The governments of the Philippines and Israel have both sent their economic team for the first meeting of its Joint Economic Committee, which looks to host first-round negotiations for a possible Free Trade Agreement (FTA) between the two countries.

In a statement, the Embassy of Israel in Manila said that the Joint Economic Committee held its first meeting in Makati City last July 29. The committee was headed by Minister of Economy and Industry Nir Barkat and Department of Trade and Industry (DTI) Secretary Cristina Roque.

“A free trade agreement with the Philippines will provide a competitive advantage to Israeli exporters vis-à-vis countries that already enjoy preferential access to one of the growing and central markets in Asia,” Barkat said.

“The agreement is expected to open new opportunities for both Israeli and Philippine companies, diversify Israel’s export targets, and help reduce the cost of living as part of the policy that I am leading,” he added.

During the meeting, both sides agreed that the working mechanisms and timetables in preparation for the negotiations for a free trade pact would be formulated in the coming months.

This development came as the Joint Economic Committee paved the way for strengthening the economic ties between the Philippines and Israel.

Described by the Israeli Embassy as “a significant milestone,” the committee opened the opportunity to begin talks and examine the feasibility of opening negotiations towards an FTA.

Barkat, who champions the strengthening of economic cooperation between the two countries, was in the Philippines for an economic and diplomatic visit.

“We see the Philippines as a strategic partner for joint efforts and cooperation in a variety of areas, including agriculture, water, energy, cyber, health and sustainability,” he said.

“We are working to expand Israel's economic ties with East Asian countries, as part of a comprehensive approach to developing new markets for Israeli exports,” the minister added.

Aside from the possibility of an FTA, the two sides also discussed steps that must be taken to encourage mutual trade and tourism. This includes the need to consider beginning a direct flight route between the two countries to help boost trade and tourism ties.

According to the embassy, Barkat’s visit and the committee meeting were “direct continuation of previous steps”—the opening of the Israeli economic office and the appointment of an economic attache in Manila in 2020 and the signing of the agreements for economic cooperation and investment protection in 2023.

“Now, with the opening of feasibility talks towards a free trade agreement, Israel is deepening its activities vis-à-vis one of the growing markets in South East Asia,” it added.

The total trade volume between Israel and the Philippines is around $408 million, with exports—machinery, electronics, chips, communications equipment, and industry—from Israel at $189 million.

The value of Imports from the Philippines, meanwhile, is around $219 million. This covers electronic components, computer equipment, and printed circuits.