New UK government maintains goal of completing GCC FTA by the end of 2024

RIYADH: A free trade deal between the Gulf Cooperation Council and the UK remains on course to be completed by the end of 2024 despite the change of government in London, according to a senior official. 

Secretary-General of the GCC Jasem Mohamed Al-Budaiwi made the comments after meeting the new British Business and Trade Secretary Jonathan Reynolds, according to the Saudi Press Agency. 

Al-Budaiwi noted the UK government’s strong interest and sincere intent to expedite the negotiation process, with Reynolds expressing a goal to have the agreement signed before the close of the year. 

The meeting came in the wake of the UK Labour Party’s election victory on July 4, but the country’s trade policy toward the GCC appears to be unchanged from the previous Conservative administration. 

In 2020 alone, the UK exported goods and services valued at £23.1 billion ($25 billion) to the GCC, accounting for 71 percent of the UK’s total trade with countries in the organization. 

The Gulf countries stand as the UK’s seventh-largest export destination, with bilateral trade amounting to a total value of £61.3 billion ($78.29 billion) in 2022. 

SPA said that discussions between Al-Budaiwi and Reynolds covered a range of economic and trade-related topics, underscoring the importance of enhancing bilateral relations between the GCC and the UK.  

Both sides expressed eagerness to accelerate negotiation rounds, scheduling regular high-level meetings to finalize the agreement’s chapters and achieve its signing this year.  

This collaborative effort is viewed as pivotal in bolstering cooperation and strengthening the strategic partnership between the region and the UK. 

Speaking to Arab News in 2023, Kemi Badenoch, Reynolds’ predecessor, described the potential FTA as “groundbreaking,” adding that it could “set a precedent for what the GCC does with the rest of the world.” 

The GCC has actively pursued FTAs with various countries to bolster economic ties and broaden market access across different regions.  

Recent developments include the establishment of an FTA with Korea in December 2023.

Additionally, negotiations for an FTA between the GCC and Japan resumed and were formalized by a joint statement signed in July 2023, following a meeting between Japanese Prime Minister Fumio Kishida and GCC Secretary-General Al-Budaiwi in Jeddah.