Israel–United Kingdom Free Trade Agreement Explained

Israel–United Kingdom Free Trade Agreement
Type:Free Trade Agreement
Context:Trade agreement between Israel and the United Kingdom
Negotiators:
Parties:

The Israel–United Kingdom free trade agreement (IUKFTA) is a proposed free trade agreement which began negotiations on 20 July 2022.[1] The trade agreement would be the third FTA to cover Israel–UK trade, and superseding the Israel–UK Trade Continuity Agreement, extending the deal to cover services and digital trade.[2] Trade value between Israel and the United Kingdom was worth £6,881 million in 2022.[3]

History

From 1 June 2000 until 30 December 2020, trade between Israel and the UK was governed by the Israel–European Union Association Agreement, while the United Kingdom was a member of the European Union.[4] Following the withdrawal of the United Kingdom from the European Union, the UK and Israel signed a continuity trade agreement on 18 February 2019, based on the EU free trade agreement; the agreement entered into force on 1 January 2021.[5] [6]

Negotiations

Israel and the United Kingdom formally launched negotiations for the new free trade agreement on 20 July 2022.[1] [2]

IUKFTA Round of Negotiations
Round Dates Location Ref.
1 12–20 September 2022 [7]
2 9–17 March 2023 [8]
3 23–27 July 2023 [9]
4 19–29 February 2024 Virtual meeting [10]
5 8–17 April 2024 [11]

The UK and Israel concluded the fourth round of negotiations on 29 February 2024.[10]

The fifth round of negotiations highlighted that trade in services comprise around 80% of both the UK and Israel’s economies, yet services only make up just over one third of total trade between the two countries; officials blamed this on the current Israel–UK Trade Continuity agreement which only covers trade in goods. The trading relationship between the UK and Israel was valued at £6.4 billion, as of September 2023.[11] A spokesperson for Prime Minister Rishi Sunak rejected the notion that the threatened invasion of Rafah would affect negotiations on the UK–Israel Free Trade Agreement.[12]

See also

Notes and References

  1. News: Trevelyan. Anne-Marie. 20 July 2022. UK launches Israel talks to boost trade between services superpowers. GOV.UK. 17 March 2024. https://web.archive.org/web/20220720110314/https://www.gov.uk/government/news/uk-launches-israel-talks-to-boost-trade-between-services-superpowers. 20 July 2022. live.
  2. News: Smout. Alistair. 20 July 2022. Britain launches free trade talks with Israel. Reuters. 17 March 2024. https://web.archive.org/web/20220720132738/https://www.reuters.com/world/uk/britain-launches-free-trade-talks-with-israel-2022-07-20/. 20 July 2022. live.
  3. Web site: UK trade agreements in effect. 9 February 2024. 3 November 2022. GOV.UK. https://web.archive.org/web/20240117122720/https://www.gov.uk/guidance/uk-trade-agreements-in-effect. 17 January 2024.
  4. Web site: EU - Israel. World Trade Organization. 16 March 2024.
  5. Web site: UK and Israel sign trade continuity agreement. Fox. Liam. 18 February 2019. GOV.UK. 16 March 2024. https://web.archive.org/web/20190218212000/https://www.gov.uk/government/news/uk-and-israel-sign-trade-continuity-agreement. 18 February 2019. live.
  6. Web site: Odenheimer. Alisa. 18 February 2019. U.K to Sign Post-Brexit Trade Continuity Accord with Israel. 4 November 2023. Bloomberg. 19 June 2019. https://www.bloomberg.com/news/articles/2019-02-18/u-k-to-sign-post-brexit-trade-continuity-accord-with-israel. live.
  7. News: Badenoch. Kemi. 23 September 2022. Trade Negotiations with Israel and Canada. UK Parliament. 11 April 2024. https://web.archive.org/web/20240411210239/https://hansard.parliament.uk/web/20240411210239/https://hansard.parliament.uk/Commons/2022-09-23/debates/2209231000009/TradeNegotiationsWithIsraelAndCanada. 11 April 2024. live.
  8. News: Lord Johnson of Lainston. 8 June 2023. Trade Negotiations Update. UK Parliament. 11 April 2024. https://web.archive.org/web/20240411211001/https://questions-statements.parliament.uk/written-statements/detail/2023-06-08/hlws825. 11 April 2024. live.
  9. News: Huddleston. Nigel. 7 September 2023. Business and Trade update on trade negotiations, smarter regulation and recent departmental activity. TheyWorkForYou. 11 April 2024. https://web.archive.org/web/20230908085353/https://www.theyworkforyou.com/wms/?id=2023-09-07.hcws1010.h. 8 September 2023. live.
  10. News: Hands. Gregg. 29 June 2023. UK-Israel Free Trade Agreement: Fourth Round Negotiations. UK Parliament. 17 March 2024. https://web.archive.org/web/20240317154237/https://hansard.parliament.uk/commons/2024-03-11/debates/24031148000011/UK-IsraelFreeTradeAgreementFourthRoundNegotiations. 17 March 2024. live.
  11. News: Hands. Gregg. 1 May 2024. Israel Trade Negotiations Update. UK Parliament. 1 May 2024. https://web.archive.org/web/20240501134200/https://questions-statements.parliament.uk/web/20240501134200/https://questions-statements.parliament.uk/written-statements/detail/2024-05-01/hcws436. 1 May 2024. live.
  12. News: Harpin. Lee. 1 May 2024. Downing Street says no link between Israel trade negotiations and Gaza military action. Jewish News. 1 May 2024. https://web.archive.org/web/20240501135329/https://www.jewishnews.co.uk/downing-street-says-no-link-between-israel-trade-negotiations-and-gaza-military-action/. 1 May 2024. live.

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