British Prime Minister Keir Starmer secures trade deal with 6 Persian Gulf countries
May 20 (UPI) -- British Prime Minister Keir Starmer on Wednesday announced a trade agreement with six Persian Gulf countries that he says will raise living standards in Britain.
The agreement "delivers on the Government's core mission to generate the economic growth that will put money in people's pockets and raise living standards right across the U.K., in line with the Government's growth agenda," a press release said. It "deepens our partnership around shared principles -- open trade, the certainty that businesses rely on in uncertain times, and the shared prosperity that drives long‑term economic success for all our nations."
The deal will offer about $5 billion worth of opportunities for exporters annually, especially in the food and luxury car sectors, but also defense, aerospace, hospitality and other services, the government said. It's expected to add $2.5 billion a year to real wages.
The deal is a potential win for Starmer in the wake of recent calls for him to resign. But there have been complaints that the deal doesn't include caveats to protect human rights.
Tom Wills, director of the Trade Justice Movement, said leaving out the human rights section was "especially alarming given the severe human rights abuses across the Gulf region, including torture, forced labor, discrimination and the silencing of dissent."
The Guardian said the government didn't try to add a human rights chapter because it sees those issues as best handled via political channels.
Starmer's government said the deal, combined with the India-U.K. Fair-Trade Agreement signed in July, would add nearly $11 billion per year to the country's gross domestic product when compared with 2040 projections. Once the deal is fully implemented, it will eliminate $780 million in tariffs on British goods exported to the Gulf countries, and $484 million will be removed on day one.
"Today's agreement is a huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities," CNBC reported Starmer said. "The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment."
The talks have been ongoing for four years and under four different prime ministers, The Guardian reported.
Tariffs will be removed from 93% of British goods sold in the six countries of the Gulf Cooperation Council, which includes Saudi Arabia, Kuwait, Oman, Qatar, United Arab Emirates and Bahrain.
There will be no tariffs on food, medical equipment, defense, aerospace and advanced manufacturing. Companies that exported to the GCC had paid a blanket tariff of 5%, with some higher. For example, cheddar cheese was taxed at 6%, while chocolate had a 15% tariff and cookies were taxed at 10%.
British services, which make up 80% of the British economy, will have "guaranteed access" to business in the GCC, the government said.
National Farmers' Union of England and Wales President Tom Bradshaw welcomed the deal for farmers. He had been concerned that the government would allow weakened standards of poultry from the gulf, The Guardian reported.
William Bain, president of the British Chamber of Commerce, said the deal offered great potential for trade expansion and would be "vital for tens of thousands of U.K. firms." The organization said the deal would create new business for companies in financial services, energy, construction, professional services, education, hospitality and technology.
"This future agreement should give British businesses the confidence they need to enter the market, trade more easily and benefit from the massive opportunity from the region's sustainable energy transition and collaboration in advanced manufacturing technological advancements," Make U.K. CEO Stephen Phipson said in a statement.
Before the war in Iran began, British food and drink exports to the gulf were worth more than $1 billion, said Food and Drink Federation CEO Karen Betts in a statement.
"While we expect trade to continue to be disrupted in the short term, the removal of tariffs from day one on iconic British products like oats, breakfast cereals and biscuits will help food manufacturers build export momentum in the years ahead," Betts said. "We look forward to working with the Government to ensure food and drink businesses have the support they need to make the most of this new opportunity."
It is the fifth trade deal Starmer has closed, after deals with the United States, the European Union, India and South Korea.
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This story was originally published May 20, 2026 at 12:02 PM.