US to Provide $500 Million in Military Financing to Support Philippine Armed Forces Modernization.

On July 30, 2024, U.S. Secretary of Defense Lloyd J. Austin III and Secretary of State Antony Blinken met with their Philippine counterparts in Manila for the fourth Philippines-United States 2+2 Ministerial Dialogue. The meeting aimed to enhance cooperation in various sectors and address rising tensions in the South China Sea. U.S. officials highlighted efforts to secure $500 million in foreign military financing to support the modernization of the Philippine military.
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Under President Ferdinand Marcos Jr., the Philippines has increased the tempo of high-level interactions and military engagements with the U.S. (Picture source: Wikimedia)

Secretary of Defense Lloyd J. Austin III reaffirmed the United States' commitment to strengthening ties with key allies in the Indo-Pacific during high-level discussions in Manila, Philippines, on July 30, 2024. Accompanied by Secretary of State Antony Blinken, Austin met with Philippine Foreign Affairs Secretary Enrique A. Manalo and Secretary of National Defense Gilberto C. Teodoro for the fourth Philippines-United States 2+2 Ministerial Dialogue. The discussions focused on cooperation in technology, cybersecurity, renewable energy, agriculture, and food security.

The U.S. officials emphasized efforts to secure $500 million in foreign military financing through the 2024 Indo-Pacific Security Supplemental Appropriations Act and $125 million for Philippine infrastructure under the Enhanced Defense Cooperation Agreement (EDCA). This funding aims to bolster the U.S.-Philippine Mutual Defense Treaty and foster collaboration with allies like Australia and Japan.

Since President Ferdinand Marcos Jr. took office in June 2022, the relationship between the Philippines and the United States has seen significant changes. Under Marcos, the Philippines has increased the tempo of high-level interactions and military engagements with the U.S. The annual Balikatan exercise, held in April 2023, was the largest ever, involving 5,400 Filipino and 12,200 U.S. personnel, alongside participants from Australia, Japan, and South Korea.

The Enhanced Defense Cooperation Agreement (EDCA) has seen renewed focus, with the number of U.S. access points in the Philippines increased from five to nine. These include strategic locations such as Palawan Island and sites near the Taiwan Strait. The U.S. has allocated $100 million to upgrade military infrastructure at these bases.

Economic relations have also strengthened, with over $1 billion in U.S. investments announced for sectors like electric vehicles, solar energy, and digitization as part of the Indo-Pacific Economic Framework. High-profile visits, including multiple trips by Marcos to the U.S. and a visit by Vice President Kamala Harris to the Philippines in November 2022, have reinforced the bilateral relationship.

Recent incidents in the South China Sea have heightened tensions between China and the Philippines. A clash on June 17 resulted in injuries to eight Filipino personnel, part of a series of confrontations at the Second Thomas Shoal. Chinese Coast Guard vessels have repeatedly obstructed Philippine resupply missions to the BRP Sierra Madre, a warship grounded on the shoal to assert Philippine claims.

Despite a pledge to de-escalate tensions, confrontations continue. China and the Philippines have agreed to improve communication mechanisms to manage conflicts, but disagreements persist over the Philippines' rights to resupply and navigate within its exclusive economic zone (EEZ). The U.S. has reiterated its commitment to the Philippines under the Mutual Defense Treaty, stating that any armed attack on Philippine forces or vessels in the South China Sea could trigger a U.S. military response.