UK becomes first G7 nation to sign Gulf trade deal

The UK has become the first G7 country to sign a free trade deal with the Gulf Cooperation Council (GCC), an alliance of six Gulf states, in an agreement the government says will boost the UK economy by an estimated £3.7 billion every year and increase domestic wages by £1.9 billion annually in the long run. The deal, announced Wednesday, removes approximately £580 million in duties annually based on current UK exports to GCC countries, with £360 million of that removed on day one of the agreement entering into force. Current bilateral trade between the UK and GCC amounts to roughly £53 billion, with the deal projected to increase this by 20 percent. The agreement covers tariffs on exports including food, medical equipment and advanced manufacturing, with British goods such as cereals, cheddar cheese, chocolate and butter set to become tariff-free. Notably, the GCC has made its first-ever commitments on the free flow of data requirements, enabling UK businesses to operate in the Gulf without having to store data regionally, as well as its first commitments on anti-corruption. The services sector, which accounts for about 80 percent of the British economy and more than half of UK exports to GCC, is expected to benefit significantly from increased certainty for British firms. Prime Minister Keir Starmer called the agreement "a huge win for British business," noting it was the fifth major trade deal secured under his government, following agreements with India, the US, the European Union and South Korea. Trade Secretary Peter Kyle described the GCC as "an important and growing set of markets," emphasizing the deal sends "a clear signal of confidence" at a time of increased instability. The GCC, equivalent to the UK's 10th largest trade partner, has demand for imports forecast to double by 2050, making the bloc a significant growth market for British businesses.