Philippines Hopes New Tel Aviv-Manila Air Route Will Spur Free Trade Deal with Israel

Israeli airline Arkia said on Tuesday it would launch the first nonstop flights between Tel Aviv and Manila in early 2027, a move the Philippines hopes will be a springboard to a free trade agreement with Israel. The establishment of this new air route is expected to boost people-to-people exchanges and the flow of goods between the two nations, thereby strengthening economic ties. In particular, the Philippines is likely seeking opportunities to adopt Israel's advanced technologies and innovations, while Israel aims to gain access to the Philippines' growing market. For the Philippines, a free trade agreement with Israel could lead to the expansion of export markets, attraction of investments, and enhancement of the competitiveness of its domestic industries. While the Philippines has experienced continuous economic growth in recent years, it also relies heavily on overseas workers. Strengthening economic relations with Israel could be a significant step towards diversifying the domestic economy and achieving sustainable growth. Amidst rising tensions in the South China Sea, the Philippines appears to be seeking to diversify its economic partnerships as a means of mitigating geopolitical risks. Strengthening ties with Israel may not only bring economic benefits but also help stabilize the Philippines' position in the international community. In terms of Japan-Philippines relations, the expansion of the Philippines' international economic partnerships could signal new business opportunities and supply chain development possibilities for Japanese companies. If the Philippines successfully concludes a free trade agreement with Israel, similar moves might ripple through to other countries. —Reporting by Steven Scheer;Editing by Alison Williams