Trade Cooperation

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, equipments, 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.

COMPARATIVE TABLE OF PHILIPPINE TRADE WITH ISRAEL 2003-2008

EXPORTS TO ISRAEL IMPORTS FROM ISRAEL TOTAL TRADE BALANCE OF TRADE
2003 20,015,240 161,833,113 181,848,353 -141,817,873
2004 21,171,840 106,968,847 128,140,687 -85,797,007
2005 26,448,916 124,997,910 151,446,826 -98,548,994
2006 24,444,240 162,957,124 187,401,364 -138,512,884
2007 33,929,631 248,448,918 282,378,549 -220,222,904
2008 (Jan-Aug) 20,922,071 86,230,268 107,152,339 -65,308,197

SOURCE: Tradeline Philippines ( 2008 partial figures only)

SUMMARY OF TRADE BETWEEN THE PHILIPPINES AND ISRAEL 2003-2008

graph

TOP TEN PHILIPPINE PRODUCTS EXPORTED TO ISRAEL

PRODUCTS
1 Electronics (semi conductors; Electronic data processing; office equipment; communications; radar; automotive electronics)
2 Chemicals (organic chemicals; Oleochemicals; Petrochemicals)
3 Marine products (Live fish; canned tuna; prepared and preserved marine products)
4 Processed food (nuts; coconut products; processed fruits; meat and meat preparations; cereal and flour preparations; processed vegetables; beverages; sauces, condiments, spices and mixes)
5 Garments (Baby’s/infant’s wear; men’s wear; women’s wear; articles of apparel)
6 Machineries / Transport equipment (Transport equipment; automotive parts; metal machinery / equipment/parts)
7 Furniture (Bamboo, rattan and wood furniture; furnishings; plastic furniture; metal furniture)
8 Carrageena
9 Giftware (Desk accessories; articles made of shell)
10 Construction Materials (metal based; asbestos materials)

 

TOP TEN PRODUCTS IMPORTED FROM ISRAEL

PRODUCTS
1 Electronics (semi conductors; Electronic data processing; medical/industrial instrumentation; control and instrumentation; telecommunications; consumer electronics)
2 Industrial Manufactures (packaging products; plastic based; fiber/textile based
3 Chemicals (Organic and inorganic chemicals; fertilizers dyeing tanning and coloring materials)
4 Machineries/ Transport equipment (machineries, equipment; apparatus)
5 Consumer Manufactures (Pharmaceutical products; paper; soaps and detergents; printing and publishing materials; medical supplies; timepieces)
6 Processed food (processed fruits; processed vegetables; cocoa)
7 Cut flowers
8 Textile yarns, twine and cordages (Desk accessories; articles made of shell)
9 Natural oils, fats and waxes
10 Construction materials (metal based construction materials)