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UK agrees £3.7bn trade deal with six Gulf states

The Prime Minister met Jasem Mohamed Albudaiwi, secretary general of the GCC, in Downing Street The UK has struck a trade deal with a group of six Gulf states which it says will be worth £3.7bn to the

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ManyPress Editorial Team

ManyPress Editorial

May 21, 2026 · 8:19 AM3 min readSource: BBC Business
UK agrees £3.7bn trade deal with six Gulf states

The Prime Minister met Jasem Mohamed Albudaiwi, secretary general of the GCC, in Downing Street The UK has struck a trade deal with a group of six Gulf states which it says will be worth £3.7bn to the economy. The government said the deal with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (UAE) would remove an estimated £580m a year in tariffs from British exports to the region once fully implemented. It also said it would make it easier for British firms to expand and par

Activist groups have criticised the lack of detail on human rights and labour protections in the deal. But the deal was welcomed by Chris Southworth, secretary general of the International Chamber of Commerce (ICC) UK, as a "boost to business confidence". The Conservatives, who began the negotiations for the deal when in government, said it was "another major Brexit opportunity" which Labour risked "throwing away" because of what it saw as Labour's pro-EU stance. British products that will have tariffs removed include cheddar cheese, butter and chocolate. The trade deal between the UK and the Gulf Co-operation Council (GCC) is the third struck by Prime Minister Sir Keir Starmer's government, after those with India and South Korea. It is also the first deal between a G7 country and the GCC. The government has also reached trade agreements with the US and EU. Sir Keir said the GCC deal was a "huge win" for British workers and businesses. Working people "will feel the benefits in the years ahead through higher wages and more opportunities". Business and Trade Secretary Peter Kyle said: "At a time of increased instability, today's announcement sends a clear signal of confidence – giving UK exporters the certainty they need to plan ahead." Chancellor Rachel Reeves said the deal was "proof we are backing British firms to compete and win globally". "This agreement is good for jobs, good for industry and ultimately good for consumers." Speaking to BBC News, ICC UK's Chris Southworth said: "This is guaranteed market access, free flow of data, increased mobility. "This is good for growth, good for jobs, good for investment and excellent news for the UK economy." However, rights group Trade Justice Movement has said the deal "poses serious risks to human rights, labour protections, and climate action".

Key points

  • Activist groups have criticised the lack of detail on human rights and labour protections in the deal.
  • But the deal was welcomed by Chris Southworth, secretary general of the International Chamber of Commerce (ICC) UK, as a "boost to business confidence".
  • The Conservatives, who began the negotiations for the deal when in government, said it was "another major Brexit opportunity" which Labour risked "throwing away" because of what it saw as Labour's…
  • British products that will have tariffs removed include cheddar cheese, butter and chocolate.
  • The trade deal between the UK and the Gulf Co-operation Council (GCC) is the third struck by Prime Minister Sir Keir Starmer's government, after those with India and South Korea.

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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.

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