The Philippine President Ferdinand “Bongbong” Romualdez Marcos Jr. embarked on a five-day visit to Japan (Feb. 8-12, 2023). During his Japan trip, bilateral agreements between both countries were signed in a number of areas, but an agreement signed by President Ferdinand “Bongbong” Romualdez Marcos Jr. and Japanese PM, Fumio Kishida which seeks to strengthen defense cooperation between both countries – has understandably drawn immense attention.
This agreement will allow the deployment of Japanese troops for humanitarian missions and disaster response. Japanese PM Fumio Kishida said that both countries would seek to further strengthen military cooperation. The Japanese PM also said that both countries will seek to work closely via military operations and exercises and Japanese transfer of defense technology and equipment. Interestingly, he also referred to the strengthening of trilateral cooperation between Japan, the Philippines and the US.
This is significant, because earlier this month during the visit of US Defense Secretary, Lloyd Austin to the Philippines, the latter provided US access to four more military bases under the Enhanced Defense Cooperation Agreement (EDCA) signed between both countries in 2014 (the US now has access to a total of 9 military bases in the Philippines). Austin had dubbed this development as a ‘big deal’. Through the access to these military bases, US troops will be less than 200 miles south of Taiwan. This decision of the Philippines predictably evinced strong reactions from China.
The Philippine President has been trying to maintain a balanced foreign policy and has been keen to mend ties with the US – after they witnessed a downward slide during the Presidency of his predecessor Rodrigues Duterte. Duterte of course denied that ties with the US had deteriorated, and categorically stated that all he was actually doing was an independent foreign policy vis-à-vis China. It would be pertinent to point out that towards the end of Duterte’s tenure, the Philippines’ ties with China deteriorated.
Ever since taking over as President, Marcos Jr. during his overseas visits has been trying to woo foreign investors. During his overseas visits in 2022, the Philippines President was able to draw investment pledges for well over $20 billion. During his visit to the US in September 2022, Marcos made special efforts to woo US investors. While addressing the US investors he said: “Over the past few decades, as the Philippines transformed into one of the most promising emerging markets, the United States has been among our steady partners. For that, we are truly grateful. At the same time, American companies doing business in the Philippines have benefited significantly from our economic successes.”
The Philippine President also said that he will take steps to further liberalize the ASEAN nation’s economy.
Japan visit and outreach to Investors
Before his departure for Japan, the Philippine President indicated that his visit would focus on numerous issues, including economics. While commenting on the importance of his trip, he said that it is “part of a larger foreign-policy agenda to forge closer political ties, stronger defense and security cooperation, as well as lasting economic partnerships with major countries in the region amid a challenging global environment.”
The Philippines has robust economic relations with Japan. Japan is the top Overseas Development Assistance (ODA) source for the Philippines providing over $11 billion in the form of loans and grants, and is an important trade partner. Japan is also the leading investor in the Philippines – between 2016 and 2022 it invested $2.8 billion. For the same period, companies from China and Hong Kong invested $1.7 billion
While addressing investors at the Philippines Business Opportunity Forum (Tokyo), on February 10, 2023, Marcos reiterated this point: “Japan has been a steadfast partner of the Philippines, being one of the largest sources of trade, of investment, of official development assistance, and of remittances.”
Marcos also said that the Philippines will soon ratify the Regional Comprehensive Economic Partnership (RCEP) at the earliest.
Marcos Jr.’s Japan visit underscores several points. First, the bilateral relationship between Manila and Tokyo has multiple dimensions and is likely to strengthen in the changing geopolitical environment. Second, the current Philippine president will seek to have reasonable relations with China but is likely to focus on enhancing the Philippines’ economic and security ties with both Japan and US. Third, it shows the growing importance of middle powers in Asia and globally, and how they are adapting to the changing geopolitical and economic landscape in the region.
Finally, Marcos Jr. is keen to hard sell the economic potential of his country. While so far Vietnam and Indonesia have been able to attract a large number of companies that have shifted out of China, the Philippines has immense potential and can emerge as a favored destination. In 2022, the Philippines’ economy grew at 7.6% and in spite of challenges like inflation, the Philippines can be a bright spot not just in Asia, but globally.
The visit of the Philippine President to Japan needs to be viewed in the context not just of ties between Manila and Tokyo, but trilateral cooperation between Japan, the US, and the Philippines in the changing geopolitical and economic architecture of Asia.
[Photo by Cabinet Public Affairs Office, Japan]
The views and opinions expressed in this article are those of the author.
Tridivesh Singh Maini is a New Delhi based analyst interested in Punjab-Punjab linkages as well as Partition Studies. Maini co-authored ‘Humanity Amidst Insanity: Hope During and After the Indo-Pak Partition’ (New Delhi: UBSPD, 2008) with Tahir Malik and Ali Farooq Malik. He can be reached at [email protected].
