International

UK agrees £3.7bn trade deal with six Gulf states

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The UK has struck a trade deal with a group of six Gulf states, which it says will be worth £3.7bn to the economy.

The government said the deal with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) will remove an estimated £580m a year in tariffs from British exports to the region once fully implemented.

It also said it would make it easier for British firms to expand and partner in the Gulf, thereby supporting jobs.

However, rights groups have criticised the lack of detail on human rights and labour protections in the deal.

Meanwhile, the Conservatives, which began the negotiations for the deal when in government, said it was "another major Brexit opportunity" which Labour risks "throwing away" because of what it sees as Labour's pro-EU stance.

British products that will have tariffs removed include cheddar cheese, butter and chocolate.

The trade deal between the UK and the Gulf Co-operation Council (GCC) is the third struck by Prime Minister Sir Keir Starmer's government, after those with India and South Korea.

It is also the first deal between a G7 country and the GCC.

The government has also struck trade agreements with the US and EU.

Starmer said the GCC deal was a "huge win" for British workers and businesses.

Working people "will feel the benefits in the years ahead through higher wages and more opportunities".

Business and Trade Secretary Peter Kyle said: "At a time of increased instability, today's announcement sends a clear signal of confidence – giving UK exporters the certainty they need to plan ahead."

Chancellor Rachel Reeves said the deal was "proof we are backing British firms to compete and win globally".

"This agreement is good for jobs, good for industry and ultimately good for consumers."

However, rights group Trade Justice Movement has said the deal "poses serious risks to human rights, labour protections, and climate action".

It has raised concerns about the GCC's record of restricting press freedom, using the death penalty, and being a high producer of greenhouse gas emissions because of the oil industries of its six countries.

It said on Wednesday the deal "locks the UK into deeper commercial ties with some of the most repressive governments in the world, for economic gains so marginal they barely register".

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