Labour split over Israel trade deal
The Labour Government is facing a split over its planned trade deal with Israel after the proposal was branded 'shameful' by some party supporters.
Jonathan Reynolds, the Business Secretary, has angered MPs and party donors by pursuing talks with Israel after Britain signed trade agreements with India and the US last week.
Last week, Mr Reynolds said the Government had 'ambitions to secure further agreements' with Israel, as well as Switzerland and South Korea.
The push to deepen the UK's £5.8bn trade links with the Middle Eastern country risks a backbench rebellion and further alienating Labour's biggest donors amid international alarm over the loss of civilian life in Gaza.
Dale Vince, who donated £5m to Labour before the general election, branded the plan 'shameful'. He urged Mr Reynolds to 'pull the trade deal and impose sanctions'.
'We shouldn't have a trade deal. We should have trade sanctions. I find the contrast between how we treat Russia and how we treat Israel to be quite incredible,' he told The Telegraph.
'It gives legitimacy to a regime that is literally terrorising millions of people in Palestine every day.'
Several Labour backbenchers also criticised Mr Reynolds for forging ahead with negotiations, describing the talks as 'indefensible'.
Kim Johnson, the Labour MP for Liverpool Riverside, said: 'It is morally indefensible for the UK to pursue a new trade deal with Israel while the bombardment of Gaza continues, inflicting devastating human suffering.
'These talks must be paused immediately, and we must prioritise using every diplomatic lever to demand a ceasefire and the full protection of civilians.'
Andy McDonald, a Labour MP for Middlesbrough and Thornaby East, said: 'It is unconscionable that the UK is pursuing deeper trade ties with Israel while serious allegations of war crimes, apartheid and even genocide are being levelled against its government.'
Successive UK governments have sought to secure a more comprehensive trade deal with Israel, which officials argue would benefit tech and professional services firms.
However, forging closer economic ties with Israel threatens to put several Labour seats at risk in the next general election in areas like Bradford, Birmingham and London. The party lost several seats to independents campaigning on Gaza at last July's vote.
The UK exported £3.2bn worth of products to Israel last year, with pharmaceuticals, cars and power generators among the top exports. In return, Israel sold £2.5bn worth of goods and services to the UK, including vegetables, cleaning products and chemicals.
However, other Labour backbenchers are opposed to boosting these links.
Polly Billington, Labour MP for East Thanet, said: 'Given the horrors that continue to unfold in Gaza, I am deeply concerned about the possibility of trade discussions with Israel at the moment'.
She demanded 'public reassurances from ministers that a trade deal is off the table' until a permanent ceasefire is brokered.
Clive Lewis, the MP for Norwich South, said: 'It's one thing to wring your hands in anguish about what's happening and say there's very little that you can do whilst America has Trump in office. It's quite another thing to prioritise a trade deal with Israel.
'There'll be millions of people in this country who will be scratching their heads and who will be frankly angry at this.
'It's another example of the Labour Government not living up to what is expected from the values that it espouses to have.'
He warned that voters would 'without doubt' punish the Government for making a deal with Israel.
A government spokesperson said: 'We strongly oppose the expansion of Israel's operations. We want an immediate ceasefire, the release of all hostages, the urgent provision of humanitarian aid and a pathway to a political solution.
'We remain committed to securing the best trade deals that work for the UK, including with Israel.'
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