UK Chief Negotiator: We Completed Very Productive Round of Free Trade Negotiations with Gulf Countries

UK Chief Negotiator for the UK-GCC Free Trade Agreement (FTA) Tom Wintle meets with GCC Chief Negotiator, Dr. Raja bin Manahi Al Marzouqi. (Asharq Al-Awsat)
UK Chief Negotiator for the UK-GCC Free Trade Agreement (FTA) Tom Wintle meets with GCC Chief Negotiator, Dr. Raja bin Manahi Al Marzouqi. (Asharq Al-Awsat)
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UK Chief Negotiator: We Completed Very Productive Round of Free Trade Negotiations with Gulf Countries

UK Chief Negotiator for the UK-GCC Free Trade Agreement (FTA) Tom Wintle meets with GCC Chief Negotiator, Dr. Raja bin Manahi Al Marzouqi. (Asharq Al-Awsat)
UK Chief Negotiator for the UK-GCC Free Trade Agreement (FTA) Tom Wintle meets with GCC Chief Negotiator, Dr. Raja bin Manahi Al Marzouqi. (Asharq Al-Awsat)

UK Chief Negotiator for the UK-Gulf Cooperation Council Free Trade Agreement (FTA) Tom Wintle revealed that they have completed a “very productive two-week round of negotiations.”

In an interview to Asharq Al-Awsat on the sidelines of his visit to the Gulf, he added: “Our next milestone is Round 5, which will be held in Riyadh later this year.”

Asked about the expected timeline to sign the FTA between the UK and the Gulf, he replied: “This is the question I get asked most often! Businesses and investors naturally want to access the benefits of the FTA as soon as possible.”

“However, it’s important that we get the deal right to get maximum benefits for everyone. So, whilst negotiations are progressing well, and we want to progress at pace, we have to be clear that there is no set deadline, and we cannot rush the process.”

Historic ties

“The UK and the GCC share strong historic ties and we are among each other's top trading partners. Trade between the UK and GCC has bounced back strongly since Covid and is now at record levels, worth £61.3 billion last year,” continued Wintle.

“We also have a strong investment partnership. The UK is a top six investor in the GCC with £31 billion invested in new projects over the last 20 years.”

Joint objectives

“As the UK’s Chief Negotiator, I am seeking to negotiate a UK-GCC free trade agreement that strengthens our trade and investment partnership. This would be a significant moment in the UK-GCC relationship,” he stressed.

“A free trade agreement will be mutually beneficial for the UK and GCC. UK Government analysis shows that a deal could boost UK-GCC trade by 16%, growing all of our economies and supporting jobs,” he remarked.

“The more ambitious the trade deal, the greater the gains for both the UK and GCC. It really is a win-win scenario.”

Business leaders and investors

Assessing his visit to the Gulf and where the FTA talks have reached, Wintle said: “Throughout the course of negotiations, I have had the pleasure of working with your excellent trade negotiators and have had some fantastic experiences visiting Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.”

“I have also had the pleasure of meeting many business leaders and investors to talk about how a trade deal could benefit them.”

“Our Business and Trade Secretary Kemi Badenoch, and Minister for Investment Lord Dominic Johnson – have also visited the region this year to support progressing the deal and meeting with their counterparts across the GCC,” he went on to say.

“I have been encouraged by the huge energy and optimism across the region. I see big opportunities for UK and GCC governments and businesses to work together to achieve our shared ambition,” he stressed.

Moreover, he noted that the fourth round of UK-GCC trade negotiations had just finished in London. “It was a pleasure to host more than 100 GCC negotiators. Talks are progressing very well,” he stated.

Added value

On the added value both sides can gain from the FTA, Wintle said: “The UK and GCC have genuinely complementary economies and a trade deal will strengthen supply chains between our businesses, helping to grow the industries that we are each specialized in.”

“A deal will help to form new commercial partnerships, supporting the GCC countries’ vision plans to drive private sector growth and achieve economic diversification. We see opportunities across a wide range of sectors including education, manufacturing, tech, financial services, life sciences and the creative industries.”

“By removing barriers and making it easier to do business with one another, the deal could add at least £2.8 billion to the combined UK and GCC economies in the long run,” revealed Wintle.

Helpful factors

On the factors that could help the agreement achieve the UK and Gulf's goals, he explained: “We have to be collaborative, open-minded, and ambitious in negotiations. The negotiation teams know each other well now and I know the GCC Chief Negotiator, Dr. Raja bin Manahi Al Marzouqi, shares this approach.”

“The UK and GCC teams have worked very closely together, and we share the same ambition. We want a win-win FTA that delivers for all our economies.”

‘A lot in common’

“The UK and GCC have a lot in common and we both want to strike an ambitious trade deal that increases trade and supports our businesses,” he noted.

“On some areas, it will always be difficult for six countries to agree a single approach. Our negotiation teams need to remain open-minded and work together to find solutions. There are many different ways to achieve our desired outcome and we’re working together to do that.”

Scope of the FTA

Asked about the scope of the FTA and if it includes all types of trade and services, Wintle replied: “We’re committed to negotiating a modern, comprehensive, and ambitious agreement that is fit for the 21st century. This would cover goods and services trade, as well as investment.”

“A deal would cut import tariffs, minimize the administrative burden on businesses, simplify regulations, provide greater access for services firms, and make it easier to invest in each other’s economies,” he said.

“Some of the world’s newest and most ambitious FTAs also help to foster innovation, promote digital trade, help SMEs, and support the clean energy transition. We’re also looking at areas such as these as part of a UK-GCC FTA.”

“The UK is committed to negotiating an FTA with the whole of the GCC and our priority is securing an ambitious agreement with all six GCC countries,” stressed Wintle.

Gulf role

Asked to assess the role played by Gulf countries in the world economy, he replied: “Within the global economy, the pace of the GCC countries’ economic transformation stands out. All the GCC member states have ambitious vision plans and the pace of change is remarkable.”

“The GCC is already one of the UK’s top trade and investment partners, and we see huge opportunities to strengthen this partnership even further through a UK-GCC FTA. I’m excited to see how these opportunities can become reality.”



Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019.  REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo
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Survey: Swiss Companies Plan Investment Abroad to Offset US Tariffs

FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019.  REUTERS/Arnd WIegmann/File Photo
FILE PHOTO: Reinsurer Swiss Re's headquarters are seen on the banks of Lake Zurich in Zurich, Switzerland February 21, 2019. REUTERS/Arnd WIegmann/File Photo

Swiss companies plan to relocate some of their operations and production abroad to deal with the impact of US tariffs, according to a study by business association economiesuisse.

It surveyed more than 400 companies before and after Switzerland last month agreed a deal to reduce US tariffs from 39% to 15%, with a quarter of the firms already having identified concrete steps they were taking, Reuters reported.

Nearly a third of those firms have decided to increase investments outside Switzerland and shift production and operations abroad, the survey said.

Some 16% of companies said they were going to relocate operations to countries outside the European Union or the United States, in addition to 10% going to the US, and another 5% looking at the European Union.

Other options included looking more at other markets, raising prices and even halting exports to the US.

Rudolf Minsch, economiesuisse's chief economist, said the relocation and investment was not damaging for Switzerland, which remained an attractive business location, though he cautioned high-skilled jobs and R&D should be kept.

As part of its agreement, Bern has also pledged $200 billion in investments from its companies in the US, raising concerns about the potential long-term economic impact.

UBS has said if the pharmaceuticals industry - Switzerland's biggest export sector - relocates all US-bound production to that country - cumulative Swiss economic growth over five years would be reduced from a forecast 10% to 7.7%.

Minsch said Switzerland was too small to absorb the $200 billion, and had a long tradition of investing abroad.

Those investments also helped secure jobs at home, he said.


UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
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UN's FAO: World Food Prices Fall for 3rd Month in November

FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo
FILE PHOTO: Prices of food are displayed at the Borough Market in London, Britain May 22, 2024. REUTERS/Maja Smiejkowska/File Photo

World food commodity prices fell for a third consecutive month in November, with all major staple foods except cereals showing a decline, the United Nations' Food and Agriculture Organization said on Friday.

The FAO Food Price Index, which tracks a basket of globally traded food commodities, averaged 125.1 points in November, down from a revised 126.6 in October and the lowest since January, Reuters reported.

The November average was also 2.1% below the year-earlier level and 21.9% down from a peak in March 2022 following Russia's full-scale invasion of Ukraine, the FAO said.

The agency's sugar price reference fell 5.9% from October to its lowest since December 2020, pressured by ample global supply expectations, while the dairy price index dropped 3.1% in a fifth consecutive monthly decline, reflecting increased milk production and export supplies.

Vegetable oil prices fell 2.6% to a five-month low, as declines for most products including palm oil outweighed strength in soy oil.

Meat prices declined 0.8%, with pork and poultry leading the decrease, while beef quotations stabilized as the removal of US tariffs on beef imports tempered recent strength, the FAO said.

In contrast, the FAO's cereal price benchmark rose 1.8% month-on-month. Wheat prices increased due to potential demand from China and geopolitical tensions in the Black Sea region, while maize prices were supported by demand for Brazilian exports and reports of weather disruption to field work in South America.

In a separate cereal supply and demand report, the FAO raised its global cereal production forecast for 2025 to a record 3.003 billion metric tons, compared with 2.990 billion tons projected last month, mainly due to increased wheat output estimates.

Forecast world cereal stocks at the end of the 2025/26 season were also revised up to a record 925.5 million tons, reflecting expectations of expanded wheat stocks in China and India as well as higher coarse grain stocks in exporting countries, the FAO said.


World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat
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World Bank Forecasts 4.3% Growth for Saudi Economy, Supported by Non-Oil Activities

The Saudi flag. Asharq Al-Awsat
The Saudi flag. Asharq Al-Awsat

The World Bank affirmed on Thursday that Saudi Arabia's economy has gained significant momentum for 2026-2027, driven by robust non-oil sector expansion under Vision 2030.

In a report titled “The Gulf’s Digital Transformation: A Powerful Engine for Economic Diversification,” the World Bank said growth is expected to persist in the Kingdom with non-oil activities expanding by 4% on average.

The report lifted its forecast for Saudi Arabia’s real GDP growth to 3.8% in 2025 compared to a 3.2% last October.

The forecast represents a major upward revision affirming the resilience of the Saudi economy and its ability to absorb external volatility. It also indicates growing confidence in the effectiveness of ongoing structural reforms within Vision 2030.

On Tuesday, Saudi Arabia approved its state budget for 2026, projecting real GDP growth of 4.6% in 2026.

The report showed that in the Kingdom, economic momentum is strengthening across oil and non-oil sectors with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

It said oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

At the financial level, the fiscal deficit between 2025 and 2027 is projected to remain at an average of 3.8% of GDP.

Meanwhile, the current account balance slightly recovered, settling at 0.5% of GDP in the first quarter of 2025 against -2.6% in the second half of 2024.

The report said real GDP growth remained stable at 3.6% y/y in the first half of 2025, thanks to the stabilization of the oil sector and sustained non-oil growth.

Non-oil activities expanded by 4.8% over the period, in line with the performance of 2024 while non-oil growth was driven by the wholesale, retail trade, restaurants, and hotels sector (+7.5% y/y in the first half of 2025), consolidating the role of hospitality and tourism as engines of economic diversification.

The report also indicated that oil activities grew by 1.7% y/y in the first half of 2025, benefiting from the phase-out of OPEC+ voluntary production cuts starting in April 2025.

These trends are expected to persist in 2026-2027, with non-oil activities expanding by 4% on average and oil activities expanding by 5.4%, bringing overall real growth to an average of 4.3%.

Job Market and Inflation
The report said the labor market mirrors the stabilization of the real economy and is rapidly becoming more inclusive to women.

Overall unemployment decreased by 0.7 point between the first quarter of 2024 and the first quarter of 2025, with the female unemployment rate dropping from 11.8% to 8.1% over the same period.

Also, inflation remained low and stable in Saudi Arabia, settling at an average of 2.2% in the first half of 2025.

However, price increases have been concentrated in the housing and utilities sector as rental prices have become a key issue, largely because rental supply has failed to match demographic growth, especially in Riyadh.

While this reflects the government’s efforts to dynamize the Kingdom’s urban centers, the price increases prompted the government to freeze rental prices in Riyadh for the next five years, as anticipated increases in housing supply should help control rental prices.

Finally, the report said Saudi Arabia’s external position stabilized in the second half of 2024 and the first quarter of 2025.

Although net foreign direct investment has remained relatively stable, the World Bank has emphasized that recent changes in foreign ownership regulations in Saudi Arabia, coupled with continued structural reforms, are positive steps to attract greater flows of foreign direct investment (FDI).