PH, Israel pursue free trade deal
The Philippines and Israel are looking to soon forge a free trade agreement (FTA), in line with the government’s thrust to expand global trade partnerships.
This followed the close of the inaugural Philippines-Israel Joint Committee Meeting that was marked by the signing of the Summary of Discussions.
The talks covered key areas of future economic cooperation, with a strong focus on agriculture, innovation, start-ups, cybersecurity, and trade and investment promotion and facilitation.
“As we move forward in our bilateral relations, we have agreed to explore the possibility of an FTA between the Philippines and Israel,” said Trade Secretary Cristina Roque during the signing ceremony on Tuesday.
According to the trade chief, the goal is to seal the trade deal with Israel within the term of President Marcos or by 2028.
“But we hope that we can really push for the free trade agreement right away,” said Roque.
Nir Barkat, Israel’s Minister of Economy and Industry, said that having a direct flight between the Philippines and Israel “will make a big difference” in boosting trade and business deals.
“The challenge that we put is how do we move from here to a potential free trade agreement to enable our businesses to collaborate more, feel comfortable, that the two governments are giving an umbrella security to the people that want to do business together,” said Barkat.
Merchandise trade
Bilateral merchandise trade between the Philippines and Israel totaled $400.42 million in 2024, down by 16.3 percent from the previous year, data from the Department of Trade and Industry showed.
Net foreign direct investments from Israel, on the other hand, stood at P45.94 million in 2024, a 23.5-percent increase from the prior year.
Roque said they would soon have consultations and discussions with different industry stakeholders and conduct an impact assessment study this year to ensure that future negotiations are grounded in a mutually beneficial framework.
Barkat said Israel joined as the 69th member of multilateral development bank Asian Development Bank, to scale up the investments of Israeli companies in Asia.
“What I would add is that we can anticipate that … export from the Philippines to Israel will dramatically increase because it’s going to be worthwhile,” he added.
