MANILA – July 30, 2025 — The Philippines and Israel have officially initiated discussions on a potential Free Trade Agreement (FTA), signaling a strategic expansion of economic ties and investment flows between both nations. The move followed the signing of a “summary of discussions” during the inaugural Philippines–Israel Joint Committee meeting held virtually on July 1, 2025, with officials agreeing to explore an FTA by the end of President Marcos Jr.’s term in 2028.

At a signing ceremony in Makati City on July 29, Philippine Trade Secretary Cristina Roque and Israeli Economy Minister Nir Barkat affirmed their countries’ mutual commitment to begin consultations and stakeholder engagements. Roque emphasized agriculture, high‑tech, renewable energy, and cybersecurity as priority sectors in the proposed pact.

Israel’s Barkat, noting his country has over 16 existing FTAs—including those with Vietnam, Korea, India, and Japan—said negotiations would begin soon and that “many investors will start collaborating now” in anticipation of reduced trade barriers.

In parallel, Socioeconomic Planning Secretary Arsenio Balisacan called for a cautious yet comprehensive review, saying the FTA must be grounded in stakeholder studies and clear understanding of trade-offs. He stressed that the gains from innovation, technology transfer, and agricultural modernization may outweigh simple export-import balances.

Economic data from 2024 shows bilateral trade amounted to approximately US $400 million, with Israel ranking as the Philippines’ 34th‑largest trading partner. Growth in exports—particularly coconuts, octopus, coconut oil, and electronics—reflect deepening engagement across sectors.

Economic cooperation was further highlighted during a gala last night, attended by Barkat and Roque, which emphasized tourism, bilateral investment, and direct flights as means to stimulate people-to-people exchange and trade in high-value sectors.

The FTA exploration marks a pivotal shift in the Philippines’ trade policy: from regional alliances toward strategic bilateral accords with innovation-driven economies like Israel. As both governments enter stakeholder consultation phases, observers expect detailed impact assessments and public-private workshops to shape the proposed agreement before formal negotiations begin.

(Larawan mula sa Philippine News Agency)