We'd be foolish to sever our trade links with Israel
3 min read
Trade isn't just exports and quotas, it's values and relationships. That's why I'll be working hard to maintain and strengthen our partnership with Israel.
Thousands of jobs in the UK depend on trade with Israel.
1.7m people work for UK firms exporting goods to Israel. One in eight of the drugs dispensed by the NHS comes from Israeli companies.
Every business and family in the country uses Israeli technology in their homes, computers, cars and phones every day.
The RAF would not be able to get its planes off the ground, and British soldiers would have been killed in Iraq and Afghanistan without Israeli defence equipment. Intelligence from Israel has foiled terror attacks here in the UK.
The relationship with Israel is worth billions and brings massive benefits to Britain. It is in our national interest, and the decision this week by the government to pause negotiations on a new Free Trade Agreement does not change that.
The situation in Gaza is terrible, as it is in all wars, and the quickest way to get the aid in and save lives is for Hamas to stop fighting and release the hostages. That would end the conflict immediately.
And let’s not lose sight of what started this war: Hamas deliberately caused the conflict on 7 October when it raped, murdered and kidnapped Israeli civilians, 58 of whom are still held as hostages in Gaza. They knew how Israel would respond and deliberately put civilians in Gaza in harm's way by hiding in residential areas, hospitals and schools. That is why the situation is now so desperate.
I’ll be visiting Israel next week to show our support and solidarity and to drum up business for Britain. Even without the benefits a new trade agreement would bring to Britain, our message is that we’re open for business, so we’ll still be encouraging British businesses to export to Israel and Israeli businesses to invest in the UK to create jobs here.
We export Minis made in Oxford and taxis made in Coventry, Rolls-Royce engines from Derby power El Al’s jets. Clothes and computers, generators, pharmaceuticals, scientific instruments and medical equipment are made in Britain and sold in Israel.
We benefit from trade in services too. British lawyers, accountants and bankers earn over a billion for Britain in Israel. Our consultants and engineers are working on huge government-funded infrastructure projects like the Tel Aviv Metro and rail networks. All of them paying taxes that fund our schools and hospitals and support other public services.
Increasing economic growth is the government’s number one priority, and every new contract and each new export will contribute to that.
In addition to the economic benefits, the relationship is helping tackle some of the world’s biggest problems and our government’s greatest priorities, whether that’s Israeli technology in solar or offshore wind to meet net zero, or new crops that can contribute to our aid programmes and help feed communities in Africa.
And university partnerships between Israeli and British scientists are developing new treatments, technologies and drugs to tackle diseases like cancer and dementia.
We’ll be able to build on all that when negotiations start again, with good new well-paid jobs in technology, infrastructure, life sciences, AI, cyber security and financial services.
We live in a competitive world, so let’s hope other countries don’t steal a march and grab these opportunities. Other countries must surely be looking on and wondering whether their relations with the UK could be jeopardised by political campaigns.
Trade is not just about exports and quotas. It is about our values and our relationships. That’s why I’ll be working hard to maintain and strengthen the partnership that brings so many benefits to Britain.
Lord Austin is a life peer and former MP for Dudley North.
