THE

CONTEMPORARY
WORLD

Submitted by: Bethany Jane C. Mascardo

Submitted to: Kenneth Emmanuelle A. Bana-ay

 History of Trading Relationship of Israel and Philippines

The Philippines and Israel relations have always been warm and friendly. Political, Cultural,
Economic, Scientific and Technological cooperation between the two countries continue to
prosper. The year 2007 marks the 50th Anniversary of the Establishment of Diplomatic Relations
between the Philippines and Israel. In 1957, the State of Israel and the Republic of the
Philippines established full diplomatic relations with the signing of the Treaty of Friendship on
26 Feb 1958. The Embassy of the Republic of the Philippines in Tel Aviv and the Embassy of
the State of Israel in Manila were opened in 1962.

 Philippines and Israel Trade Cooperation continue to grow but remains minimal in
comparison with other countries in Europe and America. In 2007, the Philippine exports to Israel
amounted to US$ 33,929,631 while imports from Israel reached US$ 248,448,918. The negative
trade balance is mainly because Israel exports are mostly high value products such as electronics,
equipment, machineries, and technology compared to Philippines’ processed food and furniture.

 Total trade between the Philippines and Israel in 2007 was the highest in five years with
the total amount of US$ 282,378,549.

 The January to July 2007 total trade amounted to US$ 165,989,564 while the 2008
figures covering the same period is US$ 107,152,339, slightly lower than the same period in
2007.

 It may be worthy to mention though, that for the past four years total trade between the
Philippines and Israel continue to register growth, owing to the promotion efforts conducted by
the Embassy to attract more exchange in trade between the two countries. The Department of
Trade and industry’s support has always been instrumental to the success of the Embassy’s
efforts.

 Israeli investors are also slowly targeting the Philippines as possible investment site.
Embassy received an increasing number of trade and investment inquiries ranging from
greenhouse farming to solar energy.

 Investment to the Philippines by Israeli businessmen is showing positive signs owing to

the intensive efforts of the Government to promote the Philippines as the best investment site in
South East Asia because of its improved policies, incentives and investment climate.

 The Embassy believes that in order to further strengthen its bid to improve exchange of
trade with Israel, the Philippine government should consider initiating a high level visit of
government
 officials particularly from the Department of Trade and Industry. Israel is now geared on trading
with Asian countries because of its potential market. In fact,

 Israel Venture Capital Industry is looking at China and India as its future partner. The
Philippines could take this cue and grab the opportunity to express its interest to improve trade
with Israel through high level visits which could eventually culminate with an exchange of visits
of Ministers of Trade of both countries.

 The Embassy recommends that a trade mission to Israel be organized to set the
groundwork for an eventual high level visits. This would allow both Philippines and Israeli
businessmen to assess the market and lay the foundation for a greater cooperation between the
two countries. The

 Embassy is working closely with the Israel-Asia Chamber of Commerce which could
greatly assist in the organization of the trade mission and the Minister’s visit.
PHILIPPINE PRODUCTS EXPORTED TO ISRAEL

1. Processed food (nuts; coconut products; processed fruits; meat and meat preparations; cereal and flour preparations;
processed vegetables; beverages; sauces, condiments, spices and mixes)

Ex.

2. Furniture (Bamboo, rattan and wood furniture;

furnishings; plastic furniture; metal furniture)

3. Giftware (Desk accessories; articles made of shell

4. Garments (Baby’s/infant’s wear; men’s wear; women’s wear; articles of apparel)
5. Marine products (Live fish; canned tuna; prepared and preserved marine products)

PRODUCTS IMPORTED FROM ISRAEL TO PHILIPPINES

1. Electronics (semi conductors; Electronic data processing; medical/industrial instrumentation; control and instrumentation;
telecommunications; consumer electronics)

2. Processed food (processed fruits; processed vegetables; cocoa)

3. Textile yarns, twine and cordages (Desk accessories; articles made of shell)
 4. Natural oils, fats and waxes
5. Construction materials (metal based construction materials)

SOURCE:

Tradeline Philippines (2008 partial figures only)

SUMMARY OF TRADE BETWEEN THE PHILIPPINES AND ISRAEL 2003-2008