Kemi Badenoch speaks of ‘world class’ UK-Israel deal ahead of trade talks

Business and trade minister Kemi Badenoch has flown to Israel to continue negotiations over what she says will be a trade agreement”world-class that we haven’t seen before.”

The minister, who is making a three-day visit to the country, with British negotiators to update existing arrangements for the smartphone era.

She said: “What we’re looking for is something… world-class that we haven’t seen before – a services-based, high-tech innovative trade agreement including digital, health – all of the innovations that our countries specialise in.”

But in a signal that a deal could be some way off being finalised officials also stressed the UK was looking for”the best deal, not the fastest.”

Britain hopes to benefit from some of Israel’s multi-billion-pound infrastructure investments and open up its financial services sector to British banks and financial technology start-ups.

Badenoch added that the UK and Israel “are both services economies and our existing agreement is really about goods – it’s a very old agreement in the 1990s before the internet.

“Now we have left the European Union we can be so much more ambitious with you and we can be a lot closer. There’s a lot that we can’t do in the EU that we can do as the UK and Israel.”

On Sunday she met Israel’s Israel’s economy minister Nir Barkat to discuss “a modern, innovative services free-trade agreement to mutually benefit both our economies.”

Barkat added:”The agreement being formed with Britain is expected to be the largest, most comprehensive and most modern for the State of Israel.

“Striving for an updated agreement is in the common interest of both economies, in order to enable the full potential for business cooperation between Israel and Britain.”

The Tory minister  was also a guest speaker at an event for women entrepreneurs held in Tel Aviv ahead of International Women’s Day.

Jointly hosted by Yazamiyot, an Israeli female entrepreneurs community, and the British Embassy’s Women Leading Innovation Network, the event included a pitching contest to find the most promising female founder of the year.

Badenoch focused on her role as a minister for women and equalities, telling the audience: “My two roles make people ask why I do both.

“The reality is that there is a connection between them. Women and girls are at the forefront of Britain’s technology development strategy.

“We want to break down all the barriers that prevent women from reaching their full potential. A level playing field brings more jobs, increases wages and grows the economy. You help increase not only the GDP of Israel but also the global GDP.”

On Monday she visited Yad Vashem, alongside out-going UK ambassador to Israel Neil Wigan.

The UK embassy in Israel tweeted:””Unforgettable moment with Secretary of State Kemi Badenoch at Yad Vashem, laying a wreath at the Hall of Remembrance in commemoration of six million Jewish men, women and children murdered in the horrors of the Holocaust.”

On Tuesday, Badenoch will visit Teva Pharmaceutical Industries, the Israeli multinational pharmaceutical company, and will also meet with Trigo, an AI and computer vision start-up.

She will also go to the Israeli innovation hub Startup Nation Central to meet with Israeli officials from the energy and defence ministries.

There is already a trade deal between the UK and Israel as part of the EU continuity programme,  signed  in 1995.

But Israel’s service industry has boomed in that time, growing around 5 or 6 per cent in the last decade.