Today, Liam Fox announced at Davos that the United Kingdom has agreed to its first post-Brexit free trade deal in principle. The announcement is considered as a huge boost to Theresa May, the British Prime Minister, as the United Kingdom prepares to leave the European Union and its restrictive trade limitations.
The international trade secretary said that the United Kingdom and Israel have already shaken hands over a future deal ahead of the planned departure of the United Kingdom from the European Union.
At the World Economic Forum summit, Fox disclosed: “As Britain prepares to leave the European Union and to ensure continuity for our businesses in both directions, we’ve reached agreement in principle today with our colleagues in Israel.”
He dubbed Israel as “one of the most cooperative and productive partners” of the United Kingdom. Fox added: “The continuity as we leave the European Union will be a precursor to an even more ambitious agreement in the future.”
Eli Cohen, the minister of the economy of Israel, added that the trade between the countries broke the $10 billion barrier in 2018.
He added: “I am sure that this free trade agreement will help us to accelerate and increase even more and strengthen our economic relationship.”
Fox has come under intense scrutiny for failing to reach any free trade agreements ahead of the scheduled Brexit as the risk of a no-deal exit emerges amid a divided parliament.
However, he is anticipated to meet with a series of trade ministers while at Davos, including those from Hong Kong, South Korea, Colombia, and Canada.
The government of the United Kingdom is striving for the continuity of existing free trade agreements of the European Union, which will not apply to the United Kingdom if it leaves with a no deal at the end of March.