Philippines, Israel forge MOU on economic cooperation

TEL AVIV – Trade Secretary Ramon Lopez has signed a memorandum of understanding (MOU) on economic and technical cooperation with Israel Economy and Industry Minister Orna Barbivay, with both ministers also discussing ways to strengthen trade and economic relations between the Philippines and Israel.

An outcome of the presidential visit of President Duterte in 2018, the MOU seeks the establishment of a bilateral consultative mechanism that will develop and strengthen trade, enhance investments, and advance economic ties between the Philippines and Israel.

In establishing a Joint Economic Commission (JEC), the two countries agree to exchange information on economic issues, identify and implement cooperative projects, organize consultations, missions, and official visits and enhance cooperation and linkages with their respective private sectors.

Lopez recognized the importance of the newly signed JEC as a platform to further improve Philippine-Israel economic relations, especially in the post-COVID-19 pandemic recovery period. He said, “As the country accelerates its efforts for continued recovery from the pandemic and managed to sustain inclusive growth, we continue to actively pursue new partnerships, either through JECs agreements and free trade agreements (FTAs) with strategic and non-traditional partners.”

Moreover, the MOU aims to explore and identify sectors where cooperation may be intensified and accordingly propose recommendations with the intent of expanding and diversifying trade and investments.

During the meeting, Lopez shared its list of priority sectors for investment promotion, including agribusiness/agriculture production, energy efficiency technologies and renewable energy, infrastructure and public private partnership projects (such as infrastructure, real estate development, logistics), innovation (artificial intelligence), IT-BPM (including shared services) and manufacturing (electronics and digital infrastructure).

The Philippine trade chief also highlighted the country’s economic reforms and key legislation necessary that positions the country as a hub for investment, manufacturing and innovation, through ease of doing business (EODB), Public Service Act (PSA), and Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law.

He added, “With the economic reforms instituted over the past six years and the strong domestic rebound, the country is on track to post 7 to 9 percent growth this year and hopefully achieve upper-middle-income status by next year.”

Barbivay lauded the initiatives pushed by the outgoing administration of President Duterte to liberalize the Philippine economy and attract more foreign investments. Further, she expressed hope that more Israeli companies would invest in the Philippines which would result in economic gains for both countries.

In 2021, Israel ranked 35th among the Philippines’ trading partners, 35th among export markets, and 31st among import suppliers. During the same year, Israel also ranked 12th among the Philippines’ sources of approved investments, amounting to P829.9 million focused on real estate.

Lopez also acknowledged Philippine Ambassador to Israel Macairog Alberto, and Israel Ambassador Illan Fluss and DTI BOI and BITR teams led by Undersecretary Ceferino Rodolfo and BOI Governor Marge Samaniego for working closely in finalizing the agreement.

The MOU comes right after the earlier signing of the first Investment Promotion and Protection Agreement between Philippines and Israel to encourage more investment flow between the two nations.