The UK and US have confirmed the signing of a partial trade deal that will significantly reduce tariffs on both sides. This could offer UK exports some respite from president Donald Trump's global tariff regime, while giving US providers more access to the British market in key sectors.
It marks the latest in a series of recent deals for the UK, which also include new arrangements with the EU and an FTA with India. Attention may now be focused towards the Middle East, where a proposed deal with the Gulf Cooperation Council (GCC) may be next on the agenda. So what do firms need to know about the latest deal and the next steps?
What does the UK-US agreement contain - and not contain?
The finalized deal was announced by Mr Trump alongside UK prime minister Keir Starmer at the latest G7 summit in Canada. Mr Starmer described it as a "sign of strength" between the two nations, while Mr Trump said it would protect the UK from tariffs.
Among the headlines of the deal for the UK are the removal of all duties on US imports of aerospace products, including engines and other aircraft parts. Meanwhile, tariffs on cars will drop from 25 percent to ten percent for up to 100,000 vehicles.
In return, the UK is set to drop its levies on US ethanol, as well as open up more access to agricultural products such as beef - though the UK government has stressed it will not lower food safety standards.
However, the deal falls short of being a full FTA and there remains uncertainty in some key sectors, such as steel. It's still unclear whether UK steel imports will be subject to the current 25 percent import duty imposed by the US, with Mr Trump telling reporters: “We're gonna let you have that information in a little while.”
What's next for the UK's post-Brexit trade focus?
Although there is still work to be done to clarify some aspects of the US deal, it marks another significant milestone for the UK. Elsewhere, the country is also engaged in a range of trade negotiations, with one of the most notable being discussions with the GCC.
This group, which consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates, has been negotiating with the UK since 2022 and it is reported that an agreement is near. Sources close to the talks recently told the Guardian that discussions have reached the final stages and the UK is expected to finalize the text "imminently".
According to the newspaper, a deal could be worth an immediate £1.6 billion a year to the UK economy and eventually add an extra £8.6 billion a year to total trade between the UK and GCC countries by 2035.
How could a GCC FTA benefit both sides?
A UK-GCC deal could see tariffs on a variety of goods reduced or eliminated. The Chartered Institute of Export and International Trade noted that UK sectors that may benefit from this include food and beverages, pharmaceuticals and automotive exports, all of which currently face challenges in the region due to high duties.
For trade flowing in the other direction, energy and aluminium are expected to be among the big winners. Elsewhere, a trade deal is also expected to address a number of non-tariff barriers through efforts such as closer regulatory alignment and streamlined customs procedures.
It was noted by Freddie Neve, lead Middle East associate at the London-based Asia House think tank, that presently, GCC countries have over 4,500 non-tariff measures on imports, so cutting red tape faced by importers and exporters could remove many of these issues.
He told Arab News earlier this year: "Some of these will have been ameliorated by recent Gulf economic reforms, but an FTA that reduces these barriers would make it easier for UK companies to operate in and across the GCC.”
However, a number of challenges remain. Trade unions in the UK, for instance, have warned that any agreement must have provisions to ensure human rights and environmental concerns are protected.