Reynolds visits Saudi Arabia to kickstart talks on trade deal with Gulf Coast nations

Business and trade secretary Jonathan Reynolds is in Riyadh, Saudi Arabia today (16 September) in a bid to boost trade with the Gulf Cooperation Council (GCC) grouping of nations.

The GCC, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, has a trading relationship with the UK currently worth £57bn.

The government says that a trade deal with the bloc could boost the UK economy by £1.6bn, and committed in July to achieving one.

‘Top priority’

It has said that Reynolds and others will emphasise that a GCC trade deal is a “top priority” for the UK, and it comes ahead of the International Investment Summit in London on 14 October.

A deal with the GCC was targeted by trade ministers under the previous Conservative administrations, with then-trade secretary Kemi Badenoch visiting Qatar, Saudi Arabia and the UAE in May 2023 to encourage talks.

Reynolds said ahead of the trip to Saudi Arabia that “economic growth is this government’s driving mission and boosting trade and investment with some of the world’s biggest economies is crucial to that. 

“I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it’s great to be here to discuss exactly that.” 

Another trip

Trade policy minister Douglas Alexander is also visiting Riyadh, before continuing to Oman as part of the trip.

Alexander met Chartered Institute of Export and International Trade director general Marco Forgione earlier this month to discuss relationships with key trade partners and priorities for the UK trading community.

Alexander said of the trip:

“We are excited about the opportunities this vibrant region has to offer UK business and consumers.  

“We want our trading partners in the Gulf and around the world to know that the UK is open for business and keen to negotiate trade deals that help businesses across sectors and all parts of the UK to prosper.” 

‘Huge demand’

Forgione remarked on the announcement from the government to say:

“One of the earliest announcements by the new government was they were to continue to push ahead with trade agreements where negotiations had already started. This includes India, Israel, South Korea, Switzerland, Turkey and the GCC.

“This week’s visit to the Gulf by senior ministers is essential for building closer relationships and shows that the Government is prioritising this deal.

“There is a huge demand for UK products and services in GCC, securing a trade deal will open up great potential for UK exports and will help to address the ongoing difficulties caused by hugely fragile global supply chains.”

Outside of boosting European links, Labour ministers have stressed that they want “quality over quantity”.

Last week, environmental secretary, Steve Reed, told a National Farmers’ Union parliamentary reception that there would be “no more deals” like those with Australia or New Zealand, both of which were criticized by farming groups for failing to protect domestic producers.