JEDDAH: The Gulf Cooperation Council and the UK are aiming to conclude negotiations on a free trade agreement in the “near future” after commerce ministers from both sides made “significant progress” in talks aimed at deepening trade and investment ties.
The discussions took place during a virtual meeting on May 11 between GCC commerce ministers and their UK counterpart, according to a release from the GCC General Secretariat.
This comes amid growing trade relations between the GCC and the UK, with bilateral trade estimated at nearly £60 billion ($75.5 billion) annually, according to UK government data for 2024.
Jasem Mohamed Al-Budaiwi, secretary-general of the GCC, said ministers welcomed the progress achieved in the negotiations and expressed hope that discussions would conclude soon, supporting a shared vision for sustainable economic growth.
He further pointed out that “the meeting addressed several key topics aimed at strengthening the strategic partnership,” the release said.
It added: “These included overcoming remaining obstacles and aligning viewpoints on all aspects related to the Free Trade Agreement in preparation for its signing in the near future.”
The meeting was chaired by Abdulla bin Adel Fakhro, minister of industry and commerce of Bahrain, who is also president of the current session, and attended by the commerce ministers of the GCC member states.
The UK government has previously described a GCC trade deal as strategically important, estimating that an agreement could increase UK gross domestic product by between £1.6 billion and £3.1 billion in the long term, while boosting bilateral trade by between £8.6 billion and £15.8 billion by 2035.
A 2022 UK Department for International Trade assessment also estimated that an ambitious agreement could raise annual UK workers’ wages by between £600 million and £1.1 billion over the long run.
The report described the GCC as the UK’s fourth-largest non-EU export market after the US, China and Switzerland, underscoring the bloc’s growing importance to Britain’s post-Brexit trade strategy.
According to the UK government, the agreement would help strengthen investment flows and expand access to high-growth Gulf markets while supporting Britain’s efforts to deepen trade ties beyond Europe.
