United Kingdom seals first G7 trade pact with Gulf Cooperation Council

The United Kingdom has become the first G7 country to sign a trade agreement with the Gulf Cooperation Council (GCC), in a deal valued at around $5 billion per year, according to an official statement from the UK Department for Business and Trade.

“Deal removes tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data,” the department said.

The deal covers all member states of the GCC, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.

The UK government said the agreement could add approximately £3.7 billion ($5 billion) annually to the British economy and increase bilateral trade by nearly 20 percent.

“This will remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million worth of this to be removed on day one of the agreement entering into force - as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, and supporting high quality jobs for years to come,” the statement added.

By Jeyhun Aghazada