LONDON, May 20. /TASS/. The UK has become the first G7 country to sign a trade agreement with the Gulf Cooperation Council (GCC), according to a statement by the UK Department for Business and Trade.

It is noted that the agreement could generate 3.7 billion pounds ($5 billion) annually for the British economy and increase trade between the parties by almost 20%.

"The deal removes tariffs on food exports, medical equipment and advanced manufacturing, plus first-of-its-kind GCC commitments on free flow of data," the statement said.

As the British department explained, the agreement will "enable UK companies to store and process data outside the region for the first time ever, which will save businesses money on setting up costly data centers in the Gulf."

Trade between the UK and the GCC is currently valued at Ј53 billion ($71 billion).

The Gulf Cooperation Council (GCC) is a regional organization comprising six countries: Bahrain, Qatar, Kuwait, the UAE, Oman, and Saudi Arabia. The organization's goal is to expand cooperation among member countries in all areas and develop common positions on key international and regional issues. The GCC charter notes that its members are "united by a common historical and cultural development and a similar political system" (all member countries are monarchies).