The Trade Agreement between UK and Israel: A Comprehensive Overview
On December 31, 2020, the UK officially left the European Union, and as a result, the UK sought to establish new trade agreements with countries around the world. One of the first countries with which the UK has signed a trade agreement is Israel. The UK-Israel trade agreement was signed on February 4, 2021, and it marks the end of over a year of negotiations between the two countries. The agreement is set to come into effect on January 1, 2022, and will bring with it a number of benefits and opportunities for businesses in both countries.
What is the UK-Israel Trade Agreement?
The UK-Israel trade agreement is a free trade agreement that eliminates tariffs on goods traded between the two countries. The agreement also covers a range of areas such as services, investment, and intellectual property. Under the agreement, both countries will benefit from increased access to each other`s markets, which will help to boost trade and investment.
Benefits for the UK
For the UK, the trade agreement with Israel will provide a great deal of support for various sectors of its economy, including technology, finance, and healthcare. Israeli companies are known for their cutting-edge innovation, and the trade agreement will allow UK businesses to access these innovations and collaborate on research and development projects. Furthermore, the trade agreement will allow the UK to secure a more stable and predictable trading relationship with Israel, as it is no longer bound by the terms of the EU-Israel Association Agreement.
Benefits for Israel
The UK-Israel trade agreement will also bring a range of benefits for Israel. Israel is a small country with a highly skilled workforce, and the trade agreement with the UK will provide new opportunities for Israeli businesses to expand their customer base and find new markets for their products and services. The UK is a significant market for Israeli exports, and the trade agreement will eliminate tariffs on a range of products, including machinery, textiles, and agricultural products.
The UK-Israel trade agreement is a significant development for both countries, as it marks the start of a new era of economic cooperation and trade. The agreement will provide numerous opportunities for businesses in the UK and Israel to benefit from increased trade and investment, and it will help to strengthen the relationship between the two countries. As trade relations continue to evolve, businesses will need to stay informed about the latest developments and seize the opportunities that arise.