Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what assessment he has made of the potential implications for his policies on trade with illegal Israeli settlements in the Occupied Palestinian Territories of the UK's legal recognition of the State of Palestine.

The UK’s trade relations with the Palestinian Authority are governed by the UK-PA Interim Political, Trade and Partnership Agreement, which applies to the territory of the West Bank and Gaza. The UK recognition of Palestine is based on provisional 1967 borders, with equal land swaps to be finalised as part of future negotiations. Goods produced in illegal Israeli settlements are not entitled to preferential tariff treatment under the UK’s trade agreements with the Palestinian Authority and Government of Israel.

We do not enter treaty relations or trade dealings with Israel that include occupied Palestinian territory, and we strongly advise against conducting any economic and financial activities in settlements. UK citizens and businesses should be aware of the risk of involving themselves in Israel’s serious breaches of international law. We aim to progress towards a two-state solution, in which the Palestinian Authority gains full control of its customs, borders and the ability to implement independent trade policy.