FTA with GCC to remove estimated $779 mn in duties a year: UK govt

The UK-Gulf Cooperation Council (GCC) Free Trade Agreement (FTA) finalised recently will remove an estimated £580 million (~$779 million) in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million (~$483.5 million) worth of these duties to be removed on day one of the agreement entering into force, according to a Department for Business and Trade policy paper.

GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. The United Kingdom is the first G7 nation to strike a comprehensive FTA with the GCC.

The UK-GCC FTA finalised recently will remove an estimated $779 million in duties a year, based on current UK exports to the GCC, once the pact is fully implemented, with $483.5 million worth of these duties to be removed on day one of the pact entering into force, the UK government said.
It secures long-term market access, reduces barriers for UK exporters and unlocks investment in high-growth sectors.

The agreement aligns with the UK’s trade and industrial strategies by securing long-term market access, reducing barriers for UK exporters and unlocking investment in high-growth sectors, the white paper noted.

It reinforces the ‘backing your business’ small and medium business (SME) growth strategy by opening new opportunities for smaller UK businesses to scale and compete globally, it said.

The deal is estimated to boost the UK economy by £3.7 billion a year in the long run compared to 2040 projections, and increase real wages by £1.9 billion annually, creating new opportunities for businesses and workers across the United Kingdom, said the white paper.

It also has far-reaching digital provisions which will drive innovation and support the use of emerging digital technologies for UK tech companies, including in areas like artificial intelligence, paperless trade and clean energy.

The agreement will reduce tariffs and ensure simple and efficient customs, with a clear commitment to clear goods within 48 hours (six hours for perishable goods), provided that all requirements are met.

It will provide certainty for services, businesses and investors, boost regulatory transparency and support digital trade.

“This deal is great news for the UK economy; it will open up new opportunities for inward investment, exports and supply chains,” William Bain, head of trade policy at the British Chambers of Commerce, said in a release.

“There is great potential to expand our trade with this key region, which already generates £57 billion a year for the UK economy. Securing long-term economic benefits with close trade partners, like the GCC, is vital for tens of thousands of UK firms with high ambitions on export growth,” he added.

Fibre2Fashion News Desk (DS)