The United Kingdom has reached a trade agreement with six Gulf states that the government estimates could contribute £3.7 billion to the UK economy. The agreement was signed with members of the Gulf Co-operation Council (GCC), including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).
According to the UK government, the deal is expected to remove an estimated £580 million per year in tariffs on British exports to the region once the agreement is fully implemented. Officials said the agreement is designed to improve market access for UK businesses and support investment opportunities between British companies and Gulf partners.
Products expected to benefit from tariff reductions include British exports such as cheddar cheese, butter, and chocolate. The government also stated that the agreement could help support jobs and business expansion opportunities across multiple sectors.
The trade agreement marks the third major deal signed under Prime Minister Sir Keir Starmer’s government, following recent agreements with India and South Korea. It is also described as the first trade agreement between the GCC and a G7 country.
Prime Minister Sir Keir Starmer said the agreement would create new opportunities for British workers and businesses in the years ahead. Business and Trade Secretary Peter Kyle stated that the agreement provides exporters with greater certainty during a period of economic uncertainty and shifting global trade conditions.
Chancellor Rachel Reeves said the agreement reflects the government’s efforts to support British firms in expanding internationally and competing in global markets.
Business groups also welcomed the agreement. Chris Southworth, secretary general of the International Chamber of Commerce (ICC) UK, described the deal as a positive development for business confidence. He noted that the agreement is expected to support market access, digital trade flows, investment activity, and workforce mobility between the UK and Gulf economies.
However, some advocacy organizations expressed concerns regarding the agreement. Trade Justice Movement stated that it believes the deal lacks sufficient detail on labour protections, climate-related commitments, and human rights considerations. The group also raised concerns related to environmental impacts and governance issues within some GCC member states.
Political reaction within the UK also followed the announcement. The Conservative Party, which began negotiations for the agreement while previously in government, described the deal as an important post-Brexit trade opportunity.
The UK government has continued expanding its international trade partnerships in recent years, including agreements with the United States and the European Union, as part of broader efforts to strengthen export growth and economic cooperation with key global markets.
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