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Trade: Israel

Volume 476: debated on Monday 2 June 2008

To ask the Secretary of State for Business, Enterprise and Regulatory Reform how much trade with Israel contributed to the United Kingdom's gross domestic product in each of the last five years for which information is available. (206124)

The benefits of international trade to gross domestic product (GDP) result from greater economic efficiency due to a combination of increased competition in markets, relative comparative advantages, economies of scale, increased opportunities for learning, and greater incentives for innovation. Due to the difficulty of differentiating between the impact of trade and other factors on growth, it is not possible to quantify precisely the impact of trade with another country on GDP.

The following table indicates the scale of UK trade in goods and services to Israel for the years 2002-06 as a proportion of GDP:

Percentage

2002

2003

2004

2005

2006

UK exports to Israel: percentage of UK GDP at market prices

0.18

0.15

0.15

0.15

0.13

UK imports from Israel: percentage of UK GDP at market prices

0.10

0.10

0.10

0.10

0.10

Geographical data for trade in 2007 are due to be published at the end of October.