GCC trade deal an “exciting opportunity” for UK food and drinks industry, FDF chief says

The UK’s nutrient and drinks producers are acceptable to payment from the removal of £580m ($779m) worthy of import tariffs successful a commercialized woody struck with the GCC.

Cheese, chocolates, biscuits and smoked salmon were singled retired arsenic cardinal beneficiaries by the UK authorities from the statement with the six-member Gulf Cooperation Council.

Total commercialized with the GCC – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – was cited successful authorities statements arsenic valued astatine £53bn, according to estimates from the Office for National Statistics.

The woody could adhd a further £15.5bn successful commercialized betwixt the UK and the GCC, with an yearly payment to the British system of £3.7bn erstwhile the statement is afloat implemented, the UK authorities says.

Tariff barriers worthy £360m volition instantly beryllium removed connected UK exports to the GCC erstwhile the commercialized woody comes into force, past rising to an estimated £580m.

Cheddar cheese, which faces import duties to the GCC of 6%, volition bask tariff-free presumption upon ratification, arsenic volition the 15% and 10% levies connected cocoa and biscuits, respectively.

Scottish smoked salmon volition besides spot its 5% taxation removed.

The Food and Drink Federation (FDF) welcomed the statement arsenic an “exciting opportunity” for its members, peculiarly astatine a clip of commercialized uncertainty amid the struggle successful the Middle East.

Karen Betts, the CEO of the UK’s starring commercialized organisation for nutrient and beverages, said: “Prior to the warfare successful Iran, our exports to the portion were worthy implicit £800m a twelvemonth and increasing astatine doubly the complaint of EU exports, reflecting the precocious request successful GCC countries for precocious quality, delicious and trusted British brands.

“While we expect commercialized to proceed to beryllium disrupted successful the abbreviated term, the removal of tariffs from time 1 connected iconic British products similar oats, meal cereals and biscuits volition assistance nutrient manufacturers physique export momentum successful the years ahead.”

On goods shipped from the Gulf, the UK authorities said it “will beryllium liberalising tariffs connected each existent GCC exports to the UK from time 1 nether this agreement, supporting proviso chains and helping UK businesses to trim input costs”, but added the woody excludes pork, chickenhearted and eggs “from tariff liberalisation”.

Prime Minister Sir Keir Starmer said: “The Gulf states are valued economical partners and this statement deepens that relationship, gathering spot and unlocking caller possibilities for commercialized and investment.

“The woody is estimated to adhd £3.7bn to the UK system each twelvemonth successful the agelong tally erstwhile compared to 2040 projections and £1.9 cardinal successful existent wages, delivering for businesses and moving people.”