Israel wants to establish financial protocol with PHL —DOF

The government of Israel is proposing to establish a financial protocol with the Philippines to streamline the exchange of information on trade and investments between the two countries.

In a statement on Tuesday, the Department of Finance (DOF) said Israeli Ambassador Rafael Harpaz proposed the establishment of a financial protocol with Manila to promote bilateral trade and investments during a meeting with Finance Secretary Carlos Dominguez III.

Harpaz underscored the need for a financial protocol as at least 10 Israeli companies have expressed interest in investing in New Clark City in Pampanga, being showcased by the Duterte administration as the country’s first smart and green metropolis, according to the DOF.

“It is something we can look into,” the Israeli envoy said as quoted by the DOF.

The envoy also pointed out that Israel has already concluded and signed financial protocols with some countries in the region.

Dominguez welcomed Harpaz's proposal and tasked Finance Undersecretary Mark Dennis Joven, who heads the International Finance Group of the DOF, to coordinate with the Israeli Embassy on the matter.

The Finance chief also said that the Philippines and Israel can explore possible partnerships in technology and construction sectors.

“There are ample opportunities for bilateral cooperation between the Philippines and Israel in the technology and construction sectors. We have invited Israeli experts in these fields to visit the Philippines to explore possible cooperation arrangements,” Dominguez said.

The Finance chief underscored Israel's status as one of the world’s most active hubs of technology innovation and "green" or eco-friendly construction.

Dominguez said the Philippines can learn much from Israel’s expertise in these fields to ensure that the “Build, Build, Build” program is implemented efficiently by optimizing the use of labor and other resources.

The Cabinet official has also asked Bangko Sentral ng Pilipinas (BSP) Deputy Governor Chuchi Fonacier to meet with Israeli officials to discuss ways of tapping Israel’s technological innovations in cybersecurity, as the Philippines increasingly uses electronic payments systems to facilitate trade and expand the financial access of unbanked Filipinos.

Harpaz, for his part, welcomed Dominguez’s proposals and offered Israel’s assistance in improving the Philippines’ capacity to utilize "green" technologies in implementing infrastructure projects as well as digital solutions to improve BSP’s cybersecurity system.

Total bilateral trade between the Philippines and Israel amounted to $170.57 million in 2018.

Israel ranked 42nd among the markets for Philippine exports in 2018, with electrical machinery and equipment, commodities, preparations of meat, fish crustaceans, nuclear reactors, and medical instruments making up 71 percent of the goods exported to that country.

The Philippines, in turn, had imported mostly electrical machinery, nuclear machinery, arms/ammunition and fertilizers from Israel.

The two countries signed these three agreements during President Duterte’s state visit to Israel in September last year: the Memorandum of Agreement on the temporary employment of home-based Filipino caregivers; Memorandum of Understanding on scientific cooperation; and Memorandum of Intent on the collaboration on promotion of bilateral direct investments. —LDF, GMA News