UK strikes £3.7bn trade deal with Gulf states

The UK has struck a trade deal with six Gulf states that the government says will be worth £3.7bn to the economy.

The agreement with Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates will remove an estimated £580m a year in tariffs on British exports to the region once fully implemented. It will also make it easier for British firms to expand and partner in the Gulf, which the government says will support jobs.

Rights groups have criticised the lack of detail on human rights and labour protections in the deal. The Trade Justice Movement said the agreement poses serious risks to human rights, labour protections and climate action. It pointed to the GCC countries' record on press freedom, use of the death penalty and high greenhouse gas emissions from their oil industries.

The Conservatives, who began the negotiations while in government, called the deal another major Brexit opportunity that Labour risks throwing away because of its pro-EU stance.

The agreement with the Gulf Cooperation Council states is the third trade deal reached by Prime Minister Sir Keir Starmer's government, after deals with India and South Korea. It is also the first between a G7 country and the GCC.

Starmer said the deal was a huge win for British workers and businesses. Working people will feel the benefits in the years ahead through higher wages and more opportunities, he said.

Business and Trade Secretary Peter Kyle said the announcement sends a clear signal of confidence at a time of increased instability and gives UK exporters the certainty they need to plan ahead.

Chancellor Rachel Reeves said the agreement is proof the government is backing British firms to compete and win globally. She said it is good for jobs, good for industry and ultimately good for consumers.