Riyadh Urges Completion of UK-GCC Free Trade Agreement
In a meeting between the secretary general of the Gulf Cooperation Council and the UK’s newly appointed trade and business secretary, the importance of finalizing a free trade agreement between the two entities by the end of the year was emphasized.
Jasem Al-Budaiwi, the top Gulf official, highlighted the strong interest from Kier Starmer’s new Labour government in completing negotiations for a trade pact. Jonathan Reynolds, the UK’s trade and business secretary, also expressed a desire to sign a deal before the year is out.
New Era of Economic Partnership on the Horizon
The Labour government, elected in a landslide on July 4, has promised to deepen cooperation with the UK’s Gulf partners on security, energy, and trade and investment issues. This aligns with the UK policy under the previous Conservative government.
Kemi Badenoch, Reynolds’ predecessor, emphasized the importance of a UK-GCC free trade deal, stating that it is in the best interest of both parties. This agreement is seen as a significant opportunity for economic prosperity for both nations.
Expanding Trade Corridor Between UK and GCC
The GCC region currently stands as the UK’s seventh-largest export market, with total trade valued at £61.3 billion ($78.29 billion). A Deloitte report from last year suggests that the trade corridor between the UK and the Gulf is poised to expand in the coming years, regardless of the outcome of the ongoing negotiation.