The Philippines and Israel are looking to forge a free trade agreement (FTA) aimed at deepening economic ties and removing trade barriers between the two nations. This move aligns with Manila’s broader push to strengthen partnerships in Asia and attract fresh investments.
Following the inaugural Philippines–Israel Joint Committee Meeting, officials signed a Summary of Discussions outlining plans for closer cooperation, especially in agriculture, cybersecurity, and health technology. Trade Secretary Cristina Roque emphasized that both sides are eager to conclude the FTA within President Marcos’ term, which ends in 2028.
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Stronger Trade Ties and New Opportunities
Israeli Minister of Economy and Industry Nir Barkat described the planned deal as a first step toward easing restrictions for businesses in both countries.
“Our goal is zero tariffs on both sides. We want to eliminate obstacles so that business people feel we’re one market,” Barkat told reporters, adding that technical work had already begun.
While full negotiations could take around two years, Barkat noted that the announcement itself could already spark interest among Israeli investors to explore the Philippine market sooner rather than later.
“The impact is immediate. Once investors see the direction, they will begin exploring opportunities now, not two years from now,” Barkat stressed. “We have over 750 companies in food and agriculture tech and 2,000 startups in health and life sciences.”
Barkat also highlighted Israel’s strengths in agritech, digital health, and water management, sectors where the Philippines could benefit from advanced solutions.
Broader Cooperation Beyond Trade
Beyond trade, Israel expressed interest in boosting tourism, labor cooperation, and education exchanges. Barkat praised the work ethic of over 30,000 Filipino caregivers in Israel and suggested opening more opportunities for Filipino professionals and students.
“Filipinos are known for being the best caregivers, and we want more,” Barkat said.
The trade chief also mentioned plans for consultations with local industries and an impact assessment this year to ensure negotiations move forward on fair terms. Meanwhile, Barkat welcomed the idea of a direct flight between the Philippines and Israel, saying it could further strengthen business and tourism links.
With total bilateral trade reaching over $400 million in 2024, both nations are optimistic the proposed FTA will help boost these numbers. “This is the beginning of a significant chapter in our bilateral relations,” Barkat added, underscoring Israel’s view of the Philippines as a trusted partner in Asia.
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