Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she is taking steps in the negotiations on the UK-Israel Free Trade Agreement to ensure that any such agreement includes a clear definition of the territory to which it applies.
Answered by Greg Hands
The UK’s position on settlements within the Occupied Palestinian Territories is clear: they are illegal under international law and undermine the prospect of a two-state solution.
Under the existing UK-Israel trade agreement, goods originating from illegal Israeli settlements are not entitled to tariff and trade preferences under either the agreement between the UK and Israel, or the agreement between the UK and the Palestinian Authority.
This will not change in the Israel FTA. The UK will maintain its long-standing foreign policy positions throughout this negotiation, including with respect to settlements.
Asked by: Owen Thompson (Scottish National Party - Midlothian)
Question to the Department for Business and Trade:
To ask the Secretary of State for Business and Trade, whether she plans to review the terms of the UK-Israel trade and partnership agreement.
Answered by Greg Hands
The Department for Business and Trade are negotiating a Free Trade Agreement with Israel to update the current partnership agreement. The existing agreement guarantees tariff free trade on 99% of goods by value but contains no provisions to facilitate trade in services.
Services comprise around 80% of both the UK and Israel’s economies but they only make up about 44% of total trade between us (in the 12 months ending September 2023). 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 – given the UK is the world’s second largest exporter of services. An upgraded trade deal will play to British strengths and unlock trade for our world-leading services and digital sectors.