Philippines, Israel bullish for an FTA

Philippines, Israel bullish for an FTA | Daily Tribune

Amid ongoing uncertainty in tariff talks between the United States and the Philippines, the latter could very well enjoy options in exporting locally-made goods to Israel soon, with the two countries’ trade leaders both signifying willingness to start free trade agreement (FTA) talks.

Department of Trade and Industry Secretary Cristina Roque said the DTI has started consultation with Israeli counterparts for an FTA, similar to what she and her confreres have been doing with other nations, on instructions from President Ferdinand Marcos Jr.

“But before we can get started, we have to start consultations with different stakeholders and also with different industries. But we hope to push for this FTA with Israel, and we want to accomplish it before the term of PBBM ends,” she said in a press conference after her bilateral meeting with Israeli Minister of Economy and Industry Nir Barkat at the DTI office in Makati City on Tuesday.

For his part, Israeli Minister Barkat said Israel is a believer in an FTA, as they have over 16 such agreements with various countries, including Vietnam, a tough Philippine competitor in the ASEAN region when it comes to investments.

“We are in the process of doing an FTA with India and Japan, and we want to continue this with the Philippines. We believe in the relationship between the two countries,” he said.

Summary of Discussions

Last 1 July, Secretary Roque and Minister Barkat had a virtual discussion, which culminated in the signing of a Summary of Discussions that outlines key areas of future economic cooperation, with a strong focus on agriculture, innovation, start-ups, cybersecurity, and trade and investment promotion and facilitation.

Barkat said that with the FTA, exports from the Philippines to Israel will increase.

“We will not export fruit and vegetables to the Philippines, but the technology that would increase yields, productivity, and the ability to create more food,” he said, allaying fears that Philippine agriculture would be affected if an FTA takes place with Israel.

“So, what we propose is how we can do things much better, much faster, and as much as the Philippines would like to adopt new technology that increases the GDP and the productivity. That’s where we come into the picture. So, we’re probably going to be much bigger importers, but also exporters. We’re not doing the same. So, it’s a classic win-win, in my mind, that the FTA could provide,” Barkat further explained.

Agriculture

On agriculture, discussions have centered on strengthening private sector participation in collaborative development projects.

Key areas explored included innovative irrigation, the introduction of climate-adapted crop varieties, and the establishment of livestock complexes and smart greenhouses.

Discussions have also covered sharing expertise in agrotechnology and adapting modern, resource-efficient water and land management systems.

Another key discussion point was technological innovation, research and development (R&D), as both sides aim to facilitate the implementation of the Agreement on Cooperation in Technological Innovation, Research and Development, signed on 6 June 2022.

This includes pursuing R&D and pilot projects through joint calls for proposals, and supporting these efforts through the exchange of experiences, best practices, and knowledge on startup development.

Cybersecurity

With the growing importance of digital connectivity, cybersecurity also emerged as an important focus of the meeting.

Both sides expressed willingness to collaborate through discussions, information-sharing, and capacity building in a number of areas.

Apart from these, both sides also expressed their interest in exploring areas of cooperation in intellectual property, training and development, customs, and trade promotion.

The successful outcome of the bilateral meeting and signing of the Summary of Discussions marks a step forward in an economic partnership between the Philippines and Israel, setting the stage for practical actions and continued dialogue in advancing mutual economic goals.