Philippines reformatting its relationship with the U.S.

.^[1] The Philippines has a dynamic relationship with the U.S., as the connection has been ups and downs in recent years. The Philippines' geographic location and jurisdiction against China on the South China Sea dispute in UNCLOS make it very attractive and beneficial for U.S. interests. The United States and the Republic of the Philippines have a deep relationship that includes a bilateral security alliance, extensive military cooperation, close people-to-people ties, and many shared strategic and economic interests.^[2] However, in recent years, human rights issues, journalism freedom, and the Philippines' violent "war on drugs" have caused strains in the relationship.

Nonetheless, both countries still maintain a zestful relationship.

In the past few years, the relationship came to its lowest. Due to U.S. human rights criticism, Rodrigo Duarte's administration tried to increase the closeness between China and the Philippines for economic aid and BRI projects. President Duarte refused to press a ruling in the Philippines’ favor from an international tribunal, which rubbished China’s sweeping claims in the South China Sea. More importantly, on his first trip to Beijing as president to meet his counterpart, Xi Jinping, he declared it was “time to say goodbye” to the United States.^[3]

However, under President Ferdinand Marcos Jr., the Philippines' relations with the U.S. have come back on track to the traditional pro-US policy. As President Ferdinand Marcos Jr. stated before meeting President Joe Biden in 2022, “The role of the United States in maintaining the peace in our region is something that is much appreciated by all the countries in the regions and the Philippines especially.” ^[4] In the future, there is more to come as the world powerplay has shifted to the Indo-Pacific region and to contain Chinese rising power, nations like the Philippines, who are also referred to as “first-island” chains as well, will come to great use for the U.S. Indo-Pacific strategy.

Background:

Historically, the U.S. has been seen as a colonial power for the Philippines, and at present, some Filipinos view the U.S. as a colonial power which led to a weakening of the relationship in the recent past.

The Philippines became the first U.S. colony after Spain ceded the islands for $20 million in 1898.^[5] Americans ruled the Philippines better than the Spaniards as they invested in healthcare and education and influenced the Filipino lifestyle by bringing new sports like basketball into the country.

Nevertheless, there are still disturbing memories from the U.S. colonial rule over the Philippines. The ensuing Philippine-American War lasted three years, killing over 4,200 American and 20,000 Filipino combatants. Over 200,000 Filipino civilians died from violence, famine, and disease.^[6] The archipelago became an autonomous commonwealth in 1935, and the U.S. granted independence in 1946.^[7]

The Philippines and the United States belong to many of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC) forum, International Monetary Fund, World Bank, and World Trade Organization. The Philippines is also an observer of the Organization of American States.^[8]

Due to shared interests and the strong U.S. military presence in the region during the cold war period, both nations developed a military nexus. There have been close people-to-people ties as more than four million Filipino-Americans live in the United States, and almost 300,000 U.S. citizens reside in the Philippines, including many U.S. military veterans.^[9]

The 1951 U.S.-Philippines Mutual Defense Treaty provides a strong foundation for the robust post-World War II security partnership.^[10] As a security partner in the Pacific, the Philippines has received military assistance through the Defense Security Cooperation Agency’s (DSCA) Section 333 Building Partner Capacity program and the Indo-Pacific Maritime Security Initiative.^[11] The Philippines was designated a major non-NATO ally in 2003, which allows the country particular defense trade and security cooperation privileges.^[12] Other than traditional military agreements, the U.S. assisted the Philippines in counter-terrorism and sold weapons at discounted rates, apart from the Mutual Defense Treaty, which acts as a base for security cooperation and cooperation in counter-terrorism.

Visiting Forces Agreement (VFA), Enhanced Defense Cooperation Agreement (EDCA), and US-Philippine Mutual Logistics Support Agreement (MLSA) have been under the spotlight recently. In 1992, after the U.S. military closed its Philippine bases in Subic Bay and Clark, the VFA restored the continuous, albeit more modest, presence of U.S. troops in the Philippines.^[13] Visiting Forces Agreement was signed in 1998. It provides simplified access procedures to the Philippines for U.S. service members on official business (for example, U.S.-Philippines bilateral training or military exercises).^[14] Former President Duterte despised the Visiting Forces Agreement (VFA), and due to the violation of women's rights by the U.S. military personnel, it came to the brink of collapse during his term.

Regarding the women's rights issue, one of the most prominent cases is that of Jennifer Laude, a trans woman murdered by a U.S. marine Lance Cpl. Joseph Scott Pemberton in 2014.^[15] Former President Duterte suspended the joint maritime patrols and repeatedly threatened to terminate the Visiting Forces Agreement (VFA).^[16] The VFA can be seen as interrelated to another agreement which is the Enhanced Defense Cooperation Agreement.

The Enhanced Defense Cooperation Agreement allows for the increased rotational presence of U.S. military forces, ships, and aircraft in the Philippines and greater U.S. access to Philippine military bases, including the ability to store U.S. defense materials and equipment.^[17] Under EDCA, U.S. military personnel in the Philippines are deployed rotational or non-permanent. Philippine bases, including U.S.-built facilities and improvements, are to be utilized rent-free by the Americans but owned by the Philippines.^[18] The EDCA operationalizes the Mutual Defense Treaty (MDT) by ensuring the regular presence of U.S. forces and their assets in the Philippines and guaranteeing operational readiness for security contingencies in the Indo-Pacific region.^[19] More importantly, the EDCA agreement also facilitates humanitarian assistance and disaster relief alongside supporting the long-term modernization of the Philippines army. The United States works closely with communities near the EDCA sites to fully realize their positive value for local development, humanitarian assistance, and disaster relief.^[20] Altogether, EDCA was signed in 2014. However, due to political reasons, its implementation got delayed, and it was presumed dead in 2020, but after the arrival of President Marcos Jr., the EDCA got implemented. Lastly, the US-Philippine Mutual Logistics Support Agreement (MLSA), signed in 2002, also is interrelated to the VFA and EDCA agreements. VFA and EDCA give the U.S. a procedure and way of exercising the MDT and MLSA, wherein a soldier would be present in the Philippines even for a short time on a rotation basis.

The United States and the Philippines maintain close security ties and frequently conduct joint military exercises to enhance interoperability.^[21] The military exercise BALIKATAN is held annually, and other joint exercises with the third-country participant are also held, like KAMANDAG in 2022 with South Korea. The military relationship is interrelated and deeply linked. Even under Duterte, the United States provided the Philippines $267.75 million in military financing and defense equipment from 2016 to 2019. Foreign military financing totaled another $45 million from 2020 to 2021.^[22]

Both countries have a high-level collaboration in the economic sphere as they have special agreements and share a common economic platform like IPEF. According to UN COMTRADE data in 2020, the United States ranks as the second-largest market for Philippine exports and the third-largest market for imports.^[23] Critical imports from the Philippines are semiconductor devices, computer peripherals, and automobile parts. Key U.S. exports to the Philippines are agricultural goods, machinery, cereals, raw and semi-processed materials for semiconductors, and electronics. The two countries have a bilateral Trade and Investment Framework Agreement, signed in 1989, and a tax treaty.^[24] TIFA and GSP have been vital tools for strengthening Philippine-US economic relations for the past three decades. Under the TIFA, the Philippines and the U.S. signed agreements on implementing minimum access commitments.^[25] Under the US GSP, the Philippines enjoys duty-free treatment for products covered by 3,500 US tariff lines. Philippine utilization of US GSP is steady at an average rate of 74 percent, estimated at $1.3 billion from 2005 to 2020.^[26]

Besides military aid and economic privilege, the U.S. has assisted the Philippines in several ways. Over the last decade, disaster relief and recovery have also become vital areas of assistance to the Philippines. The U.S. government, through USAID, works year-round to help communities in the Philippines prepare for and respond to natural disasters.^[27] During the COVID pandemic, the U.S. was a powerful nation assisting the Philippines with vaccines and setting up COVID facilities.

The China Factor: 

Alliances are driven by threats by their very nature. The U.S.-Philippine alliance, which has grown closer as China’s power has increased, is no exception.^[28]

The Philippines-U.S. relations have significantly been affected by China. Due to China, Philippines former President Duterte weakened the Philippines' relations with the U.S. as he wanted Chinese investments and possibly to negotiate better with the U.S. on agreements as he used China to intimidate the U.S. On the other side, the U.S. wants the Philippines by its side due to its strategic position.

In the current administration, President Marcos Jr. visited China and hoped for better investments from China. He is increasing closeness with the U.S. as he does not only believe in diplomacy while dealing with the Chinese, unlike his predecessor President Duterte. For example, a month after he visited Beijing, the Chinese coast guard used a “military-grade laser” to target a Philippine coast guard ship.^[29] Thus, China is an essential factor in the current relationship between the U.S. and the Philippines, as both aim for deterrence against China. 

Duterte's experience showed that China is proving to be an unreliable partner. Furthermore, signs of a widening chasm between China and the Philippines were abundant in the former president’s last year in office, marking the beginning of the US-Philippines realignment.^[30]

Due to China, the security domain was affected, and the economic domain was also affected. The ASEAN bilateral Free Trade Agreements (FTAs) with China have been a factor that reduced the Philippines' trade with the U.S. As a result, between 2000 and 2010, exports to the United States slid from 30 to 15 percent, while imports from the United States dropped from 18 to 11 percent.^[31]

While U.S. and Philippine officials have taken great pains not specifically to name China, analysts say this bigger footprint between the U.S. and the Philippines could help deter China from taking action on self-governed Taiwan and contain Beijing's presence in the South China Sea.^[32]

President Marcos Ferdinand also understood that his country would be tangled in the conflict in the region, as he stated, "When we look at the situation in the area, especially the tensions in the Taiwan Strait, we can see that just by our geographical location, should there, in fact, be conflict in that area ... it is very hard to imagine a scenario where the Philippines will not somehow get involved."^[33]

The Philippines is strategically positioned east of the South China Sea, a thoroughfare for roughly 30 percent of global maritime trade.^[34] Troops stationed in the Philippines also give the United States the speed and agility needed to respond quickly should China attack Taiwan just north of the Philippines across the Bashi Channel.^[35]

How the Philippines are repairing its Relationship with the U.S. and the way forward:

Both sides have shown signs of repairing their relationships. There has been a high-level visit from U.S. Vice-President Kamala Harris since President Ferdinand Marcos got elected. This shows how vital the Philippines is to the U.S. Indo-Pacific strategy. During Kamala Harris's visit, she announced $7.5 million in new assistance to enhance the capabilities of Philippine maritime law enforcement agencies and a new program to upgrade the Philippine Coast Guard's vessel traffic management system.^[36] President Joe Biden also held his first in-person meeting with President Ferdinand Marcos Jr. in New York City on UNGA sidelines, wherein the leaders discussed the situation in the South China Sea and underscored their support for freedom of navigation and overflight and the peaceful resolution of disputes.^[37]

Other than high-level visits from the U.S., the U.S. has committed itself to the Philippines. At the White House, President Biden reaffirmed the United States ironclad alliance commitments to the Philippines, underscoring that an armed attack in the Pacific, which includes the South China Sea, on Philippine armed forces, public vessels, or aircraft, including those of the Coast Guard, would invoke U.S. mutual defense commitments under Article IV of the 1951 U.S.-Philippines Mutual Defense Treaty.^[38] Secondly, the restart of the annual joint U.S.-Philippine Balikatan exercises, which included amphibious operations, live-fire training, air defense operations, and disaster relief missions, gave a strong signal to the region.^[39]

President Marcos also put in the effort from the Philippines' side, as he did something appreciable. He did something which his predecessor swore not to do. The shift cannot be down to a change of administration; President Marcos’ critical defense and foreign policy architects are Duterte-appointed officials retained or reassigned into allied positions.^[40] Therefore, signing the agreements started during the concluding months of Duterte. In addition, President Ferdinand Marcos restarted joint patrolling in the South China Sea, suspended by former President Rodrigo Duterte. Both countries foreign affairs officials also met for the 2+2 Ministerial Dialogue in Washington D.C. to discuss the direction of the alliance between the two countries, which had been shelved for seven years when then-President Rodrigo Duerte promised he would shift security priorities away from the United States and more toward China to bolster Manila's sovereignty in regional politics.^[41] President Marcos also agreed to expand the Enhanced Defense Cooperation Arrangement (EDCA) to include four new sites: Naval Base Camilo Osias in Santa Ana, Cagayan; Camp Melchor Dela Cruz in Gamu, Isabela; Balabac Island in Palawan; and Lal-lo Airport in Cagayan.^[42]

Under President Marcos Ferdinand, the Philippines, which relies heavily on energy imports, is also keen to start exploiting natural gas reserves in its exclusive economic zone (EEZ) that China also lays claim to. For that, the Philippines and the U.S. consider working together considering "asymmetric, hybrid and irregular warfare and grey zone tactics."^[43] The grey zone term is often used for the Chinese use of its fishing vessels to assert its territorial claims in the South China Sea through intimidation and blockages.

President Marcos Ferdinand also gave the U.S. a strategic boost by removing the Chinese and allowing the U.S. presence on Fuga Island. As of 2019, Chinese company Fong Zhi Enterprise Corporation planned to build a "smart city" as part of a $2bn project. However, four years later, it may be the U.S.'s turn to have a presence on the island. Fuga Island has undoubted strategic value to either the superpower or the Philippines. It is adjacent to two key passages – the Luzon Strait and the Bashi Channel – which provide access to the South China Sea and the Pacific.^[44]    Although, President Marcos Ferdinand has assured China that the bases will not be used for offense.

Conclusion:

The Philippines is currently in the process of reformatting its relationship with the United States. While the historical ties between the two nations have been complex, recent years have seen strains due to human rights issues and the Philippines' alignment with China. However, under President Ferdinand Marcos Jr., there are signs of repairing the relationship. High-level visits from U.S. officials, commitments to the Philippines' security, and the restart of joint military exercises indicate a renewed partnership. President Marcos has taken steps to strengthen defense cooperation, expand joint patrolling in the South China Sea, and allow the U.S. presence on Fuga Island. As both countries navigate the challenges posed by China's rise, the Philippines' strategic location and shared interests make it an essential ally for the U.S. in the Indo-Pacific region.

Notes

^[1] “Philippine-United States Trade Relations: Looking Back and a Way Forward.” 2022. East-West Center | Www.Eastwestcenter.Org. June 13, 2022. https://www.eastwestcenter.org/publications/philippine-united-states-trade-relations-looking-back-and-way-forward.

^[2] Congressional Research Service. “The Philippines: Background and U.S. Relations,” September 14, 2022. https://sgp.fas.org/crs/row/R47055.pdf.

^[3] The Philippines is repairing its relationship with America. “The Philippines Is Repairing Its Relationship with America,” n.d. https://www.economist.com/asia/2021/05/27/the-philippines-is-repairing-its-relationship-with-america.

^[4] Marcos, Biden Meet on Sidelines of U.N. General Assembly – The Diplomat. "Marcos, Biden Meet on Sidelines of U.N. General Assembly," September 23, 2022. https://thediplomat.com/2022/09/marcos-biden-meet-on-sidelines-of-un-general-assembly/.

^[5] Time. “A Brief History of U.S.-Philippine Relations,” October 26, 2016. https://time.com/4543996/history-of-us-philippine-relations/.

^[6] Milestones: 1899–1913 - Office of the Historian. “Milestones: 1899–1913 - Office of the Historian,” January 1, 1904. https://history.state.gov/milestones/1899-1913/war.

^[7] Ibid

^[8] United States Department of State. February 23, 2023. https://www.state.gov/u-s-relations-with-the-philippines/.

^[9] Congressional Research Service. “The Philippines: Background and U.S. Relations,” September 14, 2022. https://sgp.fas.org/crs/row/R47055.pdf.

^[10] U.S. Department of State. “U.S. Relations With the Philippines.” U.S. Department of State, February 23, 2023. https://www.state.gov/u-s-relations-with-the-philippines/.

^[11] Congressional Research Service. “The Philippines: Background and U.S. Relations,” September 14, 2022. https://sgp.fas.org/crs/row/R47055.pdf.

^[12] Ibid

^[13] “Abrogating the Visiting Forces Agreement: Its Effects on Philippines’ Security and Stability in Southeast Asia.” 2023. East-West Center | Www.Eastwestcenter.Org. February 6, 2023. https://www.eastwestcenter.org/publications/abrogating-visiting-forces-agreement-its-effects-philippines-security-and-stability.

^[14] Schaus, John. "What Is the Philippines-United States Visiting Forces Agreement, and Why Does It Matter?" What Is the Philippines-United States Visiting Forces Agreement, and Why Does It Matter? n.d. https://www.csis.org/analysis/what-philippines-united-states-visiting-forces-agreement-and-why-does-it-matter.

^[15] Westerman, Ashley. “The U.S. and the Philippines Agree to a Larger American Military Presence.” NPR, February 2, 2023. https://www.npr.org/2023/02/02/1153727888/the-us-philippines-american-military-presence.

^[16] Foreign Policy Research Institute. “US-Philippines Enhanced Defense Cooperation Agreement Revived - Foreign Policy Research Institute,” n.d. https://www.fpri.org/article/2023/06/us-philippines-enhanced-defense-cooperation-agreement-revived/.

^[17] U.S. Department of State. “Agreement Between the UNITED STATES OF AMERICA and the PHILIPPINES.” U.S. Department of State, April 28, 2014. https://www.state.gov/wp-content/uploads/2019/02/14-625-Philippines-Defense-Cooperation.pdf.

^[18] Thayer, Carl. “Analyzing the US-Philippines Enhanced Defense Cooperation Agreement.” Analyzing the US-Philippines Enhanced Defense Cooperation Agreement – The Diplomat, May 2, 2014. https://thediplomat.com/2014/05/analyzing-the-us-philippines-enhanced-defense-cooperation-agreement/.

^[19] East-West Center | Www.Eastwestcenter.Org. February 6, 2023. https://www.eastwestcenter.org/publications/abrogating-visiting-forces-agreement-its-effects-philippines-security-and-stability.

^[20] House, The White. “FACT SHEET: Investing in the Special Friendship and Alliance Between the United States and the Philippines | The White House.” The White House, May 1, 2023. https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/01/fact-sheet-investing-in-the-special-friendship-and-alliance-between-the-united-states-and-the-philippines/.

^[21] 2022b. United States Department of State. October 7, 2022. https://www.state.gov/u-s-security-cooperation-with-the-philippines/.

^[22] East-West Center | Www.Eastwestcenter.Org. February 6, 2023. https://www.eastwestcenter.org/publications/abrogating-visiting-forces-agreement-its-effects-philippines-security-and-stability.

^[23] “Philippine-United States Trade Relations: Looking Back and a Way Forward.” 2022. East-West Center | Www.Eastwestcenter.Org. June 13, 2022. https://www.eastwestcenter.org/publications/philippine-united-states-trade-relations-looking-back-and-way-forward.

^[24] “U.S. Relations With the Philippines - United States Department of State.” 2023. United States Department of State. February 23, 2023. https://www.state.gov/u-s-relations-with-the-philippines/.

^[25] East-West Center | Www.Eastwestcenter.Org. June 13, 2022. https://www.eastwestcenter.org/publications/philippine-united-states-trade-relations-looking-back-and-way-forward.

^[26] Ibid

^[27] Ibid

^[28] Misalucha-Willoughby, Charmaine. 2023. “The U.S.-Philippines Alliance Should Be About More Than China.” Carnegie Endowment for International Peace. February 3, 2023. https://carnegieendowment.org/2023/02/03/u.s.-philippines-alliance-should-be-about-more-than-china-pub-88939.

^[29] Foreign Policy Research Institute. “US-Philippines Enhanced Defense Cooperation Agreement Revived - Foreign Policy Research Institute,” n.d. https://www.fpri.org/article/2023/06/us-philippines-enhanced-defense-cooperation-agreement-revived/.

^[30] Reset in U.S.–Philippines relations tells of yet another China fumble | Lowy Institute. "Reset in U.S.–Philippines Relations Tells of Yet Another China Fumble | Lowy Institute," June 13, 2023. https://www.lowyinstitute.org/the-interpreter/reset-us-philippines-relations-tells-yet-another-china-fumble.

^[31] East-West Center | Www.Eastwestcenter.Org. June 13, 2022. https://www.eastwestcenter.org/publications/philippine-united-states-trade-relations-looking-back-and-way-forward.

^[32] Westerman, Ashley. “The U.S. and the Philippines Agree to a Larger American Military Presence.” NPR, February 2, 2023. https://www.npr.org/2023/02/02/1153727888/the-us-philippines-american-military-presence.

^[33] Nikkei Asia. "Marcos Says 'Hard to Imagine' Philippines Can Avoid Taiwan Conflict," n.d. https://asia.nikkei.com/Editor-s-Picks/Interview/Marcos-says-hard-to-imagine-Philippines-can-avoid-Taiwan-conflict.

^[34] “U.S. Security Cooperation with the Philippines - United States Department of State.” 2022. United States Department of State. October 7, 2022. https://www.state.gov/u-s-security-cooperation-with-the-philippines/.

^[35] East-West Center | Www.Eastwestcenter.Org. February 6, 2023. https://www.eastwestcenter.org/publications/abrogating-visiting-forces-agreement-its-effects-philippines-security-and-stability.

^[36] House, The White. “FACT SHEET: Investing in the Special Friendship and Alliance Between the United States and the Philippines | The White House.” The White House, May 1, 2023. https://www.whitehouse.gov/briefing-room/statements-releases/2023/05/01/fact-sheet-investing-in-the-special-friendship-and-alliance-between-the-united-states-and-the-philippines/.

^[37] House, The White. “Readout of President Biden’s Meeting with Philippine President Ferdinand Marcos Jr. | The White House.” The White House, September 22, 2022. https://www.whitehouse.gov/briefing-room/statements-releases/2022/09/22/readout-of-president-bidens-meeting-with-philippine-president-ferdinand-marcos-jr/.

^[38] Ibid

^[39] Reset in U.S.–Philippines relations tells of yet another China fumble | Lowy Institute. "Reset in U.S.–Philippines Relations Tells of Yet Another China Fumble | Lowy Institute," June 13, 2023. https://www.lowyinstitute.org/the-interpreter/reset-us-philippines-relations-tells-yet-another-china-fumble.

^[40]Reset in U.S.–Philippines relations tells of yet another China fumble | Lowy Institute. "Reset in U.S.–Philippines Relations Tells of Yet Another China Fumble | Lowy Institute," June 13, 2023. https://www.lowyinstitute.org/the-interpreter/reset-us-philippines-relations-tells-yet-another-china-fumble.

^[41] John Grady, Rene Acosta, and View all posts by Rene Acosta and John Grady → "U.S., Philippines Kick off Largest-Ever Balikatan Exercise as Defense, Foreign Affairs Leaders Meet in Washington - USNI News." USNI News, April 11, 2023. https://news.usni.org/2023/04/11/u-s-philippines-kick-off-largest-ever-balikatan-exercise-as-defense-foreign-affairs-leaders-meet-in-washington.

^[42] U.S. Department of Defense. “Philippines, U.S. Announce Locations of Four New EDCA Sites,” April 3, 2023. https%3A%2F%2Fwww.defense.gov%2FNews%2FReleases%2FRelease%2FArticle%2F3349257%2Fphilippines-us-announce-locations-of-four-new-edca-sites%2F.

^[43] Petty, Martin. "Why Have the United States and the Philippines Issued Defence Treaty Guidelines?" Reuters, May 4, 2023. https://www.reuters.com/world/asia-pacific/why-have-united-states-philippines-issued-defence-treaty-guidelines-2023-05-04/.

^[44] Fonbuena, Carmela. “The Tiny Philippine Island on the Frontline of the US-China Battle for Supremacy.” the Guardian, March 17, 2023. https://www.theguardian.com/world/2023/mar/18/the-tiny-philippine-island-on-the-frontline-of-the-us-china-battle-for-supremacy.

Pic Courtsey-US state government website

(The views expressed are thsoe of the author and do not represent views of CESCUBE.)