Business and Trade Secretary Peter Kyle said at the UK Trade and Export Finance Forum on Thursday that the United Kingdom is close to concluding a free-trade agreement with the Gulf Cooperation Council and that an announcement is "imminent." He offered no further specifics at the event.
The Gulf Cooperation Council, commonly referred to as the GCC, is made up of six states: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Negotiations between the UK and the regional bloc began in 2022 under the previous Conservative government, but talks have been subject to a series of delays.
British negotiators had targeted completing an agreement before Christmas of the previous year; that deadline passed without a deal being finalized. The timetable slippage has been a recurring element of the discussions, according to the accounts provided at the forum.
Separately, a state visit to Saudi Arabia by Prince William is scheduled for next week. The visit is intended to bolster bilateral relations and strengthen defense cooperation. Observers at the trade forum noted that the visit could present an opportunity for a breakthrough announcement on the trade agreement, though no commitment to that outcome was reported.
The current government led by Prime Minister Keir Starmer has indicated a desire to extend the momentum from trade agreements concluded last year with the European Union, India and the United States. Officials framed the potential GCC deal as part of that broader effort to expand the UK's trade relationships.
Summary of situation
- Peter Kyle stated the UK-GCC trade announcement is "imminent," without providing additional detail.
- Talks began in 2022 and have experienced delays; an earlier aim to conclude before last Christmas was not met.
- Prince William's upcoming Saudi Arabia visit is seen as a potential window for an announcement, and the government seeks to build on recent trade pacts.
Key takeaways
- The UK is publicly positioning a free-trade agreement with the GCC as close to completion.
- Negotiations have been under way since 2022 and have been delayed, which has affected previous timelines.
- The agreement, if announced, would follow the government's recent trade deals and is being linked to diplomatic engagement, including a royal visit intended to strengthen defense cooperation.
Risks and uncertainties
- Officials provided no substantive details at the forum, leaving terms and timing unclear.
- Past missed deadlines demonstrate the talks have been vulnerable to delays.
- While a high-profile visit may offer an opportunity for announcement, it does not guarantee a breakthrough.