Government prepares for new trade deal with Israel worth billions

International Trade Secretary Anne-Marie Trevelyan will meet with israeli Minister of Economy Orna Barbivai to kickstart preparations for a new trade deal.

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 £2.7bn worth of British exports going there in 2020 and an overall trade relationship worth £4.8bn.

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 develop the UK’s tech industry, and life sciences and creating high-paying jobs across the country.

While services account for 70 per cent of both economies, they currently only represent 35 per cent of bilateral trade. An updated trade agreement could address this imbalance by cutting “red tape” and overhaul previous provisions on services and innovation in the current agreement.

During her visit, the Secretary of State aims to 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 Anne-Marie Trevelyan 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 together we can create well-paid, high value jobs in both countries.”