Farm opportunities from new trade deal with Gulf states

A major trade deal has been agreed between the UK and the Gulf Co-operation Council, estimated to be worth £3.7bn each year.

The Gulf Co-operation Council (GCC) is made up of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates and imports more than 80% of its food, making it an extremely valuable market.

An initial £360m in duties will be removed, rising to roughly £580m/year once the agreement is fully implemented.

See also: Global demand for dairy set to grow as supplies slow

The GCC is already the UK’s largest market for lamb exports outside the EU, with almost £10m of sheepmeat being exported to the region each year.

The removal of 5% tariffs on these goods is expected to encourage more UK lamb exports to the Gulf states.

UK dairy exports could also benefit from the removal of tariffs with roughly £100m of British dairy products being exported to the bloc last year, including cheese, milk powders and yoghurts.

Defra secretary Emma Reynolds said: “This is a landmark deal for British food and farming.

“From Welsh lamb and Scottish salmon to English cheddar, our world-class produce will now reach Gulf markets tariff-free, creating major new opportunities for UK farmers and food businesses.

“This government has secured a deal that backs British farmers while protecting our high food, animal welfare, and environmental standards.”

Department for Business and Trade (DBT) secretary Peter Kyle added: “At a time of increased instability, this announcement sends a clear signal of confidence – giving UK exporters the certainty they need to plan ahead and reinforcing the strength and stability of the UK’s trading relationship with the Gulf at a critical moment.”

Animal welfare

The government intends to uphold the UK’s animal welfare standards through the deal and not give preferential access to imports for products that fall below these standards, with current tariff levels being maintained for pork, poultry and eggs.

NFU president Tom Bradshaw said: “The trade deals agreed in recent years have been a mixed bag to say the least, with limited benefit for UK farm businesses.

“But I’m really pleased the government has listened to our concerns and ensured we can take advantage of the strong demand in the GCC for things like lamb, cheese and oats – securing greater access for high-quality British goods while safeguarding our pork, chicken and egg sectors.”

Mr Bradshaw added that the main area of jeopardy was animal welfare standards.

“It will be a relief to farmers and the public that the government has held firm on its promise to safeguard Britain’s high food production standards,” he said.