The Gulf Cooperation Council (GCC) and the UK are working to establish a free trade agreement by the end of the year. GCC Secretary General Jasem Al-Budaiwi met with UK Trade and Business Secretary Jonathan Reynolds and showed optimism about completing the discussions. The UK’s newly elected Labour government has guaranteed to strengthen ties with the GCC on security, energy, and trade and investment.
The UK views the GCC as a major collaborator, with total trade valued at £61.3 billion ($78.29 billion), making it the UK’s seventh-largest export market. A free trade agreement would mark a new era of economic partnership and set a precedent for future GCC agreements with other countries.
The UK’s previous Conservative government had also tried to complete a free trade agreement with the GCC. The previous Trade Secretary, Kemi Badenoch, had ensured that a UK-GCC free trade deal was her top priority for 2024. She had also shown excitement about the potential for a “groundbreaking” agreement that could set a previous case for future GCC deals.
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Kemi Badenoch, the Reynolds predecessor, wrote in May: “My top priority for 2024 is a UK-GCC free trade deal. An agreement is in all our interests.”It will mention a new and interesting era of economic partnership between our countries. It will be a new opportunity for both nations to prosper.”
The GCC region is hoped to remain an appropriate trade partner for the UK, regardless of the result of the negotiations. A Deloitte report last year predicted that the trade corridor between the UK and the Gulf would continue to widen in the coming years.
Overall, the GCC and UK are committed to strengthening their economic partnership, and a free trade agreement would be a significant step forward in achieving this goal.
By Arab news
