UK government rules out resumption of Israel trade talks
Business Secretary Peter Kyle spoke at Westminister lobby event
Business Secretary Peter Kylie has reiterated there are currently “no plans” by the government to restart trade negotiations with Israel.
At a Westminster lunch for journalists he was asked about the possibility of resuming negotiations and confirmed: “I am watching very closely; there are no plans to restart immediately.”
Former Foreign Secretary David Lammy announced the suspension of trade talks in May 2025 in response to Israel’s conduct in the war in Gaza, as well as the worsening situation in the West Bank due to settlements and violence.
At the time, a spokesperson for the Israeli Foreign Affairs Ministry claimed that trade negotiations had already stalled and described the move, along with the announcement of further sanctions, as “unjustified.”
Despite the pause in Free Trade Agreement negotiations, trade has continued under the original Trade and Partnership Agreement, which was rolled over from pre-Brexit EU-Israel treaties.
Kylie had previously appeared to hint that the suspension could be lifted following the implementation of phase two of the Gaza ceasefire and the start of the second stage of Donald Trump’s 20-point peace plan.
But government sources were quick to row back on suggestions earlier this year that a resumption of trade talks between the UK and Israel were imminent.
If anything, relations have further soured due to the deteriorating situation in the West Bank and the advance of the settlement programme, particularly regarding proposals around the E1 project.
Kyle told attendees at the lunch that his department had just completed a new trade deal with the Gulf and had also begun formal legislation to nationalise British Steel.
In a thinly veiled attack on those mounting leadership challenges to Keir Starmer, he added: “Entitlement is not a qualification for leadership.
“And until we ask the question of what is a qualification for leadership, then I think we’re always going to end up in this cycle of change.
“Because we simply reward the wrong behaviour, and if that gets you to the top, then we have another spin at the dice, the throw of the dice.”
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