British Government’s Current Position: Trade with Israel

Business and Trade –

Oral Questions to the Parliamentary Under-Secretary of Business and Trade:
– Kate Osamor: I understand that the Government are set to undertake a second round of trade negotiations with Israel in the spring. Israel applies our current agreement to the Occupied Palestinian Territories, against the EU negotiator’s original intentions. Have the Government considered how they will go about preventing any repeat of that situation and preventing illegal settlements from benefiting from the prospective deal?
– Nigel Huddleston: We are progressing with the free trade agreement with Israel. We are excited about the opportunities it presents, in particular because of the focus on science, technology and innovation. I understand the point that the hon. Lady is raising. I think some of it cuts across other Departments, but I will write to her.
https://hansard.parliament.uk/commons/2023-02-09/debates/70BADFBA-113B-4EC0-8401-B1CB1132CDFE/TopicalQuestions
Commons Oral Answers

Question by Baroness Sheehan (Lib Dem) on 23rd May 2022 (HL452)

To ask Her Majesty’s Government, further to the Written Answer by Lord Grimstone of Boscobel on 27 April (HL7831), what checks are carried out to ensure that Israeli export goods originate from Israel and not from illegal Israeli settlements in Palestinian Occupied Territories.

Answer by Lord Grimstone of Boscobel (Conservative)

Goods originating from illegal Israeli settlements are not covered by any United Kindgom trade agreement, so do not receive tariff preferences. Should HMRC have reasonable doubts regarding the origin of an imported good, or suspect that a certificate of origin has been erroneously completed, then a verification of the good’s origin can be requested.

Question from Beth Winter (Labour) on 11 May 2022 (UIN991)

To ask the Secretary of State for International Trade, if she will publish how many arms exports applications to Israel her Department has (a) licensed and (b) rejected in each year since 2010.

Answer by Mr Ranil Jayawardena (Conservative) on 18th May 2000

HM Government publishes Official Statistics (on a quarterly and annual basis) for export licences granted, refused and revoked to all destinations on GOV.UK(opens in a new tab) and these reports contain detailed information, including the overall value, the type (e.g. Military, Other), and a summary of the items covered by these licences. The data for 2021 was published on 12th April 2022.

The Consolidated EU and National Arms Export Licensing Criteria, was superseded by Strategic Export Licensing Criteria, announced in the Written Statement of 8th December 2021, HCWS449

Question by Baroness Sheehan (Lib Dem) on 23rd May 2022 (HL452)

To ask Her Majesty’s Government, further to the Written Answer by Lord Grimstone of Boscobel on 27 April (HL7831), what checks are carried out to ensure that Israeli export goods originate from Israel and not from illegal Israeli settlements in Palestinian Occupied Territories.

Answer form Lord Grimstone of Boscobel (Conservative) on 9th June

Goods originating from illegal Israeli settlements are not covered by any United Kindgom trade agreement, so do not receive tariff preferences. Should HMRC have reasonable doubts regarding the origin of an imported good, or suspect that a certificate of origin has been erroneously completed, then a verification of the good’s origin can be requested.

Question by Beth Winter (Labour) on 11th May 2022 (UIN991)

To ask the Secretary of State for International Trade, if she will publish how many arms exports applications to Israel her Department has (a) licensed and (b) rejected in each year since 2010.

Answer from Mr Ranil Jayawardina (Conservative on 8th May 2022

HM Government publishes Official Statistics (on a quarterly and annual basis) for export licences granted, refused and revoked to all destinations on GOV.UK(opens in a new tab) and these reports contain detailed information, including the overall value, the type (e.g. Military, Other), and a summary of the items covered by these licences. The data for 2021 was published on 12th April 2022.

The Consolidated EU and National Arms Export Licensing Criteria, was superseded by Strategic Export Licensing Criteria, announced in the Written Statement of 8th December 2021, HCWS449(opens in a new tab).

Questions by the Bishop of Southwark (Bishop) on 8th November (HL3843) and (HL3844)

To ask Her Majesty’s Government what assessment they have made of the impact of the reduction in their funding of the UN Relief and Works Agency for Palestine Refugees for 2021 compared to 2020.

To ask Her Majesty’s Government what assessment they have made of (1) the financial position of the UN Relief and Works Agency for Palestine Refugees, and (2) the sustainability of the Agency’s provision of services to Palestinian refugees.

Answers from Lord Ahmad (Conservative) on 22nd November 2021

The United Kingdom (UK) is a long-term supporter of the United Nations Relief and Works Agency (UNRWA). We recognise UNRWA’s unique mandate from the United Nations General Assembly, to provide protection and core services including health and education to Palestinian refugees across the Middle East. The UK‘s annual contribution to UNRWA’s programme budget helps UNRWA to provide basic education to more than 533,000 children a year (half of whom are girls), access to health services for 3.5 million Palestinian refugees and social safety net assistance for around 255,000 of the most vulnerable across the region. The UK is working with UNRWA and other donors to improve UNRWA’s financial viability. This includes broadening UNRWA’s donor base, encouraging the full disbursement of pledges and encouraging support through multi-year funding.

Question by Dr Rupa Huq (Labour) on 21 April 2021 (UIN 185445)

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps he will take to tackle the import to the UK of products from illegal settlements in the Palestinian Occupied Territories.

Answer from James Cleverly (Conservative) on 26 April 2021

In order to enable consumers to make a more fully informed decision concerning the products they buy, in December 2009, the UK introduced voluntary guidelines to enable produce from Israeli settlements in the OPTs to be specifically labelled as such.

Question by Stephen Timms (Labour) on 8th February 2021 (UIN 150653)

To ask the Secretary of State for Environment, Food and Rural Affairs, pursuant to the Answer of 8 February 2021 to Question 148675 on Overseas Trade: Israeli Settlements, which products originating from settlements in the Occupied Palestinian Territories must be labelled as such.

Answer from Victoria Prentis (Conservative) on 11th February 2021

Under retained marketing and food information rules, country of origin information is required for unprocessed beef, pork, sheep, goat and poultry, fruit and vegetables, olive oil, fish and shellfish (whether pre-packed or loose), wine, and honey.

Under the provisions of the retained 1169/2011 Regulation on the provision of food information to consumers, the country of origin or place of provenance of food must also be given on prepacked food where failure to indicate this might mislead the consumer as to the true country of origin or place of provenance of the food, in particular if the information accompanying the food or the label as a whole would otherwise imply that the food has a different country of origin or place of provenance.

In addition, retained Regulation 775/2018 requires that if the origin or provenance of food is provided and is different to that of the primary ingredient of that food, the origin of the primary ingredient must also be given or an indication that it is not the same as that of the food.

In respect of wine, retained Regulation 1308/2013 requires that an indication of the provenance of a wine must be shown on the label. This should match the indication of provenance shown on the VI1 import certificate, and be authorised by the appropriate bodies in the exporting country.

Question from Baroness Tonge (Independent) on 1st December 2020 (HL10922)

To ask Her Majesty’s Government what criteria they use when
deciding to introduce sanctions against governments for breaches of international law.

Answer from Lord Ahmad (Conservative) on 15th December 2020

After the end of the Transition Period on 31 December
the UK will pursue an independent sanctions policy, driven by UK foreign policy and
national security interests. The Sanctions and Anti-Money Laundering Act 2018
(SAMLA) gives the Government the legal framework to impose, update and lift sanctions
autonomously. SAMLA sets out a range of possible purposes for which sanctions
regimes can be introduced. These include purposes relating to international human rights
law and international humanitarian law. Where sanctions regimes are set up for these
purposes, any decision to designate persons under a particular regime must meet the legal
tests set out in the Regulations of that regime. In particular the Secretary of State must
consider that there are reasonable grounds to suspect that the person is involved in an
activity set out in the Regulations, and that the designation is appropriate having regard to
the purposes of the regime and the likely effects of the designation on that person. All
designations must be underpinned by robust evidence.

Question by Ben Lake (Plaid Cymru) on 17th June 2020 (60846)

Israeli Settlements: Companies 60846 To ask the Secretary of State for Foreign and Commonwealth Affairs, pursuant to the Answer of 8 June 2020 to Question 55878 on Israeli Settlements: Companies, what assessment he has made of the applicability of United Nations Security Council Resolution 465 to those companies.

Answer from James Cleverley (Conservative) on 22nd June 2020

The UK supports existing UN Security Council Resolutions (UNSCRs), including UNSCR 465, and will do so until an agreement is negotiated by the parties. Our position on settlements is clear: they are illegal under international law and damaging to renewed efforts to launch peace negotiations. As I made clear in my answer of 8 June 2020 (55878), ultimately it is the decision of an individual or company whether to operate in settlements in the Occupied Palestinian Territories. The British Government is clear that it neither encourages nor offers support to such activity.

Question by Baroness Tonge (Independent) on 15th June 2020 (HL5731)

To ask Her Majesty’s Government what steps they are taking to ensure that their trade agreements will not be made with businesses which (1) exist within, or (2) support, any Israeli settlement considered to be illegal under international law.

Answer from Lord Grimstone of Boscobel on 25th June 2020

The United Kingdom does not recognise the Occupied Palestinian Territories, including settlements, as part of Israel. For this reason, goods originating from settlements in the Occupied Palestinian Territories are not covered by the United Kingdom-Israel Trade and Partnership Agreement, which enters into force at the end of the Transition Period.

Question asked by James Murray (Labour) on 8th June 2020 – Imports: Israel 56193

To ask the Secretary of State for Environment, Food and Rural Affairs, with reference to the import of (a) fresh fruit, (b) vegetables and (c) dairy products, from Israel, whether HMRC accepts Israeli certificates of conformity with marketing standards (i) where the place of origin is within the internationally recognised borders of Israel and (ii) where goods originate from settlements in the Occupied Palestinian Territories.

Answer by Victoria Prentis (Conservative) on 22nd June 2020

Her Majesty’s Revenue and Customs take steps to exclude the possibility that goods of West Bank origin enter the United Kingdom incorrectly described as being Israeli. This is to prevent them benefitting from preferential tariffs in accordance with the terms of EU-Israel Association Agreement and the technical arrangements which flow from this.

EU rules do not allow the authorities in any exporting third country (such as the State of Israel) to issue valid certificates of conformity with EU marketing standards for fruit and vegetables originating outside that third country. This includes territories under Israeli administration since June 1967, for example, the West Bank. The situation referred to by the hon. Member in respect of imports originating in Israeli settlements on the West Bank cannot, therefore, arise.

EU rules allow third countries to issue a certificate of conformity, confirming compliance with marketing standards. However, that does not mean that every import consignment will be accompanied by such a document. Importers can also apply for a certificate directly from an EU Member State’s authority.

For dairy products, certificates of conformity with marketing standards are not required regardless of the origin of imports. The EU marketing standards legislation will form part of UK statute and will continue to apply in the UK after the transition period.

Q Asked by Baroness Tonge (Independent) 14 January 2019

Department for International Trade: Arms Trade: Israel. HL12816

To ask Her Majesty’s Government what assessment they had made of the use of military goods sold to Israel by the UK; and whether they have sought any assurances that such goods are used for defence purposes only.

A Answered by: Baroness Fairhead (Conservative) on 28 January 2019

Military items sold to other countries by the UK require export licences. Export licence applications are rigorously assessed on a case-by-case basis against the Consolidated EU and National Arms Export Licensing Criteria, taking account of all prevailing circumstances at the time of the application. Signed end user undertakings from the intended recipient, about the intended end use, form part of our consideration but we do not rely solely on these when making our assessment.

Following events in 2018 on the Israel/Gaza border the Government reviewed all extant military export licences for Israel. We have no information to indicate that UK-supplied equipment has been used in a way that is inconsistent with the Consolidated EU and National Arms Export Licensing Criteria. The Government continues to monitor the situation in Israel and Gaza very closely.

Q Asked by Richard Burden: (Labour, Birmingham, Northfield) [N] on: 05 February 2019

Department for International Trade: Trade Agreements: Israel. 216929

To ask the Secretary of State for International Trade, if he will place in the Library a copy of the draft UK-Israel agreement that has been agreed in principle for trading arrangements after the UK leaves the EU.

A Answered by: George Hollingbery (Conservative) Answered on: 08 February 2019

The UK and Israel have a strong and important trading relationship. However, we do not recognise the Occupied Palestinian Territories (OPTs), including the settlements, as part of Israel. The OPTs are not covered by the current EU-Israel Association Agreement, nor by the Continuity Agreement agreed in principle between the UK and Israel.

We are also working to finalise the transition of the current EU Interim Association Agreement with the Palestinian Authority.

We have committed to informing Parliament as soon as agreements are signed with partner countries. The agreement will be laid in Parliament and we will be publishing a full report on trade agreements, once they are signed.

Q Asked by Richard Burden: (Labour, Birmingham, Northfield)[N] on: 05 February 2019

Department for International Trade: Trade Agreements: Israel. 216930

To ask the Secretary of State for International Trade, whether the trade deal agreed in principle between the UK and Israel for trade after the UK leaves the EU announced on 23 January 2019 will continue to distinguish in relevant dealings between the territory of the State of Israel and the territories occupied since 1967.

A Answered by: George Hollingbery (Conservative) on 08 February 2019

The UK and Israel have a strong and important trading relationship. However, we do not recognise the Occupied Palestinian Territories (OPTs), including the settlements, as part of Israel. The OPTs are not covered by the current EU-Israel Association Agreement, nor by the Continuity Agreement agreed in principle between the UK and Israel.

We are also working to finalise the transition of the current EU Interim Association Agreement with the Palestinian Authority.

We have committed to informing Parliament as soon as agreements are signed with partner countries. The agreement will be laid in Parliament and we will be publishing a full report on trade agreements, once they are

Q Asked by Dr Matthew Offord: (Conservative, Hendon) on: 04 February 2019

Department for International Development: Occupied Territories: Economic Situation. 216233

To ask the Secretary of State for International Development, what steps her Department is taking to develop long-term economic sustainability in the Occupied Palestinian Territories.

A Answered by: Alistair Burt (Conservative) Answered on 11 February 2019

We have scaled up our work on economic development across the West Bank and Gaza. We are providing up to £38 million over five years (2018-2023) to help tackle the problems of low growth and high unemployment in the Occupied Palestinian Territories (OPTs).

Our support will focus on efforts to increase trade and job creation by working with the Palestinian and Israeli authorities to enable greater movement and access for people and goods, and improve water and energy supply, particularly in Gaza. We will also continue to support the implementation of Paris Protocol measures in relation to the transfer of taxes and fees Israel collects on behalf of the Palestinian Authority (PA), and any measures agreed by the parties to transfer the responsibility of revenue collection. Our support in these areas will help thousands of Palestinians in their daily lives, support the financial sustainability of the PA and contribute to preserving the viability of the two-state solution.

Q Asked by Lord Warner 28 January 2019

Treasury: Double Taxation: Israel. HL13187

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