The Philippines is conditioning future arms deals with Israel on a political declaration recognizing Manila’s sovereignty in the contested South China Sea, Israeli defense officials told Calcalist.
The demand has stalled new defense agreements for several months and comes despite Israel’s long-standing neutral stance in the regional dispute, a flashpoint between the Philippines and China. While previously signed contracts are still being fulfilled, Israeli defense companies and government officials say the standoff is putting future deals—potentially worth billions of dollars—at risk.
According to the report, the Philippine Department of National Defense is pressing Israel for a public statement by a senior government official, such as the prime minister or foreign minister, recognizing the Philippines’ territorial claims. The demand comes even though a 2016 ruling by the Permanent Court of Arbitration in The Hague invalidated China’s sweeping claims to the region.
Israeli officials have resisted the request. “They’re insisting on recognition of their sovereignty in the South China Sea, similar to how Israel recognized Moroccan sovereignty over Western Sahara two years ago,” a senior defense official told Calcalist. “Without such a declaration, Manila will not sign any new arms deals with us.”
The diplomatic friction coincides with broader Israeli defense priorities. In recent months, Israel’s Ministry of Defense instructed arms manufacturers to prioritize equipment for the Israel Defense Forces amid the ongoing war, even at the cost of delaying international deliveries. The Philippines was awaiting equipment from Israeli company Elbit Systems at the time. Despite a visit by then-Defense Ministry Director General Eyal Zamir, now the IDF chief of staff, Manila insisted the deliveries proceed on schedule.
Israel and the Philippines have built extensive defense ties over the past decade. Major deals include Rafael’s SPYDER air defense systems, Elbit’s ATMOS artillery and drones, and a $200 million contract for nine patrol boats built by Israel Shipyards and outfitted with Rafael’s Typhoon weapon stations. The final vessel is due for delivery next month.
Under former President Rodrigo Duterte, the Philippines also purchased a Gulfstream G280 executive jet from Israel Aerospace Industries for $40 million. Duterte, who left office in 2022 and was replaced by Ferdinand Marcos Jr., was arrested in March at Manila’s airport under an International Criminal Court warrant for alleged crimes against humanity, including extrajudicial killings and incitement of sexual violence by the military.
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During a 2018 visit to Israel, Duterte met with Prime Minister Benjamin Netanyahu and then-President Reuven Rivlin. At the time, he praised Israel’s arms industry and said the Philippines would buy weapons exclusively from Israel due to its lack of usage restrictions.
Israeli defense exports to the Philippines have averaged $400 million annually in recent years, with officials seeing significant potential for future deals as the Philippine military continues to modernize. But industry sources warn that Israel risks losing its foothold if the political impasse continues.
“There’s no vacuum in the global defense market,” one official said. “If we don’t compete, companies from the U.S., France, or Turkey will step in.”
Dr. Lauren Dagan Amos, an expert on the Indo-Pacific and member of the Deborah Forum, said Israel’s limited diplomatic engagement in the region has left it ill-equipped to navigate complex disputes like the one over the South China Sea.
“The Philippines wants to upgrade relations with Israel, but it’s just not happening,” she said. “Israel is looking at this issue through a straw, and that outdated mindset puts it in a weak position.”
Elbit Systems said in a statement that it “considers the Philippines a valued client” and has delivered a range of capabilities “being used to its satisfaction.” The company expressed hope that bilateral issues would be resolved soon.
The Israeli Foreign Ministry said the matter is under discussion with the Defense Ministry and relevant industries. It rejected the notion that Israel’s stance on the South China Sea is the decisive factor in the dispute, calling the claim “baseless.”