Britain seals free-trade deal with GCC

Britain and the Gulf Cooperation Council said on May 20 that they had concluded negotiations on a free-trade agreement, ending nearly four years of talks between the UK and the six-member Gulf bloc. The joint statement was signed in London by UK trade minister Chris Bryant and GCC Secretary General Jasem Mohamed Albudaiwi, according to the GCC secretariat and the UK government. (gov.uk) The agreement covers Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, the UK government said in its conclusion summary. (msn.com) Britain described the pact as a “milestone” deal, while Gulf officials said it would deepen trade and investment links between the two sides. (gov.uk) The deal is notable because it is the first free-trade agreement between the GCC and a G7 country, according to Euronews and CNBC interviews with Gulf officials. That gives Prime Minister Keir Starmer’s government a new post-Brexit trade agreement to point to, even though the legal text and ratification timetable have not yet been published in full. (gcc-sg.org) ### Who signed off on the deal in London? Chris Bryant, Britain’s minister of state for trade, and Jasem Mohamed Albudaiwi, the GCC secretary general, signed the joint statement concluding the negotiations on Wednesday, May 20, in London, the GCC secretariat said. The UK said negotiations had begun on June 22, 2022. (gov.uk) The GCC bloc brings together Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The UK government’s summary said the agreement is intended to lower trade barriers and expand commercial access across goods, services and investment. (msn.com) ### What numbers are attached to the agreement? Reuters reported Britain said the agreement would be worth $5 billion a year in the long run. The UK government has not, in the summary published so far, set out a full line-by-line tariff schedule in public. The Food and Drink Federation, cited by UK government materials and industry coverage, said the deal would remove £580 million in tariffs for British food-and-drink exporters. (gcc-sg.org) The UK government also said the agreement would cut tariffs on 93% of UK exports to the GCC. ### Why are Gulf officials calling it a bigger commercial opening? (gov.uk) Abdulla bin Adel Fakhro, Bahrain’s minister of industry and commerce, told CNBC the agreement was a “monumental achievement” and a “win-win” for both sides. He said the pact would support trade and investment flows and give British companies wider access to Gulf consumers. (msn.com) Jasem Mohamed Albudaiwi said in the GCC statement that concluding the negotiations was a “qualitative leap” in relations and would bolster economic pathways for both regions. Those descriptions came from Gulf officials rather than from an independent economic assessment released alongside the deal. (gov.uk) ### What does Britain say businesses get out of it? The Department for Business and Trade said the agreement would open opportunities in one of the world’s fastest-growing regions and support UK exporters across manufacturing, food and other sectors. Make UK Chief Executive Stephen Phipson said the announcement showed Britain remained committed to free and fair trade. (cnbc.com) The UK has framed the accord as part of a broader trade strategy since leaving the European Union. Its government trade pages say Britain has signed more than 70 trade agreements and is still pursuing new or updated deals with partners including India, Switzerland and South Korea. (gcc-sg.org) ### What happens before companies can use the agreement? The UK government has so far published a conclusion summary and a collection page for guidance on the agreement. Those pages indicate the negotiations are complete, but they do not yet amount to the final legal text being in force. (gov.uk) Ratification and publication of the treaty text are the next milestones businesses will need to watch. The Department for Business and Trade said it would provide guidance to help companies understand and use the UK-GCC trade agreement once the process moves forward. (gov.uk) (business.gov.uk)