GCC and UK Finalize $5 Billion Free Trade Deal to Remove 99% of Tariffs

The Gulf Cooperation Council (GCC) and the United Kingdom have finalized a comprehensive free trade agreement (FTA) projected to increase bilateral trade by approximately $5 billion (£3.8 billion) annually. The deal, signed in Riyadh, concludes seven rounds of negotiations aimed at removing trade barriers between Britain and the six-nation Gulf bloc. Economic Impact and Tariff Removal The agreement focuses on eliminating or significantly reducing tariffs on 99% of goods traded between the two regions. For the UAE and its GCC partners, the pact provides streamlined access to the British market for petrochemicals, aluminium, and refined oil products. Conversely, UK exports such as food and beverage products, automotive parts, and machinery will see immediate cost reductions as duties are phased out. In 2023, total trade between the GCC and the UK reached £57 billion, and this new framework is expected to accelerate growth toward a £62 billion target by 2030. Services and Digital Trade Beyond physical goods, the FTA establishes a legal framework for digital trade and professional services. This includes the mutual recognition of professional qualifications in sectors such as law,…