Country Report Philippines April 2011

Outlook for 2011-15: International relations

Relations with the US will remain of paramount importance for the Philippines in 2011-15. Aside from historical connections-the Philippines was once a US colony-ties are strong for a number of reasons, including an important commercial relationship (the US is the Philippines' largest trading partner) and close military associations (the US army provides support for the government's campaign against Muslim separatists on Mindanao). US military presence will continue to take the form of intelligence support and joint training exercises. China's importance as a trade partner and a source of investment will grow in 2011-15. Under diplomatic pressure from China, in December 2010 Mr Aquino chose to side with the likes of Cuba, Iran and Venezuela in boycotting the ceremony at which Norway's Nobel committee awarded a peace prize to a Chinese dissident, Liu Xiaobo. But the status of the Spratly Islands in the South China Sea will also remain a source of tension. In early March the Philippine government filed a diplomatic protest after two Chinese patrol boats allegedly harassed a Philippine ship exploring for oil in the waters surrounding the disputed islands.

© 2011 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
IMPRINT