Britain seals landmark Gulf trade deal in G7 first, promising 3.7bn lift for UK exporters

A UK free trade agreement with the Gulf Cooperation Council was reached after negotiations across six capitals. The pact covers Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman, and makes the UK the first G7 country to sign a comprehensive free trade deal with the bloc. Tariffs will be removed on a wide range of UK exports, including food and drink, medical equipment, and high-end cars. The government estimates duties eliminated will total £580 million annually once fully implemented, with £360 million removed on day one. UK-GCC trade is currently £57 billion per year and could rise by up to 20%, increasing real wages by £1.9 billion and expanding UK GDP by about 0.1% long term.

"The agreement, struck with Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, makes the UK the first G7 nation to sign a comprehensive free trade pact with the bloc. It is the fifth major deal secured by Sir Keir Starmer's government, following accords with India, the United States, South Korea and a reset with the European Union."

"For British small and mid-sized exporters, long the magazine's core readership, the prize is tangible. Tariffs will be stripped from a wide swathe of UK goods including cheddar, chocolate, butter, cereals, medical equipment and high-end cars. The government's conclusion summary estimates that £580 million in duties will be eliminated each year once the deal is fully in force, with £360 million scrapped on day one."

"Bilateral trade between the UK and the GCC is already worth £57 billion annually. Whitehall modelling suggests the agreement could lift that figure by up to 20 per cent, raise real wages by £1.9 billion and expand UK GDP by roughly 0.1 per cent in the long run. Combined with last year's India accord, the two deals are expected to add more than £8 billion a year to the economy by 2040."

"Starmer, who has spent months pursuing the agreement on visits to Doha and Riyadh, called it "a huge win for British business" and said working people would feel the benefits "in the years ahead through higher wages and more opportun"."

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