UK agrees £3.7bn trade deal with six Gulf states

An important development from the financial markets: 7bn trade deal with six Gulf states5 minutes ago Share Save Add as preferred on GoogleEmer MoreauBusiness reporterGetty ImagesThe Prime Minister met Jasem Mohamed Albudaiwi, secretary general of the GCC, in Downing StreetThe UK has struck a trade deal with a group of six Gulf states which it says will be worth £3. The government said the deal with Oman, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (UAE) will remove an estimated £580m a year in tariffs from British exports to the region once fully implemented. It also said it will make it easier for British firms to expand and partner in the Gulf, which will support jobs.

However, rights groups have criticised the lack of detail on human rights and labour protections in the deal. Meanwhile, the Conservatives, which began the negotiations for the deal when in government, said it was "another major Brexit opportunity" which Labour risks "throwing away" because what it sees as Labour's pro-EU stance. British products that will have tariffs removed include cheddar cheese, butter and chocolate.

Economic Details

The deal between the UK and the Gulf Cooperation Council (GCC) states marks the third trade agreement struck by Prime Minister Sir Keir Starmer's government, after deals with India and South Korea. It is also the first deal between a G7 country and the GCC. Starmer said the deal was "a huge win" for British workers and businesses.

Working people "will feel the benefits in the years ahead through higher wages and more opportunities". Business and Trade Secretary Peter Kyle said: "At a time of increased instability, today's announcement sends a clear signal of confidence – giving UK exporters the certainty they need to plan ahead. "Chancellor Rachel Reeves said the agreement was "proof we are backing British firms to compete and win globally".

"This agreement is good for jobs, good for industry and ultimately good for consumers. "However, rights group Trade Justice Movement has said the deal "poses serious risks to human rights, labour protections, and climate action". It raised concerns about the GCC's record of restricting press freedom, using the death penalty, and being high producers of greenhouse gas emissions because of their six countries' oil industries.

"Any deal must reflect sustainability, equity, and human rights commitments, rather than prioritising economic gains at the expense of fundamental values," it added.

Financial markets are tracking the development closely as investors assess the likely impact.