The UK has launched free trade negotiations with six Gulf states which cover £33.1 billion worth of trade.
The talks, led by Trade Secretary Anne-Marie Trevelyan, with the Gulf Cooperation Council (GCC), made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, have been welcomed by business group the British Chambers of Commerce.
It said that although the discussions would be complex, the Gulf states together, represent the fifth largest market for UK exporters after the EU, US, China and Switzerland.
Complex negotiations
The landmark deal would add at least £1.6 billion a year to the UK economy and support new jobs in key industries, according to the Government.
William Bain, Head of Trade Policy at the BCC, said: “If the negotiations yield a comprehensive free trade agreement covering all six Gulf states, total trade with the UK could rise by an additional £7 billion by 2035, with new opportunities for investment flows being created.
New opportunities for business
“Stronger foundations for access to Gulf product markets, more predictable regulatory practices, and lower tariffs would also benefit UK machinery, automotive and food exporters.”
New opportunities for UK businesses are expected to open up as the GCC bloc’s demand for international products and services is expected to grow rapidly to £800 billion by 2035.
This would be a 35 per cent increase and a deal would also open the door to increased investment from the Gulf, supporting and creating jobs across the country.
Deal could see tariffs slashed
The Department for International Trade (DIT) says the UK-GCC deal would mean significant benefits for British farmers and producers, as the Gulf is highly dependent on imported food.
Food and drink exports to GCC countries were worth £625 million last year, and a deal could significantly reduce or remove tariffs on UK food and drink exports.
These could include cereals, which currently face a tariff of up to 25 per cent; chocolate, up to 15 per cent; baking products, up to 12 per cent; sweet biscuits, up to 10 per cent; and smoked salmon, which has a 5 per cent tariff at present.
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