The UK has taken a significant step towards securing its future economic growth by signing a free trade agreement with Israel. This agreement is expected to lead to the elimination of tariffs on goods traded between the two countries, boosting bilateral trade worth an estimated £5bn ($6.6bn) annually.

The free trade agreement (FTA) between the two nations was signed in London in February 2019, and it has been hailed as the most wide-ranging agreement of its kind that Israel has ever signed. The agreement covers trade in goods and services, liberalises the movement of goods and services, and promotes investment between the two countries.

What are the benefits of the UK-Israel free trade agreement?

The FTA is expected to provide significant benefits to both countries. For the UK, the agreement is expected to enhance its position as a global trading nation following Brexit. As part of the agreement, the UK will cut tariffs on Israeli goods, including those in the agricultural, pharmaceutical, and technology sectors. This is expected to significantly boost UK trade with Israel, which is the country`s second largest trading partner in the Middle East.

For Israel, the FTA is expected to provide access to the UK market, which is a major export destination for Israeli companies. Under the agreement, Israeli businesses will benefit from duty-free access to the UK market for a wide range of goods and services, including electronics, pharmaceuticals, and agricultural products. The agreement is also expected to provide a significant boost to bilateral investment between the two countries.

How will the FTA impact the UK`s relationship with the EU?

The signing of the FTA is a significant milestone in the UK`s efforts to build closer economic ties with countries outside the EU. This is particularly important for the UK, given that it will no longer be part of the EU`s customs union after Brexit. The UK is now aiming to establish new trade agreements with countries around the world, and the deal with Israel is one of the first of these.

At the same time, the UK-Israel FTA is not expected to have a significant impact on the UK`s future relationship with the EU. This is because the EU already has a free trade agreement with Israel, which covers a broad range of issues related to trade and investment. The UK-Israel FTA is expected to complement this existing agreement, rather than replace it.

What are the implications of the FTA for UK businesses?

The FTA is expected to provide significant opportunities for UK businesses in Israel, particularly in the areas of technology, innovation, and healthcare. Israel is renowned for its expertise in these areas, and UK businesses will now have greater access to this expertise.

The agreement is also expected to facilitate closer cooperation between UK and Israeli businesses. This is because the FTA includes provisions that promote bilateral investment and simplify the regulatory environment for businesses operating in both countries.

In conclusion, the UK-Israel free trade agreement is a significant milestone in the UK`s efforts to secure its future economic growth. The agreement is expected to provide significant benefits to both countries, particularly in the areas of trade and investment. UK businesses are expected to benefit significantly from increased access to the Israeli market, and the agreement is expected to facilitate closer cooperation between businesses in both countries. As such, the FTA should be viewed as a positive development for the UK economy.