The Philippines and Israel have agreed to begin formal groundwork toward a potential Free Trade Agreement (FTA), marking a new phase in bilateral economic engagement between the two countries.
Trade Secretary Cristina Roque confirmed on Tuesday both sides are looking to launch formal negotiations following the first Philippine-Israel Joint Committee meeting held in Makati City.
Roque said the Department of Trade and Industry (DTI) will spend the remaining months of 2025 conducting domestic consultations, impact assessments and inter-agency discussions to establish a “well-informed and mutually beneficial” negotiating framework.
Israel’s Minister of Economy and Industry Nir Barkat emphasized the strategic value of an FTA, citing Israel’s recent trade deals with Vietnam, South Korea, and ongoing talks with India and Japan.
“We believe in FTAs,” Barkat said. “They create conditions where businesses on both sides can collaborate confidently under a secure and stable policy environment.”
Israel ranks as the Philippines’ 30th largest export destination and 38th import source, DTI data showed.
Philippine exports to Israel include desiccated coconut, frozen octopus, and coconut oil — all of which have seen notable increases in recent years.
Total bilateral trade in 2024 reached $400.42 million, down 16 percent from $478.17 million in 2023. Israel’s top exports to the Philippines include integrated circuits and military equipment such as tanks and armored vehicles.
Both sides identified agriculture, aquaculture, innovation, cybersecurity, startups and trade facilitation as areas for expanded economic cooperation.
Barkat also raised the need for establishing direct flights between the two countries to support both tourism and trade. “The Holy Land is waiting for you,” he added.
