Israel and the Philippines Initiate Talks on Free Trade Agreement

This week, the joint economic committee of the governments of Israel and the Philippines convened for the first time. The meeting concluded on a positive note with a joint announcement about the commencement of discussions to explore the possibility of negotiations towards a Free Trade Agreement (FTA).

The committee met in Makati City as part of the economic and political visit of Israel's Minister of Economy and Industry, Nir Barkat, to the Philippines. The meeting focused on the core areas of economic cooperation between the two countries. In addition to Minister Barkat, the meeting was attended by the Philippines' Minister of Trade and Industry, Ms. Cristina Roca, along with professional delegations from both countries. The committee also discussed steps to promote mutual trade and tourism, including the need to explore the establishment of a direct flight route between the two countries to strengthen trade and tourism ties. It was agreed that work mechanisms and schedules for preparing the negotiations would be formulated in the coming months.

The visit and the committee meeting are a direct continuation of previous initiatives: In 2020, an Israeli economic attaché was established in Manila, and in 2023, agreements for economic cooperation and investment protection were signed. Now, with the commencement of discussions on the possibility of a free trade agreement, Israel is deepening its activities towards one of the growing destinations in East Asia.

According to Minister Barkat, 'The State of Israel brings to the table the best of innovation, entrepreneurship, and technology. The Israeli delegation was composed of Israeli companies in the agrotech and foodtech sectors, mainly in the fields of nutritional security, renewable energy, and water management - areas of critical importance for the future of the region and the companies have aroused great interest in the Philippines. A free trade agreement with the Philippines will provide a competitive advantage for Israeli exporters against countries that already enjoy preferred access to one of the growing and central markets in Asia. The agreement is expected to open new opportunities for Israeli companies, diversify Israel's export destinations, and help reduce the cost of living as part of the policy I am leading. The collaborations we are promoting here are part of the national effort to increase Israeli exports to one trillion dollars a year.'