: What it Means for UK Trade)
The UK has agreed a Free Trade Agreement with the Gulf Cooperation Council (GCC) — notably the first deal the bloc has secured with a G7 country. The agreement is expected to add £3.7 billion annually to the UK economy and improve access to a high-value, import-reliant region.
Tariffs and market access
The GCC currently applies a 5% common external tariff across most goods. Under the deal, 90% of tariff lines will be fully liberalised within 10 years.
For UK businesses that trade with the region, the impact will be significant:
- 93% of UK exports to the GCC will become tariff-free
- The UK will liberalise all current GCC imports from day one
- Estimated to remove customs duties on UK exports worth £580 million annually, including £360 million from day one
Opportunities for UK business
The agreement benefits a number of core UK sectors:
- Automotive: Tariffs removed on 90% of current exports
- Aerospace: Removal of 5% duties on turbojets and parts
- Industrial goods: Machinery and electronics (including engines, valves and centrifuges) benefit from tariff elimination
- Healthcare & cosmetics: Full tariff removal on medical devices, surgical equipment and consumer products such as skincare
The agri-food sector is expected to benefit significantly as the GCC remains a net importer, and tariff removal should provide pricing advantages for these exports:
- Cheese (up to 6%)
- Chocolate (up to 15%)
- Biscuits (up to 10%)
Accessing these benefits will require compliance with rules of origin. Only goods that are wholly obtained or sufficiently transformed in the UK or GCC will qualify. UK exporters will be able to self-certify origin once registered.
For UK exporters already active in the region — or considering entry — now is the time to review supply chains, origin qualification and pricing strategies to capitalise.
UK-Gulf Cooperation Council (GCC) Trade Deal – GOV.UK
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