Now THAT’s why we left! Brexit Britain eyes another bumper trade coup – £2.6tn deal nears
Brexit: Trevelyan blasts May's 'unacceptable' deal
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And Julian Jessop, the former Chief Economist at the Institute of Economic Affairs, has hailed the news as proof that Britain is lining up new trade agreements much more quickly than predicted by Brexit naysayers. Britain has embarked on a 14-week consultation on a future deal with the GCC and is seeking the views of the public and business, with International Trade Secretary Anne-Marie Trevelyan hoping to begin talks on a deal in 2022.
The GCC comprises the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates, and it is one of the UK’s largest trading partners.
Total bilateral trade was worth over £30billion in 2020 and an accord with the six monarchies is seen as a key target for post-Brexit Britain – with the EU having failed to strike a similar agreement.
Mr Jessop told Express.co.uk: “The Department for International Trade has already rolled over or improved our existing trade deals much more quickly than most had expected.
“Now Brexit is opening new doors to faster-growing and more dynamic economies in the rest of the world, as the relative importance of the EU continues to decline.”
The Department for International Trade (DIT) believes an agreement would take the relationship to the next level in industries of the future such as digital trade, services and green growth – delivering higher-paying jobs across the country.
Ms Trevelyan said: “A trade agreement with the Gulf Co-operation Council is a huge opportunity to liberalise trade with a growing market for British business and deepen ties with a region that is vital to our strategic interests.
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“We want a modern, comprehensive agreement that breaks down trade barriers to a huge food and drink market and in areas like digital trade and renewable energy which will deliver well-paid jobs in all parts of the UK.”
The International Trade Secretary, who succeeded Liz Truss in a recent Cabinet reshuffle which saw the latter promoted to Foreign Secretary, is expected to hold a bilateral meeting in London with GCC secretary-general Dr Nayef Falah M Al-Hajraf and members of the Bahrain government, who currently hold the rotating presidency of the GCC.
Concluding in January 2022, the consultation includes a questionnaire aimed at gathering information from participants about their experiences and priorities when doing business with the countries in the GCC to ensure any future deal reflects the UK’s best interests.
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Trade minister Ranil Jayawardena said: “The nations forming the Gulf Co-operation Council are, together, one of our biggest trading and investment partners and are home to over 50 million people.
“From exports of Welsh lamb and Scotch beef, to biscuits from Belfast and financial services from the City of London, I am determined to strike a deal that will further cement our relationships, attract investment, promote trade opportunities and provide significant benefits for British business, creating jobs in communities across the country.”
Paul Benton, managing director international of the Association of British HealthTech Industries said: “As the economies of the region have matured and diversified in recent years, we have seen a significant demand for proven UK HealthTech, and enhanced trade opportunities with the region will only boost this further.”
However, Shadow International Trade Secretary Emily Thornberry said while there are undoubtedly opportunities for British businesses in the Gulf, there were “lots of practical questions too”.
She said: “There are undoubted opportunities for British businesses in the Gulf, from green technology and the construction industry to educational exports and recreational services, but there are lots of practical questions too.
“How geared up is the DIT to negotiate a deal where barriers to service exports are the main issue, not tariffs; is ISDS (investor-state dispute settlement) going to be a feature of this agreement as it is in our investment deal with the UAE?
”What commitments will the GCC be prepared to make on climate change? And on a basic level, how easy will it be to agree common rules with a set of countries whose own systems are still quite different?
“But above all of those is a question of morality, and whether we should be willing to agree preferential terms of trade with a group of autocracies who have some of the worst records in the world for the abuse of human rights, the mistreatment of workers, and the subjugation of women.”
Since its inception in 1981, there have been few instances where the GCC has been able to conclude free trade agreements.
Deals with the four countries of the European Free Trade Association and Singapore are among the few it has successfully concluded.
Others have failed due to political reasons. In 1990, free trade talks between the GCC and the EU were launched but subsequently failed due to Europe’s insistence on including human rights clauses. The talks ended in 2008 without a deal.
Similarly, trade talks with Australia began in July 2007 but ended two years later without reaching an agreement.
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