Israel and Philippines sign business agreement

The agreement will encourage and protect investments between the countries.

 Finance Minister Avigdor Liberman and Filipino Secretary of Trade and Industry Ramon Lopez. (photo credit: FINANCE MINISTRY)
Finance Minister Avigdor Liberman and Filipino Secretary of Trade and Industry Ramon Lopez.
(photo credit: FINANCE MINISTRY)

Finance Minister Avigdor Liberman and Filipino Secretary of Trade and Industry Ramon Lopez signed an agreement on Tuesday that encourages and protects investments between Israel and the Philippines.

The trade deal

The deal aims to create an investment environment that encourages economic activity by providing a basket of commitments to investors from both Israel and the Philippines. It is expected to provide security and stability to foreign investors and encourage capital movements between the two countries. It covers regulatory issues, prevention of expropriation of assets, free flow of capital and advanced protection mechanisms for the rights of foreign investors in the host country.

“The investment protection agreement signed will help develop economic ties between the countries,” Liberman said. “The commitment between the countries to encourage mutual investment and provide optimal conditions for investors will strengthen existing economic activity and enable new opportunities for the private sector in both countries.”

“The commitment between the countries to encourage mutual investment and provide optimal conditions for investors will strengthen existing economic activity and enable new opportunities for the private sector in both countries.”

Finance Minister Avigdor Liberman
 Finance Minister Avigdor Liberman and Filipino Secretary of Trade and Industry Ramon Lopez. (credit: FINANCE MINISTRY) Finance Minister Avigdor Liberman and Filipino Secretary of Trade and Industry Ramon Lopez. (credit: FINANCE MINISTRY)

The Philippines’ economy has grown significantly in the last decade, averaging about 6.4% annually from 2010-2019, according to the World Bank.

Following the coronavirus pandemic, the Philippines managed to bounce back from a 35% decline in global investment flow in 2020, increasing its incoming investment almost 30% this year.

“The high growth in the Philippines over the last decade and the increase in investment flows to it, together with the agreement signed, will strengthen economic cooperation and increase investment between the countries,” said Shira Greenberg, the Finance Ministry’s chief economist.

The Philippines is a major partner in significant Asia-Pacific regional trade agreements, and in conjunction with the investment agreement signed today, it will open up new opportunities for Israeli companies and investors operating in these markets,” she said. “Reaching an investment encouragement and protection agreement with the Philippines... is an important step in strengthening economic ties between the countries.”