OPINION: New trade deal will turbo-charge two of world’s most innovative economies

Game-changing medical technology, advances in artificial intelligence and exciting new fintech ventures – inventions and big ideas from the UK and Israel are improving lives around the world in a multitude of ways. For example, in England, Israeli companies already provide an estimated 100 million prescription items and these Israeli produced generic medicines provide value for patients.

It’s little wonder that this entrepreneurial success has earned Israel the nickname of the ‘Start-up Nation’. Meanwhile, the UK is attracting more tech investment than ever before. And both our countries boast an ever-growing list of tech unicorns.

However, it’s not just an innovative spirit that unites the UK and Israel. We both have a common belief in democracy and free markets. As strategic allies, we also have a long track-record of countering global challenges and threats together.

It makes clear sense, given all we share, that we use our trading relationship to build even closer ties. That is why today, I have launched negotiations on an upgraded trade agreement with Israel.

Trade between the UK and Israel is already worth £5 billion a year.

However, our current deal, the UK-Israel Trade and Partnership Agreement, does not reflect the realities of the modern world. It is based on an agreement signed by the EU over a quarter of a century ago, before smartphones, artificial intelligence and the internet transformed our economies.

It also contains no specific provisions for our thriving and rapidly growing services sectors. This is a clear gap, given Israel’s demand for digital products and services is expected to grow rapidly.

Today, as we kickstart talks, we’ll get a chance to start to change this. We want to unlock new possibilities for UK businesses in one of the world’s fastest growing economies.

Many of these opportunities will come from sectors where the UK and Israel already excel. From technology, research and development, to digital and data.

An upgraded, reinvigorated UK-Israel trade deal can take our cooperation in these areas to new heights by tackling trade barriers and reducing costs.

That’s not all. A revamped FTA would make it easier us to take advantage of the transformative ideas we will both undoubtedly develop over the years ahead.

All this illustrates how a revitalised deal could translate into real economic opportunities for both our countries.

Over 6,600 UK firms trading in goods with Israel – 85% of which are SMEs – will be well-positioned to reap these rewards. So will their 1.7 million employees.

In short, this 21st century deal will play to our mutual strengths, unleash innovation and turbo-charge two of the most dynamic economies on the planet.

I’ve every confidence, we’ll see these extraordinary benefits becoming a clear reality for both our nations in the near future.