The United Kingdom reached a trade agreement Wednesday with six Gulf states that the government says will be worth £3.7 billion to the British economy, removing an estimated £580 million per year in tariffs on British exports once fully implemented.
The deal covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, and is the first trade agreement struck between a G7 country and the Gulf Co-operation Council. For Prime Minister Sir Keir Starmer's government, it is the third trade deal completed since taking office, following agreements with India and South Korea. The government has also reached separate trade agreements with the United States and the European Union.
British products set to benefit from reduced tariffs include cheddar cheese, butter, and chocolate. The government said the deal would also make it easier for British firms to expand and establish partnerships in the Gulf region.
Sir Keir described the deal as a "huge win" for British workers and businesses, saying working people "will feel the benefits in the years ahead through higher wages and more opportunities." Business and Trade Secretary Peter Kyle said the announcement "sends a clear signal of confidence, giving UK exporters the certainty they need to plan ahead." Chancellor Rachel Reeves called it "proof we are backing British firms to compete and win globally."
Chris Southworth, secretary general of the International Chamber of Commerce UK, welcomed the deal as a "boost to business confidence." Speaking to BBC News, he described it as "guaranteed market access, free flow of data, increased mobility," calling it "good for growth, good for jobs, good for investment and excellent news for the UK economy."
Not everyone reacted positively. Rights group Trade Justice Movement said the deal "poses serious risks to human rights, labour protections, and climate action." It raised concerns about the GCC member states' records on press freedom, use of the death penalty, and greenhouse gas emissions tied to the region's oil industries. The group said on Wednesday the agreement "locks the UK into deeper commercial ties with some of the most repressive governments in the world, for economic gains so marginal they barely register."
The Conservative Party, which began negotiations for the deal while in government, called it "another major Brexit opportunity" but accused Labour of risking that progress because of what it characterized as the government's pro-EU stance.
