Gulf Cooperation Council (GCC) Secretary-General Jassim Mohammed Al-Budaiwi announced on Tuesday that the GCC states and the United Kingdom will sign tomorrow in London the joint statement concluding negotiations on a free trade agreement between the two sides, following intensive rounds of talks that lasted several years.
Al-Budaiwi explained that the agreement comes within the framework of strengthening the Gulf-British strategic partnership and expanding economic, trade, and investment cooperation in a way that serves the mutual interests of both parties.
He added that the upcoming agreement reflects the advanced economic standing of GCC countries and their commitment to building international partnerships based on mutual benefit and sustainable development, while also supporting efforts to diversify income sources and open global markets to Gulf products.
The move follows more than two years of negotiations aimed at boosting trade and investment between the two sides amid rising economic disruptions and escalating geopolitical tensions in the region, according to the British newspaper Financial Times.
The agreement covers the six GCC member states: Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain, and the Sultanate of Oman. Formal negotiations on the deal were launched in 2022.
A free trade agreement is an economic treaty designed to facilitate the movement of goods and services between two countries or blocs by reducing or eliminating trade barriers, including tariffs and administrative restrictions.
Economic Gains
According to UK government estimates, the GCC-UK agreement could increase British GDP by between £1.6 billion and £3.1 billion annually by 2036 (approximately $2.13 billion to $4.12 billion), representing long-term growth of between 0.06% and 0.11%.
It is also expected that British sectors such as luxury automobiles, financial services, food industries, and industrial goods will benefit from the agreement by gaining easier access to Gulf markets and reduced trade and regulatory barriers.
