"Values Free or Just Pragmatic?" UK Strikes £3.7bn Gulf Trade Deal After Four Years of Talks — But Omission of Human Rights Chapter Sparks Fury

20 May 2026 | London, United Kingdom — Updated 15:30 GMT

LONDON – Keir Starmer has finally struck a trade deal with six Gulf states after four years of on-off negotiations led by four different prime ministers, sealing a £3.7bn agreement that he hailed as a "huge win" for British businesses – but which critics have condemned as "values free" for its conspicuous omission of a human rights chapter.

The deal with the Gulf Cooperation Council (GCC) – comprising Saudi Arabia, Kuwait, Oman, Qatar, the United Arab Emirates and Bahrain – will remove tariffs from 93% of British goods sold into the region, offering new opportunities for exporters in food, luxury cars, defence, aerospace, hospitality and other services. The government said the value of the deal had doubled original estimates.

Keir Starmer with Salman bin Hamad Al Khalifa, Bahrain's crown prince and prime minister. The Gulf deal has been criticised for not including a chapter on human rights.

Four Years, Four Prime Ministers: A Deal Finally Done

The agreement provides Starmer with a much-needed political win amid turbulent weeks following poor local election results and speculation about his leadership. It is the third trade deal concluded by Starmer, following pacts with India and South Korea.

"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," Starmer said.

Peter Kyle, the business secretary, said he was proud that the UK was the first G7 country "to secure a modern and ambitious trade deal with the GCC."

The deal will also underline the importance of Gulf investment in the UK – from Heathrow airport, which is part-owned by Qatar, to Newcastle United Football Club, which is part-owned by Saudi Arabia.

What's in the Deal: From Cheddar to Cars

Exporters into the GCC previously faced a blanket tariff of 5%, with some products facing even higher duties. Under the new agreement:

• Cheddar cheese – previously taxed at 6% – will now face zero tariffs
• Chocolate and biscuits – taxed at 15% and 10% respectively – will be tariff-free
• Cars – previously taxed at 5% – will see tariffs removed
• Medical equipment, defence, aerospace and advanced manufacturing – all zero tariffs

UK services, which account for 80% of the UK economy, will get "guaranteed access" to business in the six states, the government said. Gulf states have also agreed to allow UK firms to store data outside the region for the first time – a significant concession that will benefit tech and financial services companies.

The Missing Chapter: Human Rights Omission Sparks Outrage

But the deal was met with immediate criticism over its failure to include a human rights chapter – despite complaints a year ago about a "values free" approach to trade negotiations.

Tom Wills, director of the Trade Justice Movement, said the omission was "especially alarming given the severe human rights abuses across the Gulf region, including torture, forced labour, discrimination and the silencing of dissent."

The Bahrain Institute for Rights and Democracy condemned the deal, saying it legitimised repression. Paul Scriven, a Liberal Democrat peer who advocates for human rights in Bahrain, said: "We are witnessing a complete collapse of moral leadership from this Labour government."

Paul Nowak, general secretary of the Trade Unions Congress (TUC), which had raised concerns about human rights provisions a year ago, said it was "disappointing" a deal had been signed "despite their appalling record of human rights and workers' rights."

It is understood the government did not seek a human rights chapter as it views political channels – rather than trade agreements – as the best place to raise these issues. Downing Street has not commented directly on the criticism.

Farming Victory: NFU Hails 'Best Agricultural Deal Since Brexit'

One sector celebrating the agreement is British farming. The National Farmers' Union (NFU) of England and Wales said it was the best agricultural deal since the UK left the EU, after successfully seeing off demands to lower poultry standards.

NFU President Tom Bradshaw, who had been concerned the government would make concessions on poultry standards from the Gulf, welcomed the outcome.

"We think this is probably the best negotiation we have had for agriculture. We are really happy," Bradshaw said.

The deal protects British farmers from competition with Gulf poultry producers that operate under lower welfare standards – a key red line for the NFU throughout the four years of negotiations.

Business Cheers, Investors Smile

The British Chambers of Commerce (BCC) said the deal would create new business for firms in financial services, energy, construction, professional services, education, hospitality and technology.

William Bain, head of trade policy at the BCC, said the deal offered "great potential to expand trade in the region" and would be "vital for tens of thousands of UK firms."

Gulf states export few goods outside petrochemicals to the UK, which are already sold into the country duty-free. But the deal will be seen as a huge political affirmation for the Gulf countries, encouraging investment in both directions.

Existing Gulf investments in the UK are already substantial. Qatar owns a significant stake in Heathrow Airport, while Saudi Arabia's Public Investment Fund owns a controlling interest in Newcastle United. The deal is expected to accelerate further Gulf investment in UK infrastructure, technology and real estate.

Concerns Over Investor Protection Clause

However, Tom Wills of the Trade Justice Movement also raised concerns about the inclusion of chapters on investor protection. He warned this could pave the way for lawsuits against the UK should government policy change – for example, on environmental regulations or a third runway at Heathrow.

"The inclusion of investor protection chapters is concerning as it could allow Gulf corporations to sue the UK government if policies change," Wills said.

The government has not responded to these concerns, but trade experts note that such provisions are standard in modern trade agreements and are designed to protect British companies operating in the Gulf as much as the other way around.

Political Context: A Much-Needed Win for Starmer

The deal comes at a crucial moment for Starmer, who has faced political turbulence following poor local election results and internal party tensions. Securing a major trade agreement after four years of stalled negotiations – under four different prime ministers – provides a tangible achievement to point to amid leadership speculation.

But the human rights controversy threatens to overshadow the economic benefits. Labour's traditional alliance with human rights campaigners and trade unions means the criticism carries particular sting, coming from within the party's own supporter base.

For now, Starmer is focusing on the economic argument. "This deal will deliver higher wages and more opportunities for working people," he said. Whether voters – and human rights advocates – agree remains to be seen.

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