UK signs free trade agreement with Gulf monarchies

The agreement was signed on Wednesday, May 20, in London by the Minister of State for Trade Policy, Sir Chris Bryant, and the bloc’s Secretary General, Jassem Al-Budaiwi.

The GCC includes six Gulf monarchies – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

According to British Department of Trade calculations, in the long term the agreement will increase the country’s GDP by 3.7 billion pounds per year and trade turnover by 15.5 billion pounds per year.

The key practical result will be the abolition of customs duties. Once the agreement is fully in place, UK exporters will save around £580 million a year, with £360 million of this released on the first day of the agreement.

Duty-free access to Gulf markets will include British food products – cereals, cheddar cheese, chocolate and butter – as well as medical equipment and high-tech products.

In the opposite direction – to the British market – dates, pearls, textiles and a number of metals from the Gulf countries will go duty-free.

In addition to eliminating tariffs, the GCC has committed to free cross-border data flow: British financial and technology companies will have the right to store and process information outside the region.

Separate provisions are devoted to artificial intelligence, paperless trade and renewable energy. There is also mutual recognition of professional qualifications – engineers, lawyers, accountants – as well as simplified visa procedures for business trips.