United Kingdom strikes trade deal with Gulf states

The agreement with the GCC -- which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates -- is set to deliver relatively modest economic benefits for the UK.

However, it comes as Britain seeks to bolster trade ties across the world following its departure from the European Union at the start of the decade, a need that has become more pressing after the United States unveiled sweeping global tariffs.

"At a time of increased instability, today's announcement sends a clear signal of confidence," said business and trade secretary Peter Kyle.

He said the deal reinforces "the strength and stability of the UK's trading relationship with the Gulf at a critical moment."

The agreement will remove £580 million ($778 million) in tariffs on UK goods imported to the region, covering food, medical equipment and advanced manufacturing.

Foods such as cereals, cheddar cheese, chocolate and butter are set to become to tariff-free under the agreement.

The UK auto industry and the professional services industry, which accounts for more than half of the country's exports to the GCC, are also expected to benefit from the deal.

Along with eliminating certain custom duties, the deal promises stronger intellectual property protections and a quicker customs process.

Prime Minister Keir Starmer described the Gulf states as "valued economic partners."

"This agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment," he added.

The government estimated that the agreement will add £3.7 billion a year to the British economy.

Under the Labour government, Britain has secured a number of post-Brexit trade deals.

It struck a free trade agreement with India last year, its biggest deal since leaving the EU.

It also made a long-sought agreement with the United States to cap tariffs at 10 percent on most UK imports to the country.