Theresa May says Gulf states are keen on trade deals with UK

Regional economies are interested in negotiating trade pacts, the UK prime minister said at the World Economic Forum.

The UK’s prime minister, Theresa May, says Brexit is not about undermining the EU. Laurent Gillieron / EPA

Davos // Theresa May, the British prime minister, has revealed that Arabian Gulf countries are interested in striking trade deals with the UK in the wake of the Brexit vote to leave the European Union.

Mrs May told the World Economic Forum in Davos, Switzerland, that some regional economies were seeking trade pacts with the UK.

“China, Brazil and Gulf states have expressed an interest in free trade deals with us,” she told the WEF delegates.

She also revealed that Britain has approached Australia, New Zealand and India to discuss free trade deals with them, all members of the British Commonwealth.

Mrs May’s government has stepped up its search for new trading partners after it announced its willingness to leave the European Union single market – in effect triggering a “hard Brexit” – earlier this week.

“The UK voted to leave the European Union and embrace the world. There are tough negotiations and an uncertain road ahead but we are embarked on a bold, ambitious course – to build a truly global Britain,” Mrs May said.

“We aim to become global and internationalist. We are proud of our European heritage but we have always looked beyond the EU to a wider world. We are by instinct a great global trading nation,” she said.

Although she did not specify which Gulf countries had expressed interest in a trade deal, British ministers and officials have made several visits to the region since the Brexit vote in June, and the UAE has been high on their priority list.

It is also possible that Britain might want to clinch a trade deal with the GCC, rather than conduct separate negotiations with each of the six individual members.

Liam Fox, the British international trade secretary, was in Dubai and Abu Dhabi in September in what he called “discussions” on trading relationships, including a possible free trade agreement.

It is against European law for the UK to open formal negotiations while it is still a member of the EU.

But Mrs May’s 12 point policy statement this week, in which she gave firm details of the UKs’ desire to leave the EU in what she called a “clean break” – is seen as accelerating the Brexit process.

Her speech in Davos received a muted reception from the overwhelmingly pro-European audience of the WEF.

She said the Brexit result was not a rejection of Europe.

“The vote was not well understood in the EU, where many people thought we had turned our backs on them. But it was no rejection of our friends in Europe, nor an attempt to undermine the EU,” she said.

On globalisation, which has emerged as a key theme of Davos 2017 after the strong statement of support for international trade by the Chinese president, Xi ­Jinping, Mrs May said world leaders had to listen more to the concerns of ordinary citizens.

“Talk of globalisation can make people fearful, about their jobs, their communities and about inequality,” she said.

“We have got to shape new policies to make globalisation work. It needs a new approach by governments and by business. Some companies with a global reach are playing by a different set of rules.”

She called for higher standards of corporate governance in tax affairs, recognising employee rights and in executive pay.

Follow The National's Business section on Twitter