Keir Starmer has struck a trade deal with six Gulf states worth £3.7bn in export opportunities, double original estimates. The agreement, described by the prime minister as a 'huge win' for British business, ends four years of talks led by four different prime ministers.
The deal covers sectors including food, luxury cars, defence, aerospace, hospitality and services. Tariffs will be removed from 93% of British goods sold in the Gulf Cooperation Council (GCC) bloc, which comprises Saudi Arabia, Kuwait, Oman, Qatar, the United Arab Emirates and Bahrain. Previously, exporters faced a blanket 5% tariff, with higher rates on some products such as cheddar cheese (6%) and chocolate (15%).
However, the deal has drawn criticism for omitting a human rights chapter. Tom Wills of the Trade Justice Movement called the omission 'especially alarming given the severe human rights abuses across the Gulf region'. The government said it prefers to raise such issues through political channels. The Trade Unions Congress expressed disappointment, while the Bahrain Institute for Rights and Democracy condemned the deal as legitimising repression.
The National Farmers' Union (NFU) welcomed the agreement as the best agricultural deal since Brexit, after seeing off demands to lower poultry standards. The British Chambers of Commerce said it would create new business in financial services, energy, construction, and technology. William Bain, head of trade policy at the BCC, called the deal 'vital for tens of thousands of UK firms'.
This is the third trade deal concluded by Starmer, following pacts with India and South Korea. The agreement also allows UK firms to store data outside the Gulf region for the first time and guarantees access for UK services, which account for 80% of the economy. Business Secretary Peter Kyle said the UK is the first G7 country to secure such a deal with the GCC.
