UK supply chain association Logistics UK has welcomed the country’s trade deal with the Gulf Cooperation Council (GCC), hoping it will drive trade growth.
The deal between the UK and GCC members Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE was announced on Wednesday and is expected to eventually boost the UK economy by around £3.7bn per year.
The agreement will remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360m worth of this to be removed on day one of the agreement entering into force.
It will also make it easier for UK businesses to trade in the GCC by cutting red tape and speeding up customs processes.
Logistics UK chief executive Ben Fletcher said the agreement would boost confidence and create real momentum for UK businesses trading internationally.
“The UK grows when it trades, and this agreement is a positive step towards unlocking more trade-led growth,” Fletcher said.
“By lowering tariffs and speeding up customs processes, the GCC agreement should help drive trade between the UK and one of the world’s fastest-growing regions.
“In addition to new export opportunities, the agreement will also improve the competitiveness of UK businesses by enabling them to import goods more cheaply from GCC member states.
“It is UK logistics operators who will be the ones facilitating the movement of both exports and imports, and will be critical in the trade agreement delivering its estimated £3.7bn a year boost to the UK economy.”
