Business Secretary Anne-Marie Trevelyan will begin negotiations between the UK and Israel for a new, innovation-focused trade deal.
UK technology firms and services firms will benefit from a future UK-Israel trade deal, which will seek to establish a modern, streamlined trade relationship between the world’s two services superpowers.
International Trade Secretary Anne-Marie Trevelyan will open negotiations between the UK and Israel for a new, innovation-focused Free Trade Agreement (FTA).
Israel is one of the fastest growing economies in the world and their demand for digital products and services is expected to grow rapidly. The UK’s existing bilateral FTA with Israel contains no specific provisions on services, creating a huge opportunity to improve the agreement.
These include increasing UK services exports to Israel by up to £78 million, from insurance to computer and technology services, supporting jobs and developing high-tech industries by reducing barriers to trade.
A new upgrade deal will expand a trading relationship worth £5 billion a year. It could benefit 6,600 UK businesses, including 5,600 small and medium-sized enterprises, employing more than 1.7 million people in 2020, exporting their products to Israel by reducing trade barriers.
International Trade Secretary, Anne-Marie Trevelyan said:
Both the UK and Israel are modern, high-tech services superpowers, but our current trading relationship is based on an agreement dating back to 1995, before smartphones, the internet and digitally delivered services transformed the global economy.
We want a deal that builds on British strengths, while stimulating innovation and increasing opportunities for small and medium-sized enterprises across the UK. Combining the strengths of our economies in a revised trade agreement will boost trade, support jobs and help take our economic relationship to the next level.
The Secretary of State will meet with Israel’s ambassador to the UK, GP Hotoveli, to start talks in London.
A bold new modern deal could provide greater economic opportunities for exporters from UK regions and countries including LEVC’s iconic Electric Black Cab in Coventry, Tomatin Distillery in Scotland and Concrete Canvas in Wales.
Sally Jones, Trade Strategy Partner for EY said:
EY welcomes the intention to upgrade the free trade agreement between the UK and Israel. It is an opportunity to put services, digital technology and innovation at the heart of the UK and Israel’s already strong trading relationship. Both the UK and Israel are known for their vibrant technology and fintech sectors, both of which will benefit from this new deal.
The UK’s world-leading professional and business services sector is an unrivaled ecosystem that enhances competitiveness and facilitates international trade. With new trade and investment opportunities opening up, businesses now need to look at their trade strategies to be able to exploit these opportunities and drive economic prosperity.
Amanda Tickell, head of tax and trade policy at Deloitte UK, said:
We welcome negotiations on an enhanced FTA between the UK and Israel, which could take our bilateral trade and investment relationship to a new level.
Both the UK and Israel are service-led economies with highly successful technology sectors, yet existing terms of trade have only limited provisions in this area. This negotiation represents an exciting opportunity for UK service exporters, making it easier to trade across borders, travel and work in every economy and support our digital innovators.
Daniel Moczulski, UK Managing Director at Etoro, said:
We are extremely proud of the journey eToro has been on over the last 15 years, from an ambitious start-up in Tel Aviv to a thriving global brand and the world’s leading social investment network, with more than 100,000 registered users and more than 27 million. Countries An important part of this journey was the arrival of eToro in the UK, a market that has always encouraged innovation in the financial sector.
The UK market has become incredibly important to eToro’s business, and we are fortunate to have a very talented team in London serving a large number of retail investors in the UK – we welcome the launch of UK-Israel trade talks to create more opportunities for innovators in both sectors. UK and Israel.