Post by : Badri Ariffin

The United Kingdom has finalized a significant trade agreement with the Gulf Cooperation Council (GCC), a move expected to elevate bilateral trade by approximately $5 billion each year in the long run.

The GCC comprises six nations: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

British Prime Minister Keir Starmer emphasized that this agreement will fortify economic bonds between the UK and the Gulf region while opening new avenues for trade and investments.

According to the UK government, the deal is projected to yield around £3.7 billion (AED 18.21 billion) annually over time, marking a significant increase from the previous estimate of £1.6 billion due to expanded trade liberalization and stronger commitments in the service sector.

With this deal, 93 percent of GCC tariffs on British goods will be abolished. The UK anticipates eliminating roughly £580 million in tariffs by the tenth year of the deal, with about two-thirds being lifted right after the agreement takes effect.

Several sectors in the UK, including automobiles, aerospace, electronics, and food and beverages, are expected to enjoy the benefits of the new agreement. Products like cereals, cheddar cheese, chocolate, and butter will be tariff-free in GCC markets.

In exchange, the UK has lowered tariffs on imports from the GCC, although much of the oil and gas exports from Gulf nations were already entering Britain tariff-free.

The agreement also emphasizes the services sector, allowing British businesses continued access to GCC markets without added restrictions, while providing Gulf nations with enhanced opportunities to grow their own service industries.

The UK government reassured that the deal will not compromise British environmental standards or data protection laws, and notably lacks any human rights clauses.

According to Britain’s Trade Minister Peter Kyle, this agreement serves as a robust indicator of confidence amid global uncertainties. He noted that the UK stands as the first G7 country to secure a contemporary trade deal with the GCC bloc.

#Global News #Dubai News #UAE News #World Update