Politics
Government accused of ‘two-tier trade policy’ over Israel sanctions
Ministers have imposed measures against far-right Israeli ministers, but still pursue trade talks with human rights-abusing Gulf states
June 12, 2025 16:26
Ministers have imposed measures against far-right Israeli ministers, but still pursue trade talks with human rights-abusing Gulf states
June 12, 2025 16:26The business and trade secretary, Jonathan Reynolds, has denied that the government is inconsistent by pursuing trade agreements with Gulf Cooperation Council (GCC) countries while suspending talks on a free trade agreement with Israel.
Speaking at a lunch for Westminster journalists on Thursday, Reynolds described a deal with GCC countries (including Bahrain, Kuwait, Qatar and Saudi Arabia) as a “major priority”.
“I've always been clear that what this country needs to be is the best-connected market in the world. That will require, after leaving the European Union, trade agreements with some places that are not western democracies as we are”, he said.
“We've got to recognise that not only is there a commercial interest in us being involved in those places. British engagement is positive. And there are countries in the Gulf who are different to ourselves, but have been the areas where there's been some significant change in the last decade”, Reynolds added.
He insisted, though, that the government – and he personally – hadn’t shied away from raising issues such as the alleged human rights abuses in those nations during trade talks.
During the 2022 world cup, as leader of the opposition, Sir Keir Starmer told radio station LBC that he would not visit Qatar even if England reached the final, because of concerns over human rights.
But in December last year, the government reached a technology deal with Qatar worth £1bn.
Starmer welcomed the announcement, made during a state visit by the Emir of Qatar, and said at the time that he was “proud that Qatar has chosen to base this global partnership here in the UK and “delighted that the project is getting off the ground with this initial £1 billion commitment”.
On the other hand, the government announced it was suspending talks with Israel aimed at securing a free trade agreement last month following the IDF’s expanded operations against Hamas in Gaza, prompting allegations of inconsistency.
Reform UK’s deputy leader Richard Tice told the JC: “Two-tier Keir is pursuing two-tier trade policy. We should be accelerating an Israeli trade deal not stopping it.”
And criticism of the government wasn’t limited to opposition parties. One Labour source said they couldn’t understand “how we've got ourselves into the insane position where we're pursuing trade deals with Gulf dictators but not the region's only liberal democracy”.
“The Jewish state is being singled out, and that's not something the UK should ever do”, they added.
However, Reynolds denied that the government was adopting an unfair approach in its trade policies.
“We took the decision to suspend the aspiration to have a new and wider and deeper joint agreement with Israel, because, frankly, to be in a position where we've had to impose arms export [controls] on Israel and then sanction members of the Israeli cabinet … it's just not realistic or practical to do that”, he said.
Although the business secretary added that “the UK and me personally are always willing to be friendly partners to Israel and to the Palestinian territories in terms of trade and economic relationship” and, ideally, in the future, forge strong trade ties with both Israel and a future Palestinian state.
But the government had been under pressure from Labour backbenchers for several weeks to take tougher actions against Israel.
Stourbridge MP Cat Eccles, who recently visited Israel and the Palestinian territories with Labour Friends of Israel, asked Middle East minister Hamish Falconer on Tuesday, following the announcement of sanctions on far-right Israeli ministers Bezalel Smotrich and Itamar Ben-Gvir, whether the government “should be placing strong sanctions on all ministers in the Israeli government”.
She continued: “This is not just about rhetoric; it is about actions. With thousands of deaths in Gaza, we need to see stronger sanctions on all ministers in the Israeli government.”
The minister clarified that “the sanctions announced are not sanctions on the two ministries that the men represent.
“They are sanctions on the men themselves and the extremist rhetoric that they are responsible for. We would keep further sanctions under review on individuals who conducted rhetoric of that kind”, he expanded.
Elsewhere, Ilford South MP Jas Athwal said that “sanctions should perhaps have gone further” and urged the government to recognise a Palestinian state.
At Prime Minister’s Questions this week, Starmer defended the decision to impose sanctions on Ben-Gvir and Smotrich, despite being urged to reverse his position by US Secretary of State Marco Rubio, saying that the two ministers were “responsible for inciting appalling settler violence and expansion”.
We've done that to uphold human rights and defend the prospect of a two-state solution. We will continue to support all efforts to secure a cease fire the release of all hostages despicably held by Hamas and the humanitarian aid that needs to surge in”, he added.