While attending the 13th World Trade Organization Ministerial Conference in Abu Dhabi, UK Minister for Trade Policy, Greg Hands, emphasized the critical role the Red Sea plays as a major global trade route. He highlighted that roughly 89% of UK trade is shipped by sea, emphasizing the importance of maintaining secure shipping lanes.
Hands acknowledged the “serious and unlawful attacks on international shipping vessels” in Yemen, emphasizing the UK’s collaboration with an international coalition to safeguard shipping activities in these vital waterways. He clarified that the UK’s conflict is not with the Yemeni people but with those who threaten lives, disrupt trade, and endanger global shipping lanes. Additionally, the UK expressed its readiness to offer assistance in keeping these shipping lanes open.
Beyond security concerns, Hands also highlighted the UK’s strong interest in establishing a free trade area (FTA) with the Gulf Cooperation Council (GCC) countries. He emphasized the significance of the Gulf region for the UK, noting the current trade volume of £59 billion annually between the two parties.
Hands believes a free trade agreement could potentially increase trade by 16%, underscoring its significance. He expressed optimism about the ongoing positive discussions and projected a successful outcome from these talks.
Hands identified three key areas the potential agreement would address: goods, services, and investments. He highlighted the UK’s strengths in exporting goods, while acknowledging the potential for robust collaboration in financial services due to the strong financial sectors of both parties. Additionally, the UK aims to facilitate predictable and consistent investment flows between the two regions. He emphasized the UK’s position as a major overseas investor and a significant recipient of foreign direct investment, particularly from Gulf countries.
