Between January and June 2018, UK exports totaled $3.45 billion, a huge increase from $1.97b. in the first half of 2017. In June of this year alone, exports to Israel almost doubled to $606m. from $335m. in June 2017.
By EYTAN HALONA ‘BREXIT’ SUPPORTER holds a Union Jack at a Vote Leave rally in London earlier this month.(photo credit: REUTERS)
With less than 200 days to go until Britain withdraws from the European Union, uncertainty surrounds future trading relationship with its continental neighbors.Yet amid that uncertainty, British exports to Israel have soared by some 75% in the first half of 2018, according to figures released last week by the Central Bureau of Statistics.Between January and June 2018, UK exports totaled $3.45 billion, a huge increase from $1.97b. in the first half of 2017. In June of this year alone, exports to Israel almost doubled to $606m. from $335m. in June 2017.UK exports for the full year of 2017 were valued at $4.3b., with the latest surge driven by a sharp rise in exports of mineral products, followed by machinery, electrical equipment and chemical industry products.In recent years, bilateral trade between the countries has repeatedly broken records, reaching $7.2b. in 2016 and $9.1b. in 2017, according to the Central Bureau of Statistics. The UK is the second largest trading partner worldwide for Israeli goods, after the United States.Thus far in 2018, bilateral trade between the UK and Israel has increased by 8% to $4.3b., up from $4b. in the same period in 2017.Last week, British Prime Minister Theresa May told a United Jewish Israel Appeal dinner in London of her desire to see deepening UK-Israel trade relations following Brexit.“As the United Kingdom forges a bold new future outside the European Union, we will be seeking free trade deals with our partners around the world. And as a great start-up nation, an engine of enterprise, a world leader in technology and a great friend of Britain, I want to see an ambitious free-trade deal between our countries,” said May.“And as I have said to Prime Minister Netanyahu, I want to build on this – deepening our links in particular in sectors like agriculture, health, science, technology and innovation.”Since the Brexit referendum in June 2016, Israeli business interest in the UK has peaked, with Israeli investments rising by 33%. By March 2018, Israeli investment in the UK had amounted to $400m. and there are now more than 340 Israeli companies operating in the country.
“There has certainly been a move over the past few years, and since the referendum, for the UK government to support and encourage more British companies to be exporting and they identified Israel as a priority market a few years ago,” James Sorene, the CEO of the Britain Israel Communications & Research Center told The Jerusalem Post.In February 2011, the UK government issued a white paper naming Israel as a key strategic partner and encouraging stronger partnerships between British and Israeli companies “to exploit the potential synergies between Israel’s high levels of innovation and British strengths in design, business growth and finance, as well as the UK’s own high technology and scientific strengths.”Netanyahu and May announced in February 2017 the establishment of a new UK-Israel Trade Working Group, charged with the task of ensuring continuity in the UK-Israel trading relationship as the UK leaves the EU.“After Brexit, Israel is exactly the kind of country that Britain would want to expand its exports to. It’s an innovative and dynamic market and there’s lots of opportunity for British exporters,” Sorene added. “We have seen a lot of two-way traffic in terms of ministerial delegations with business leaders, which is basically encouraging more and more trade.”Barry Grossman, director of international trade at the British Embassy in Israel, welcomed the latest figures and emphasized the unique trade opportunities presented by Brexit.“The new figures reflect what we see on the ground. More British companies are interested in the Israeli market, and many Israeli companies realize that the next year presents a huge opportunity to create new business contacts in the world’s fifth largest economy and its biggest financial hub,” said Grossman.