Alinea Customs Briefing. On 20th May 2026, the United Kingdom signed a historic trade agreement, becoming the first G7 country to strike a trade deal with the Gulf Cooperation Council states Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.
The deal is reported in a UK government press release to be worth £3.7 billion, and is cited to remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented. Of these, access to preferential tariffs saving an estimated £360 million payable on UK exports will be made available from the first day of the agreement entering into force. Furthermore, services firms will benefit from renewed certainty and guaranteed access, facilitating the ability for UK companies to expand and partner with Gulf counterparties.
The UK government has published that the key UK export sectors anticipated to benefit from the trade agreement include the food and drink sector. UK exports of cereals, cheddar cheese, chocolate and butter, in addition to the UK’s luxury automobile sector are just a few of the goods expected to benefit from preferential tariffs.
The trade agreement is also reported to address stronger Intellectual Property protections and simplified customs processes.
Prime Minister Keir Starmer has stated:
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.
This government has now secured five major trade deals with international partners, delivering on our commitment to drive growth, support jobs and strengthen the UK economy.
The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.
The deal is estimated to add £3.7 billion to the UK economy every year in the long run when compared to 2040 projections and £1.9 billion in real wages, delivering for businesses and working people.
The GCC-UK trade agreement is cited to include ambitious commitments on customs procedures, including a pledge for UK consignments to be customs cleared within 48 hours, and outlining that perishable goods are to be released in under 6 hours once all requirements are met.
Alinea Customs will provide further insight into the trade agreement, and underlying preferential rules of origin, once the text of the economic partnership is made available.
Please direct any enquiries to customs@alineacustoms.com.
