UK announces ‘historic’ trade deal with Gulf states in G7 first
Britain’s Prime Minister Keir Starmer is as he arrives at the airport in Jeddah, Saudi Arabia, on April 8, 2026.
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The U.K. on Wednesday hailed a “historic” trade deal with the Gulf states that marks the first such agreement among Group of Seven (G7) nations.
The trade deal could boost the U.K. economy by an estimated £3.7 billion ($4.9 billion) every year and increase wages by £1.9 billion annually in the long run, the U.K.’s Department for Business and Trade (DBT) said as the agreement was announced.
“The U.K. could see a boost to growth and higher wages for decades to come after becoming the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC) today — strengthening our economic partnership with the region, supporting jobs in the long term, and bolstering domestic resilience,” the DBT said in a statement.
British Prime Minister Keir Starmer (L) is welcomed by Emirati Chairman of the Executive Affairs Authority Khaldoon Khalifa Al Mubarak as he arrives for a visit on April 9, 2026 in Abu Dhabi, United Arab Emirates.
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The deal with the GCC, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, reflected the U.K.’s “solidarity and long-term cooperation with its Gulf partners,” according to the British government.
It said the deal will remove an estimated £580 million in duties a year, based on current U.K. exports to the GCC, once the agreement is fully implemented, with £360 million of this amount “to be removed on day one of the agreement entering into force.”
British exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free under the terms of the deal.
Cheddar could be one of the British food products set to benefit from the trade deal with Gulf states.
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It marks a fifth major trade agreement made under the current U.K. government, following deals with India, the U.S., the EU and South Korea.
The deal is a welcome boost for British Prime Minister Keir Starmer, who faces challenges to his leadership, as the U.K. economy comes under pressure from the Iran war.
“Today’s agreement is a huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities,” Starmer said of the latest trade deal.
“The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment,” he added.
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