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British ministers head to the GCC for talks on new trade deal

MarketsBritish ministers head to the GCC for talks on new trade deal

Britain’s new trade ministers visited the Gulf region on Monday in a first joint visit for talks on a possible trade deal, the government said.

Trade secretary Jonathan Reynolds and minister for trade policy Douglas Alexander will meet their counterparts from the GCC region, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

Trade has been a weak point in Britain’s economy in recent years – with business groups pointing to Brexit as one cause.

The government, elected in July after a landslide victory for Prime Minister Keir Starmer’s Labour Party, is also targeting trade deals with India, Switzerland, and South Korea as part of its plan to boost economic growth.

“I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers – so it’s great to be here to discuss exactly that,” Reynolds said in a statement.

Britain’s Business and Trade Department estimates a free trade deal with the GCC region could boost the UK economy by $2.10bn (GBP1.6bn) over the long run.

Out of the Group of Seven advanced economies, Britain ranks bottom for growth in goods and services exports since 2019, even when accounting for the country’s large precious metals trade, according to national accounts data.

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