UK opens trade negotiations with Gulf Cooperation Council

Trade negotiations with the Gulf Cooperation Council (GCC) have launched, representing £33.1 billion of trade between the UK and GCC member states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The GCC bloc of nations when combined is the UK’s seventh largest trading partner, and demand for imported goods and services in its six member states is expected to grow 35% by 2035. Trade with the UK is currently worth £33.1 billion, and the landmark deal could generate an annual £1.6 billion for the British economy, as well as opening up investment opportunities in the Gulf region.

International Trade Secretary, Anne-Marie Trevelyan, met on 22nd June with GCC Secretary General, Dr Nayef Falah M. Al-Hajraf and trade ministers from member countries in the Saudi capital of Riyadh (pictured) to kick off talks. A future trade deal aims to cut tariffs on British exports of food and drink products and parts for renewable energy infrastructure.

UK Trade Secretary Anne-Marie Trevelyan said:

“[22nd June] marks the next significant milestone in our 5-star year of trade as we step up the UK’s close relationship with the Gulf.

“Our current trading relationship was worth £33.1 billion in the last year alone. From our fantastic British food and drink to our outstanding financial services, I’m excited to open up new markets for UK businesses large and small, and supporting the more than ten thousand SMEs already exporting to the region.

“This trade deal has the potential to support jobs from Dover to Doha, growing our economy at home, building vital green industries and supplying innovative services to the Gulf.”

Gulf investments supported over 25,000 UK jobs in 2019 – a number that tripled over the previous decade – and increased business links are already being forged, with £30 billion already invested between GCC states and the UK. In the North-west, new services from Gulf-based airlines have launched in 2022 to open up new connections, including Gulf Air flights to Bahrain and services to Kuwait City from Kuwait Airways.

The manufacturing sector, one of the main UK industries expected to benefit from the proposed trade deal, has support the government’s ambitions: Stephen Phipson, CEO of Make UK, said:

“We welcome the launch of free trade negotiations with the Gulf Co-Operation Council, strengthening trade opportunities which will ensure that British manufacturing benefits from future positive flows of goods and services into the Gulf region.

“It is also extremely helpful that the UK and GCC are committed to work towards seeking the opportunities from ‘green innovation’, which will bring significant opportunities for Britain’s innovative renewable energy companies which are already leading the way in this area of global concern. We look forward to working with government to make sure manufacturers large and small are able to benefit from the business possibilities this deal will open up.”

The negotiations with the Gulf states are the fourth set of trade to begin in 2022, with discussions with India, Canada and Mexico currently underway.