UK Becomes First G7 Nation to Finalize FTA with Six Gulf Cooperation Council Countries

Annual Economic Benefits Exceeding 7.4 Trillion Won
Zero Tariffs on Imported Oil and Gas from the GCC

Official Website of the UK Government

On May 20 (local time), the UK government announced that it had concluded negotiations on a Free Trade Agreement (FTA) with the Gulf Cooperation Council (GCC), an alliance of six countries in the Gulf region. The UK is the first among the Group of Seven (G7) nations to reach an FTA agreement with the GCC.

In a press release on the same day, the UK government stated, "By being the first G7 country to sign an FTA with the GCC, we can now look forward to decades of economic growth and rising wages." The government also emphasized, "This will strengthen our economic partnership with the region, support long-term job creation, and contribute to enhancing the resilience of the domestic economy." The GCC comprises six Gulf region countries: Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman.

The UK government explained that this FTA is expected to generate up to 3.7 billion pounds (approximately 7.4 trillion won) in long-term annual economic benefits. The UK anticipates that, immediately upon the agreement's implementation, tariffs on UK goods worth 360 million pounds exported to the Gulf region will be eliminated, and by year 10, tariffs will be lifted on a total of 580 million pounds’ worth of exports, accounting for 93% of all UK exports to the region. In addition, the agreement will benefit the automotive, aerospace, and electronics sectors, while food products such as cereals, cheese, and chocolate will also become duty-free, resulting in advantages for the food sector as well.

The UK also agreed to reduce tariffs on goods imported from the GCC. For its largest import sectors, oil and gas, there will be zero tariffs, and market access for the services sector—which accounts for 50% of UK exports—will be significantly expanded in the Gulf market. As a result, trade between the UK and the GCC, which currently stands at 53 billion pounds annually, is expected to increase by more than 19.8%.

UK Prime Minister Keir Starmer commented, "This agreement deepens bilateral relations, builds trust, and opens up new opportunities for investment and trade." He added, "Compared to the forecast for 2040, this will add 3.7 billion pounds annually to the UK economy in the long term and increase real wages by 1.9 billion pounds, benefiting both businesses and workers."

This content was produced with the assistance of AI translation services.