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UK-GCC Landmark Trade Pact Expected to Boost British Economy by GBP3.7 Billion Annually
The UK's newly secured free trade agreement with the Gulf Cooperation Council is projected to inject 3.7 billion pounds sterling per year into the British economy.The British government also expects the deal, which is a first between the GCC and a G7 nation, to boost bilateral trade by 19.8%, potentially adding 15.5 billion pounds annually to UK-Gulf trade in the long run, according to a Wednesday release. The member states of the GCC include Saudi Arabia, the United Arab Emirates, Bahrain, Kuwait, Oman and Qatar.Under the trade pact, tariffs on food exports, medical equipment and advanced manufacturing will be reduced or cut completely. British services, which account for 80% of the UK economy and half of the country's exports to the GCC, will get guaranteed market access.In a GCC first, the deal also ensures the "free flow of data," allowing UK companies to legally store and process business and financial data outside the Gulf. The GCC also committed to a simpler and more efficient customs process, with standard goods cleared within 48 hours and perishable shipments released within six hours.Once fully implemented, tariffs on 93% of UK exports to GCC are expected to be eliminated, cutting annual duties by 580 million pounds, with 360 million pounds of tariffs to be removed on the first day the agreement takes effect. To implement the deal, the UK and the GCC must finalize the legal text, officially sign the treaty and complete their respective ratification processes.Jasem Albudaiwi, the GCC's secretary general, said the conclusion of the talks will add to "cementing the economic pathways of both regions for generations to come." Meanwhile, British Prime Minister Keir Starmer said the agreement is a "huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities." The UK expects wages to rise by 1.9 billion pounds annually over the long term as a result of the deal.The British Chambers of Commerce Qatar Chairman Emad Turkman expects the deal to generate new business for companies in sectors such as financial services, construction, energy, professional services, hospitality, education and technology.HSBC (HSBA.L) Group Chief Executive Georges Elhedery said the GCC represents a region of "growing strategic importance and long-term opportunity." Elhedery added that the bank, with a footprint spanning the UK and all six Gulf states, sees "first-hand the opportunity this agreement can unlock" and is prepared to help businesses invest and grow.
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