On eve of Brexit: UK Exports to Israel soar by 75%
Exports to Israel rose to $3.45 billion first half of 2018, official Israeli figures reveal
As Britain prepares to leave the EU, its exports to Israel soared by 75% in the first half of 2018, official Israeli figures show.
According to the Israeli Central Bureau of Statistics, exports from the UK to Israel (excluding diamonds) totalled $3.45 billion between January and June 2018, up from $1.97 billion in the first half of 2017. In June alone, UK exports to Israel grew from $335.7 million in 2017 to $606.2 million this year.
Leading export sectors from the UK to Israel were mineral products, machinery and electrical equipment and products of the chemical industry.
Annual British exports to Israel have grown steadily in the past few years, from $3.66 billion in 2016 to $4.30 billion in 2017.
Total bilateral trade between the UK and Israel has grown by 8% in the first half of 2018 - from $4 billion in 2017 to $4.33 billion in 2018. This is on top record levels achieved in the last two years: $9.1 billion in 2017 and $7.2 billion in 2016, according to the Israeli Central Bureau of Statistics.
The UK is the second-largest market for Israeli exports, after the U.S.
British Prime Minister Theresa May highlighted the importance of UK-Israel trade during a speech in London on 17 September.
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.
Barry Grossman, Director of International Trade at the British Embassy in Israel, said:
The new figures reflect what we see on the ground: more British companies are interested in the Israeli market, and many Israeli companies realise 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.
Since Britain voted in June 2016 to leave the EU, there are signs of increased Israeli business interest in the UK: more Israeli companies are setting up in the UK or expanding their business there, compared to the pre-referendum period; and Israeli investment in the UK increased by 33% since the vote. By March 2018, Israeli Foreign Direct Investment since the referendum amounted to £400 million.
Since March 2017, the governments of the UK and Israel are discussing a smooth transition to the post-Brexit era, through the UK Israel Trade Working Group.