The Republic of the Philippines: Background and U.S. Relations

Publication Date: January 2009

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Government

Type:

Coverage: Philippines

Abstract:

This report discusses key issues in U.S.-Philippine relations and developments in Philippine politics, economics, society, and foreign relations. Global terrorism concerns have brought the United States and the Republic of the Philippines (RP) closer together, but they also have produced some bilateral tensions and highlighted weaknesses in Philippine economic, political, and military institutions. The RP faces terrorist threats through alleged cooperation among three groups -- Jeemah Islamiah (JI), the main Southeast Asian Islamic terrorist organization with ties to Al Qaeda; Abu Sayyaf, a small, violent Muslim separatist group which operates in Mindanao and the Sulu Archipelago in the southern Philippines; and the Moro Islamic Liberation Front (MILF), an armed separatist group with alleged ties to both JI and Abu Sayyaf. President Gloria Macapagal-Arroyo has strongly supported the U.S.-led war on terrorism. Since 2001, the Philippines has received the most dramatic increase in U.S. foreign assistance in the East Asia-Pacific region, particularly foreign military financing (FMF). In May 2003, the United States designated the Philippines as a Major Non-NATO Ally. Since 2002, joint U.S.-RP military exercises (Balikatan) have focused on counter-terrorism efforts. The Balikatan exercises of 2002, in which U.S. troops provided non-combat assistance, significantly reduced the strength of Abu Sayyaf. However, there is also evidence that Mindanao appears to be transforming into a significant base of regional operations for JI. Furthermore, the rise of the Rajah Solaiman Movement (RSM), composed of Muslim converts from the northern Philippines, has the potential to expand the reach of Islamic terrorism to Manila and the main island of Luzon.

Despite general agreement on the importance of U.S.-RP relations and the U.S.led war on terrorism, bilateral frictions have occurred as the Philippines has become more assertive regarding its self-interest and sovereignty. Meanwhile, the RP's relationship with China has become more cordial while economic cooperation between the two countries has deepened. In July 2004, President Arroyo withdrew Philippine forces from Iraq in response to the demands of Islamic militants who had kidnaped a Filipino contract worker, despite some criticism in the United States that the Philippines was "caving-in to terrorists." The RP government has also objected to U.S. consideration of a greater combat role for U.S. troops in joint military exercises and of placing the MILF, with whom Manila is negotiating a peace agreement, on the U.S. list of terrorist organizations. Some analysts argue that the United States should pay more attention to the underlying causes of terrorism in the RP, and that the lack of widespread economic development as well as political corruption and instability in Philippine politics and the armed forces (AFP) undermine efforts at dealing with Philippine and Southeast Asian terrorist threats. The United States Agency for International Development (USAID) has attempted to address underlying causes of violence in Muslim Mindanao, including lack of economic development and poor governance. Other issues covered by this report include the Arroyo election scandal; the U.S. Marine rape case in the Philippines; and Filipino World War II veterans' claims for full U.S. veterans benefits (H.R. 4574). This report will be updated periodically.