UK Considered Suspending Trade Agreement with Israel Amid Gaza Conflict but Retained It to Protect British Businesses

The British government reviewed suspending its trade partnership agreement with Israel last year in response to Israeli military actions in Gaza and the West Bank. This assessment, conducted by the UK Department for Trade and Business in August 2025, examined the potential impact of freezing the 2019 post-Brexit trade deal, which allows most Israeli imports to enter the UK duty-free and supports significant British exports.

The review followed the suspension of free trade talks with Israel three months earlier and was influenced by controversial remarks from then Israeli Defense Minister Yoav Gallant, which UK Foreign Secretary David Lammy described as "disgusting and monstrous." Despite these tensions, the UK government ultimately decided to maintain the trade agreement to avoid harming British businesses. Then Trade Secretary Chris Bryant explained in Parliament that suspending the preferential trade status risked unpredictable economic consequences and disruption to thousands of UK jobs.

This decision was made during the tenure of former UK Prime Minister Keir Starmer, who resigned recently. His successor, Andy Burnham, appointed this week as Labour Party leader and UK Prime Minister, has pledged to adopt a tougher stance on Israel and pursue new sanctions. However, no official explanation has been provided for why the trade agreement was preserved despite the impact assessment.

The trade deal remains a critical economic link between the UK and Israel, facilitating near tariff-free imports from Israel and supporting bilateral commerce. The recent political changes in the UK government suggest potential shifts in policy toward Israel going forward, but for now, the trade agreement continues uninterrupted.