Chancellor Rachel Reeves has claimed the UK is now better positioned on global trade "than any other country in the world," citing a series of recent trade agreements as evidence.
Speaking to the BBC, Reeves emphasized the government’s ambition to build further on its new agreement with the European Union and revealed that a trade deal with Gulf nations, including Saudi Arabia, Qatar, and the UAE, is likely to be next.
However, Reeves noted that the UK has no current plans to pursue trade negotiations with China, despite earlier suggestions of wanting a longer-term relationship with the country.
Recent trade deals
The chancellor highlighted the UK’s recent deals with the EU, US, and India as key milestones. The UK-EU agreement, announced Monday, covers areas including trade, fishing, defence, and energy—the most significant collaboration between the UK and EU since Brexit in 2020.
The UK also reached a deal with India aimed at boosting exports of whisky, cars, and other goods, while reducing import taxes on Indian clothing and footwear. A separate agreement with the US under former President Donald Trump lowered tariffs on various goods.
“These deals have come along like buses,” Reeves said. “We now have the best agreements outside the EU with the EU itself, with the US, and with India.”
She added: “Not only are these important deals on their own, but they also signal that Britain is now a top destination for global investment.”
Gulf nations deal on the horizon
Reeves confirmed that the next major trade goal is a deal with the Gulf Co-operation Council, which includes six Middle Eastern countries. Talks are reportedly in advanced stages.
Political reactions
Despite the government’s optimism, opposition leaders voiced criticism. Conservative leader Kemi Badenoch said the EU deal marked a step backward, and previously accused the government of being “shafted” in the US tariff agreement.
Reform UK leader Nigel Farage took to social media to claim Labour had “sold out” the UK’s fishing industry, branding the EU an “ever-diminishing political union.”
Liberal Democrat leader Sir Ed Davey welcomed the EU deal as a “stepping stone” but urged the government to go further by seeking a full customs union.
Economic outlook
The Office for National Statistics recently reported a 0.7% growth in the UK economy during the first quarter of the year, outpacing expectations. While this was seen as a boost for Reeves, economists remain cautious, warning that growth could be tempered by factors such as new US tariffs and the chancellor’s increase in employer National Insurance.
Reeves suggested the recent trade agreements could lead to improved economic forecasts. “We are predicting 1% growth for the year, and with 0.7% already in Q1, there is room for upward revision,” she said.
She also emphasized that UK food standards were maintained in all trade talks, including the agreements with the US and India, which she said was key to securing EU cooperation, particularly around reduced food export checks. Photo by Simon Dawson / No 10 Downing Street, Wikimedia commons.