UK seals £3.7bn trade deal with six Gulf states – Daily Business
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Jasem Mohamed Albudaiwi, Secretary General of the GCC and Sir Keir Starmer (pic: Downing St)
The UK has become the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC) which could boost trade and grow the economy by £3.7 billion a year.
The agreement with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE will see the removal of millions of pounds of tariffs on goods, benefiting Scotland alone by an estimated £580m, based on current UK exports to the GCC.
About £360m worth of this will be removed on day one of the agreement entering into force.
Today’s agreement is fifth by the Labour government and follows major deals with India, the US, the EU and South Korea. For the first time in a trade deal, the GCC has agreed to commitments on the free flow of data, meaning UK firms won’t have to establish costly data centres in the Gulf.
Scottish Secretary Douglas Alexander said: “From our iconic Scottish products, like smoked salmon and shortbread, to green energy, advanced manufacturing, life sciences, and financial services, Scotland has so much to offer the Gulf states, thanks to the removal of tariffs.”
Business and Trade Secretary Peter Kyle said: “For this Government to meet the challenges that our country faces, incremental change won’t cut it.
“That’s why major trade deals like this one, and that we secured with India, the US, South Korea and the EU, are vital for moving the dial towards long-term, sustainable economic growth with benefits people and businesses can see and feel.
“At a time of increased instability, today’s announcement sends a clear signal of confidence.”
Scotland’s food exports to the GCC were worth over £29m in 2024. Salmon Scotland, CEO Tavish Scott said: “We welcome the work and ambition across the UK Government and the GCC economic alliance to make this agreement and we look forward to its ratification and entry into force.”
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