JUSTICE - No. 66

42 No. 66 JUSTICE ntroduction Israel continues to be a growing export market for UK companies. According to official figures published by the Israel Central Bureau of Statistics, annual British exports to Israel have grown steadily in past years, from £2.16 billion in 2016 to £2.50 billion in 2019 (an increase of 4.99% per year). 1 The UK is Israel’s second-ranking export market, and its biggest market for exports in Europe. The UK also serves as Israel’s top destination for foreign direct investment in Europe. 2 The British Embassy in Tel Aviv published figures that showed Israeli investors having injected a total of more than £300m over three years (2014-2017) into UK infrastructure projects. As of February 2019, over 300 Israeli companies set up their businesses in the UK – representing sectors that include high-tech, pharmaceutical and finance. 3 Today, there are about 400 Israeli startups or tech companies operating in the UK. 4 These figures suggest that Brexit has not deterred Israeli companies from entering the UK. 5 Cyber security is a field which is increasingly important to the UK government. UK and Israel cooperation in this sector extends beyond national security to harnessing cyber expertise to serve the private sector. 6 Israel is a world leader in this area, with a global share of private- sector investment in the cyber industry set at 20% in 2015. As of 2016, 15% of all capital raised by the industry globally (around $581million) was raised by Israeli cybersecurity. In April 2017, the UK think tank Open Europe conducted a study exploring Britain’s policy priorities beyond the EU member states. It was found that the value of Israel’s untapped potential is expected to grow significantly by 2030, largely due to its growing population and its rising GDP. Israel was identified as one of four countries that the UK should prioritize with respect to engaging in trade. The other countries are Canada, India and China (however, there is uncertainty as to whether China remains a priority in light of recent developments). 7 In addition, although not included in the above list, it is obvious that the U.S. must be one of the UK’s priorities for a free trade deal, albeit this does not appear to be a priority for President Biden. In October 2020, the UK Parliamentary Under-Secretary of State for International Trade, Ranil Jayawardena MP, told the House of Commons that bilateral trade between the UK and Israel had already surpassed the £5 billion mark. 8 Trade Between the UK and Israel Following Brexit: Looking Beyond Continuity I Jonathan Lux andMichael Proctor 1. Department for International Trade,“Exporting to Israel,” available at https://www.great.gov.uk/markets/israel/ 2. Britain Israel Communications and Research Centre, “Britain-Israel trade after Brexit” (Dec. 2017), available at https://www.jewishvirtuallibrary.org/jsource/images/ brexittrade.pdf 3. As stated by Anita Leviant, President of the Israel Britain Chamber of Commerce (IBCC); see Department for International Trade Press Release andThe Rt Hon Liam Fox MP, “UK and Israel sign trade continuity agreement” (Feb. 18, 2019), available at https://www.gov.uk/ government/news/uk-and-israel-sign-trade-continuity- agreement; see also UK Israel Business, “Trading With Israel,” available at https://ukisrael.biz/news-insight/ trading-with-israel/ 4. Abigail Klein Leichman,“14 Israelis making a mark on London’s tech scene,” I SRAEL 21C , Feb. 21, 2018, available at https://www.israel21c.org/14-israelis-making-a-mark- on-londons-tech-scene/ 5. See also supra note 2. 6. Ibid . 7. See Jewish News Reporter, “Israeli exports to UK quadrupled in last decade,” J EWISH N EWS , Jan. 8, 2020, available at https://jewishnews.timesofisrael.com/israeli- exports-to-uk-grew-by-nearly-300-percent-in-last-decade/ 8. Jewish News Reporter,“Ministers announce bid for ‘higher ambition’ UK-Israel trade agreement,”J EWISH N EWS , Oct. 13, 2020, available at https://jewishnews.timesofisrael . com/ministers-announce-bid-for-higher-ambition-uk- israel-trade-agreement/