British Foreign Secretary David Lammy revealed on Tuesday that the UK is putting a stop to negotiations for a new free trade agreement with Israel. This decision is part of a series of retaliatory steps, including placing sanctions on specific West Bank settlers, in protest of Israel’s handling of its military campaign against Hamas in Gaza.
The move came on the heels of remarks by British Prime Minister Keir Starmer, who expressed deep dismay over Israel’s intensifying ground operations in the coastal enclave. He said he was “horrified” by what he viewed as the escalation in Gaza.
In an official release, the British government clarified its position, stating: “While the UK government remains committed to the existing trade agreement in force, it is not possible to advance discussions on a new, upgraded FTA with a Netanyahu government that is pursuing egregious policies in the West Bank and Gaza.”
Speaking before members of Parliament, Lammy accused Prime Minister Benjamin Netanyahu of attempting to forcibly confine Gaza’s population into a limited area in the southern part of the Strip while only allowing a small portion of the needed aid to get through. “The Israeli government has a responsibility to intervene and halt these aggressive actions,” Lammy said in a furious speech. “Their consistent failure to act is putting Palestinian communities and the two-state solution in peril.”
Lammy continued, referencing the January ceasefire as a missed opportunity for peace. “Despite the glimmer of hope from January’s ceasefire, the suffering from this conflict has worsened,” he said. “But January showed another path was possible. We urge Netanyahu’s government to choose this path. The world is judging. History will judge them. Blocking aid, expanding the war, dismissing the concerns of your friends and partners. This is indefensible and it must stop.”
He went on to say that the UK would reevaluate its cooperative efforts with Israel outlined in the “2030 roadmap” that outlines strategic ties between the two nations. “The Netanyahu government’s actions have made this necessary,” Lammy noted.
Lammy emphasized that Britain still desires a positive relationship with the Israeli public. “I say now to the people of Israel: we want, I want, a strong friendship with you based on our shared values, with flourishing ties between our people and societies. We are unwavering in our commitment to your security and to your future, to countering the very real threat from Iran, the scourge of terrorism and the evils of antisemitism,” he said.
However, Lammy made it clear that the current war tactics in Gaza are straining ties between London and Jerusalem. “But the conduct of the war in Gaza is damaging our relationship with your government. And, as the prime minister has said, if Israel pursues this military offensive as it has threatened, failing to ensure the unhindered provision of aid, we will take further actions in response.”
Middle East Minister Hamish Falconer summoned Israel’s Ambassador to the UK, Tzipi Hotovely, to deliver a formal rebuke regarding what the UK described as “the wholly disproportionate” expansion of military operations in Gaza.
Responding sharply, Israel’s Foreign Ministry in Yerushalayim said: “The British Mandate ended exactly 77 years ago. External pressure will not divert Israel from its path in the struggle for its existence and security against enemies seeking its destruction.”
The ministry further pointed out that progress on a new trade deal had already stalled. “Even before today’s announcement, the matter had not been advanced at all by the current British government,” the statement read, while adding that the agreement “is mutually beneficial” and that “due to anti-Israel obsession and domestic political considerations, the British government is willing to harm the British economy — that is its decision.”
The UK’s announcement comes amid growing international backlash against Israel’s conduct in Gaza, especially in light of a near-total blockade of humanitarian assistance and a fresh ground assault launched by the IDF over the weekend.
Israel began enforcing the aid cutoff on March 1, contending that adequate humanitarian supplies had entered the territory during a six-week truce earlier in the year, and accusing Hamas of hijacking much of the aid for its operatives. Israeli officials also argued that the embargo was a necessary tactic to pressure Hamas into freeing the hostages it continues to hold—now for over 590 days.
On Monday, facing immense global pressure, including from Washington, Israeli leaders allowed five trucks of aid into Gaza. This came after Israeli military officials warned the political leadership that Gaza was teetering on the edge of mass starvation.
That same night, UK Prime Minister Starmer, French President Emmanuel Macron, and Canadian Prime Minister Mark Carney issued a joint declaration threatening to impose “concrete actions” if Israel refused to ease its offensive and increase humanitarian access. They called the small aid delivery on Sunday “wholly inadequate.”
On Tuesday, Israel allowed approximately 100 trucks to cross into Gaza. Nonetheless, the Israeli government continues to reject any halt in its military activities unless Hamas agrees to disarm and return all remaining hostages.
The UK and Israel launched discussions in July 2022 to upgrade their trade relations, building upon a 2019 continuity agreement following Brexit. After the Labour Party assumed control in the UK, they expressed an intention in July 2024 to revive those negotiations as one of six FTAs prioritized for renewal.
Israel regards the UK as one of its most important economic partners, ranking as the fourth-largest source of foreign direct investment in 2023, with over $1.1 billion recorded according to the British Embassy in Israel.
In another development that could deliver a further economic setback, the European Union — Israel’s top trading partner — announced Tuesday that it would reassess its bilateral cooperation agreement with Israel due to growing allegations of human rights abuses in Gaza. The EU’s foreign policy chief, Kaja Kallas, confirmed the review.
She said the decision came after “a strong majority” of the 27 EU member states supported the initiative during a Foreign Affairs Council meeting where the EU-Israel Association Agreement, which guides the bloc’s ties with Israel, was formally discussed.
“What it tells is that the countries see that the situation in Gaza is untenable, and what we want is to really help the people, and what we want is to unblock the humanitarian aid so that it will reach the people,” Kallas said to reporters following the session.
Israel’s Foreign Minister Gideon Sa’ar said earlier Tuesday at a conference in Jerusalem that he was in ongoing talks with European officials in an effort to prevent a breakdown in trade and cooperation with the EU.
French Foreign Minister Jean-Noel Barrot commented on the potential suspension of the agreement, saying, “the Netherlands suggested a reexamination of the EU-Israel Association Agreement. We supported this initiative and I call on the EU representatives to examine it, to address this requirement, and to determine if Israel is fulfilling its human rights obligations or not.”
Dutch Foreign Minister Caspar Veldkamp is spearheading the EU initiative, invoking the clause in the EU-Israel agreement that ties cooperation to adherence to democratic principles and respect for human rights.
Barrot didn’t mince words in a radio interview, declaring: “The situation is unbearable because the blind violence and the blocking of humanitarian aid by the Israeli government have turned Gaza into a dying ground — if not a cemetery,” and denouncing Israel’s war effort as “a total violation of all rules of international law, and contrary to the security of Israel — to which France is committed — because those who sow violence reap violence.”
{Matzav.com}