The United Kingdom has finalised a comprehensive free trade agreement with the Gulf Cooperation Council, becoming the first G7 nation to achieve such a milestone after four years of intensive negotiations. The deal encompasses Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
The agreement is estimated to add £3.7 billion to the UK economy every year in the long run and increase real wages by £1.9 billion annually. The removal of tariffs on key UK exports including food products, medical equipment, and advanced manufacturing goods will eliminate an estimated £580 million in duties each year once fully implemented. The government has hailed the pact as a major victory for British businesses, aiming to increase the current bilateral trade volume of £53 billion by 20 per cent.
For the first time in a trade deal, the GCC has agreed to commitments on the free flow of data, meaning UK firms will not have to establish costly data centres in the Gulf. Combined with last year’s India accord, the two deals are expected to add more than £8 billion a year to the economy by 2040.
Source: UK Government / CNBC / BBC
