1 min read
ByAlex Brummer, Alex Brummer
Israel's robust trade with Britain would largely be unaffected if the UK votes to leave the EU in June. Bilateral commerce between the UK and Israel has climbed markedly in recent times and is estimated to have reached more than £5 billion in 2015 making the UK the third largest trade partner with Israel behind the US and Hong Kong.
Britain's trading relationship with Israel is underpinned by a number of free trade agreements including deals with the EU, the wider European Free Trade Association and the World Trade Organisation. So even if Britain's trade treaties with Brussels were to fall away following a Brexit vote, the other agreements would be extant, ensuring that free trade would continue. Over the ensuing years of transition, if there were to be a Brexit, there would be no bar to Israel reaching a special deal with Britain covering key export areas.
The days when the British-Israel trade relationship was dominated by agricultural produce are long gone. However, Israeli produce is still to be found on the shelves of most of the big supermarkets despite the efforts of the boycotters. Only the Co-op has given in to pressure from the BDS movement.
Contemporary trade between the countries is dominated by high-tech goods and pharmaceuticals. Some 80 per cent of UK exports to Israel are made up of vehicles, medicines, general machinery and chemicals and plastics.
Israeli firms also take advantage of Britain's sophisticated financial markets, with some nine Israeli firms seeking quotes on the London Stock Exchange in 2015, more than those of any other overseas country. The City is expected to remain Europe's main financial centre even if some banking jobs drift off to Frankfurt and Paris so as to benefit from the so called "banking passport" which allows global banks to operate across all 27 EU nations using a single licence.
Co-operation on health research between the two countries is at a peak. And an estimated one out of every six drugs prescribed by the NHS is supplied by Israeli firms. Similarly, the two countries co-operate extensively in sensitive areas such as cyber security.
Ties are so deep and widespread that experts say there is no reason for either side to fear Brexit. In fact, UK firms doing business with Israel may well find themselves relieved of some of the onerous social, employment and financial regulation imposed by bureaucrats in Brussels. Similarly, institutions such as the London Stock Exchange will have the freedom to be more flexible when dealing with corporate fund raisings and public listings.
Alex Brummer is City Editor of the Daily Mail
