Downing Street says no link between Israel trade negotiations and Gaza military action

Trade Secretary Greg Hands has issued an update on the fifth round of trade negotiations on the UK-Israel Free Trade Agreement (FTA), which took place last month

Boris Johnson opens trading at the Tel Aviv Stock Exchange during a trade visit to Israel while foreign secretary (PA)
Boris Johnson opens trading at the Tel Aviv Stock Exchange during a trade visit to Israel while foreign secretary (PA)

Downing Street has said the continued progress of on-going trade negotiations with Israel should not be linked to any concerns over Benjamin Netanyahu’s military campaign in Gaza.

A spokesperson for Rishi Sunak was asked if a threatened invasion of Rafah would affect negotiations on the UK-Israel Free Trade Agreement (FTA), as trade secretary Greg Hands issued an update on the fifth round of negotiations, which  ran from 8 to 17 April 2024.

Asked if trade discussions would continue if Israel “moves on Rafah”, Sunak’s spokesperson said:”I wouldn’t link the two.”

In a written statement published on Wednesday, the trade secretary confirmed the latest talks on the FTA were hosted by the UK and conducted in a hybrid manner.

A delegation of Israeli officials travelled to London for in-person discussions, with further officials attending virtually.

During this round, officials held technical text-based discussions covering 27 policy areas across 63 sessions. “This round of negotiations discussed a range of policy areas, with a particular focus on services, which are not covered by our current agreement,” said the statement.

“Services comprise around 80% of both the UK and Israel’s economies but, because of our outdated trade agreement, services only make up just over one third of total trade between us.

“The trading relationship between the UK and Israel is valued at £6.4 billion (as of September 2023) and there is significant room for growth. An upgraded trade deal will play to British strengths and unlock trade for our world-leading services and digital sectors.”

Turning to issues on UK foreign policy the statement added: “The UK will maintain its long-standing foreign policy positions in this FTA, including with respect to the internationally recognised borders of Israel; and will continue to exclude illegal settlements to ensure nothing in this FTA undermines the viability of a two-state solution.

“The government remains clear that any deals we sign, including with Israel, will be in the best interests of the British people and the UK economy.

“We will not compromise on our high environmental and labour protections, public health, animal welfare and food standards, and we will maintain our right to regulate in the public interest. We are also clear that during these negotiations the NHS, and the services it provides, is not on the table.”

read more: