UK-Israel Trade

Louise Ellman Excerpts

Tuesday 3rd July 2018 Westminster Hall

[Dame Louise Ellman (Liverpool, Riverside) (Lab/Co-op)]

I draw attention to my entry in the Register of Members’ Financial Interests. I congratulate the hon. Member for Bolton West (Chris Green) on securing this important debate and providing an opportunity to show the strength of the trading ties between Israel and the United Kingdom, and the benefits that those trading links bring.

Israel is a vibrant start-up country with a strong business sector, a strong trade union sector, through the Histadrut, and a strong co-operative sector. It also has a strong welfare state and excellent universal healthcare. The value of bilateral trade between the UK and Israel soared to £6.9 billion in 2017—up 25% on the previous year and still rising. Trading links bring mutual benefit. Thousands of people in this country manufacture products and goods that are sold in Israel, and more than 300 Israeli companies employ thousands of people in the UK, in areas such as high tech, finance and pharmaceuticals. There are very strong educational links between our two countries.

I will focus on one area that benefits people in this country: Israeli medical technology. PillCam is the first pill that can be swallowed to record images of the digestive tract. It was invented and developed in Israel. Babysense is a system that protects babies from sudden infant death syndrome. It was invented in Israel. I could also mention cancer probes, heart catheters, the bedside blood count device developed by PixCell Medical Technologies and the artificial cornea developed by CorNeat Vision. All are positive developments that help people to lead a better life. Reference has already been made to the Boycott, Divestment, Sanctions campaign, which advocates boycotts between the UK and Israel—it is against UK-Israel trade. I wonder whether it has dared to campaign against the use of those lifesaving products. I suspect not.

[Richard Burden]

I will not ask my hon. Friend about the BDS campaign, but could I ask her at least to endorse the statement in the Foreign Office’s own advice to UK businesses? It states:

“Settlements are illegal under international law, constitute an obstacle to peace and threaten to make a two-state solution to the Israeli-Palestinian conflict impossible. We will not recognise any changes to the pre-1967 borders, including with regard to Jerusalem, other than those agreed by the parties.

There are therefore clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity.”

Will my hon. Friend endorse that statement from the Foreign Office advice?

[Dame Louise Ellman]

Settlements are one barrier to peace, but they are not insuperable and not the only barrier to peace. The most fundamental barrier to a peaceful solution of this tragic conflict, and the key factor that prevents the setting up of two states, Israel and Palestine, is the Palestinians’ refusal explicitly to recognise the legitimacy of Israel as a national Jewish home.

[Dr Dan Poulter (Central Suffolk and North Ipswich) (Con)]

The hon. Lady is, as always, making a very well informed speech on this subject. Does she agree that the benefit of the technologies that she is talking about, particularly the medical technologies, is that they benefit both Israelis and Palestinians and people in Britain, and it is wrong to see investment in trading links in the field of medical tech, research and life sciences through the prism of an historical conflict? We should be looking forward and considering the potential benefits of future academic and research links, rather than looking at things through that historical prism, which is to the detriment of both Israelis and Palestinians, and patients generally around the world.

[Dame Louise Ellman]

I agree with the hon. Gentleman. Inventions and improvements in the human condition are about all of humanity and should benefit everyone; they are not about conflict. Trade is constructive; boycotts are negative. The BDS movement is fundamentally opposed to the state of Israel, and partial boycott campaigns, however presented, are part of the same movement. BDS has not affected Israel adversely. Israel’s trade is rising, both with the UK and with the rest of the world.

[Mary Robinson (Cheadle) (Con)]

I congratulate my hon. Friend the Member for Bolton West (Chris Green) on securing the debate. The hon. Lady is entirely right to focus on pharma and on our trade links with Israel. I understand that in seven of the past 10 years the UK has had a trade surplus with Israel. Does she agree that we can build on that, and that it shows the strength of our trading relationship both now and for the future?

[Dame Louise Ellman]

I agree with the hon. Lady. Trade is beneficial, and it is beneficial to both countries; indeed, it should be international as well. I look forward to the day when the state of Israel and the state of Palestine establish good trading relationships with each other and with the UK, in accordance with the late Shimon Peres’s vision of a new middle east.

--- Later in debate ---

[Andy Slaughter]

Absolutely. We are dealing with matters of law here, and there is a lot of picking and choosing. It is all very well for Members to say, “Well, there was a business in the occupied territories.” How would Members here like it if foreign entities were operating in this country without our consent, which is what happens to the Palestinians? The demands placed on business could equally be placed on the Government in negotiating a new treaty.

[Dame Louise Ellman]

Will my hon. Friend give way?

[Andy Slaughter]

I am sorry, I do not have much time.

Companies should not carry on business activities in the settlements or with individuals in the settlements. They should not trade in goods originally from the settlements, nor provide goods or services that are used for the benefit of settlements. They should not engage in any business activity that contributes directly or indirectly to the maintenance, development or expansion of the settlements. Those are the criteria and standards we should set. Once we have done that, we can perhaps go on to talk about trade. This matter is not about BDS. It is about international law and our treaty obligations as a democracy that believes in the rule of law.