The United Kingdom created what it called a “historic” trade deal with the Gulf states, marking the first agreement among the Group of Seven (G7) nations.
The UK’s Department for Business and Trade said the trade deal could boost its economy by an estimated £3.7 billion (US$4.9 billion) every year and increase wages by £1.9 billion annually in the long run.
The deal will remove tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data.
British exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free under the terms of the deal.
Based on current UK exports to the GCC, it remove an estimated £580 million in duties a year once the deal is fully implemented, with £360 million worth of this to be removed on day one of the agreement entering into force - as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, and supporting high quality jobs for years to come.
This marks the fifth major trade agreement made under the UK government, following deals with India, the U.S., the EU and South Korea.
UK Prime Minister Keir Starmer, who faces challenges for his leadership, praised the deal as the UK economy comes under pressure from the Iran war.
“Today’s agreement is a huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities,” he said.
“The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.”
