UK initiates first steps for new trade deal with Israel

09 Feb '22

2 min read

Pic: Shutterstock

UK international trade secretary Anne-Marie Trevelyan recently met Israeli minister of economy Orna Barbivai to start preparations for a new trade deal that will deepen bilateral economic ties. The UK government will launch an eight-week consultation to seek the views of businesses and the public ahead of negotiations starting later this year.

The United Kingdom 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 £200 million and secured hundreds of jobs across the United Kingdom. While services account for 70 per cent of both the economies, they currently only represent 35 per cent of the 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 European Union, said an UK government press release.

During her three-day visit to Israel, Trevelyan met key Israeli investors in the United Kingdom and visited Tel Aviv’s new light rail metro project to identify opportunities for UK firms to be involved in the project. She also visited the Hebrew University of Jerusalem to discuss 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.

Fibre2Fashion News Desk (DS)

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