Britain signs $5 billion worth of trade deal with Gulf states

The British government has struck a "historic" trade deal with the six Gulf Cooperation Council (GCC) countries worth an estimated $5 billion, ending four years of complex and intractable negotiations, giving Prime Minister Keir Starmer valuable political and economic outlet at a very sensitive domestic time.

Government and economic welcome for the "Great Victory"

In an official statement from the Government Office, Starmer described the deal as a "major victory" for British businesses, stressing that its fruits will be reflected directly in increasing opportunities and raising wages in the coming years.

The deal will provide 3.7 billion pounds ($4.96 billion) of opportunities for exporters, double the original estimates, particularly in the food, luxury cars, defence, aviation and services sectors, official government data  showed.

Wide customs exemptions

The text of the agreement, in accordance with the official terms announced, included the abolition of customs duties on 93% of British goods sold in the GCC markets (Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain), after exporters faced flat duties of 5% and higher taxes on specific goods such as cheese and chocolate.

According to official data,  the Gulf states have agreed for the first time to allow British companies to store data outside the region, giving the British services sector guaranteed access to markets.

Business and farmers bless the deal

The British chambers of commerce, in the words of its head of trade policy William Paine, stressed that the agreement holds "enormous potential" and will be vital for tens of thousands of companies operating in the fields of energy, construction, education and technology.

The National Farmers' Union of England and Wales welcomed the move through its chairman, Tom Bradshaw, calling it the best agricultural negotiations the UK has had after successfully repelling demands to lower poultry standards.

Unprecedented international achievement in the G7

In press statements summarizing the political dimensions of the scene, British Business Secretary Peter Kyle said that with this move, the UK has become the first country in the Group of Seven major industrialized countries (G7) to succeed in signing a "modern and ambitious trade agreement" with the Gulf Cooperation Council.

He noted that this is Starmer's third after two previous agreements with India and South Korea.

Sharp Human Rights Criticism and Parliamentary Counter-Campaign

In separate statements, British human rights and trade union groups warned of the moral implications of the deal, with Tom Wells, director of the Trade Justice Movement, calling the omission of any human rights clause in the deal "alarming".

Wales has criticised  investor protection clauses that could constrain future UK policies.

Paul Novak, general secretary of the Confederation of Trade Unions, expressed disappointment at the move, while Paul Scraven, a member of the House of Lords for the Liberal Democrats, attacked the Labour government as a "complete breakdown of moral leadership".