UK-GCC Free Trade Agreement to Be Finalised by 2024 End

The UK’s Labour Party, which returned to power after more than a decade with a landslide victory on July 4, will continue negotiations on Free Trade Agreement (FTA) negotiations between the Gulf Cooperation Council (GCC) and the UK and finalise the same by end of 2024.

GCC Secretary-General Jasem Mohamed Albudaiwi said in London that there is an agreement between the six member-states of the region and the UK, and emphasised the importance of progressing towards concluding the deal and the goal was to sign the agreement by end of this year.

The GCC chief’s remarks came after he met with the UK Secretary of State for Business and Trade Jonathan Reynolds in London on Wednesday.

Albudaiwi indicated that he sensed a strong interest from the new British government and a sincere desire to complete the negotiation rounds for the FTA. Reynolds expressed the desire to have the agreement signed before the end of 2024.

During the meeting, Albudaiwi and Reynolds discussed various topics of mutual interest, focusing on economic and trade relations between the GCC and the UK, and ways to develop them.

Both sides aspired to accelerate the pace of FTA negotiations and hold regular meetings between senior officials to finalise its chapters and sign it during the current year. This is seen as a step to enhance cooperation and the strategic partnership between the GCC and the UK.

The Gulf countries are the UK’s seventh-largest export destination, with bilateral trade amounting to a total value of $78.29 billion.  In 2020 alone, the UK exported goods and services valued at $29.75 billion to the GCC, accounting for 71% of the UK’s total trade with countries in the organisation.

This collaborative effort is viewed as pivotal in bolstering cooperation and strengthening the strategic partnership between the region and the UK.

Six Rounds of Talks

According to the UK’s Department of Business and Trade, the two sides held six rounds of negotiations for FTA that took place between 29 January and 9 February in London and held in a hybrid fashion. A number of GCC negotiators travelled to London for in-person discussions with others attending virtually.     

Draft treaty text was advanced across the majority of chapters. Technical discussions were held across 21 policy areas over 30 sessions during the discussions early this year.

“Good progress was made and both sides remain committed to securing an ambitious, comprehensive and modern agreement fit for the 21^st century,” the UK said.

An FTA will be a substantial economic opportunity and a significant moment in the UK-GCC relationship.

“The UK Government remains clear that any deal signed will be in the best interests of the British people and the UK economy. We will not compromise on our high environmental, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest,” the department added.