Profit or Principle: What’s Really at Stake in the Philippines–Israel Trade Deal

Photo credit: Philippine Finance Ministry

Government’s push for global trade: Who really benefits?

The Philippines’ recent thrust to expand global trade partnerships follows the 2022 Investment Promotion and Protection Agreement (IPPA) with Israel and the 2025 initiation of free trade agreement (FTA) talks. While these moves are framed as opportunities for growth, they raise urgent questions about who truly benefits, and at what cost.

Investment Protection or National Risk? Who Really Gains Access?

On June 7, 2022, the Philippines and Israel signed the Investment Promotion and Protection Agreement (IPPA). This deal promises rules to protect investors, including fair treatment, equal opportunities, and clear dispute resolution mechanisms. The agreement officially entered into force in March 2024 after completing all procedural requirements.

Through the IPPA, Israel is encouraged to invest more in the Philippines, especially in sectors where it excels: agricultural technology, healthcare, water systems, cybersecurity, fintech, clean energy, semiconductors, smart factories, and smart transport.

While the deal may bring economic growth, it also carries risks. Filipino farmers and small businesses may struggle to compete with Israel’s advanced technologies, potentially becoming overly dependent on foreign suppliers. Israeli farm tools and systems are costly, which could trap farmers in debt. The agreement primarily protects foreign investors, not local workers or communities, putting people at risk if projects cause harm. In practice, Israel may gain more than the Philippines, making us a buyer rather than a true partner.

More importantly, critics also warn that deepening trade ties with Israel risks economic dependency and politically aligns the Philippines with a government internationally accused of severe human rights violations. For many, the prospect of an FTA signals not just trade cooperation, but a troubling alignment with a regime facing global condemnation.

Innovation at What Price?

Officials claim the IPPA will help the Philippines access Israel’s expertise in agriculture, healthcare, and water management, potentially making local industries more competitive.

But dependence on costly Israeli technology could burden small farmers and businesses. Tools like advanced irrigation systems, smart greenhouses, and water management solutions are expensive to purchase and maintain. Local farmers and businesses, already operating on tight margins, may struggle to afford these technologies or become locked into contracts that tie them to foreign suppliers for parts, software, and upgrades. Instead of building self-reliant agricultural systems, the Philippines risks creating a cycle of dependency that weakens local innovation and pushes vulnerable communities deeper into debt.

Beyond economics, the agreement carries serious political and ethical consequences. Israel continues to face global condemnation for its genocide and systematic oppression of Palestinians - acts widely denounced by human rights groups and international bodies as violations of international law.

By deepening trade ties, the Philippines is not merely seeking new markets, it risks signaling complicity in these atrocities, placing profit above principle. Such agreements normalize relations with a regime responsible of mass killings, forced displacement, and apartheid policies.

Economic diversification cannot, and must not, come at the cost of national dignity, social justice, and solidarity with oppressed peoples. To do so betrays the very values the Philippines claims to uphold in its own history of resistance against colonialism and oppression.

Meanwhile, Makabayan bloc lawmakers ACT Teachers Rep. Antonio Tinio and Kabataan Rep. Renee Co filed House Resolution No. 231, urging the Philippines to cut military and trade ties with Israel over the ongoing genocide in Palestine. They called to end arms deals and intelligence-sharing, emphasizing that Philippine resources must not support Zionist aggression, while condemning U.S. backing of Israel.

No Trade Without Justice, No Growth Without Dignity

The Philippines–Israel IPPA and FTA talks are presented as opportunities for growth, promising investments, new technologies, and wider economic partnerships. But behind these promises lie serious risks: growing inequality, dependency on costly foreign systems, and the moral burden of aligning with a state condemned for human rights abuses.

Filipinos, whether at home or abroad, must remain vigilant. Our nation’s future cannot be built on deals that weaken local industries, silence communities, or trade away our values for short-term gain. The struggle for dignity, fairness, and sovereignty belongs to all of us, not just negotiators.

We must demand policies that uplift our farmers, workers, and small businesses. Trade agreements must reflect not only economic interests but also justice, solidarity, and the lessons of our history of resistance. In unity, Filipinos everywhere can remind the world that true progress is measured not by profit, but by the protection of people, land, and freedom from foreign dominancy.