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, according to a Sky News report on July 23, 2026. The trade deal, signed in 2019 after Brexit, allows Israeli imports to enter the UK mostly duty-free, significantly benefiting Israeli exports to Britain.

In August 2025, the UK Department for Trade and Business conducted an impact assessment on freezing the economic partnership with Israel. This consideration followed the suspension of free trade talks with Israel three months earlier, after then-Foreign Secretary David Lammy criticized statements by Israeli Defense Minister Yoav Katz as "disgusting" and "monstrous."

Despite the evaluation, the UK government ultimately decided to keep the trade agreement active. Then-Trade Secretary Chris Bryant explained in Parliament that suspending the preferential trade status could jeopardize thousands of British jobs and cause significant economic disruption. No further official explanation has been provided for maintaining the agreement.

This review occurred 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 Prime Minister, has pledged to adopt a tougher stance on Israel and pursue new sanctions.