Speaking to the BBC on the heels of Monday’s UK–EU trade “reset,” Chancellor Rachel Reeves confirmed that negotiations are underway with Gulf Cooperation Council (GCC) countries as the government’s next priority. The envisioned deal would cover key sectors such as food and drink, renewable energy, manufacturing exports and enhanced inward investment.
Reeves argued that the UK is now “in a stronger position on trade than any other country,” having secured landmark agreements with the EU, India and the United States this month. She suggested these pacts, once fully implemented, will support an upward revision of the UK’s growth forecast currently set at 1 percent for 2025 by reducing export barriers and attracting capital.
The initiative builds on talks initiated under the previous administration, but Reeves stressed that Labour is keen to balance commercial gains with maintaining “high standards” on labour, environmental protections and human rights. Nonetheless, opposition politicians have voiced unease over extending privileges to Gulf states with controversial records on freedom of expression and workers’ rights.
In April, UK ministers held preliminary discussions with counterparts from Saudi Arabia, the UAE, Qatar and other GCC members, focusing on removing tariffs for British food and beverage producers and opening doors for UK renewables technology firms. Government sources say the Gulf deal could mirror elements of the EU agreement, such as harmonised regulatory checks, while also creating bespoke investment incentives.
Critics including Conservative leader Kemi Badenoch and Reform UK’s Nigel Farage have labelled the EU “reset” insufficient and questioned its concessions on fishing and services. Meanwhile, Lib Dem leader Sir Ed Davey welcomed the EU accord but urged progress toward a customs union. On the Gulf front, NGOs and some MPs warn that aligning too closely with autocratic regimes risks undermining the UK’s values-based foreign policy.
Reeves dismissed calls to seek trade talks with China, citing strategic and ethical hurdles. She framed the UK’s approach as “selective engagement” that prioritises partners where mutual interests and shared standards align. Looking ahead, she said the government will publish more details on the Gulf negotiations after the summer, with a formal launch expected in the autumn once technical teams conclude their scoping work.
