Wednesday, July 30, 2025

Israel, PH push for bilateral FTA before PBBM term expires; mull direct flights

The Philippines and Israel are working to establish direct flights between Manila and Tel Aviv, following the signing of the Summary of Discussions that concluded the inaugural Philippines-Israel Joint Committee (JC) Meeting, which is expected to jumpstart efforts to establish a bilateral Free Trade Agreement (FTA) within the term of President Ferdinand Marcos Jr.

At a press conference held on Tuesday, July 29, 2026, following the signing ceremony, Philippine Trade and Industry Secretary Cristina A. Roque and Israeli Minister of Economy and Industry Nir Barkat emphasized the importance of enhancing connectivity and trade between the two nations.

Minister Barkat, who previously served as mayor of Jerusalem for a decade, underscored the pressing need for direct air links, citing the lengthy 16-hour travel time to Manila as a hindrance to business and tourism.

He highlighted the benefits of strengthening people to people relations, improved accessibility, including increased tourism and easier travel for the large number of Filipino Catholics who visit the Holy Land for pilgrimage purposes.

“We strongly believe we have a direct flight because it took us 16 hours to travel here,” said Minister Barkat, who once employed a Filipina caregiver.

In response, Secretary Roque committed to raising the matter with Transportation Secretary Vince Dizon and Tourism Secretary Maria Esperanza Christina Frasco, referencing similar arrangements with other countries.

FTA

Regarding the proposed FTA, Roque stated that discussions could commence soon, with the aim of finalizing the agreement before the end of President Marcos’ term. The administration has consistently supported the expansion of the Philippines’ FTA network.

Minister Barkat noted that, should negotiations proceed, Israel would not seek to export fruits, vegetables, or other agricultural goods to the Philippines. Instead, the focus would be on providing advanced technologies and services to boost agricultural productivity.

Israel, with a population of 10 million and a GDP per capita exceeding USD 54,000, is widely recognized as a leader in technological innovation. Minister Barkat explained that although 30 percent of Israel’s population were once engaged in agriculture, the current emphasis is on agritech and aquatech development, enabling higher output.

JCM Summary

FTA negotiations will be guided by the JC Meeting Summary, which outlines key areas for future economic collaboration. These include agriculture, innovation, start-ups, cybersecurity, and trade and investment facilitation.

The high-level meeting, attended by senior officials and ambassadors from both countries, served as a platform to discuss economic developments and identify actionable strategies to enhance bilateral economic ties.

“This meeting reflects the enduring economic partnership between the Philippines and Israel,” said Secretary Roque. “We are aligning our priorities in areas of mutual interests that will support the next phase of our countries’ sustainable and secure growth.”

In the field of agriculture, discussions focused on boosting private sector involvement in joint development initiatives. Topics included innovative irrigation systems, climate-resilient crops, livestock complexes, and smart greenhouses. Knowledge-sharing on agrotechnology and modern water and land resource management was also explored.

Technological innovation and R&D emerged as other focal points. Both countries committed to implementing the Agreement on Cooperation in Technological Innovation, Research and Development, signed on June 6, 2022. This includes launching joint R&D projects, exchanging best practices, and supporting start-up development through shared experiences.

With digitalization accelerating globally, cybersecurity cooperation was also emphasized. The two sides expressed mutual interest in enhancing collaboration through knowledge-sharing, technical discussions, and capacity-building initiatives.

Additional areas of cooperation identified during the meeting included intellectual property rights, human capital development, customs processes, and trade promotion.

The successful outcome of the meeting and the signing of the Summary of Discussions signify a strengthened bilateral economic relationship and lay the groundwork for continued collaboration on shared economic goals.

Israel is currently the Philippines’ 34th largest trading partner. Bilateral trade between the two countries reached USD 400 million in 2024, with the Philippines recording a trade deficit of USD 114.89 million in favor of Israel.

The Philippines’ key exports to Israel include digital monolithic integrated circuits, measuring and checking instruments, appliances, and aircraft parts. Imports from Israel primarily consist of digital integrated circuits and armored military equipment.

Net foreign direct investment (FDI) from Israel amounted to PHP 46 million, with the bulk of investments directed toward financial and insurance activities.

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