UK to restart trade talks with GCC soon

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The new UK government will be ‘entering negotiating rooms as soon as possible’ to restart trade talks, starting with the GCC, India, Israel, South Korea, Switzerland and Türkiye, it has been revealed.

British Business and Trade Secretary Jonathan Reynolds said the talks were part of the UK government’s new strategy to deliver growth, with UK businesses and economic development at the centre.

The first round of trade talks under the new government is expected to take place during the autumn.

Restarting talks is the first step towards agreeing the high-quality trade deals the UK needs to give businesses access to international markets, boost jobs and deliver growth, he added.

With exports totalling £855 billion, the UK was the world’s fourth largest exporter in 2022.

“Boosting trade abroad is essential to deliver a strong economy at home,” said Mr Reynolds.

“That’s why I’ve wasted no time taking stock of progress and getting ready to press on with trade talks with our international partners.

“From the Gulf to India, our trade programme is ambitious and plays to the UK’s strengths to give British businesses access to some of the most exciting economies in the world.

“Our teams will be entering negotiating rooms as soon as possible, laser-focused on creating new opportunities for UK firms so they can support jobs across the country and deliver the growth we desperately need.”

For example, a trade agreement with the GCC would be a substantial economic opportunity, with at least £19bn already invested in each other’s economies as of 2021. An agreement with the GCC could potentially boost this further, ensuring British companies can make the most of this booming market and British customers get even more choice.

India, with which the UK is negotiating a Free Trade Agreement and Bilateral Investment Treaty, is projected to be the world’s third largest economy by 2027.

A trade deal would give UK businesses better access to its burgeoning market of middle-class consumers, projected to grow to over a quarter of a billion by 2050.

Britain has previously said a new free trade deal with the GCC could reduce or remove tariffs on UK food and drink exports to the region, worth £625 million last year, and also benefit financial services.

The sixth round of negotiations for a free trade agreement (FTA) between the UK and the GCC took place in London between January 29 and February 9 this year. Progress was made and both sides remain committed to securing an ambitious, comprehensive and modern agreement fit for the 21st century.

Bahrain and the UK boast more than 200 years of bilateral ties, reflected in non-oil trade exceeding $443m in 2023.

Major UK companies like Unilever, Deloitte and HSBC already have a presence in Bahrain, with PwC Middle East recently establishing a regional service centre, committing to hiring 250 Bahrainis.