The Philippines and Israel have been actively working to strengthen their economic ties through various agreements and initiatives. In June 2022, the two nations signed the Investment Promotion and Protection Agreement (IPPA), aiming to enhance bilateral economic relations by facilitating direct investments. This agreement covers key sectors such as agriculture, health, water management, information and communications technology (ICT), cybersecurity, financial technology, defense industry, smart transportation, smart manufacturing, and diamond industry development.
Following the IPPA, the Philippines and Israel established the Joint Economic Commission (JEC) to develop a roadmap for boosting trade and investment relations. The JEC serves as a platform for regular consultations, information exchange, and the identification of cooperative projects to enhance bilateral economic cooperation. The first JEC meeting was anticipated to take place within the year of its establishment, focusing on sectors like agriculture, technology, ICT, cybersecurity, and electronics.
In August 2022, the Department of Trade and Industry (DTI) of the Philippines expressed interest in exploring the possibility of a Free Trade Agreement (FTA) with Israel. DTI Secretary Alfredo Pascual highlighted the potential benefits of such an agreement, emphasizing the importance of building up trade between the two countries. However, Israeli Ambassador Ilan Fluss noted that a certain level of trade and variety in areas would be necessary to make an FTA mutually beneficial, suggesting that the current trade volume might not yet justify such an agreement.
Despite these discussions, as of July 2025, there have been no official announcements regarding the initiation of FTA negotiations between the Philippines and Israel. The focus remains on strengthening existing economic ties through the IPPA and the JEC, with both nations continuing to explore avenues for deeper collaboration in various sectors.