UK strikes 'historic' trade deal with Gulf states, first among G7 nations

The Gulf Cooperation Council and Britain concluded negotiations on a free trade agreement on Wednesday, in what officials described as a landmark deal expected to deepen economic ties and deliver significant benefits to both sides. The accord makes Britain the first G7 nation to secure a trade agreement with the six-member GCC bloc, comprising Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

GCC Secretary-General Jasem Mohamed Albudaiwi and Britain's Minister of State for Trade Chris Bryant signed a joint statement in London formally marking the end of negotiations. Albudaiwi said the agreement represented a "qualitative leap" in relations and would help strengthen economic links between the two regions for generations to come.

The trade deal could boost the UK economy by an estimated £3.7 billion ($4.9 billion) every year and increase wages by £1.9 billion annually in the long run, according to the UK's Department for Business and Trade. The deal will remove an estimated £580 million in duties a year based on current UK exports to the GCC once fully implemented, with £360 million of this to be removed on the first day the agreement enters into force.

UK PM Keir Starmer hailed the agreement as a major achievement, saying: "Today's agreement is a huge win for British business." Government officials described it as one of the most significant trade agreements since Britain left the European Union.

UK Business and Trade Secretary Peter Kyle said: "At a time of increased instability, today's announcement sends a clear signal of confidence — giving UK exporters the certainty they need to plan ahead and reinforcing the strength and stability of the UK's trading relationship with the Gulf at a critical moment."

The deal includes first-of-its-kind GCC commitments on the free flow of data, enabling UK businesses to operate in the Gulf without having to store data in the region, as well as new chapters on anti-corruption, animal welfare, environment, and women's economic empowerment. The GCC secretary-general said the agreement also aligns with broader efforts by the six member states to diversify their income sources by opening global markets.

Key takeaways:

• Deal could boost the UK economy by an estimated £3.7 billion every year and increase wages by £1.9 billion annuallyin the long run.
• UK becomes the first G7 country to agree trade deal with the GCC, bolstering our partnership with a strategically vital region and securing economic resilience at home.
• Deal removes tariffs on food exports, medicalequipmentand advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data.