Skip to content
Friday 7 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,901.09
+0.31%
DAX
26,319.45
+0.69%
CAC 40
8,714.93
+0.17%
STOXX 50
6,523.86
+0.33%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Tuesday 20 May 2025 4:38 pm  |  Updated:  Wednesday 21 May 2025 3:36 pm

UK halts trade talks with Israel

By: Ali Lyon

Add as a preferred source on Google
David Lammy has been appointed deputy prime minister and justice secretary. (PA)
David Lammy was appointed deputy prime minister and justice secretary. (PA)

The UK has paused trade deal negotiations with Israel in response to its military offensive in Gaza, the foreign secretary has said.

Speaking in the Commons, David Lammy confirmed that negotiations with the Israeli government over a bilateral trade pact have been put on ice until the country ensures “unhindered provision of aid”.

“We have suspended negotiations with this Israeli government on a new free trade agreement,” Lammy told MPs. “We will be reviewing co-operation with them under the 2030 bilateral roadmap.”

Lamy added that “the Netanyahu government’s actions have made this necessary.”

The decision represents a further ratcheting up of tensions between Israel and the UK, after Prime Minister Keir Starmer’s administration joined France’s Emmanuel Macron and Canada’s Mark Carney in condemning Israel’s latest offensive in Gaza.

Play Video

The three leaders wrote that they “strongly oppose” the highly controversial military action in the western strip of Palestine, which had included a decision to prevent aid from entering the country for 11 weeks.

Israel claims to have brought that blockade to a partial end earlier this week, with the commitment to temporarily let a “minimal” amount of food into Gaza following pressure from US politicians.

But the end to the full block has been branded a “drop in the ocean” by humanitarian organisations, and did not prevent the three Western leaders from calling on Israel to “stop its military actions”.

Read more

Making free trade a reality: The UK-GCC strategic dialogue

Alexey Fedorenko credited image showing a relevant scene or subject matter related to the General news article content

“We will not stand by while the Netanyahu government pursues these egregious actions,” they wrote.

Netanyahu reacted furiously to the intervention, branding it a “huge prize” for terrorist organisation Hamas.

Trade halted until aid blockades lifted

The decision to pause talks represents a further ratcheting up of tensions between the UK and Israel, which have traditionally been close allies. But addressing MPs, Lammy stressed the government’s issue was with decisions made by the current Israeli administration, rather than the country as a whole.

“I say now to the people of Israel, we want a strong friendship with you based on shared values and with flourishing ties between our people and societies,” he said.

“The conduct of the war in Gaza is damaging our relationship with your government. And… if Israel pursues this military offensive as it has threatened, failing to ensure the unhindered provision of aid, we will take further action in response.”

The government had been eyeing up closer economic ties with several Middle East countries as the next frontier of its trade push, having inked deals with the US, India and Europe in the past month.

Negotiations to upgrade its existing free-trade agreement with Israel began in 2022. Labour had reaffirmed its plans to resume talks on entering office last July, even after Israeli officials condemned a government decision to suspend some arms exports to Israel in September last year.

Read more

Rachel Reeves’ sister takes top legal role in Burnham’s Cabinet overhaul

Close-up of a business professionals hands typing on a laptop keyboard with financial charts on screen

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

People & Organisations

  • David Lammy
  • Gaza
  • House of Commons
  • Israel
  • trade
  • trade deal

Trending Articles

  • Revolut founder’s wealth set to balloon amid talks of share award at $500bn valuation

  • Rupert Lowe axes pensions triple lock and pledges tax cuts in economic plan

  • WPP slashes jobs as revenue continues to fall

  • Liverpool owners tipped to sell – but not to Amazon boss Bezos – by former CEO

  • As it happened: Stocks rise as oil fluctuates after Red Sea attack; US-Iran deal ‘being circulated’

More from Morning Wire

  • Making free trade a reality: The UK-GCC strategic dialogue

    Partner
    Alexey Fedorenko credited image showing a relevant scene or subject matter related to the General news article content
  • Rachel Reeves’ sister takes top legal role in Burnham’s Cabinet overhaul

    Politics
    Close-up of a business professionals hands typing on a laptop keyboard with financial charts on screen
  • UK inks trade deal with Switzerland – despite shouting match

    Politics
    UK and Switzerland officials signing a trade deal, highlighting international services agreement and bilateral cooperation
  • Reform’s Richard Tice under parliamentary investigation

    Politics
    Reform UK leader Nigel Farage and Deputy Leader Richard Tice are set to meet with Andrew Bailey to discuss interest rates and stablecoins.
  • ‘Pro-business’ Burnham eyes Reynolds return to top business job

    Business
    Jonathan Reynolds addressing the SMMT's annual International Automotive Summit (image courtesy of SMMT)
  • China, EU Respondents Optimistic About Prospects of Future Cooperation: GT Survey

    Business Wire
  • Breaking up the science department is a setback for Britain’s AI ambitions

    Opinion
    Kanishka Narayan, wearing glasses and a suit, speaks at London Tech Week, with the event logo visible.
  • Singapore on Thames or the Sick Man of Europe?: The Economics of Brexit Ten Years from the Referendum 

    Opinion
    UK-EU Brexit negotiations meeting with officials discussing trade agreements and policy impacts in a formal conference room
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook