Riyadh: GCC and UK Free Trade Deal Progressing, Set to be Completed by End of 2024
In a promising development, a senior official has confirmed that the free trade agreement between the Gulf Cooperation Council (GCC) and the UK is still on track to be finalized by the end of 2024, despite the change in government in London.
Strong Commitment from Both Sides
Secretary-General of the GCC, Jasem Mohamed Al-Budaiwi, expressed optimism about the progress of the trade deal after meeting with the new British Business and Trade Secretary, Jonathan Reynolds. Al-Budaiwi highlighted the UK government’s keen interest and commitment to expediting the negotiation process, with Reynolds aiming to have the agreement signed before the year’s end.
Continuity in Trade Policy
Although the UK Labour Party’s recent electoral victory on July 4 brought about a change in government, the country’s trade policy towards the GCC remains unchanged from the previous Conservative administration. This continuity bodes well for the ongoing negotiations.
Robust Trade Relationship
In 2020, the UK exported goods and services worth £23.1 billion ($25 billion) to the GCC, making up 71 percent of the UK’s total trade with GCC countries. Bilateral trade between the UK and the Gulf nations reached a total value of £61.3 billion ($78.29 billion) in 2022, solidifying the GCC as the UK’s seventh-largest export destination.
Accelerating Negotiations
Discussions between Al-Budaiwi and Reynolds covered a wide range of economic and trade-related topics, emphasizing the importance of strengthening bilateral relations between the GCC and the UK. Both parties are eager to speed up negotiation rounds, scheduling regular high-level meetings to finalize the agreement’s chapters and achieve its signing this year.
Strategic Partnership and Cooperation
The collaborative effort to secure the free trade agreement is seen as crucial in enhancing cooperation and reinforcing the strategic partnership between the GCC and the UK. The potential FTA has been described as “groundbreaking” and could pave the way for future agreements with other regions worldwide.
Expanding Economic Ties
The GCC has been actively pursuing free trade agreements with various countries to strengthen economic ties and expand market access. Recent developments include the establishment of an FTA with Korea in December 2023, as well as the resumption of negotiations for an FTA between the GCC and Japan, formalized by a joint statement signed in July 2023.