Israel: Free Trade Agreement
(West Bromwich East)
(Con)
5. What progress she has made on negotiating a bilateral free
trade agreement with Israel (905685)
The Minister for International Trade ()
We are continuing to make progress towards an upgraded UK-Israel
free trade agreement, focused on services, procurement and
innovation, and we concluded the second round of negotiations on
17 May. As two service-driven economies, this negotiation is an
excellent opportunity to build on our existing goods-focused
agreement, particularly to boost trade in services with an
innovative, high-tech nation such as Israel
The UK’s trade with Israel increased by 42%
in 2022 compared with 2021, and it is valued at £7.2
billion. Israel is a key trade
and security partner in the region, and it is a world leader in
many areas. Can the Minister update the House on the Department’s
progress on the trade aims outlined in the 2030 road map for
UK-Israel bilateral relations, namely the establishment of a
UK-Israel free trade agreement, the Britain-Israel Investment
Group and a UK-Israel innovation and investment summit?
My hon. Friend is all over the numbers, which saves me from
repeating them. The benefits of the trade agreement are obvious,
and we continue to strengthen our trade relationship
with Israel which is a
valued friend and ally. As outlined in the 2030 road map for
UK-Israel relations, a service-based free trade agreement between
our two nations will act as a cornerstone of this relationship in
years to come. As such, we are pleased to have successfully
concluded the second round of negotiations in London just last
month, and we look forward to holding further talks in due
course.
(Strangford) (DUP)
I thank the Minister for that very positive response. We in
Northern Ireland are keen to ensure that the bilateral trade
agreements benefit our companies as well. Some people and
councils across this great United Kingdom of Great Britain and
Northern Ireland wish to downgrade Israel’s goods. I know that
the Minister and our Government want to do the very opposite.
Will the Minister tell the House what he is prepared to do to
ensure that Israeli goods are promoted right across this great
United Kingdom of Great Britain and Northern Ireland?
Absolutely. Israel is already a
really important trading partner, right across the UK, and it
will continue to be so. As we negotiate this deal, it is
important that we focus on the areas of greatest opportunity.
Once the deal is done—of course, this is an upgrade—we will be
actively working to make sure that the communications about the
benefits of the deal are understood by everybody. We will be
working with various bodies and groups, including the devolved
Administrations and bodies, to make sure that we take full
benefit from these deals. Signing the deal is one thing, but
taking and making the best of the opportunities is another—we
will be working on that as well.
(Kilmarnock and Loudoun)
(SNP)
7. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with
the UK’s obligations in section 5 of United Nations Security
Council resolution 2334.(905689)
(Middlesbrough) (Lab)
12. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with
international law.(905697)
(Nottingham East) (Lab)
14. What steps her Department has taken to ensure that the free
trade agreement with Israel complies with
the UK’s obligations in section 5 of United Nations Security
Council resolution 2334.(905699)
The Minister for International Trade ()
The UK’s position on settlements is clear: they are illegal under
international law, present an obstacle to peace and threaten the
physical viability of a two-state solution, as set out in the UN
Security Council resolution 2334 and restated recently by the
UNSC presidential statement in February 2023. We repeatedly call
on Israel to abide by its
obligations under international law and have a regular dialogue
with Israel on legal issues
relating to the occupation.
The Minister is clearly aware then that resolution 2334 states
that countries must
“distinguish, in their relevant dealings, between the territory
of the State of Israel and the
territories occupied since 1967.”
I welcome his comments confirming that the Government’s belief is
that the settlements are illegal under international law. How
will the Government ensure that goods and services from these
illegal settlements—in effect, stolen land—are excluded from the
benefits of a free trade agreement?
Under our existing agreement, Israeli goods from the state
of Israel receive tariff
preferences under the UK-Israel partnership agreement.
Palestinian goods, from the Occupied Palestinian Territories,
benefit from trade preferences in the interim UK-Palestinian
Authority bilateral agreement. To be clear, only goods
originating from the state of Israel are
covered by our current FTA, and that will not change in the
upgraded FTA.
Last week, it was reported by The Jerusalem Post that Israel’s
National Security Minister Ben-Gvir, who just 15 years ago was
convicted of inciting racism and supporting a terrorist
organisation, had told settlers in the illegal west bank outpost
of Evyatar:
“The Land of Israel must be settled
and at the same time as the settlement of the Land a military
operation must be launched.”
He then spoke of demolitions and the killing of “thousands” of
Palestinians, in order to “fulfil our great mission.” Will the
Minister condemn those genocidal remarks about Palestinians, and
ensure that any trade deal with Israel explicitly
bans UK trade with those illegal settlements and makes binding
regulations for companies to uphold human rights standards?
The hon. Gentleman will be aware that the UK is a leading
advocate of human rights around the world. We have very frank
conversations with our allies and we have frank and honest
discussions across Government. In answer to the trade element of
his question, as I said previously, only goods originating in the
state of Israel are covered by
our current FTA, and that will not change under the upgraded
FTA.
I welcome the Minister’s restatement of Government policy in his
previous answer, but if the UK signs a trade deal without a
territorial clause defining the border between Israel and Palestine,
it will be seen in legal terms as equivalent to
letting Israel decide by
default to include its settlements in the Occupied Palestinian
Territories as part of Israel Is the Minister
aware that that risks a situation where, in effect, the UK
recognises illegal settlements in the west bank as part
of Israel which is
counter to the Government’s stated policy?
I refer the hon. Lady to the answer I gave a moment ago, but I
wish to reiterate that it is long-standing UK foreign policy that
Israeli settlements beyond the 1967 boundaries are illegal.
Greg Smith (Buckingham) (Con)
T4. The Abraham accords have ushered in unparalleled
opportunities by lowering trade barriers in the middle east, so
how can my hon. Friend maximise the trade potential of the 2030
road map for UK-Israel bilateral relations by engaging with the
wider region?(905711)
Through our road map, the UK and Israel reaffirmed
the historical significance of the Abraham accords—which have the
potential to bring about advancements to security, co-existence,
peace and prosperity for the region—and our commitment to work
together to deepen and expand those developments, building on the
progress of the Negev summit in March 2022. Through the
Britain-Israeli investment group, we will also combine UK and
Israeli expertise to help solve regional technology and
sustainability issues right across the world.
