After UK-EU reset, Arab Gulf deal next in crosshairs for Reeves and Starmer

The UK is eyeing a major deal with major Arab Gulf states following Monday's landmark pact with the EU, aimed at resetting post-Brexit relations.

Chancellor of the Exchequer Rachel Reeves said she was looking to strike trade deals with Saudi Arabia, UAE and Qatar, as the UK sought to expand its economic opportunities following its exit from the European Union in 2020.

"Britain is in a better place than any other country in the world in terms of deals with those countries," she told the BBC.

"The first deal and the best deal so far [is] with the US, we’ve got the best deal with the EU for any country outside the EU, and we've got the best trade agreement with India.

"Not only are these important in their own right, but it also shows that Britain now is the place for investment and business, because we've got preferential deals with the biggest economies around the world."

In April, the Labour government restarted talks with Gulf states, focused on food and drink, and renewable energy. and manufacturing exports, as well as to encourage more investment in the UK.

Prime Minister Keir Starmer hailed the progress in talks with Gulf Cooperation Council (GCC) states on a trade deal, particularly after talks with Saudi Crown Prince Mohammed bin Salman on "tariffs and an economic partnership".

Reeves told the BBC on Tuesday that Gulf states would be "next" on the list for the UK following an agreement with the EU on fishing, agriculture, and other key points of trade this week.

The UK has strong political, economic, and military ties with Gulf states stretching back decades, particularly due to the royal links between the Gulf and British monarchies.

The UK has suffered from a sluggish economy and trade barriers since leaving the EU, with attempts by successive governments to make Brexit a "success" by striking deals with countries outside the European bloc.

So far, these achievements have been limited, but a trade deal with the US was hailed for reducing tariffs on British imports to North America, while the EU pact should ease some trade barriers with the European mainland and rekindle relations damaged by the Brexit process.

Reeves has said the UK is "not looking to have trade negotiations with China", due to human rights concerns.

Some human rights groups have voiced concerns about UK and European arms sales to Gulf states due to human rights issues.