UK signs landmark free trade agreement with Gulf Co-operation Council
Britain has become the first G7 nation to secure a free-trade agreement with the GCC, strengthening trade ties and unlocking billions in economic opportunities.
UK – United Kingdom has become the first G7 nation to secure a free-trade agreement with the Gulf Co-operation Council, marking a significant milestone in the country’s post-Brexit trade strategy and strengthening economic relations with Gulf nations.
The agreement, announced by Keir Starmer, is expected to deepen trade and investment ties between the UK and the six-member Gulf bloc, which includes the United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman and Qatar.
British government officials described the free-trade agreement as one of the country’s most important trade deals since leaving the European Union.
The agreement is projected to contribute approximately £3.7 billion ($5 billion) to the UK economy, significantly higher than the £1.6 billion estimate made when negotiations began in 2022.
Officials said the agreement would eliminate an estimated £580 million in annual duties based on current UK exports to GCC countries. The initial phase of tariff reductions is expected to remove around £360 million in duties paid by British exporters.
The GCC collectively represents the UK’s 10th-largest trading partner, with current bilateral trade valued at approximately £53 billion. Demand for imports into the Gulf region is forecast to double by 2050, creating additional opportunities for British exporters and investors.
British officials also highlighted that the agreement includes “first-of-its-kind” GCC commitments regarding the free flow of data, aimed at improving digital trade and market access for UK companies operating in the region.
“Today’s agreement is a huge win for British business,” Starmer said. “The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.”
Under the terms of the 2,000-page agreement, tariffs will be removed on several British exports, including food products such as chocolate and butter, medical equipment and luxury vehicles manufactured by companies including Rolls-Royce. Most tariffs currently stand at 5%.
Mansoor Abulhoul described the agreement as a welcome boost that would “bring the economies of the UAE and UK even closer at a pivotal inflection moment for global trade.”
He added that the agreement reinforced the importance of strengthening the UAE-UK partnership, which supports thousands of jobs through £25 billion in trade.
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