Britain is on the verge of signing a broad trade agreement with the member states of the Gulf Cooperation Council (GCC), a deal that London has described as the first major trade agreement between a G7 country and the council.
According to a statement from the British government, the agreement is expected to contribute around $5 billion annually to the country’s economic growth. It is also anticipated that the deal will increase the real income and purchasing power of British citizens by approximately £1.9 billion.
The core of the agreement is based on a significant reduction in trade tariffs. Under the published details, about £580 million worth of duties on British exports to Gulf countries will be removed, with £360 million of those tariffs to be abolished immediately once the agreement comes into effect.
British Prime Minister Keir Starmer described the agreement as a “major victory for British businesses,” saying it represents his government’s fifth major trade deal following agreements with India, the United States, the European Union, and South Korea.
He added that the Gulf countries are valuable economic partners for Britain and that the agreement could deepen economic relations between both sides while creating new opportunities for trade and investment.
Jasem Albudaiwi, Secretary-General of the Gulf Cooperation Council, also said that the agreement would help strengthen the economic pathways of the two regions for future generations. According to him, the deal has been designed to create sustainable and measurable economic benefits for companies, investors, and citizens of all seven signing parties.
Peter Kyle, Britain’s Secretary of State for Business and Trade, emphasized that the agreement sends a clear message of economic confidence and gives British exporters greater certainty for future planning.
Estimates suggest that this agreement, together with Britain’s recent trade deal with India, could add more than £8 billion annually to the United Kingdom’s GDP by 2040.
Writer:Salima Aryaei
