UK-Gulf states trade deal on the horizon
The UK is poised to sign a trade agreement with the Gulf states, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
The deal with the Gulf Cooperation Council (GCC) is expected to be worth as much as £1.6bn, with hopes that the value will rise by an additional £8.6bn a year by 2035, according to a report in The Guardian.
Talks between the UK and the GCC have been ongoing since 2022. The agreement is expected to be a win for the car and financial services industries.
This follows a “hat trick” of trade deals Starmer signed in May, with India, the US, and the EU.
Human rights concerns
The Tory government’s efforts to broker a similar deal in 2024 to vaunt before the election were scuppered by none other than the election itself.
Concerns around legitimising human rights abuses in the Gulf region shadowed negotiations by then-Business and Trade Secretary Kemi Badenoch. These concerns persist under current talks.
The TUC’s general secretary, Paul Nowak, remains vocally opposed to a deal with “countries that abuse human rights and workers’ rights, and violate international law,” noting the UK’s decision to suspend trade talks with Israel.
Other opponents include Tom Wills, of the Trade Justice Movement, who called the deal “a values-free agreement” that prioritises “corporate access” over “human rights and environmental protections.”
The Lib Dems broadly welcomed the prospective deal, with deputy leader, Daisy Cooper, stating the deal has “the potential to boost our economy and improve living standards,” but warning that “the mistake of the last Conservative Government” — “selling out British farmers” – should not be repeated.
The Lib Dems are also particularly concerned with what this means for the UK’s media landscape.
Cooper said: “it seems the government is selling out our free press for this deal too – permitting foreign stakes in British newspapers, with the UAE set to clinch 15 per cent of the Telegraph.”
Chancellor Rachel Reeves hinted that the Gulf would be the government’s next target for an agreement.