Japan and the Philippines signed several key economic and defense cooperation agreements Thursday, as the strategic partners aim to strengthen relations amid growing concerns over China's regional assertiveness.
The deals cover a wide range of areas, including agriculture, renewable energy, health care, digital transformation, infrastructure and defense, and come on the heels of a Philippine-U.S. pact that allows Washington to increase its military footprint in the Southeast Asian country to try and deter Chinese aggression.
“I can confidently say that our strategic partnership is stronger than ever,” said Philippine President Ferdinand Marcos Jr. during a news conference in Tokyo alongside Prime Minister Fumio Kishida.
“As we navigate together the rough waters buffeting our region, the future of our relationship remains full of promise,” said the Philippine leader, who is on a five-day trip to Japan. The recently signed deals have “further cemented our commitment to our strategic partnership,” he added.
Kishida said that Marcos' visit has provided an impetus to take the already extensive bilateral cooperation “to an even higher level, and further contribute to both regional and global peace and stability.”
Among other things, the two sides reached a deal to simplify visiting procedures for the Self-Defense Forces (SDF) when conducting humanitarian assistance and disaster relief (HADR) drills in the Philippines.
Although the countries’ militaries already hold joint HADR exercises, they first need to clarify matters such as the legal status of the visiting force each time drills are set to take place.
The pact between the two countries, both prone to natural disasters, is intended to do away with these procedures and enhance bilateral HADR cooperation. At the same time, the deal paves the way for a broader visiting forces agreement, which would allow the SDF to deploy more easily to the Philippines for a range of military activities.
Japan has struck similar deals, known as reciprocal access agreements, with Australia and the United Kingdom to boost military cooperation with other countries.
Kishida also agreed to make efforts to transfer more defense equipment and technology to Manila, as Tokyo seeks to bolster the militaries of partner countries to help deter Chinese aggression against Taiwan and in the South China Sea. In concrete terms, the leaders pledged to strengthen efforts to complete the transfer of air-surveillance radar systems and provide related personnel training.
In a joint statement, the two sides also spoke of projects to boost Manila’s maritime law enforcement capabilities such as the installation of satellite communication systems on patrol vessels and the development of a support base for the Philippine Coast Guard at Subic Bay, which could serve as the home for the two 97-meter, Japan-made patrol vessels operated by the agency.
Marcos, unlike his predecessor, Rodrigo Duterte, has pledged to take a firm stance against any Chinese threats to Philippine claims in the South China Sea, vowing not to surrender a single inch of territory in the strategic waterway.
In this regard, he welcomed Japan’s intention to establish a new cooperation framework designed to “provide equipment, supplies and infrastructure development assistance to like-minded countries,” mainly in the Asia-Pacific region.
A part of Tokyo’s new National Security Strategy (NSS), the initiative’s aim is to strengthen these nations’ security and deterrence capabilities to “reinforce the comprehensive defense architecture” in the region.
Although the joint statement did not provide any details as to whether the Philippine military would become the first beneficiary of the new program, analysts say this is likely to be the case, although it is unclear whether the assistance will be in the form of financial aid, equipment or both.
According to its proposed budget for fiscal 2023, the Japanese government plans to set aside ¥2 billion ($15.2 million) for military assistance projects. Funding for the program, which appears to be exclusively “for the benefit of armed forces and other related organizations,” will be separate from the ¥442 billion ($3.36 billion) in economic and social development assistance that Tokyo provides to developing countries, according to the NSS.
The security agreement with Tokyo comes after Manila granted U.S. forces access to four more military sites in the country — in addition to a previously agreed five — providing the United States with a strategic footing on the southeastern edge of the disputed South China Sea. Washington and Manila are also considering joint maritime patrols and increasing interoperability.
For Washington, access to more Philippine facilities, along with existing U.S. bases in Japan, would be key in a potential Taiwan crisis.
Meanwhile, Marcos and Kishida also announced several economic agreements, including Tokyo’s pledge to provide ¥600 billion in development aid and private-sector investment to the Philippines through the end of fiscal 2023. The assistance is aimed at supporting a number of projects to help the Philippines attain Upper Middle Income Country status by 2025, according to the statement.
Japan also agreed to provide loans worth ¥377 billion for the development of the Philippines’ North–South Commuter Railway and its extension, with Kishida stating that Tokyo also stands ready to grant an additional loan for further maintenance and rehabilitation of the Metro Rail Transit Line 3.
Referring to the loan agreements, Marcos said they highlight the value both countries place in connectivity and improving transportation services.
“It is also a testament to Japan's contribution in uplifting the daily lives of ordinary Filipinos by sharing Japanese technology and expertise in infrastructure, and connectivity,” he said.
The strategic partners also announced cooperation deals in agriculture, cybersecurity and people-to-people exchanges while agreeing to promote health care-related projects.
Marcos, who was granted an audience with Emperor Naruhito and Empress Masako before meeting with Kishida, is scheduled to attend business meetings Friday and hold talks with CEOs of Japanese shipping firms. The Philippine leader will also meet more than a thousand members of the Filipino community in Tokyo before flying back to Manila on Sunday.
Tokyo and Manila have deep economic and trade ties. In 2021, Japan was the Philippines’ second-largest trading partner and its third-largest export market.
Japan has also been Manila’s biggest bilateral source of active official development assistance, providing concessional loans to finance important infrastructure and capacity-building projects, social safety-net programs, education, agriculture, and science and technology support.
Staff writer Gabriele Ninivaggi contributed to this report.
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