The United Kingdom has reached a trade agreement with the six member states of the Gulf Cooperation Council (GCC), marking the bloc’s first such deal with a Group of Seven nation.
The agreement, finalized on Wednesday, covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, and forms part of Britain’s broader strategy to strengthen global trade ties following its exit from the European Union.
UK Business and Trade Secretary Peter Kyle said the deal sends “a clear signal of confidence” at a time of global economic uncertainty, adding that it underlines the strength of Britain’s relationship with the Gulf region.
Under the agreement, tariffs worth approximately £580 million ($778 million) on UK exports to the region will be eliminated, benefiting sectors such as food, medical equipment, and advanced manufacturing. Products including cereals, cheddar cheese, chocolate, and butter are expected to become tariff-free.
The deal is also set to support key British industries, including the automotive and professional services sectors, the latter of which accounts for more than half of UK exports to GCC countries.
In addition to tariff reductions, the agreement includes provisions for improved intellectual property protections and streamlined customs procedures, aimed at facilitating smoother trade flows between the UK and the Gulf states.
Prime Minister Keir Starmer described GCC nations as “valued economic partners,” noting that the agreement would deepen economic ties and create new opportunities for investment.
“This agreement builds trust and unlocks new possibilities for trade and investment,” Starmer said.
Despite expectations of relatively modest economic gains, the UK government estimates the deal could add £3.7 billion annually to the British economy.
The agreement is among several trade deals secured by Britain since leaving the EU, including a major pact with India last year and a separate arrangement with the United States to cap tariffs on most UK imports at 10 percent.
Analysts say the GCC deal reflects the UK’s continued efforts to diversify its trading relationships and strengthen economic partnerships in key global regions.
