Prime Minister Stephen Harper and Israeli Prime Minister Benjamin Netanyahu signed a wide-ranging set of bilateral goals Tuesday and agreed to expand a free trade pact during their meeting in Jerusalem.

The two leaders said free trade negotiations would be held in Israel from Feb.3-9 to expand and modernize the Canada-Israel Free Trade Agreement initially signed in on Jan.1, 1997.

The prime minister said the aim of the new round of talks is to reduce technical barriers to trade, more quickly resolve market access irritants and create new opportunities for Canadian agriculture, agri-food, and fish and seafood companies in the Israeli market.

"An expanded and modernized trade agreement with Israel will generate more jobs and economic growth at home and in Israel, while strengthening the close friendship that both countries enjoy," said Harper.

The two leaders also agreed Tuesday to a lengthy list of common interests to pursue under what's called the Strategic Partnership memorandum of understanding.

The measures include growth in security and intelligence co-operation, enhanced defence and security relations, more business links and closer academic ties.

The memorandum the two leaders signed in Netanyahu's office also covers innovation, energy, international aid and human rights.

The goal is to build on bilateral merchandise trade between the two countries, which the Prime Minister's office says was worth $1.41 billion in 2012.

Harper said in a statement that the memorandum "lays out a strategic direction for stronger future relations between the two countries."

"The many areas in which we both want to deepen and broaden co-operation is truly a testament of the goodwill between our two nations," he added.

Six federal cabinet ministers joined Harper at the meeting: Foreign Affairs Minister John Baird, Employment Minister Jason Kenney, Industry Minister James Moore, Natural Resources Minister Joe Oliver, Development Minister Christian Paradis and Trade Minister Ed Fast.

Canada is the 'polar opposite of Israel,' because it has 'much geography but very little history.' - Prime Minister Stephen Harper

Following his meeting with Netanyahu, Harper again touched on Canada's full-throated support of Israel.

"I wouldn't want to say there is no price for Canada in the Arab world," he said.

But Harper added that differing opinions can be respected if they're appropriately expressed.

Netanyahu added that there is now a "new Middle East."

Harper met with Netanyahu, who routinely refers to "Stephen" as a "friend of Israel," after a warm reception from Shimon Peres at the president's office.

After being welcomed by Peres on a red carpet in a courtyard, Harper entered an elegant vestibule and penned a lengthy message in a guestbook.

In his remarks, Peres said Harper is visiting during a challenging time, adding that "Syria is broken, Iran is broken."

Knowledge economy

Harper replied that every time he and Peres speak, he finds it "very thought provoking," and noted Canada is the "polar opposite of Israel" because it has "much geography but very little history."

He said they agree that the future is the knowledge economy and there is no better example of that than Israel.

Following his meeting with Netanyahu, Harper was scheduled to visit the Wailing Wall, the Dome of the Rock and the Yad Vashem Holocaust Museum on the third day of his visit to the region.

However, Harper cancelled his trip to the Dome of the Rock, PMO spokesman Jason MacDonald said in an email to CBC News. He said security organizations weren't satisfied with the planning and logistics. Specifically, Shin Bet (the Israeli security agency) would not guarantee that they would not enter the mosque.

"Out of respect we have decided not to visit the Dome of the Rock on this trip," MacDonald wrote.

On Monday, Harper delivered a historic speech to parliamentarians in the Knesset in which he warned of a new age of anti-Semitism and said those who oppose the Jewish state are little more than hateful anti-Semites.

Harper earlier met with the president of the Palestinian Authority and offered $66 million in new aid to the Palestinians.