Tag: Business and Trade Department

The press release issued by the Department for Business and Trade on 30 June 2026.

UK welcomes CPTPP decision to begin preparatory talks on accession with the Philippines, potentially leading to stronger trade ties.

The United Kingdom welcomes a significant milestone for the Philippines, as Parties to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreed to begin preparatory discussions on accession with the Philippines. 

The announcement was made at the 10th CPTPP Commission Meeting held virtually on 26 June 2026, where ministers confirmed that preparatory discussions will begin with the Philippines, Indonesia, and the United Arab Emirates (UAE). 

CPTPP is one of the world’s most significant free trade agreements, which the UK joined in 2024. Its membership currently includes 12 economies spanning four continents across Asia-Pacific and beyond, including Japan, Canada, Australia, and the UK. CPTPP currently covers roughly 15% of global GDP. 

The UK has been a consistent supporter of the Philippines’ application to join CPTPP. 

UK Deputy Trade Commissioner for Asia Pacific (Southeast Asia), Rhiannon Harries said the announcement builds on the CPTPP Joint Ministerial Statement from November 2025, which outlined CPTPP interest in the Philippines, Indonesia, and the UAE. 

We’ve strongly supported the Philippines’ application. If the Philippines completes the process and joins the agreement, businesses in our countries would benefit from lower tariffs, simpler trading rules, and stronger supply chains.

She further added:

These preparatory discussions could help lay the groundwork for the launch of a potential future accession process for the Philippines, which could open new opportunities for business, investment, and growth.

For the Philippines, joining CPTPP would mean access to one of the world’s most comprehensive trade networks, potentially lowering tariffs and streamlining trading regulations across diverse markets. The UK sees CPTPP as an important strategic forum for advancing and expanding the reach of high standard, rules-based trade.  

While preparatory discussions do not guarantee accession or the launch of formal negotiations, they are designed to advance engagement and understanding between the Philippines and CPTPP Parties on the agreement’s standards.  

British Ambassador to the Philippines, Sarah Hulton OBE, said: 

We warmly welcome this important milestone. The UK looks forward to working together with CPTPP Parties and the Philippines through this process.

The UK’s enthusiasm for this milestone reflects the strength of its partnership with the Philippines, which is especially meaningful as the two countries celebrate 80 years of diplomatic relations this year. 

The UK and the Philippines have been building deeper economic ties through the inaugural Joint Economic and Trade Committee (JETCO) in 2025, which sets out closer cooperation across infrastructure, renewable energy, agriculture and technology. Philippine exporters also benefit from the UK’s Developing Countries Trading Scheme (DCTS), offering tariff-free access on 92% of products. 

The UK looks forward to continuing to work alongside the Philippines to strengthen trading relationship.  

This announcement comes one year after the UK published its Trade Strategy, which included a focus on deepening and widening CPTPP.

The press release issued by the Department for Business and Trade on 22 June 2026.

The Secretary of State for Business and Trade is pleased to announce that Alastair Long has been appointed His Majesty’s Trade Commissioner (HMTC) for Africa, and will take up the role in August.

Alastair currently serves as His Majesty’s Ambassador to the Kingdom of Bahrain, having been appointed in August 2023.

Alastair brings deep knowledge of Africa, having been Deputy and then Acting Trade Commissioner for Africa between 2019 and 2022.

After joining the Foreign Office in 2002, Alastair’s previous HMG postings overseas include:

• Riyadh, as HM Deputy Trade Commissioner for the Middle East and Director Trade & Investment for Saudi Arabia from 2018 to 2019
• Dubai, as the Regional Director for Trade for the Middle East, Pakistan & Afghanistan and Deputy Consul General from 2016 to 2018
• Muscat, as Deputy Ambassador and HM Consul General from 2013 to 2015

Alastair was educated at Cambridge University (Clare College) and the London Guildhall School of Music and Drama.

Alastair Long said:

I am thrilled to be taking up the position of His Majesty’s Trade Commissioner for Africa and returning to the continent. Africa is the future and I saw, when deputy and then acting Trade Commissioner, what boundless energy and ambition the continent possesses.

The UK is committed to being a partner that supports African and British growth by listening to African priorities and bringing the very best the UK has to offer. I look forward to engaging across the continent, with the UK business community, and with the UK Government team, to realise as many mutual opportunities as possible.

Alastair replaces John Humphrey, who held the role since June 2022.

John Humphrey said:

It has been a privilege to serve as the UK Trade Commissioner for Africa and to work with partners across the continent to strengthen a relationship grounded in delivery, trust and shared economic ambition.

Africa is central to the UK’s global outlook, with significant opportunities for commercially grounded collaboration and sustainable growth. Alastair Long inherits strong UK momentum in Africa, and will bring real depth of trade expertise and the focus and energy needed to deepen partnerships and unlock further opportunities for mutual benefit. I wish him every success as he takes on this important role.

Role of the HM Trade Commissioner (HMTC) for Africa

The HM Trade Commissioner (HMTC) for Africa cooperates closely with the wider diplomatic network and other colleagues to coordinate the government effort overseas to promote UK trade and prosperity.

The Trade Commissioner has full responsibility for all Department for Business and Trade (DBT) work in Africa including:

• growing the overall trade and investment relationship
• improving market access for British companies, including small and medium sized businesses (SMEs)
• developing trade policy

The HMTC works closely with UK-based government colleagues, UK ambassadors and the wider diplomatic network in the region to deliver these goals.

The press release issued by the Department for Business and Trade on 22 June 2026.

The ambitious new agreement will remove barriers to digital trade and enable UK exporters to expand into high-tech markets.

The UK and Malaysia are today launching negotiations on a new digital trade deal that will support growth and back British jobs.  

Digital trade is the exchange of goods, services, and data that is enabled or delivered through digital technologies. In practice, this could include a UK business selling software to an overseas customer through an online platform or providing financial consultancy services remotely across borders. 

DTAs can provide the benefits of digital trade chapters in Free Trade Agreements while remaining agile, flexible and fast to agree and implement.   

Today’s announcement marks the next step in making the UK a global hub for services and digital trade. Digital trade can open new markets for businesses by reducing the costs of delivering goods and services, supporting jobs and productivity.  

The UK is a world leader in digital trade and has a growing trading relationship with Malaysia, worth £6.4 billion in 2025. In 2023, the UK exported £730 million digitally delivered services to Malaysia. The OECD estimates that in 2022, exports to Malaysia supported 31,100 UK jobs.

The DTA aims to make digital trade with Malaysia easier, cheaper and more secure through cross‑border data flows. Other potential benefits could include reducing paperwork and border friction through digital systems, and guaranteeing strong protections for personal data, intellectual property, online consumers and cybersecurity.  

The deal aims to strengthen international digital and tech cooperation by supporting responsible innovation in areas like AI and data. It could also create new partnerships that boost efficient supply chains, infrastructure and global competitiveness.  

Trade Minister Chris Bryant said:  

Launching negotiations with Malaysia marks an important step in strengthening the UK’s position as a global leader in digital trade.  

A UK-Malaysia digital trade agreement has the potential to unlock new opportunities for British businesses, support high‑skilled jobs, and ensure our firms can compete and thrive in fast‑growing, tech‑driven markets.

The press release issued by the Department for Business and Trade on 22 June 2026.

Households and businesses are set to benefit from stronger, more secure supply chains as the UK invests £50 million in critical minerals projects.

• Government backs critical minerals projects across the UK, strengthening Britain’s economic security by diversifying supply.
• £50m investment will turbocharge domestic production of critical minerals to help shore up UK’s supplies of smartphones, fridges and electric vehicle batteries.
• This builds on over £200m government support for critical minerals projects boosting local jobs and opportunity.

Households and businesses are set to benefit from stronger, more secure supply chains as the UK invests £50 million in critical minerals essential for everyday products – from smartphones and fridges to electric vehicles.

The funding will boost domestic production, support high-value jobs and reduce the UK’s reliance on overseas imports, helping to protect the economy from global shocks and supply disruptions.

With global supply chains increasingly concentrated and vulnerable to disruption, the UK has for too long relied heavily on a small number of international suppliers. This investment marks decisive action to strengthen economic resilience, secure vital materials and support long-term growth as part of the Government’s Industrial Strategy.

The Critical Minerals Strategy will back British companies to accelerate the extraction, processing and recycling of critical minerals, while investing in cutting-edge manufacturing capability and attracting private investment into the UK.

Today (22 June), Industry Minister Chris McDonald will visit Teesside’s Wilton Centre to officially launch the Government’s programme to industry and tour Seloxium and DEScycle – two cutting-edge firms advancing critical minerals processing and metal recycling.

Industry Minister Chris McDonald said:

Critical minerals are vital for our national security, and this targeted funding will support companies in ramping up domestic production, helping to create new jobs and opportunities in local communities, whilst building more resilient supply chains.

Through our Critical Minerals Strategy, we’re leveraging Britain’s mineral wealth, attracting new investment and forming dynamic relationships with partners across the world to boost our economic security.

Founder of the Critical Minerals Association Jeff Townsend said:

The UK Government has taken important steps to strengthen the critical minerals sector. As attention turns from policy development to delivery, it is encouraging to see the £50 million grant programme being used to accelerate strategically important UK projects as they reach maturity.

As the home to Seloxium and DEScycle, the Wilton Centre sits in the heart of the North-East of England Process Industry Cluster. Building on its strong industrial heritage, the North East offers expertise in the recycling, processing and recovery of critical minerals alongside growing lithium development.

CCO and Co-Founder of DEScycle and Co-Chair of the Circular Economy Working Group at the UK Critical Minerals Association, Fred White said:

We are nearing construction completion of our world-first demonstration facility, with key equipment installed ahead of commissioning. Our disruptive technology is reshaping how the UK views e-waste, transforming its treatment into a sovereign form of urban mining and Teesside’s world-leading industrial heritage, skilled workforce makes it the ideal location for our facility, deploying infrastructure directly supporting the UK’s Critical Minerals Strategy.

The funding programme will be delivered through three distinct pillars: 

• Magnet Hub: £20 million to establish a world-class national facility to develop, test and scale up rare earth magnet manufacturing, alongside skills and training capabilities.
• Critical Minerals Accelerator: £25 million to support collaborative projects across extraction, processing and recycling of critical minerals, accelerating innovation and commercialisation opportunities.
• Demand Aggregation Platform: a new up to £5 million platform to help UK industry consolidate and pool its critical mineral demand across different industries, unlock investment and secure supply through strategic partnerships.

Together, these measures will help grow the UK’s domestic capability across the critical minerals value chain, and builds on over £200 million of funding already provided including through the National Wealth Fund, DRIVE35 and the UK Shared Prosperity Fund. 

A secure supply of critical minerals is vital for the UK’s economic growth and security, Industrial Strategy, and clean energy transition – and the Critical Mineral’s Strategy paves the way to creating resilient supply chains that will help protect British industry during a time of global instability.

The press release issued by the Department for Business and Trade on 17 June 2026.

Businesses to start preparations for historic UK-India trade deal worth £4.8bn to enter into force next month.

• Milestone trade deal with India to come into effect next month, marking quickest ever turnaround following signature
• Businesses encouraged to prepare for entry-into-force to feel the benefits of massive tariff cuts
• UK agreement will be the most comprehensive trade deal India has ever brought into force

The UK and India have today (Wednesday 17th June) announced their landmark trade deal will enter into force next month so working people and businesses can benefit.

Businesses, who now have 28 days to prepare for the entry-into-force, will be able to trade under its terms from July 15th, following strenuous efforts to prepare UK and Indian systems. 

The deal, which is the most comprehensive ever agreed by India, will boost UK GDP by £4.8bn, real wages by £2.2bn and bilateral trade by £25.5bn every year in the long run.

Industries across the United Kingdom will benefit, with whisky tariffs cut from 150% to 40%, automotives from 100% to 10% under a quota and cosmetics will see tariffs of up to 22% eliminated either from day one or after 10 years.

Business and Trade Secretary Peter Kyle said: 

“We are bringing our landmark trade deal with India into force as quickly as we can, because we want businesses and the public to feel the benefits immediately, including cuts to tariffs of £400m within the first year alone. 

“The deal gives British exporters an edge over international competitors, and I would encourage all businesses to ensure they are properly prepared to allow them to sell to India’s huge market in the years to come.

“This week our UK-India Roadshow will begin travelling across all four nations to promote the incredible new opportunities this deal offers.”

India has never implemented a deal of this size, meaning the UK will have an immediate competitive advantage over other markets.

The UK will cut tariffs on Indian goods coming into the country such as clothes, footwear, and some food products. Less cost for British businesses importing Indian products could mean cheaper prices and more choice for consumers across the country.

We have extended the benefit for UK nationals moving to India to work and continue to build entitlement to a UK State Pension from 36 months to 60 months. They will continue to pay National Insurance Contributions during that period, without also having to pay social security contributions in India.

This is reciprocal for both British and Indian professionals and will be applicable to highly skilled professionals on pre-existing visa routes. This is in line with our arrangements with other countries such as Korea, Japan, and Canada.

This will be achieved through the UK-India Double Contributions Convention Agreement, which will enter into force at the same time as the UK-India FTA.

To benefit from the tariff reductions, businesses must register with HMRC. We would now encourage businesses to use the next 28 days to register and ensure they are fully prepared to reap the benefits of this deal.

The press release issued by the Department for Business and Trade on 11 June 2026.

Ministers from the UK and New Zealand make joint statement on the New Zealand-United Kingdom Free Trade Agreement.

This Joint Statement follows the meeting of the Minister for Trade and Investment of New Zealand and Secretary of State for Business and Trade of the United Kingdom on 1 June 2026. 

At their meeting, the Ministers opened the third Joint Committee of the New Zealand-United Kingdom Free Trade Agreement (FTA) and reaffirmed the strength of the New Zealand–United Kingdom trade relationship which reached a record £4.0bn or NZ$7.4bn of trade in goods and services in 2025. 

They noted this reflects the strength of the FTA, which celebrated three years since its entry into force on 31 May 2023, and its continued delivery of tangible benefits to businesses and consumers. 

In 2025, £675.1m or NZ$1,529.6m of traded goods successfully used preferential tariffs; i.e. around 91.5% of goods traded between the UK and New Zealand made use of preferences where one was available. High utilisation of preferential tariffs shows businesses are taking full advantage of the benefits of the FTA – reducing costs, improving market competitiveness and supporting trade growth.  

Between Jan and Dec 2025: 

• 88.5% of goods imports into New Zealand from the UK used preferential tariffs. Had this trade occurred at standard Most Favoured Nation (MFN) tariff rates, it could have encountered an additional £7.9m or NZ$17.9m in duties. 
• 92.4% of goods imports into the UK from New Zealand used preferential tariffs. Had this trade occurred at standard MFN tariff rates, it could have encountered an additional £98.4m or NZ$222.9m in duties. 

Ministers noted continued progress under the FTA and ongoing cooperation across its breadth. 

They welcomed advancements on a tariff rate quota data sharing arrangement between the New Zealand Meat Board and HM Revenue and Customs and noted the Joint Understanding reached by the UK and New Zealand on improving the terms of trade for dealcoholised and partially dealcoholised wines and committing to make as much progress as possible towards a mutually satisfactory outcome over the next year. Ministers also welcomed significant progress on the review of the digital chapter and look forward to concluding discussions and agreeing an outcome that supports shared ambitions for digital trade growth.  

They agreed that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) strengthens connections between the UK, New Zealand, and other Parties to the Agreement. Ministers reaffirmed their commitment to the CPTPP’s expansion via the accession of economies able to meet the Agreement’s high standards, the upgrading of the Agreement to ensure it remains of a high quality, and expanding the reach of the Agreement through the CPTPP-EU and CPTPP-ASEAN Dialogues to facilitate trade and support the international trading system. 

In an increasingly uncertain global environment, the Ministers underscored that open and rules-based trade is central to prosperity and economic security, and reaffirmed their commitment to defend, strengthen, and modernise the rules-based multilateral trading system.  

They reaffirmed the importance of a strong and effective World Trade Organization, at the core of the multilateral trading system, and the need to work together with urgency to progress, an inclusive and transparent WTO Reform agenda. 

Ministers noted the importance of advancing gender equality through trade. The UK announced its intention to begin the formal process to join the Global Trade and Gender Arrangement (GTAGA), underscoring the UK’s commitment to ensuring that international trade works for everyone. 

They welcomed the signing of a new bilateral Double Tax Agreement to better promote cross border trade and investment between the UK and New Zealand, by eliminating double taxation and improving certainty for taxpayers. 

Ministers committed to continued engagement to progress opportunities under the FTA and identified environment, inclusive, digital and services trade as priorities for further cooperation in the year ahead. 

The press release issued by the Department for Business and Trade on 10 June 2026.

The Business Secretary Peter Kyle is pleased to announce the appointment of Parminder Kohli as new Chief Executive Officer of the Office for Investment (OFI).

Parminder brings nearly three decades of senior leadership experience, including more than 20 years at Shell, where he has held a range of global roles across strategy, operations and commercial business lines.

He currently serves as Chair of Shell UK Ltd and Executive Vice President for Sustainability and Carbon, leading efforts to support the transition to a low-carbon economy and drive sustainable business transformation.

He has a strong track record of building high-performing organisations, delivering operational excellence, and fostering inclusive, diverse teams. Parminder has also been recognised for his leadership and advocacy, including being named in INvolve’s global lists of senior role models, and was appointed as a Social Mobility Commissioner by the UK Government in 2022.

In his new role, Parminder will be responsible for setting the strategic direction of OFI, ensuring delivery against its key priorities, and strengthening its position as a leader in its field. He will also focus on enhancing collaboration across government and with investors to support the UK’s growth mission.

Minister for Investment Lord Stockwood said:

I am delighted that Parminder Kohli will take up the role of Chief Executive Officer of the Office for Investment.

Parminder brings a wealth of senior leadership experience at a pivotal moment for our growth mission. Securing investment is essential to driving innovation, supporting regional growth, and creating lasting opportunities across the United Kingdom. I am confident that his expertise will play a key role in advancing these priorities and adding strength to an already brilliant team.

I look forward to working closely with Parminder to harness insights from across government and the private sector, strengthening our ability to drive growth through investment. Together, we will continue to foster a culture that values creativity, encourages collaboration, and delivers meaningful outcomes with continuity.

I am very pleased to welcome him to the team.

Commenting on his appointment, Parminder Kohli said:

The UK has extraordinary strengths in innovation, talent and enterprise. I am delighted to be joining the Office for Investment and look forward to working with investors, businesses and partners across government to attract investment that drives growth, creates opportunity and delivers prosperity across the United Kingdom.

Office for Investment Director General Ceri Smith said:

After nearly five years of working to attract investment into the UK, and the past 15 months radically transforming the Office for Investment into a unified and even more effective unit we are entering a new phase that calls for a CEO with a strong private-sector background who can take on a highly visible public leadership profile.

I look forward to welcoming Parminder as the new CEO and to working with him as he takes up the reins.

Parminder will start on 1 October 2026.

The press release issued by the Department for Business and Trade on 2 June 2026.

Changes to end one-sided flexibility and uncertainty for workers through ban on exploitative zero hours contracts set out in consultation.

• Changes will end one-sided flexibility, help people plan their finances and daily lives, or enjoy benefits of a zero hours contract if they wish to keep one.
• This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work.
• Millions of workers who currently face uncertainty over their weekly hours and earnings will benefit from government reforms that will give them certainty and predictability over their income.

Ministers have today taken the next step to ending exploitative zero hours contracts by launching a consultation to help deliver reforms to benefit more than 18 million people, some of whom currently face uncertainty over their weekly hours and earnings. 

Nearly six in ten of workers who have variable hours currently receive less than a week’s notice of their shifts, according to the Living Wage Foundation. That means millions of working people struggling to plan their lives and budgets. In the worst cases it means shifts cancelled the night before or even while people are already on their way to work.  

This will help save workers in some of the most deprived areas up to £600 in lost income from the hidden costs of insecure work. 

While those who value the flexibility of a zero hours contract will still be able to choose one, exploitative arrangements, where employers take all the flexibility and workers bear all the risk, will be banned.  

Workers, who qualify, will also be entitled to receive reasonable notice of their shifts and a payment if their shifts are cancelled, moved, or curtailed at short notice. This will stop workers travelling into work for shifts or arranging care for children and relatives, only for a shift to be cancelled at the last minute without pay. 

This open consultation, which will close at the end of August, will ask employers and workers about a range of potential hours thresholds to help the Government to strike the right balance between protecting workers from insecure work and retaining flexibility for businesses and workers who benefit from it, while building a more resilient economy and guarding against unintended consequences from this major change to the Labour market. 

Employers who already provide this security and predictability for their workers will benefit from a level playing field. These measures will help drive up standards and eliminate undercutting. 

Business Secretary Peter Kyle said: 

It’s not right that people can work regular hours but still have no certainty about their pay from week to week. These vital changes will mean more certainty for millions of people and will save the lowest paid workers hundreds of pounds. 

Banning exploitative zero hours contracts is totemic because this government believes that people should be treated with dignity and respect at work.  

We’re consulting because we need to get the detail right to ensure these reforms work in practice and guard against unintended consequences from this major change to the labour market.

Employment Rights Minister Kate Dearden said:  

Ending uncertainty over hours and pay is one of the best ways we can boost living standards for millions of people and families across the country. 

These reforms put workers in the driving seat, giving those who want guaranteed hours the certainty they deserve, whilst protecting others who prefer the flexibility a zero hours contract offers.

Businesses can reduce staff turnover, improve skills, and boost productivity by improving job quality and workforce wellbeing by giving workers more security. This in turn can provide a boost to growth in the economy. 

The government wants to hear from workers, employers and other organisations to help shape the final detail of these reforms and ensure they work in practice. 

Niall Mackenzie, Acas Chief Executive, said: 

These reforms aim to end irresponsible use of zero hours contracts, with guaranteed hours for workers to help give them financial stability and security. Some workers may value the flexibility of a zero hours contract if they are being used fairly and responsibly and this consultation aims to get this balance right. 

I would encourage employers and workers to respond with evidence on what would work best in practice, alongside any further guidance that would be useful. Acas currently has free advice for employers on how to use zero hours contracts responsibly, which will be updated once these new changes come into effect.” 

Notes to Editors 

• The consultation has been published here and will close on 25th August 2026:  Make Work Pay: ending one-sided flexibility – reforms of zero hours and similar contracts – GOV.UK
• Living Wage Foundation data on variable hours workers receiving less than a week’s notice of shifts: Almost one-third of working adults given less than a week’s notice of working hours
• Right to guaranteed hours – Employers will be required to offer qualifying workers guaranteed hours reflecting the number of hours they work over reference period, which will be further set out in regulations. The Government is consulting on the length of the initial reference period with a Government preference of 12 weeks.  Qualifying workers will be able to reject an offer of guaranteed hours and remain on a zero hours contract if they wish.
• Right to reasonable notice of shifts – Employers will be required to provide eligible workers with reasonable notice of shifts. If an employer schedules shifts with unreasonable notice, the worker can bring a tribunal claim. The tribunal will decide whether the worker was given reasonable notice of the shift. The Government will use regulations to state how much notice should be ‘presumed reasonable’. This will be the tribunals’ starting point. The Government will also set out the factors the tribunals should look at when determining whether the notice was reasonable or not as part of this consultation.
• Right to payment for shifts cancelled, curtailed, or moved at short notice – Employers will be required to make payments to eligible workers if they cancel, move or curtail a shift at short notice.
• Please find below some scenarios which explain the benefits of the policy and how it could affect the lives of everyday workers. These examples are fictional and purely to assist with understanding the policy:
• Jordan from Middlesbrough is 24 and works as a warehouse operative on a zero hours contract. Some weeks he gets 35 hours, other weeks he gets none. The new reforms could give Jordan an opportunity to qualify for the right to guaranteed hours – a right intended to improve stability and certainty in working hours.
• Priya from Leicester is 38 and works in a hotel as a housekeeper. She relies on her zero hours contract as her main source of income, but her employer regularly cancels her shifts with less than 24 hours’ notice — sometimes after she’s already arranged childcare for her two children. When that happens, she doesn’t get paid, but she still has to cover the childcare cost. Under the new reforms, Priya could be entitled to a payment when shifts are cancelled at short notice, meaning she’s not bearing the full cost of the flexibilities her employer wants or needs.
• Amara from Wolverhampton is 32 and works through an agency for a care home while studying part-time for a nursing qualification. She is given very little notice of her shifts, which makes it almost impossible to plan her classes or coursework around her work schedule. She’s had to turn down shifts she could have worked — and miss lectures she wanted to attend — because of last-minute changes. The new reforms could give Amara reasonable notice of her shifts, helping her manage both her career and her studies without having to choose between them.
• Marcus from Bristol is 58 and works in a local shop on a zero hours contract, which suits him perfectly. Having taken early retirement from a full-time teaching role, he enjoys being able to pick up work when it suits him and turn it down when he wants time to travel or spend with his grandchildren. He’s now worried that reforms might force him onto a contract with set hours that would take away the flexibility he’s built his lifestyle around. In reality, Marcus will be able to stay on a zero hours contract if he chooses.

The press release issued by the Department for Business and Trade on 20 May 2026.

Wages and GDP to see boost as UK and Gulf strike historic multi-billion-pound trade deal.

• Deal could boost the UK economy by an estimated £3.7 billion every year and increase wages by £1.9 billion annually in the long run.  
• UK becomes the first G7 country to agree trade deal with the GCC, bolstering our partnership with a strategically vital region and securing economic resilience at home.  
• Deal removes tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data. 

The UK could see a boost to growth and higher wages for decades to come after becoming the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC) today – strengthening our economic partnership with the region, supporting jobs in the long term, and bolstering domestic resilience. 

The announcement reflects the UK’s solidarity and long-term cooperation with its Gulf partners – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE – and our shared commitment to open trade, mutual prosperity, and long-term economic success.  

This will remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million worth of this to be removed on day one of the agreement entering into force – as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, and supporting high quality jobs for years to come.  

Many sectors including the food and drink sector are set to benefit from the deal once it enters into force. UK exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free, supporting British industry to grow.   

Today’s agreement marks a fifth agreement following major deals with India, the US, the EU and South Korea, as this Government continues to deliver the certainty and stability that businesses need to grow in tough times. 

Prime Minister Keir Starmer said: 

Today’s agreement is a huge win for British business, and for working people who will feel the benefits in the years ahead through higher wages and more opportunities. 

This government has now secured five major trade deals with international partners, delivering on our commitment to drive growth, support jobs and strengthen the UK economy. 

The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.

The deal is estimated to add £3.7 billion to the UK economy every year in the long run when compared to 2040 projections and £1.9 billion in real wages, delivering for businesses and working people.

Business and Trade Secretary Peter Kyle said: 

I’m proud that the UK is the first G7 country to secure a modern and ambitious trade deal with the GCC – an important and growing set of markets.  

For this Government to meet the challenges that our country faces, incremental change won’t cut it. That’s why major trade deals like this one, and that we secured with India, the US, South Korea and the EU, are vital for moving the dial towards long-term, sustainable economic growth with benefits people and businesses can see and feel. 

At a time of increased instability, today’s 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.

The UK autos industry alongside high street names like Holland & Barrett stand to gain significantly from the deal, through tariff reductions, stronger Intellectual Property protections and simplified customs processes. By reducing the burdens that create barriers to trade, it will give UK businesses a competitive edge. 

Anthony Houghton, Group Chief Executive Officer of Holland & Barrett, said: 

We welcome this landmark agreement, which deepens economic ties between our markets. The Gulf is strategically important for us, as we continue our growth journey and expand our international presence. 

Fair, reliable and low-barrier trading is essential for businesses to compete and expand internationally with confidence. This agreement provides that stability, supporting companies like ours to grow and serve customers across the region.

Chancellor of the Exchequer Rachel Reeves said:  

This agreement is good for jobs, good for industry and ultimately good for consumers, opening up a world of economic opportunity with a strategically important region.  

Our fifth trade deal since taking office, it’s proof we are backing British firms to compete and win globally, delivering growth, security and jobs, and that we have the right economic plan. 

UK services – which account for around 80% of the British economy and around half of the UK exports to GCC – will gain guaranteed market access under this deal. 

In 2024, there were over 400,000 business visits made from the UK to the Middle East so this deal will help British professionals including lawyers, engineers and consultants to travel more easily and stay longer in the region.  

Georges Elhedery, Group CEO, HSBC, said:

The GCC is a region of growing strategic importance and long-term opportunity, and one where HSBC’s heritage runs deep. The UK is one of our home markets and we have a presence in all six GCC states. We see first-hand the opportunity this agreement can unlock and stand ready to help deepen economic ties and support businesses to connect, invest and grow.

Anna Anthony, EY Regional Managing Partner UK and Ireland, said: 

The UK exported more than £17 billion in services to GCC countries last year, and this agreement should create even greater opportunities for UK professional services businesses in these high-growth markets. 

The agreement’s visa transparency and digital trade provisions will make it easier for UK professionals to deliver in-person and cross-border services, providing businesses with the clarity and confidence to compete in these markets. 

Delivering on key business asks, the deal will: 

• eliminate duties worth an estimated £580 million a year on UK goods exported to the GCC based on existing trade once fully implemented, giving consumers access to high-quality UK products.  
• remove an estimated £360 million duties on day one of the agreement entering into force, reducing costs for UK businesses and supporting supply chains. 
• create opportunities for companies producing iconic UK products – from butter and cheddar cheese to biscuits and chocolate – as the GCC imports over 80% of its food. 
• include the most ambitious commitments on customs procedures the GCC has ever signed up to, with customs cleared within 48 hours and shipments including perishable goods released in under 6 hours once all requirements are met. 
• lock in clarity and certainty for our services exporters, cementing their access to key markets. 
• cut red tape for business mobility, ensuring visa processes are fair, efficient, easier to navigate and increasingly digital. 
• enable UK companies to store and process data outside the region for the first time ever, which will save businesses money on setting up costly data centres in the Gulf. 
• unleash the power of international investment and ensure investments disputes are resolved fairly and transparently. Total bilateral investment was £18 billion in 2024 and supports critical infrastructure projects like Heathrow Airport. 
• align with the UK’s Industrial Strategy, supporting key high-growth sectors, including advanced manufacturing, clean energy, and digital technologies.  

This agreement, which could increase bilateral trade by 19.8%, is the latest in a series of major international deals the UK has struck with partners around the world to support businesses to export and grow, boost jobs and increase wages.  

When combined with the India trade deal, the agreements are estimated to add over £8 billion a year to UK GDP in the long run when compared to 2040 projections.