On Tuesday, the United Kingdom government suspended free trade negotiations with Israel in response to its military conduct in the war on Gaza and the expansion of illegal settlements in the occupied West Bank.
Addressing the parliament, Foreign Secretary David Lammy said the UK government couldn’t continue talks on upgrading its existing trade agreement with an Israeli government pursuing what he called “egregious policies” in Gaza and the occupied West Bank.
This came a day after the UK, France and Canada threatened to take “concrete actions” against Israel if it does not stop its renewed offensive and lift aid restrictions in Gaza.
Meanwhile, the European Union has also taken a step towards reassessing its relationship with Israel with EU foreign policy chief Kaja Kallas confirming on Tuesday that the bloc had voted to review its trade cooperation agreement.
How much is Israel-UK trade worth?
The United Kingdom and Israel embarked on negotiations for a modernised Free Trade Agreement (FTA) in July 2022, aiming to enhance their economic partnership by addressing areas not covered in their existing trade agreement, particularly services and digital trade.
According to United Nations Comtrade, a global database of official international trade statistics, in 2024, the UK ranked as Israel’s 11th largest import partner, with imports totalling some $1.96bn. The main products imported from the UK included machinery such as jet engines, electrical equipment, pharmaceuticals and vehicles.
Conversely, the UK was Israel’s eighth largest export destination, receiving Israeli exports valued at about $1.57bn, primarily of diamonds, chemical products, machinery and electronics.
What are Israel’s biggest imports and exports?
Israel’s global trade in 2024 consisted of $91.5bn in imports and $61.7bn in exports.
Some of Israel’s top imports include:
Electrical machinery, electronics and mechanical appliances worth some $19bn.
Vehicles including cars, trucks, buses and planes worth about $10bn.
Chemical products including pharmaceuticals worth $8bn.
Mineral products including petroleum, coal and cement worth $7bn.
Gems and jewellery including diamonds worth $4bn.
Some of Israel’s top exports include:
Electrical machinery, electronics and mechanical appliances worth some $18bn.
Chemical products including pharmaceuticals worth $10bn.
Gems and jewellery including polished diamonds worth $9bn.
Optical, technical and medical apparatus worth $7bn.
Mineral products worth $5bn.
Israel’s electronics sector is a key engine of its export economy, led by significant players like Intel, which runs large-scale chip fabrication facilities, as well as companies such as Elbit Systems and Orbotech, known for their expertise in military electronics and advanced manufacturing.
Israel is a major exporter of pharmaceuticals, driven by companies such as Teva Pharmaceuticals, one of the world’s largest generic drug manufacturers.
Israel is also a global leader in the diamond trade, importing billions of dollars worth of rough diamonds which are then cut, polished and processed domestically before being exported.
Which countries buy the most from Israel?
Israel sold $61.7bn worth of goods in 2024. The biggest importers of Israeli products were the United States with $17.3bn, Ireland with $3.2bn and China with $2.8bn. Hong Kong, a semiautonomous region of China that trade databases treat as a separate entity, imported an additional $2bn in products from Israel. Add that to China’s tally, and the country becomes the second-largest importer of Israeli products.
The United States primarily imported diamonds, high-tech electronics, including integrated circuits and telecommunications equipment, as well as chemical products.
Ireland was the largest buyer of Israeli integrated circuits in 2024, importing some $3bn billion worth of electronic integrated circuits and microassemblies. These components are widely used in Ireland’s pharmaceutical, medical device and tech manufacturing sectors.
China imported a range of Israeli products including optical equipment, electronic components and chemical products.
The table below shows the 117 countries or territories that bought Israeli products in 2024. Search for any country using the search box.
Which countries sell the most to Israel?
Israel bought $91.5bn worth of goods from around the world in 2024. The biggest exporters to Israel were China with $19bn, the United States with $9.4bn, and Germany with $5.6bn.
China primarily exported electric vehicles, mobile phones, computers and metals.
The United States sold Israel explosive munitions, diamonds, electronics and chemical products. Israel receives billions in US military aid, much of which is spent on American-made weapons, effectively boosting US exports.
Germany exported vehicles, pharmaceutical products, machinery and electronics.
The table below shows the 192 countries or territories that sold products to Israel in 2024.
