The Department of Trade and Industry (DTI) sees the possibility of elevating the country’s current economic ties with Israel into a free trade agreement (FTA) as it seeks to strengthen trade between the two countries.
Trade Secretary Alfredo Pascual said on the sidelines of an event in Makati on Wednesday evening that “anything is possible” when asked if Israel could be a potential FTA partner of the Philippines.
“I hope we can build up the trade between the countries,” he added.
The potential FTA is seen as an upgrade of the parties’ existing trade relations.
In June, the DTI inked an investment promotion and protection agreement with Israel, which highlights opportunities in agro-tech, life sciences and health care, water technologies, high-technology and semiconductors, cybersecurity, financial technology, defense industry and smart transportation, among others.
“We look to Israel more as a source of technology products and technology systems,” Pascual said, noting Israeli investors can invest in industry 4.0 technologies, including artificial intelligence.
Incentives
On the other hand, Pascual said that Israeli investors would also find it advantageous to set up shop in the country given its robust workforce and enabling regulatory environment.
The trade chief also vowed to assist Israeli enterprises in accessing finance, technology and market in the country to allow them to flourish.
Pascual said that pushing for free trade deals is among his campaigns as the country’s top trade official. He, as such, also reiterated the need to start FTA negotiations with other economies, including the United States.
Manila has been trying to secure an FTA with the United States to make export products, including clothing items, cheaper to enter the West.
But the country is entitled to US’ Generalized System of Preferences perks, which enables preferential, duty-free entry to the US market of some exports. Pascual said the country was in the process of renewing its trade incentives following the expiration in December 2020.
Meanwhile, the DTI chief said that the FTA with Korea was set to be inked by November this year. In October last year, Manila and Seoul concluded their FTA negotiations after over two years of discussion.