Trade : UK and Israel sign on the dotted line
The trade agreements keep coming with Israel being the latest to sign a new continuity agreement with the UK. Trade agreements are well underway. The furthest forwarded being the Switzerland deal.
The new Israel trade agreement was signed on the 18th February by the Minister of Economy and Industry and our trade secretary
Will Israel Trade continue as now
The Israel trade agreement is good news for businesses who already trade with Israel. The simplification of trade without additional barriers or tariffs is a welcome relief for some.
Reports suggest the news was welcomed by the likes of the Israel Britain Chamber of Commerce. The strengthening of trading relationships between Israel and the UK will help protect jobs in both countries.
How much is trade between Israel and the UK worth
The last reported figures for trade between the UK and Israel show a value of £4 Billion. These trade figures are up to year ending 2018 Q3.
Big winners could be the British vehicle sector. A sector already under pressure with the Japanese automotive industry looking to pull back from the UK.
Mark Reid, commercial manager at Connaught Global said of this deal when asked.
Israel has long been a strategic partner for the UK with a long trading history. To continue to work without barriers with Israel is great news and we need to see more deals like this. Mitigating WTO rules down with trading partners where surplus trade exists can only be a positive for growth.
To go back to our customer and let them know that little will change on this important trade lane will be a welcome relief. Especially with our existing PHARMA business.
Israeli companies are major suppliers to the NHS. This deal ensure crucial protection for consumers in the UK, keeping the status quo for goods imported from Israel.
What happens to trade agreements if a deal is reached with the EU
These trade deals are designed as close as possible to mimic the existing deals we have under the EU. They will come into force when we leave the European Union. That could be as early as the 29th of March 2019 with a no-deal scenario. If a deal is reached with the European Union then they will come into force in January 2021. Either way the raft of trade agreements the UK is working towards will come into effect. The only question left will be this year or two years time?
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