London, July 20 (EFE). The UK’s International Trade Secretary, Anne-Marie Trevelyan, will launch negotiations with Israel on Wednesday to promote a new Free Trade Agreement (FTA) focused on services and the digital sector, as expected by the British government.
In a statement, the ministry highlighted that British technology and services companies would benefit from a future trade agreement between the United Kingdom and Israel that would seek to establish a “modern and modified” relationship.
Trevelyan is expected to meet today in London with Israel’s ambassador to the UK to start this dialogue.
Israel has one of the fastest growing economies in the world, and its demand for digital products and services is expected to grow rapidly.
The current bilateral agreement between the two countries does not contain specific provisions on services, which creates, according to London, a “tremendous opportunity to improve that agreement.”
This includes boosting Britain’s export services to Israel by up to 78 million pounds (91 million euros), from insurance services to information technology and technology, and supporting jobs and growing technology industries by lowering barriers to trade.
The memo also notes that a new and better agreement between the two countries would expand the existing trade relationship, which is worth 5,000 million pounds (5,800 million euros) annually.
The ministry notes that the new agreement could benefit 6,600 British companies, including 5,600 small and medium-sized businesses.
Trevelyan stresses that “both the UK and Israel are superpowers in service” but notes that their current trade relationship “is based on an agreement from 1995, before digital services like smartphones and the internet changed the global economy.”
“We want an agreement that builds on Britain’s strengths, while stimulating innovation and increasing opportunities for small and medium businesses across the UK,” he said.
The minister also noted that “combining the strengths of both economies in a reformed trade agreement will boost trade, support jobs and help take our economic relationship to the next level.”
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