- International Trade Secretary launches
consultation today (2 February) for a new UK-Israel trade deal,
during a 3-day visit to Israel and the Occupied Palestinian
Territories
- 8-week consultation will seek the views of the public and
business on an enhanced trade deal
- UK confirms plans for a UK-Israel Innovation Summit this
spring, with Israeli PM and a trade delegation set to attend
International Trade Secretary will today meet with
Israeli Minister of Economy Orna Barbivai to kickstart
preparations for a new trade deal that will deepen economic ties
between long-standing allies.
The UK government will launch an eight week consultation to seek
the views of business and the public, ahead of negotiations
starting later this year, as is standard. The UK is Israel’s
third largest trading partner, with £2.7 billion worth of British
exports going there in 2020 and an overall trade relationship
worth £4.8 billion.
Last year, Israeli investment into the UK was worth over £200m
and secured hundreds of jobs across the UK. A new agreement will
aim to play to our strengths as fellow tech superpowers, boosting
our strong trade and investment relationship in industries of the
future like digital, services and life sciences and creating
high-paying jobs across the country.
While services account for 70% of both our economies, they
currently only represent 35% of our bilateral trade. An updated
trade agreement could address this imbalance by cutting red tape
and overhauling the very limited provisions on services and
innovation in the current agreement inherited from the
EU.
During her three-day visit the Secretary of State will encourage
greater collaboration between UK and Israeli tech industries. She
will meet key Israeli investors in the UK, host a reception of
leading technology businesses and visit Tel Aviv’s new light rail
metro project to identify opportunities for UK firms to be
involved in the project.
She will also visit the Hebrew University of Jerusalem, where she
will discuss UK and Israeli agri-tech expertise.
UK businesses are also expected to be able to seize new
opportunities in areas like education, healthcare, and food and
drink exports, benefiting from lower tariffs and better market
access in a country that has a high regard for British products
and expertise.
The Secretary of State will also travel to Ramallah to meet with
PNA Minister of National Economy Khalid Osaily and visit the
UK-Palestinian Tech Hub to strengthen links between UK and
Palestinian tech enterprises.
International Trade Secretary said:
“We’re using our independent trade policy to revitalise old
agreements we inherited from the EU. Unlike in the past, we can
now work with friends and allies like Israel to strike deals that
are truly tailored to our strengths in areas like digital trade,
services and life sciences.
“This new trade agreement is part of our commitment to build a
stronger relationship with Israel, and is a huge opportunity to
deepen ties with a fellow democracy and tech superpower, so we
together we can create well-paid, high value jobs in both
countries.”
Chris Southworth, Secretary-General of the International
Chambers of Commerce, says:
“Israel and the UK are two highly innovation focused economies
with deep cultural affinity between both nations so this is a
fantastic opportunity for both governments to set new standards
in trade in services and mirror the success of the Singapore
agreement on digital trade. It’s really important industry input
into the consultation – this is vital if we are to get the kind
of agreement that is optimal for trading businesses.”
Mark Samuels, Chief Executive of the British Generic
Manufacturers Association (BGMA), said:
"The UK generics industry has long enjoyed a close relationship
with Israel, and it is undoubtedly a centre of excellence for
life sciences. We welcome the UK Government’s initiative to
strengthen this relationship further and provide more
opportunities for partnership between our two countries."
As part of her visit, the International Trade Secretary will also
confirm plans to host a UK-Israel Innovation Summit this spring.
The UK and Israel have long shared a culture of entrepreneurial,
tech-savvy and innovative businesses, and the summit will
showcase the shared talents and skills of world-leading British
and Israeli companies and galvanise greater collaboration in
sectors such as AI, cyber security and life sciences.
The one-day summit will take place in the UK and will see
influential entrepreneurs, investors and leading businesses
attend, alongside the UK and Israeli prime ministers.
