The winners and losers from the UK’s trade deal with the Gulf
The UK secured its first trade deal with the six-nation Gulf Cooperation Council (GCC), worth around $2.3 trillion in combined wealth, under Keir Starmer’s government after years of failed attempts by previous administrations. The agreement covers services, investment, and regulatory issues, requiring individual negotiations with each GCC member state alongside the collective council.
The UK has finalized its first trade agreement with the Gulf Cooperation Council (GCC), a six-nation bloc with a combined wealth of $2.3 trillion. Keir Starmer’s government achieved the deal after three consecutive Conservative administrations struggled to secure an agreement. The GCC operates under a common external tariff but negotiates separately on services, investment, and regulatory matters, complicating the process. The deal marks a significant diplomatic win for the UK, particularly in the post-Brexit era. Negotiations required alignment with both the GCC as a collective entity and each of its six member states individually. This approach ensured broader coverage of trade barriers and regulatory alignment. The agreement is expected to boost UK exports to the Gulf, including sectors like finance, education, and technology. It also strengthens economic ties amid global competition for influence in the region. The UK’s success contrasts with past failures, highlighting a shift in its trade strategy post-Brexit. While the deal focuses on services and investment, it does not address oil trade, which remains a key economic pillar for the GCC. Analysts suggest the agreement could open doors for UK businesses seeking to expand in the Gulf markets. The UK’s diplomatic efforts reflect its ambition to rebuild global trade relationships outside the EU.
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