On Wednesday, the United Kingdom announced that it had reached an agreement with the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and Oman. This marks a first for a G7 country.
This agreement, with limited impact on the British economy, is part of the UK’s strategy to increase commercial partnerships post-Brexit, seen by London as drivers of growth.
It comes amid the global trade war, as exchanges have been disrupted for months by Donald Trump’s tariffs. [Context: Agreement between UK and GCC countries]
“In this period of increased instability, today’s announcement sends a clear signal of confidence,” said Peter Kyle, the UK Trade Minister, while Prime Minister Keir Starmer hailed it as “a great victory for British businesses and workers.”
“The UK becomes the first G7 country to conclude a trade agreement with the GCC,” stated London, adding that once fully implemented, the agreement should eliminate “approximately £580 million in tariffs per year” on British goods exported to the region. [Fact Check: UK’s trade agreement with GCC]
British services, “representing around 80% of the country’s economy and over half of the UK’s exports to the GCC,” will also have guaranteed access to the market.
The agriculture and food sector is expected to benefit from the agreement, especially for cereals, cheddar, chocolate, and butter, as the GCC imports more than 80% of its food staples.
The government estimates that the agreement will add £3.7 billion per year to the British economy and increase long-term wages by £1.9 billion per year. [Fact Check: Expected impacts of the trade agreement]
The executive had already announced a free trade agreement with India in July 2025. An agreement was also reached last year with Washington to limit the impact of American tariffs, capped at 10% on most products.
The Starmer government has indefinitely suspended commercial negotiations with Jerusalem.
