RIYADH: Commerce between the UK and Gulf Cooperation Council economies is likely to jump 16 percent with the signing of a free trade agreement, according to a British government press release.
The two sides made good progress during the fourth round of negotiations that concluded late last month in London. Both parties remained determined to reach a comprehensive deal, according to the press release.
“An FTA will be a substantial economic opportunity and a significant moment in the UK-GCC relationship,” stated the Department for Business and Trade.
The GCC region is the UK’s seventh-largest export market, with total trade valued at £61.3 billion ($78.29 billion).
Hosted in London, the fourth round of negotiations took place from July 17-28 with in-person and virtual attendees. The fifth round is set to be hosted by the GCC later this year.
According to the press release, both sides participated in 44 meetings, including technical talks on 23 policy issues.
In May, British Secretary of State for Business and Trade Kemi Badenoch highlighted the progress made in GCC-UK FTA negotiations during her visit to Riyadh as part of a five-day GCC tour.
She told Arab News then: “We are very excited about the GCC-UK free trade agreement. We think it could be groundbreaking and set a precedent for what the GCC does with the rest of the world.”
On the progress of the talks, she said: “It is going well, and we are focused very much on the substance of the deal, and we will continue to move and progress that in order to have a conclusion which will be of mutual benefit to all of the parties.”
Her visit was focused on trade, business and helping to facilitate the conclusion of that FTA.
She added: “With every free trade agreement, it’s about both sides looking for the opportunities which they can have to improve trade, improve business and remove market access barriers.”
According to a Deloitte report released in April, the trade corridor between the UK and the Gulf is set to widen over the coming years, regardless of the outcome of this negotiation.
“The GCC’s demand for imported goods and services is forecast to grow by 35 percent — or £800 billion — by 2035. A successful FTA negotiation will mean British businesses can secure an even greater share of the commercial opportunities this rapid growth provides,” said James Caldecourt, director and head of international trade at Deloitte, in the report.
