London signs a nearly $5 billion trade deal with the Gulf amid regional instability

The United Kingdom announced on Wednesday the conclusion of a major trade agreement with the Gulf Cooperation Council (GCC), worth an estimated $5 billion annually in the long term. This agreement strengthens economic ties between London and a strategic region comprising six states, against a backdrop of heightened tensions in the Middle East.

The agreement was reached with the Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. It comes amid heightened regional instability, particularly following US-Israeli strikes against Iran in February, which were followed by Iranian retaliation in several neighboring countries.

According to the British government, this agreement represents approximately £3,7 billion (nearly $5 billion) per year in the long term, a significant upward revision compared to initial estimates. This reassessment is due to broader-than-expected trade liberalization and strengthened commitments in the services sector.

British Trade Secretary Peter Kyle welcomed the agreement as a signal of confidence to British exporters. He stated that, in a context of increased instability, it provided essential visibility for businesses to plan their international operations.

One of the key points of the text is the reduction of customs barriers. The British government indicates that 93% of the customs duties imposed by the GCC on British products will be phased out, with the majority of the reductions applied as soon as the agreement enters into force.

Several British sectors are expected to benefit directly, including automotive, aerospace, electronics, and food. Products such as cereals, cheddar cheese, chocolate, and butter will now be exempt from customs duties in the relevant Gulf countries. British authorities also assure that the agreement does not alter environmental protections or human rights commitments.