Keir Starmer asserts that this trade agreement is worth more than double the initial estimates. It’s a giant win for British businesses.
Keir Starmer has struck a trade deal with 6 Gulf states in what he described as a giant win for British businesses. This deal concludes 4 years of talks that were led by 4 different prime ministers.
The government said that the deal may offer USD 2.738 (£3.7) billion worth of opportunities for exporters. The total works out to double the original estimates. This is especially true in the food and luxury vehicle sectors. This also applies to the defence, aerospace, hospitality, and other services sectors.
This deal also provides the prime minister with a much-needed political window to show that the government is still capable of performing beyond concluding deals. The agreement is despite the turmoil & possible challenge to his leadership in the wake of the UK’s recent local elections.
Starmer faced immediate criticism that the deal didn’t include a chapter on human rights. This stance is despite complaints of a ‘values-free’ deal, struck with Gulf states about a year back.
The director of the Trade & Justice Movement, Tom Wills, said that the omission was ‘especially alarming, considering the severe human rights irregularities that prevailed across the Gulf region.’ That includes torture, forced labour, discrimination & the silencing of dissent.’
The government did not pursue a human rights chapter, according to reports. This is because it views political channels as the best place to raise these concerns.
Meantime, the National Farmers’ Union (NFU) of England & Wales said that it was the best agricultural deal since Brexit. This occurred after the NFU observed demands to lower poultry standards.
The British Chambers of Commerce (BCC) said it may create new business avenues for enterprises in financial services, energy, construction, education, hospitality, technology, & professional services.
Meanwhile, the head of trade policy at the BCC, William Bain, said the deal offered great potential to expand trade in the region & would be ‘vital for tens of thousands of British enterprises’.
It’s the third trade deal concluded by Starmer. This follows earlier pacts made with India, besides South Korea. Tariffs will be removed from 93% of British goods sold in the 6 countries in the Gulf Cooperation Council (GCC) trading bloc. The list includes Saudi Arabia, Kuwait, Oman, Qatar, Bahrain, & the United Arab Emirates (UAE).
Among the sectors that may face zero tariffs are food, medical equipment, defence, aerospace, and advanced manufacturing.
Exporters in the GCC faced a blanket tariff of 5%. This is with some other products facing higher duties. For instance, Cheddar cheese was taxed 6%. This was whilst both chocolate & biscuits were taxed at 15% & 10%, respectively. However, vehicles were taxed only at 5%.
As part of the deal, the Gulf states have also agreed to allow UK enterprises to store data outside the region for the first time.
The government added that British services, which may account for 80% of the UK’s economy, may benefit from guaranteed access to business in the six states.
The president of the NFU, Tom Bradshaw, had previously been concerned that the government would make concessions on standards of poultry originating from the Gulf and welcomed the deal that benefits farmers.
Bradshaw opined that they believe that this was probably the best negotiation they had to benefit from agriculture, adding that they are really happy.
Starmer asserted that the Wednesday, 20 May ‘agreement’ was a giant win for British businesses. He added that the working people may feel the benefits in the years ahead through higher wages, besides more opportunities.’
Meanwhile, the business secretary, Peter Kyle, said he was proud that the UK was the first G7 country to secure a modern and ambitious trade deal with the GCC.
