UK begins trade negotiations with Gulf nations

Trade negotiations have kicked off in Riyadh this week, as the UK Government and the Gulf Cooperation Council (GCC) look to confirm a landmark deal worth an additional £1.6 billion to the UK economy.

Equivalent to the UK 's seventh largest export market, the GCC bloc 's demand for international products and services is expected to grow rapidly to £800 billion by 2035 - an increase of 35 per cent - presenting significant opportunities for UK businesses.

Tariffs could be slashed on products such as cereals, chocolate, baking products and sweet biscuits.

The UK 's services exports to the GCC surpassed £12 billion last year alone.

Around 10,700 small and medium-sized businesses from every UK nation and region exported goods to the GCC in 2020, with SMEs accounting for more than 85 per cent of total UK goods exporters to Qatar, Saudi Arabia and the UAE.

This is the fourth major set of Free Trade Agreement negotiations launched by the Trade Secretary this year, following visits to begin talks in India, Canada and Mexico already this year.

Erin Henwood (pictured), policy advisor at the Greater Birmingham Chambers of Commerce, said: “The start of negotiations between the UK and Gulf Cooperation Council this month is extremely encouraging, with the West Midlands predicted to be in line for some of the greatest proportional gains from a new trade deal.

“Local manufacturing, tech and low-carbon firms will benefit from the commitment of both parties to exploring 'green innovation '.

“More generally, businesses in the West Midlands can expect to enjoy lower tariffs when exporting to Gulf nations, stronger foundations for access to Gulf products markets, and more predictable regulatory practices. ”