS Dauntless to the Falklands. So it will be reassuring to ships and indeed yachts flying the Gibraltar flag to know she will escort them wherever they wish to go. Which of course Dauntless won’t but then Gibraltar has long been used to the MoD letting them down.