UK Halts Free Trade Talks with Israel Amid Gaza Conflict

UK Foreign Secretary David Lammy has announced the suspension of free trade agreement negotiations with Israel, citing the detrimental impact of the Gaza conflict on bilateral relations. While reaffirming the UK's commitment to Israel's security, Lammy emphasized the need for a two-state solution, advocating for peace and dignity for both Israelis and Palestinians. In response, Israel's Foreign Ministry criticized the UK's decision, accusing it of prioritizing domestic politics over mutual economic interests. This development raises questions about the future of UK-Israel relations amidst ongoing tensions in the region.

By Narendra Chaudhary May 20, 2025, 22:19 IST

UK Foreign Secretary Announces Suspension of Trade Negotiations

In response to Israel's actions in Gaza, UK Foreign Secretary David Lammy declared on Tuesday that negotiations for a free trade agreement with the Israeli government have been suspended.

Impact of Gaza War on Bilateral Relations

Lammy emphasized that while the UK is dedicated to Israel's security and combating terrorism and antisemitism, the ongoing conflict in Gaza is straining the relationship between the two nations.

During a statement in the House of Commons regarding the situation in Israel and the Occupied Palestinian Territories, he stated, "Today, I am announcing that we have suspended negotiations with this Israeli government on a new free trade agreement. We will be reviewing cooperation with them under the 2030 Bilateral Roadmap. The actions of the Netanyahu government have made this necessary."

Commitment to Israel's Security

He continued, "I want to express to the people of Israel that I desire a strong friendship based on shared values and thriving connections between our societies. We remain steadfast in our commitment to your security and future, addressing the genuine threats posed by Iran, terrorism, and antisemitism. However, the conduct of the war in Gaza is harming our relationship with your government. As the Prime Minister has indicated, if Israel continues its military actions without ensuring the unhindered provision of aid, we will take further measures in response."

Support for a Two-State Solution

Lammy reiterated the UK's support for a two-state solution, stating, "The UK will not abandon the vision of a two-state solution, where Israelis live within secure borders, recognized and at peace with their neighbors, free from terrorism, and Palestinians have their own state, living in dignity and security, free from occupation."

Israel's Response to UK Decision

In reaction to the UK's suspension of trade talks and sanctions on Israeli settlers, Israel's Foreign Ministry criticized the British government for prioritizing an "anti-Israel obsession" and domestic political issues over shared economic interests.

The ministry labeled the UK's sanctions against residents of Judea and Samaria as "unjustified and regrettable."

Concerns Over Economic Impact

In a post on X, the Israeli Foreign Ministry remarked, "Following the UK's announcement to suspend free trade agreement negotiations and impose sanctions on settlers, it is important to note that these negotiations were already stalled under the current UK government. The agreement would have benefited both nations. If the British government chooses to jeopardize its economy due to anti-Israel sentiments and political considerations, that is its decision."