UK-Gulf trade deal a monumental achievement: Bahrain industry minister

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The recent trade deal between the U.K. and Gulf states has been hailed as a “monumental achievement” by Bahrain’s industry minister, Abdulla bin Adel Fakhro. The free trade agreement, announced on Wednesday, is seen as a win-win for both the U.K. and the Gulf Cooperation Council, with Fakhro describing it as “very significant.”

In an interview with CNBC, Fakhro emphasized the size and importance of the deal, noting the substantial bilateral trade and investment between the countries involved. He expressed optimism that the agreement would lead to further cooperation and growth in various sectors.

The timing of the trade deal is crucial, as the Gulf region is currently facing challenges due to the U.S.-Iran conflict, which has impacted key industries such as oil and gas. Despite this, Fakhro emphasized that the GCC remains open for business and is focused on stability and economic growth.

The GCC, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, has a combined GDP of over $2 trillion and a population of more than 57 million. The trade deal is expected to remove an estimated £580 million in duties annually, with a significant portion to be eliminated once the agreement is fully implemented.

Specifically, the deal will immediately remove tariffs on certain U.K. exports to the Gulf, including cars, aerospace parts, and food products like cheese and chocolate. Other tariffs, such as those on electric vehicles, will be phased out over a period of five or ten years.

Fakhro highlighted the benefits of the trade deal for the Gulf region, noting the U.K.’s expertise in fintech, services, and advanced manufacturing. He also mentioned the potential for collaboration in the petrochemicals industry.

The U.K. government has described the deal as a “major win” that could boost the country’s economy by an estimated £3.7 billion annually in the long term. Prime Minister Keir Starmer welcomed the agreement, emphasizing its importance for British businesses and working people.

Overall, the trade deal with the GCC is seen as a significant step in strengthening economic partnerships and fostering long-term cooperation between the U.K. and the Gulf states. It is a positive development for both regions and is expected to bring mutual benefits in terms of trade and investment.