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British Prime Minister Keir Starmer (right) meets with Jasem Mohamed Albudaiwi, Secretary General of the Gulf Cooperation Council (GCC), during a meeting held on May 20 (local time) at 10 Downing Street, the Prime Minister's official residence in London. / Reuters-Yonhap News Agency

The British government has secured a free trade agreement (FTA) with the six member nations of the Gulf Cooperation Council (GCC)—Saudi Arabia, Kuwait, Oman, Qatar, the United Arab Emirates (UAE), and Bahrain. British Prime Minister Keir Starmer hailed the agreement, which spanned four years and four prime ministers, as a major win for British business, The Guardian reported on May 20 (local time).

According to the British government’s announcement, the agreement is projected to generate £3.7 billion (approximately 7.4 trillion won) in export opportunities, doubling initial government forecasts. Under the deal, tariffs will be removed on 93% of British goods exported to the GCC bloc, with food, luxury vehicles, defense, aerospace, medical devices, and advanced manufacturing listed as the primary beneficiary sectors.

The agreement also includes provisions to relax data regulations, allowing UK companies to store data outside the Gulf region.

Industry leaders expressed strong support for the deal. The National Farmers’ Union (NFU) of England and Wales described the agreement as the most successful post-Brexit trade deal for the agricultural sector, noting that British negotiators successfully defended against Gulf demands to lower poultry sanitary standards.

The British Chambers of Commerce (BCC) also anticipated a positive impact on tens of thousands of member companies, explaining that the deal secures stable market access in the Gulf for the UK’s service sectors—including finance, energy, and technology—which comprise roughly 80% of the British economy.

While Gulf exports to the UK remain heavily concentrated in petrochemical products that already benefit from tariff-free access, the agreement is expected to serve as a milestone that enhances investor confidence across multiple other sectors.

Politically, Prime Minister Starmer emphasized that this deal marks his administration's third major trade milestone following agreements with India and South Korea, making the UK the first G7 nation to sign an FTA with the GCC. The Guardian noted that the achievement is seen as an opportunity for the current government to demonstrate its policy execution capabilities amid leadership challenges within the ruling party following recent local election defeats.