of Spanish incursions into British-claimed waters around Gibraltar, including by a Spanish Navy fisheries protection vessel, leading to intervention by police and a diplomatic protest by the UK. Under the United Nations Convention on the Law of the Sea, vessels passing through the Strait of Gibraltar do so under the regime of transit passage, rather than the more limited innocent passage allowed in most territorial waters. Economy The Spanish government argues that Gibraltar's tax schemes harm the Spanish economy. In January 2005, the European Commissioner for Competition requested the UK (responsible for Gibraltar's external relations) to abolish Gibraltar's tax-exempt company regime by the end of 2010 (at the latest) on the basis that it constitutes illegal state aid that could distort competition. Unlike other tax havens like Andorra, Gibraltar has not signed a mutual agreement with Spain to exchange fiscal information, although such an agreement has been offered by the Gibraltar Government, but Spain has declined to accept it because it does not consider Gibraltar as its diplomatic counterpart. Another concern that has been raised is that each day thousands of Spaniards buy goods at cheaper prices in Gibraltar due to exchange rates and lack of VAT, contributing to the Gibraltar economy instead of that of Spain. The Spanish government wants to increase the exchange of fiscal information in order to prevent Gibraltar banks being used for tax evasion and money laundering. The United Kingdom House of Commons Foreign Affairs Select Committee has directed an inquiry that determined that Gibraltar has always complied with all international and EU requirements to prevent such activity. We conclude that the series of allegations which Spain makes against Gibraltar appear almost wholly to be without substance. In many cases, it is not just the Government of Gibraltar but the British Government as well which is traduced. It is deeply regrettable that allegations are made that cannot be sustained by a basis in fact. If concrete evidence of wrong-doing were produced, the British Government should act promptly to deal with the problem. But so long as allegations are unsubstantiated, the British Government should continue to rebut them promptly and decisively. Referred to as an "international financial centre", Gibraltar was among 35 jurisdictions identified by the Organisation for Economic Co-operation and Development (OECD) as a tax haven in June 2000. As a result of having made a commitment in accordance with the OECD's 2001 Progress Report