LONDON, May 20 (Xinhua) -- Britain and the Gulf Cooperation Council (GCC) have sealed a trade deal estimated to bring British exporters 3.7 billion pounds (4.96 billion U.S. dollars) worth of opportunities in the long run.
According to the British government's statement issued on Wednesday, the deal would cut export costs, open up Gulf markets and strengthen economic ties with the six-member bloc, which groups Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, making Britain the first G7 country to secure a trade deal with the GCC.
The British government said the deal could raise real wages by 1.9 billion pounds (2.55 billion dollars) annually as it is expected to reduce costs for British exporters.
Once fully implemented, it would eliminate about 580 million pounds (779.35 million dollars) in duties each year on British goods exported to the GCC, with 360 million pounds (483.73 million dollars) of that removed when the deal enters into force.
Tariffs will be removed on a range of British exports, including food products, medical equipment and advanced manufacturing goods. British products such as cereals, cheddar cheese, chocolate and butter are expected to become tariff-free.
The deal also covers services, customs, business mobility and digital trade. The government said services firms would gain more secure access to Gulf markets, while companies would be allowed to store and process data outside the region.
British Prime Minister Keir Starmer called the agreement "a huge win for British business," saying it would support jobs, wages and new opportunities. Business and Trade Secretary Peter Kyle said it would give exporters more certainty amid global instability.
Trade between Britain and GCC countries was worth 53 billion pounds (71.22 billion dollars) in 2024, according to government figures. The agreement could increase bilateral trade by 19.8 percent in the long run, potentially adding 15.5 billion pounds (20.83 billion dollars) a year, the government said.
