Gibraltar is a British Overseas Territory with an area of just 6.5 sq km and a population of around 34,000. The territory is self-governing in all aspects except for the defence and foreign policy, which is managed by the UK. It is strategically important region, with Gibraltar port being a key NATO base. The recently inked Spain-UK deal placed Gibraltar in the Schengen area, enabling free movement to and from this small portion of land in the southern tip of the Iberian Peninsula.