The UK and the Gulf Cooperation Council (GCC) have concluded negotiations and signed a free trade agreement. The United Kingdom has thus become the first G7 country to conclude a full-fledged trade agreement with the influential Arab bloc.
The agreement was signed on 20 May in London. It involves six Gulf states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
According to the British government’s estimates, the deal will add £3.7 billion (around $5 billion) to the UK economy annually in the long term. It provides for the removal of customs duties on 93% of British goods, which will save companies around £580 million a year. Real wages are also expected to rise by £1.9 billion annually.
The agreement opens up new opportunities for British exports of food, medical equipment, cars, high-tech products and services. In turn, the Gulf states will gain simplified access to the British market and a more relaxed visa regime for businesspeople.
The UK Minister for Trade Policy described the agreement as “historic” and an important step in implementing London’s post-Brexit strategy to expand global trade links. The Secretary-General of the GCC emphasised that the agreement will strengthen economic partnership and support plans to diversify the Gulf states’ economies.
This is already the fifth major trade agreement concluded by the current UK government. The signing of the agreement with the GCC underscores the UK’s growing interest in the markets of the Middle East and Asia.