BICOM

A new BICOM report was published today assessing the impact of Brexit on Britain-Israel trade and the wider implications for British trade with countries around the world.

The paper is a detailed sector-by-sector analysis of Brexit’s potential impact on bilateral trade and draws on in-depth interviews with officials, diplomats, lawyers and business leaders in Britain and Israel.

The paper found that 12 months after the referendum, the number of Israeli companies setting up in the UK has increased by 28 per cent, compared to the previous 12 months. It also reports that the UK is the top destination for Israeli foreign direct investment in Europe, with 28 Israeli companies listed on the London Stock Exchange with a market capitalisation of £11.5bn.

In addition, there a consensus among officials from either country that a bilateral free trade agreement should be prioritised and agreed as soon as possible.

The paper also detailed that Israeli business leaders working in the UK in high-tech sectors are largely unconcerned about the consequences of Brexit. However, the continued attraction of the UK to Israeli and international companies will depend on whether London remains a global centre for capital, while a prolonged period of uncertainty may lead some companies to reconsider operating out of Britain.

BICOM CEO James Sorene said that “it is very positive news that officials in both Israel and Britain are keen to complete a free trade agreement as soon as they can. This is vital to ensure a steady supply of drugs to the NHS and could even lead to cheaper fruit and vegetables in our shops. But to thrive after Brexit, we need more British companies to export and set up in fast-growing markets like Israel. It is disappointing that only a tiny number of British companies have opened innovation centres or bought Israeli firms in the last three years”.

Only five British companies have opened innovation centres or acquired Israeli firms since 2014, as opposed to the greater number of American, Chinese and Canadian companies.

Chief Executive of UK-Israel Business Hugo Bieber said that he welcomed BICOM’s “excellent review of the geopolitical and regulatory dynamics of Brexit,” adding that a November investment delegation led by the Deputy Chairman of the Court of the Bank of England “showed once again the massive opportunities and business synergies between our countries”.