UK-Israel Trade

Nigel Evans Excerpts

Tuesday 3rd July 2018 Westminster Hall

[Mr Nigel Evans (in the Chair)]

It is quite warm, so if anybody wishes to remove an item of clothing, please feel free to do so.

[Chris Green (Bolton West) (Con)]

I beg to move,

That this House has considered UK-Israel trade.

It is a pleasure to serve under your chairmanship, Mr Evans.

Before I came here as a Member of Parliament, I worked in the mass spectrometry industry for nearly 20 years. The great pleasure of that was travelling across the world, from Cuba to Taiwan and so many places in between. It was an absolute delight in 2001 and 2002 to do a little bit of work in Israel. A particular highlight for me was working at the Hebrew University of Jerusalem. While there, I had my first opportunity to visit a synagogue. The one I visited had the spectacular stained-glass windows designed, created and made by Marc Chagall, representing the 12 tribes of Israel. It is a spectacular vision in the synagogue, and it is particularly important to recognise the value of not only industry, universities and academia, but art and culture that we can share around the world.

Last week, His Royal Highness the Duke of Cambridge made the first ever official visit by a senior royal to Israel. Speaking in Tel Aviv, the economic heart of Israel, he proclaimed:

“The ties between our two countries have never been stronger, whether in our record levels of trade and investment, our cooperation in science and technology; or the work we do together to keep our people safe.”

The Prince’s visit to Israel last week was a strong symbolic sign that the relationship between our two great nations is better than ever. One can also point to the remarkable record levels of trade to see how tangible this flourishing relationship truly is. In his words and actions, I believe His Royal Highness the Duke of Cambridge captured what today’s debate is about.

Many people, as I did before my visits to Israel nearly 20 years ago, think of the country through the prism of its biblical narrative. They think of deserts, mountains and the Sea of Galilee, but the reality for many Israelis is very different. The Israelis have created a country that is every bit as advanced as Britain and the United States of America, which shows what can be done with talent and an immense amount of hard work. That entrepreneurial culture has resulted in what many now describe as a start-up nation. Every day Israel hosts delegations from across the world, looking to understand the secrets of the country’s success—a country that, we must not forget, is the size of Wales with a population of less than 9 million people.

The UK-Israel friendship runs deep, from our shared democratic values to our extensive co-operation in the fields of intelligence, defence and cyber-security. Prince William was right to point out our record levels of bilateral trade, which reached £6.9 billion last year. In the first five months of 2018 alone, UK-Israel trade reached £3.3 billion—a 22% increase compared with the same time last year. This year-on-year increase in the value of bilateral trade has been happening now for almost a decade.

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[Chris Green]

I have been practising, but I understand that there is a convention against singing during debates.

[Mr Nigel Evans (in the Chair)]

I am not sure that I would enforce that.

[Chris Green]

As a traditionalist, I will adhere to the convention.

It is no surprise that the first bilateral tech hub was launched by the British embassy in Israel in 2011. The UK-Israel tech hub is one of the first of its kind to promote partnerships in technology and innovation between the two countries. It has generated 175 tech partnerships in deals worth £85 million since it was established, and it has helped to boost the UK economy by an estimated £800 million. I have been to Israel to hear about this excellent initiative, and as we prepare for Brexit it is heartening to hear that this model will be replicated in other countries across the world, ensuring that Britain is well placed in the ongoing tech revolution.

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[Several hon. Members rose—]

[Mr Nigel Evans (in the Chair)]

Order. As Members can see, there is considerable interest in taking part in this debate. I will not impose a time limit at this moment, but I ask hon. Members to show restraint and stick to four to five minutes in order that everyone is able to speak.

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[Jim Shannon]

My hon. Friend succinctly reminds us of the negatives of not supporting Israel-UK trade links, which can achieve much. There are opportunities, jobs, expertise and a chance to move forward.

In conclusion, Israel spends 4.27% of GDP on R&D, which is more than any other developed country. There remains large untapped potential in the form of British investment in R&D in Israel. Does the Minister agree that there is more to do in this area, and how will his Department ensure that happens?

[Mr Nigel Evans (in the Chair)]

I ask hon. Members to keep their speeches closer to four minutes now, in order to get everybody in.

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[Peter Grant]

As I have said a number of times, I cannot keep giving way. Perhaps Members should listen to what I am saying, then they would not have to intervene and lay bare their misinterpretations of what is being said. The SNP does not support an all-out boycott of Israel.

[Mr Nigel Evans (in the Chair)]

Order. You are into your last minute now.

[Peter Grant]

Thank you, Mr Evans. We do not support an all-out boycott of Israel, and I do not think that would work. I have good friends who believe that that is the right thing to do, but I think they are mistaken. I do not think they are being dishonest or disingenuous, but I think they are simply mistaken about what is the best tactic to use.

I will return to the point that I made before: if we had a debate this afternoon about expanding the opportunity for Palestinian producers with fair trade products to export those products to the United Kingdom, how many hon. Members would be desperate to come here and speak in that debate? Perhaps that is part of the problem. When we talk about our relationship with Israel, the debate is always oversubscribed. When we talk about trade with Palestine, which has the potential to ease significantly the poverty of people there, we do not get the same level of interest from Members of this Parliament. That unfortunate imbalance should be addressed.

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[Bill Esterson]

I will not give way; I have told the right hon. Gentleman that already.

Will the Minister confirm that any UK-Israel trade agreement will maintain the existing clarity about the fact that market access preferences offered to Israeli exports into the UK do not extend to goods produced in settlements in the illegally occupied Palestinian territories? It is extremely important that we maintain cross-party recognition of the status of the settlements in the west bank.

The Government have consistently reiterated that the UK considers those settlements illegal under international law, and they have continued to speak out forcefully against Israel’s expansion of settlements. Last October, the Foreign Secretary expressed his concern at Israel’s approval of settlement construction permits in Hebron for the first time in 15 years:

“Settlements are illegal under international law and undermine both the physical viability of the two-state solution and perceptions of Israel’s commitment to it.”

We agree with those concerns about the occupied territories.

From the Trade Bill Committee, we know that Ministers intend to replicate the existing EU-Israel trade agreement exactly. Will the Minister confirm that that will also apply to the human rights clauses and that the Government intend to enforce those clauses once we have left the European Union? Will he confirm that the Government fully support the human rights of all those who will come under the ambit of any future trade agreement between the UK and Israel? The trade preferences granted under the EU-Israel association agreement are conditional on respect for human rights by both sides. Article 2 of the agreement reads:

“Relations between the Parties, as well as all the provisions of the Agreement itself, shall be based on respect for human rights and democratic principles, which guides their internal and international policy and constitutes an essential element of this Agreement.”

I trust that the Minister will confirm that respect for human rights and democratic principles will be an essential element of any new UK-Israel agreement.

Last year, Labour’s manifesto said that trade policy should prioritise human rights through our agreements with other countries. We reiterated the importance of human rights in trade agreements during the Trade Bill Committee proceedings in January. They are particularly important in the light of ongoing human rights concerns in Israel and Palestine, yet in February, in a written answer in the House of Lords, the Government stated that they had as yet made no assessment as to Israel’s compliance with the condition in article 2 of the EU-Israel association agreement that it respect human rights and democracy. Will the Minister assure us that the Government will undertake such an assessment as part of a due diligence process when they move towards a new UK-Israel agreement?

Concerns about human rights can dominate the public debate, and if we had longer, we could go into arms sales as well. Perhaps the Minister will comment on the Government’s commitment to the consolidated criteria on arms export controls and the review of whether UK-produced equipment was involved in the use of lethal force by Israeli forces in the last few months.

It is important, however, to recognise the potential for successful trade with Israel. Together, pharmaceuticals and motor vehicles account for almost 30% of our exports to Israel, so supporting those sectors is important. The jobs that they and their supply chains bring are vital to supporting communities, but if the broader trade picture is botched, both sectors will be at risk from the non-tariff barriers that affect their supply chains, due to the just-in-time nature of vehicle components and the risk of drugs degrading in transit.

Our relationship with Israel does not exist in a vacuum; it is directly affected by our relationships with third countries and the wider world. Trade with Israel currently benefits from the fact that we are part of the EU and from the application of rules of origin and regulatory alignment. This weekend, the Cabinet needs to resolve its differences and produce a third way that delivers the certainty needed by business about border arrangements and non-tariff barriers.

Any trade deal that the UK makes with Israel must include strong guarantees that democratic principles and a fundamental respect for human rights will form a large component of that deal. Our policy on trade with Israel is to support a progressive trading relationship that brings jobs and prosperity at home and that also delivers benefits to the Israeli and Palestinian peoples. Any future UK-Israel trade deal must be judged against those goals—

[Mr Nigel Evans (in the Chair)]

Order. I call the Minister.