UK Eyes Gulf Trade Deal Following Major Agreements with India, US, and EU

Chancellor Rachel Reeves has announced that the UK is now pursuing a trade deal with Gulf nations, including Saudi Arabia, the UAE, and Qatar, positioning it as the next key move in its global trade strategy. This follows a series of major agreements signed with India, the US, and the EU, which Reeves described as placing Britain in a “better place on trade than any other country in the world.” She indicated that these deals could positively impact the UK’s economic growth forecast, with stronger-than-expected performance in early 2025 possibly boosting projections further.

The newly signed EU deal, the most significant since Brexit, includes provisions on fishing, trade, defence, and energy. However, it has drawn criticism from opposition leaders. Conservative leader Kemi Badenoch claimed the EU deal was a step “backwards,” while Reform UK’s Nigel Farage accused the government of “selling out” the fishing industry. Liberal Democrat leader Sir Ed Davey cautiously welcomed the deal as a “stepping stone” but called for a move towards a full customs union.

Reeves defended the terms of the deals, emphasizing that high food standards were non-negotiable in talks with both India and the US. The India agreement boosts UK exports such as whisky and cars, while also lowering tariffs on Indian clothing and footwear. The US deal reduces tariffs on certain goods, with the UK increasing beef import quotas while maintaining food quality benchmarks. Reeves said the successful conclusion of these deals signals to the world that Britain is now a top destination for global investment and business.

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