The United Kingdom (UK) has begun to prepare for a prospective trade deal with the members of the Gulf Cooperation Council (GCC). This latest move comes as the UK continues to seek out trade deals with countries across the globe following its departure from the European Union (EU).
The two sides will be engaging in a 14-week-long consultation, which will see the participation of members of the business community from the UK and the public. During the discussions, the organisers intend on circulating a questionnaire that will “gather information from participants about their experiences and priorities when doing business with countries in the GCC.”
Furthermore, British Secretary of State for International Trade Anne-Marie Trevelyan will convene talks with GCC Secretary-General Nayef Falah M Al-Hajraf and Assistant Undersecretary for Domestic and Foreign Trade Hamad Bin Salman Al Khalifa. These consultations are to prepare for the formal negotiations between the UK and the GCC in 2022.
Speaking of the prospective deal, Trevelyan said, “A trade agreement with the Gulf Cooperation Council is a huge opportunity to liberalise trade with a growing market for British business and deepen ties with a region that is vital to our strategic interests.” Echoing similar sentiments, International Trade Minister Ranil Jayawardena said the UK is determined to strike a deal and solidify its economic partnership with Gulf countries.
A press release by the British government stated: “An advanced trade deal would take our relationship to the next level in industries of the future such as digital trade, services, and green growth-delivering higher-paying jobs across the country.” It mentioned that the agreement would grant British businesses access to unique opportunities in areas such as renewable energy and help the GCC countries reduce their dependence on oil. British companies can also use their expertise in financial and digital services, education, and healthcare to advance infrastructural development in GCC member countries.
GCC member states celebrated the commencement of the process to enter into an agreement with the UK. Speaking at an event organised by the Conservative Middle East Council, Bahrain’s ambassador to London, Fawaz bin Mohammed Al Khalifa, said, “We need to simplify it to make it just about trade. I think that will go a long way and make it easier to design. I think there’s a real high ambition to strike a competitive free-trade agreement.” Similarly, the United Arab Emirates’ ambassador to the UK, Mansoor Abulhoul, said the deal would be favourable to both sides, as they have complementary economies that can build on years of existing bilateral trade.
GCC countries account for £22 billion worth of British exports, with bilateral trade between the two sides amounting to over £30 billion. In addition, the UK is one of the top investment destinations for GCC members.
As a member of the EU, the UK could not enter a free trade agreement with the GCC. In 2008, the GCC’s negotiations with the bloc failed, with the EU insisting on a clause on human rights. Therefore, this prospective agreement comes as a sign of relief for both sides, who can now remove barriers to trade.
UK Prepares to Enter Into Trade Deal With GCC Members
GCC countries account for £22 billion worth of British exports, with bilateral trade between the two sides amounting to over £30 billion.
October 8, 2021
British Secretary for International Trade Anne-Marie Trevelyan SOURCE: REUTERS