Overview

The United States and the Republic of the Philippines have maintained a deep relationship that includes a bilateral security alliance, extensive military cooperation, close people-to-people ties, and many shared strategic and economic interests.¹ U.S. past administration of the Philippines as a colonial territory (1898-1946) also has shaped the relationship, by both forging bonds, on the one hand, and, among some Filipinos,² creating a wariness of drawing too close to the United States, on the other. Filipino-Americans constitute the third-largest Asian-American group in the United States, numbering over 4.2 million people, and comprise the most numerous foreign-born group in the U.S. Armed Forces.³

The Philippines has long played an important role in U.S. Asia policy, and it figures prominently in the Biden Administration's Indo-Pacific strategy as one of five regional treaty allies.⁴ The Philippines has been a treaty ally since 1951 and a major non-NATO ally since 2003. It is the largest recipient of U.S. military assistance, equipment, and training in the region. The country holds strategic importance as a part of what some experts refer to as the "first island chain" in the Pacific,⁵ and its maritime territorial disputes with People's Republic of China (PRC) are a potential flashpoint in the South China Sea. The Philippines also serves as an important U.S. counterterrorism partner in Southeast Asia. Since the 1986 "People Power" movement that deposed former authoritarian President Ferdinand Marcos Sr., the country has also been one of the region's most vibrant democracies, although corruption and serious human rights problems continue to fester.⁶ Despite some policies and stances of former President Rodrigo Duterte (2016-2022) that strained U.S.-Philippine relations, U.S. and Philippine diplomatic and military officials attempted to maintain most security and other forms of cooperation.⁷

Figure 1. Philippines at a Glance

Geography Archipelago. Land area—298,000 square kilometers (Slightly larger than Arizona). People Population: 114 million Ethnic Groups: Predominantly Malay (95%); other ethnic groups include Chinese and mixed race (Filipino-Spanish, Filipino-Chinese, and Filipino-American). Religious Affiliations: Roman Catholic (81%); other Christian (9%); Muslim (5%); other (5%). Economy Gross Domestic Product (GDP): $871 billion (purchasing power parity, 2020). Global ranking: 28. Per Capita GDP: $8,000 (purchasing power parity, 2020). Global ranking: 151. GDP Composition by Sector: Agriculture (9%); Industry (31%); Services (60%).

Source: Map created by CRS using data from the U.S. State Department, Global Admin, and ESRI. Fact information from Central Intelligence Agency, The World Factbook, 2022.

Congressional Interests

Congress has shown interest in the Philippines in several key policy areas over which it has provided oversight, policy direction, and funding. It has also occasionally placed restrictions on foreign assistance in order to pressure the Philippine government to improve human rights conditions.

Strategic Interests

The Philippines holds strategic importance for the United States as part of what some experts refer to as the "first island chain" in the Pacific, as it is located less than 800 miles south of Taiwan and 900 miles southeast of China's Hainan province, an island with a major naval base.⁸ U.S. Indo-Pacific Command (INDOPACOM) reportedly aims to broaden the U.S. force posture in East Asia, deploying and rotating military assets to Southeast Asia and the southern Pacific. Experts contend that the Philippines could play a key role in a contingency with China in the region.⁹ The National Defense Authorization Act (NDAA) for 2022 calls on the Secretary of Defense to strengthen U.S. ties with security partners in the Indo-Pacific region, including with U.S. allies the Philippines and Thailand, and increases funding for the Pacific Deterrence Initiative, which involves the Philippines, Japan, and other allies.¹⁰

Regional Counterterrorism Efforts

The Philippines, which is home to not only indigenous extremist groups but also at times to foreign terrorist fighters,¹¹ has "enjoyed close counterterrorism cooperation with the United States," according to the State Department.¹² The Philippines was designated a major non-NATO ally in 2003 as part of the George W. Bush Administration's Global War on Terror.¹³ U.S.-Philippine counterterrorism efforts have included the Joint Special Operations Task Force–Philippines (2002-2014) and Operation Pacific Eagle-Philippines (2017-2020). In 2019, the two countries signed an agreement to establish a new regional counterterrorism facility in the Philippines.¹⁴

South China Sea Disputes

The United States has aimed to partner with the Philippines in carrying out strategies to counter Chinese military assertiveness in the South China Sea and to build "support for rules-based approaches to the maritime domain, including in the South China Sea and the East China Sea."¹⁵ The Philippines is the only country with territorial disputes with China that has challenged China's maritime territorial claims under the United Nations Convention on the Law of the Sea (UNCLOS).¹⁶ Through the Department of Defense's Indo-Pacific Maritime Security Initiative (MSI),¹⁷ which Congress extended in 2021,¹⁸ the United States has sought to improve the ability of the Philippines, Vietnam, and other Southeast and South Asian countries to maintain maritime domain awareness and patrol their Exclusive Economic Zones (EEZs).

Human Rights Concerns

The Philippines long has attracted congressional concern related to its human rights violations, particularly extra-judicial killings. At various times during the past decade and a half, Congress has restricted military and other security assistance to the Philippines in order to encourage improvements in human rights practices of the Philippine military, police, and government. The Asia Reassurance Initiative Act of 2018 (ARIA, P.L. 115-409) supports a multipronged U.S. strategy for advancing a "Free and Open Indo-Pacific," including the promotion of human rights in the Indo-Pacific region. ARIA and foreign assistance appropriations legislation restrict counternarcotics assistance to the Philippine National Police (PNP) due to human rights violations related to former President Duterte's antidrug campaign.¹⁹

Philippine Politics

The Economist Intelligence Unit (EIU) ranks the Philippines 54^th out of 167 countries in terms of its level of democracy, placing it in the "flawed democracy" category. Although the EIU gives the Philippines relatively high scores on electoral process and pluralism, political participation, and civil liberties, the country receives relatively low scores on the functioning of government and political culture.²⁰ The Department of State reported that the 2013 and 2019 midterm elections and the 2016 national elections were "generally free and fair," although there were reports of vote-buying and some incidents of violence.²¹ An international group of election monitors found that the 2022 national elections were marred by instances of vote-buying, intimidation, disinformation, and violence.²²

Philippine citizens generally can exercise political and civil rights with few restrictions, openly criticize national leaders, and enjoy academic freedom and religious liberties. The country has a robust civil society and a lively press. Some aspects of Philippine politics, however, long have undermined democratic institutions and government effectiveness and led to human rights abuses. These include the existence of corruption; concentrations of power among socioeconomic elites and local clans; the lack of democratic control over the security forces; and a weak judicial system and culture of impunity.²³ Some analysts point to the Philippines as an example of growing authoritarian or illiberal tendencies in countries that still practice electoral democracy. Such trends include the increasing use of police and military in all levels of governance; suppression of opposition figures, the judiciary, and media; and disinformation campaigns that have lessened the public's ability to influence decisionmaking.²⁴

During the democratic era that began in 1986, the legislative branch and Supreme Court have not served as strong checks on presidential power. Political parties and groupings tend to be fluid and shifting, driven more by individual personalities, interests, and loyalties than by unifying ideologies, policy platforms, and goals.²⁵ Some experts argue that the Supreme Court has become less independent over the course of the past three administrations.²⁶ The court generally did not attempt to restrain the actions of former President Duterte, who appointed 12 of the Supreme Court's 15 Justices.²⁷

2022 National Elections

Ferdinand "Bongbong" Marcos Jr. assumed the presidency on June 30, 2022, having won more than 31 million out of 55 million votes cast (59%) in nationwide elections held in May. Marcos is the son of Ferdinand Marcos Sr., who ruled the country from 1965 until he was ousted by the 1986 People Power Revolution, and who formally imposed martial law on the Philippines between 1972 and 1981.²⁸ Sara Duterte-Carpio, daughter of Rodrigo Duterte, won the Vice-Presidency. The Philippine constitution limits both the president and vice-president, who are elected on separate tickets, to one six-year term.

For many democracy advocates, Marcos Jr.'s election, after six years of democratic backsliding and human rights abuses under Duterte, raised questions about the state of human rights and democracy in the Philippines.²⁹ Although Marcos earned a clear electoral victory, some analysts expressed concern about the use of social media and other information outlets to misrepresent or downplay his family's role in human rights abuses and corruption during his father's 21 years as president.³⁰ Other observers perceived Marcos's win as a continuation of populist and illiberal politics that began with Duterte, who remained popular throughout his term despite his violent antidrug campaign and some controversial foreign policy stances.³¹ Former Vice-President Leni Robredo, who had criticized Duterte's human rights record and cooperative approach towards China, was the second place finisher in the 2022 presidential race, garnering 28% of the vote.³² Although Marcos has not yet introduced specific policy proposals or suggested major shifts in policy from his predecessor, he may focus initially on reviving the country's economy, which is recovering from a downturn largely related to the Coronavirus Disease 2019 (COVID-19) pandemic.³³ Some analysts expect Marcos to be a more reliable supporter of the U.S.-Philippines alliance than Duterte, while also seeking better relations with China.³⁴

U.S.-Philippine Relations

In contrast to his predecessor, President Benigno Aquino III (2010-2016), who steered the Philippines strategically towards the United States, former President Duterte sought to strengthen ties with China, which he viewed as a potentially large source of foreign investment.³⁵ Duterte's goal of garnering major infrastructure investment from Beijing, however, was largely unsuccessful, and the two countries made no significant progress toward resolving territorial disputes or engaging in joint oil exploration in the South China Sea.³⁶ In some respects, the U.S.-Philippines relationship hit a low point in February 2020, when the Duterte government notified the United States of its intent to terminate the Philippines-U.S. Visiting Forces Agreement (VFA), which serves as the legal foundation for bilateral military cooperation in the Philippines' territory. As tensions between the Philippines and China over disputed territory in the South China Sea continued to fester, however, the Duterte government sought closer security cooperation with the United States.³⁷ In July 2021, the Philippines renewed its adherence to the VFA. (See "Visiting Forces Agreement," below.)

In November 2021, the United States and the Philippines held the ninth Bilateral Strategic Dialogue. The two sides pledged to engage in cooperative efforts in various areas including responding to the COVID-19 pandemic, upholding the "rules-based maritime order" in the South China Sea, strengthening interoperability of the U.S. and Philippine armed forces, and fostering respect for human rights.³⁸ In July 2022, U.S. Secretary of State Antony Blinken, in a call with newly appointed Philippine Foreign Affairs Secretary Enrique Manalo, emphasized "the increasing significance of the U.S.-Philippine bilateral alliance to security and prosperity in the Indo-Pacific region and around the world."³⁹ During Blinken's August 2022 visit to Manila, President Marcos emphasized the importance of the bilateral alliance given recent international developments such as the Russian invasion of Ukraine and tensions between China and Taiwan.⁴⁰

Among Filipinos, popular support for the U.S.-Philippines relationship is strong. According to a July 2022 survey conducted by Pulse Asia, 89% of Filipinos had a "great deal" or "fair amount" of trust in the United States compared to Japan (78%) and China (33%). Filipinos placed the least amount of trust in China out of 10 countries (67% had "not too much trust" or "no trust").⁴¹

U.S. Foreign Assistance

U.S. assistance to the Philippines totaled an estimated $155.2 million in FY2022.⁴² U.S. aid includes U.S. Agency for International Development (USAID) and Department of State-funded development and security assistance. (See Table 1.) Development assistance includes programs aimed at promoting inclusive socio-economic development, the rule of law, and human rights, and improving family health, basic education, and environmental management.⁴³ In addition, USAID committed $63.6 million for humanitarian and recovery efforts in Marawi, a city destroyed during a battle between government forces and Filipino and foreign Islamist insurgents in 2017.⁴⁴

As of May 2022, USAID had provided $29.2 million in humanitarian assistance to help communities affected by Typhoon Odette.⁴⁵ Also known as Rai, the cyclone struck the Visayas region in central Philippines and parts of Mindanao island beginning on December 16, 2021. Odette's destruction affected nearly 5 million people, and the Philippine government reported over 400 deaths and 580,000 people displaced due to the super typhoon.⁴⁶

The Philippines is a "priority recipient" in East Asia for security assistance and the largest recipient of U.S. Foreign Military Financing (FMF) in the region. FMF primarily has supported maritime security, disaster response, military professionalization, and the procurement of equipment for counterterrorism operations.⁴⁷ Antiterrorism programs provide training and equipment grants for the Philippine National Police.⁴⁸ The Philippines also receives counterterrorism support through the Department of State East Asia and Pacific Regional program and the Counterterrorism Partnerships Fund.⁴⁹

Since 2016, due to human rights concerns, the U.S. government has suspended International Narcotics Control and Law Enforcement (INCLE) assistance to PNP units for counternarcotics activities, although it has increased assistance for maritime law enforcement, drug demand reduction programs, and transnational interdiction efforts.⁵³ Other legislative measures mandate reporting on Philippine security forces related to human rights violations.⁵⁴

The Millennium Challenge Corporation (MCC) rewards countries that have demonstrated good governance, investment in health and education, and sound economic policies. In 2010, the MCC approved a five-year, $507 million compact with the Philippine government. The agreement aimed to help modernize the Bureau of Internal Revenue to increase revenue collection and reduce tax evasion; expand a community-driven, poverty-reduction program; and promote economic growth through investment in infrastructure.⁵⁵ The MCC awarded the Philippines a second compact in 2015, but indicated in 2016 that it would reevaluate its decision in light of human rights concerns. In December 2017, the Philippine government withdrew from the process, stating that it wanted to focus resources on rebuilding Marawi rather than committing money for the counterpart funding required with MCC projects. The Duterte government denied that the decision to withdraw from the program was made in response to human rights criticism.⁵⁶

U.S.-Philippines Defense Ties

The U.S.-Philippines defense relationship is deeply rooted in a history of shared security interests and priorities that dates back to the 1951 Mutual Defense Treaty and has continuously evolved to address new and developing threats. Since 2015, the Philippines has received over $1 billion in U.S. military assistance, making it the largest recipient of U.S. military equipment and training in the Indo-Pacific.⁵⁷ U.S. security cooperation activities in the Philippines have included counterterrorism assistance, maritime domain awareness, joint military exercises, and transfers of U.S. military equipment. Security cooperation programs also have enhanced the capacity of the Philippine Armed Forces (AFP) to provide humanitarian assistance and to engage in disaster response operations. The Philippines was designated a major non-NATO ally in 2003, which allows the country certain defense trade and security cooperation privileges.⁵⁸

Security Cooperation

As a security partner in the Pacific, the Philippines has received military assistance through the Defense Security Cooperation Agency's (DSCA) Section 333 Building Partner Capacity program and the Indo-Pacific Maritime Security Initiative.⁵⁹ Section 333 activities have focused on the development and enhancement of critical AFP capabilities including intelligence, maritime and border security operations, counterterrorism, and counter-improvised explosive device.⁶⁰ Equipment deliveries under Section 333 have included precision guided munitions and tactical equipment. MSI activities in the Philippines have aimed to improve the AFP's maritime ISR capabilities and support the Philippines' participation in multilateral engagements and other trainings, such as visit, board, search and seizure.⁶¹

The Philippines participates in U.S. defense institution capacity-building programs that have included defense strategy courses and policy workshops that aim to improve security sector governance, resource management, and legal capacity building.⁶² In addition, the Philippines is partnered with the Guam and Hawaii National Guards through the State Partnership Program, which is a unique civil-military program that the National Guard says aims to cultivate personal relationships through a series of tailored engagements.⁶³

U.S.-Philippines bilateral exercises aim to strengthen interoperability through subject matter exchanges and training events. In 2015-2020, the United States and the Philippines engaged in 1,321 bilateral military exercises.⁶⁴ Both sides curtailed security cooperation in 2020-2021 due to the uncertainty over possible termination of the VFA and to the COVID-19 pandemic. In 2022, approximately 3,800 AFP and 5,100 U.S. soldiers participated in Balikatan ("Shoulder-to-Shoulder"), the premier annual bilateral exercise, across Luzon, the largest Philippine island. The 2022 exercise, described as the "largest ever" by military officials, focused on improving interoperability and joint defense capabilities and engaged in humanitarian and civic assistance projects.⁶⁵

Other notable exercises include Maritime Training Activity "Sama Sama" ("Together"), which was held in October 2021, and Kamandag ("Cooperation of Warriors of the Sea"), which was conducted in September 2021.⁶⁶ Exercises also have included the Philippine Navy, which participated in the first joint sail through the South China Sea in 2019 with the United States, Japan, and India.⁶⁷ In addition, between April and June of 2021, the U.S. 5^th Security Force Assistance Brigade conducted their first bilateral training events with various Philippine Army units.⁶⁸

Counterterrorism Efforts

The U.S. military and the AFP have conducted bilateral counterterrorism operations since at least 2001. In 2017, following the reassertion of control over Marawi by Philippine military forces—with assistance from U.S. special operations forces (SOF) advisors—the Department of Defense (DOD) and Indo-Pacific Command (INDOPACOM) initiated Operation Pacific Eagle-Philippines (OPE-P) to help the AFP overcome counterterrorism capability gaps identified by U.S. advisors during operations in Marawi.⁶⁹ U.S. SOF also provided logistical support, intelligence sharing, and operational planning, including the integration of airborne intelligence, surveillance, and reconnaissance (ISR) for intelligence gathering.⁷⁰ In 2020, the last year of OPE-P efforts, DOD committed $85.4 million for OPE-P, in which approximately 200 U.S. military personnel served in advisory roles.⁷¹

Although the OPE-P overseas contingency operation designation has been removed, INDOPACOM continues both security cooperation under DOD authorities as well as "advise and assist" operations with Philippine security forces. Whereas OPE-P primarily focused on counterterrorism operations, "by, with, and through" Philippine partners, the scope of continued bilateral security cooperation programs in the Philippines is to be "significantly larger than the relatively narrow counterterrorism effort."⁷² (See "Islamic State of Iraq and Syria (ISIS)-East Asia," below.)

U.S. Defense Equipment Transfers

In addition to receiving military equipment through the U.S. FMF program, the Philippines is eligible to purchase U.S. defense articles at discounted rates through the Excess Defense Articles grant program.⁷³ In some cases, the Philippines supplements U.S. grant assistance with its national funds. In 2020 and 2021, the State Department notified Congress of six potential Foreign Military Sales (FMS) cases for the Philippines with a combined total over $4.5 billion. These items included missiles, F-16 aircraft, missiles, light military boats and attack helicopters.⁷⁴ Some Members of Congress opposed the proposed FMS cases and other military assistance for human rights reasons, and sponsored legislation that would suspend security assistance to the Philippines.⁷⁵ (See "Selected Legislation," below.) The Philippines also purchases U.S. defense articles and services through the Direct Commercial Sales (DCS) program.⁷⁶

Mutual Defense Treaty

Under the 1951 Mutual Defense Treaty (MDT), the United States and the Philippines are committed to help defend each other against external armed attack. Some analysts note that the MDT does not explicitly obligate the United States to defend maritime areas that are disputed by the Philippines and other nations, and U.S. officials have not confirmed whether the Treaty applies to disputed features in the South China Sea.⁷⁷ Article IV of the Treaty states: "Each Party recognizes an armed attack in the Pacific Area on either of the Parties would be dangerous to its own peace and safety and declares that it would act to meet the common dangers in accordance with its constitutional processes." Article V refers to an armed attack on the "metropolitan territory of either of the Parties," the "island territories under its jurisdiction in the Pacific Ocean," or its "armed forces, public vessels, or aircraft in the Pacific."⁷⁸

Some analysts contend that U.S. assurances have been getting stronger, particularly regarding the defense of Philippine forces and military equipment in disputed areas. In March 2019, then-U.S. Secretary of State Mike Pompeo stated, "As the South China Sea is part of the Pacific, any armed attack on Philippine forces, aircraft or public vessels in the South China Sea would trigger mutual defense obligations under Article IV of our Mutual Defense Treaty."⁷⁹ Similarly, Biden Administration officials have affirmed that the MDT applies to "any armed attack on the Philippine military."⁸⁰ During their August 2022 meeting in Manila, Blinken and Marcos both pledged to strengthen the military alliance.⁸¹

Visiting Forces Agreement

The Visiting Forces Agreement governs the legal status of U.S. military forces operating in the Philippines. It creates rules by which U.S. troops, vessels, and aircraft may enter the country and establishes criminal jurisdiction over U.S. military personnel.⁸² The VFA has been in effect since 1999, eight years after the Philippines rejected a treaty that would have extended the U.S. lease of Clark Air Base and Subic Bay Naval Base, and ordered the withdrawal of all U.S. troops from the Philippines.

On February 10, 2020, the Government of the Philippines submitted to the U.S. Embassy in Manila a "notice of termination" of the Philippines-U.S. Visiting Forces Agreement.⁸³ Some analysts contended that former President Duterte may have initiated the termination as a response to U.S. actions barring entry into the United States of a political ally involved in human rights abuses; others believed that he intended to leverage the VFA to negotiate better terms in the bilateral security relationship or that the action was part of an effort to orient the Philippines strategically away from the United States.⁸⁴ Many in the Philippines, particularly in the defense and foreign policy establishments, however, opposed the move.⁸⁵ The Philippine government suspended the termination three times (for six months each), in June 2020, November 2020, and June 2021.⁸⁶ On July 30, 2021, former Philippine Secretary of National Defense Delfin Lorenzana announced that the Philippines had agreed to recommit to the VFA.⁸⁷

U.S.-Philippines Enhanced Defense Cooperation Agreement

In 2014, the U.S. and Philippine governments signed the U.S.-Philippines Enhanced Defense Cooperation Agreement (EDCA). The agreement allows for the increased rotational presence of U.S. military forces, ships, and aircraft in the Philippines and greater U.S. access to Philippine military bases, including the ability to store U.S. defense materials and equipment.⁸⁸ Under EDCA, U.S. military personnel in the Philippines are deployed on a rotational or non-permanent basis. Philippine bases, including U.S.-built facilities and improvements, are to be utilized rent-free by the Americans but owned by the Philippines.⁸⁹ In addition, EDCA "facilitate[s] humanitarian assistance and disaster relief in the Philippines and the region; improve[s] opportunities for bilateral training; and support[s] the long-term modernization of the [AFP] as it works to establish a minimum credible defense."⁹⁰

In 2016, former President Duterte called for reassessing EDCA and reducing the number of U.S. troops and joint military exercises in the Philippines. The Philippines eventually allowed EDCA to proceed, but limited its mission and delayed facilities construction until 2018, when a humanitarian assistance and disaster relief storage facility was built at Basa Air Base.⁹¹ Other projects were delayed in 2019, and the uncertainties over the VFA and COVID-19 restrictions further delayed EDCA's progress.⁹² In October 2021, following the Philippines' recommitment to the VFA and other improvements in the bilateral relationship, the AFP announced that construction work related to EDCA would "intensify."⁹³

Philippines-China Relations

The Duterte government initially focused on finding ways to cooperate with China in the South China Sea, including through joint energy exploration that would shelve questions of sovereignty, and sought PRC development loans, investment, and assistance with large infrastructure projects in the Philippines. The two sides, however, did not come to agreement on how to resolve their territorial disputes or on joint resource exploration, and relations between the Philippines and China worsened during the second half of Duterte's term.⁹⁴ President Marcos has stated he wants to improve ties with China despite ongoing territorial disputes.⁹⁵

Former President Duterte eagerly sought PRC financing for infrastructure projects throughout the country as part of his "Build, Build, Build" program.⁹⁶ In 2016, China pledged $6 billion in official development assistance, $3 billion in loans, and $24 billion in investments to the Philippines.⁹⁷ However, only a small fraction of that financing and investment reportedly materialized.⁹⁸ The Marcos government and China reportedly have resumed negotiations that began in 2018 on PRC financing and construction assistance for three major railway projects.⁹⁹ Other proposed infrastructure projects with Chinese assistance include the Kaliwa Dam and Samal-Davao Bridge.¹⁰⁰

PRC military assistance remains limited in terms of funding and scope, especially compared to U.S. and Australian military assistance.¹⁰¹ Cooperation in sensitive areas, such as intelligence sharing and joint drills, are in their early stages.¹⁰² Territorial disputes and the lack of trust and familiarity between the two sides creates further obstacles to greater military cooperation.¹⁰³

The Philippines' Maritime Disputes with China

The Philippines and China have long-standing disputes over waters and land features in the South China Sea, which the Philippines calls the West Philippine Sea.¹⁰⁴ Tensions have risen since 2012, as China has enlarged and placed new military assets on several disputed features in the Spratly archipelago, and increasingly interfered with Philippine commercial and military activities in what the Philippines, citing UNCLOS, considers its Exclusive Economic Zone. DOD's 2021 report on PRC military and security developments stated that the PRC's Spratly Island outposts "allow China to maintain a more flexible and persistent military and paramilitary presence in the area," which "improves China's ability to detect and challenge activities by rival claimants or third parties and widens the range of response options available to China."¹⁰⁵

The previous Aquino government sought arbitration under UNCLOS against aspects of China's maritime claims and behavior in the South China Sea. In 2016, an UNCLOS tribunal concluded that China's "Nine Dash Line" claims to areas overlapping the Philippines EEZ have no legal basis.¹⁰⁶ The tribunal also found that China violated its UNCLOS obligations by blocking Philippine access to Scarborough Shoal, interfering with Philippine oil and gas exploration at Reed Bank, and damaging the marine environment by reclaiming land. The United States has urged China, which declared the verdict "null and void," to abide by the ruling, and the Philippines to try to enforce it.¹⁰⁷ (See Figure 2.) Former President Duterte downplayed the UNCLOS ruling while engaging in bilateral discussions with China on resolving maritime disputes, without success.¹⁰⁸ By contrast, Philippine Foreign Affairs Secretary Manalo stated in July 2022 that the ruling and UNCLOS "are the twin anchors of the Philippines' policy and actions" on the South China Sea.¹⁰⁹

Figure 2. Contested Boundaries in the South China Sea

Source: Created by CRS. Exclusive Economic Zones from Flanders Marine Institute (2020).

Violent Extremism in the Philippines

The Philippines has battled Muslim armed separatist and terrorist movements on the southern islands of Mindanao and the Sulu archipelago for over 30 years. The Abu Sayyaf Group (ASG), which the United States designated as a foreign terrorist organization in 1997, has carried out hostage-takings for ransom, killings, and bombings since the early 1990s. In 2002, DOD established the Joint Special Operations Task Force–Philippines (JSOTF-P) as part of Operation Enduring Freedom to support "the comprehensive approach of the Armed Forces of the Philippines in their fight against terrorism,"¹¹⁰ including a large humanitarian component. Philippine military efforts, supported by U.S. assistance, reduced the size of the ASG from 1,000-2,000 militants in the mid-1990s to an estimated 400 members in the mid-2010s.¹¹¹ The U.S. government deactivated JSOTF-P in 2015, citing the diminishing strength of the ASG, but launched OPE-P in 2017 in response to the rise of Islamic State (IS) affiliates in the Philippines.¹¹²

The Marawi Seige

In May 2017, a coalition of Filipino Islamist extremist groups that had pledged allegiance to the Islamic State, along with dozens of foreign fighters, laid siege to Marawi, a provincial capital in Mindanao.¹¹³ With U.S. and other foreign assistance, the AFP retook the city in October 2017. U.S. military personnel provided technical support, including ISR training, aerial surveillance, and communications assistance.¹¹⁴ The conflict reportedly resulted in the deaths of over 900 militants, over 165 Philippine troops, and roughly 50 civilians, as well as the destruction of much of the city.¹¹⁵

Islamic State of Iraq and Syria (ISIS)-East Asia

In 2018, the Department of State added ISIS–Philippines (ISIS-P), a loose collection of groups who had pledged allegiance to the Islamic State, to its list of Foreign Terrorist Organizations.¹¹⁹ The network, now renamed ISIS–East Asia (ISIS-EA), has around 300-500 fighters.¹²⁰ Although weakened in the AFP counteroffensive in Marawi, the Abu Sayyaf Group and other IS-affiliated groups have continued to carry out sporadic attacks in Mindanao and Sulu.¹²¹ Some U.S. officials and analysts argue that "efforts to reduce extremism in the Philippines do not appear to have made a substantial difference since the launch of OPE-P."¹²² Force rotations, uncertainty over the VFA, and COVID-19 restrictions appear to have also have hindered U.S. assistance.¹²³ According to U.S. Special Operations Command-Pacific (SOCPAC), despite progress in executing large-scale counterterrorism operations in difficult terrains since 2017, the AFP as of 2020 had not demonstrated the capacity to sustain gains by further degrading terrorist groups or preventing them from reconstituting.¹²⁴

Human Rights Issues

The Drug War

Human rights groups had been highly critical of the Duterte government for the extrajudicial killings tied to the "War on Drugs," as well as for other human rights violations.¹²⁸ Drug war-related deaths range from Philippine Drug Enforcement Agency numbers of approximately 6,000 to estimates by human rights organizations of nearly 30,000.¹²⁹ At the height of the drug war in 2016-2017, human rights groups reported that virtually all of the killings were carried out by police or by armed vigilantes and occurred without due process, and that the vast majority of victims were unarmed, poor, low-level offenders. They further alleged that police collaborated with vigilantes, planted evidence at the scenes of killings, fabricated reports, and held suspected drug offenders for ransom.¹³⁰ Impunity from prosecution that generally protects government and government-backed perpetrators of violence has long been a problem in the Philippines. Of police officers involved in killings in the antidrug war since 2016, only three have been convicted of murder.¹³¹

In March 2018, President Duterte announced that the Philippines would withdraw from the International Criminal Court (ICC) after the tribunal launched a preliminary investigation into possible "crimes against humanity" related to the antidrug campaign.¹³² The ICC suspended its investigation in 2021 following a Philippine government pledge to conduct its own probe, but in June 2022 indicated it may seek to reopen it.¹³³ In July 2022, Philippine Justice Secretary Jesus Remulla stated that the Philippines cannot be subjected to an ICC investigation since it withdrew from the body in 2018.¹³⁴ President Marcos and Philippine officials have stated that the government will continue the drug war "within the framework of the law and with respect for human rights," and will target large illegal drug operations and bolster drug rehabilitation.¹³⁵

Other Human Rights Issues

Some experts argue that the space for voices critical of the government narrowed under Duterte. In 2017, Philippine authorities arrested Senator Leila De Lima, a critic of Duterte's drug war, on charges that she had accepted money from drug lords while she was Justice Secretary.¹³⁶ In June 2020, journalist Maria Ressa, founder of the online news site Rappler, which had reported critically on the antidrug campaign, was found guilty of "cyber libel."¹³⁷ Some observers view both cases as politically motivated.¹³⁸ Ressa, who is free on bail as she appeals her verdict, was awarded the 2021 Nobel Peace Prize for her efforts to safeguard freedom of expression.¹³⁹

In 2018, the Securities and Exchange Commission (SEC) of the Philippines revoked the operating license of Rappler due to an issue related to alleged foreign control, which Rappler disputed; the media company was allowed to continue operations pending a final decision by the SEC and the Court of Appeals.¹⁴⁰ Critics decried the license revocation as a violation of press freedom.¹⁴¹ In July 2020, the Philippines House of Representatives voted to reject the renewal of the broadcast license of ABS-CBN, the country's largest broadcasting network, which had aired an opposition political advertisement in 2016 that reportedly offended former President Duterte. The network also was a major source of critical reporting on the drug war.¹⁴²

The State Department's Country Reports on Human Rights Practices for 2021 cited "serious restrictions on free expression and media, including violence, threats of violence, and unjustified arrests or prosecutions of journalists, censorship, and the use of criminal libel laws to punish journalists."¹⁴³ The Philippines is the seventh most dangerous country for journalists according to the Committee to Project Journalists, and it ranks 147^th out of 180 countries on Reporters Without Borders' "World Press Freedom Index."¹⁴⁴ The Philippines enacted a new Anti-Terrorism Law in 2020 that analysts say contains broad and vague provisions that the government and security forces can use arbitrarily to target political opponents and silence dissent, and that weakens legal protections for the accused.¹⁴⁵ Human rights groups reported that Marcos's presidential campaign and supporters harassed independent journalists, and expressed concern this practice may continue.¹⁴⁶ In July 2022, the U.N. Special Rapporteur on Freedom of Opinion and Expression Irene Khan called on President Marcos to decriminalize libel, withdraw charges against journalist Maria Ressa, reverse government decisions against media outlets, and investigate attacks on journalists.¹⁴⁷

In addition to the thousands of drug-related killings, roughly 200 extrajudicial killings of leftist and human rights activists reportedly occurred while Duterte was president. Many of these were carried out by unidentified assailants allegedly linked to security forces and government-backed militias, according to human rights groups.¹⁴⁸ Some of the victims were accused by the government of being members of, or as having ties to, communist or terrorist organizations.¹⁴⁹

Economics and Trade

The Philippines, one of the fastest growing economies in Southeast Asia prior to the COVID-19 pandemic, recorded annual economic expansion averaging 6.6% annually between 2016 and 2019.¹⁵⁰ The country is home to the largest business process outsourcing sector in the world, generating over $26 billion annually.¹⁵¹ Filipino workers continue to emigrate for jobs abroad despite economic growth at home. Remittances from over 10 million overseas Filipino workers totaled $34.8 billion in 2021, a record high.¹⁵²

GDP contracted by 9.4% in 2020, largely due to the economic effects of the pandemic, but rebounded to 5.5% in 2021.¹⁵³ Philippines trade with the United States, its third-largest trading partner and largest export market, totaled $19.5 billion in 2021, including $11.8 billion in exports and $7.7 billion in imports.¹⁵⁴ Major Philippine export items to the United States include electrical machinery, equipment, and parts; other machinery and appliances; leather goods and handbags; agricultural goods; medical devices; and apparel. The largest U.S. exports to the Philippines are electrical machinery, equipment, and parts and agricultural goods.¹⁵⁵

Under the Aquino government, the Philippines had expressed strong interest in joining the (then) Trans-Pacific Partnership (TPP) in order to gain greater access to U.S. markets and investment opportunities. The Philippines recently has expressed interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which evolved from the TPP without U.S. participation.¹⁵⁶ The Philippines is one of 14 members of the Indo-Pacific Economic Framework initiative, which the Biden Administration launched in May 2022 to boost economic growth, fairness, competitiveness, and related objectives among allies and partners in the region.¹⁵⁷

Considerations for Congress

• Given the significance of the Philippines to U.S. strategic interests in the region, Congress may consider how best to support the defense relationship, including how to help the Armed Forces of the Philippines address its most critical capability gaps and capacity shortfalls. Congress may consider how to apportion U.S. security assistance among the areas of responding to external threats and counterterrorism. Congress may consider what combination of military and development or humanitarian assistance might best counter extremist movements in the southern Philippines.
• As the United States and the Philippines have common interests in maintaining a "free and open Indo-Pacific," Congress may consider how the United States might provide support to the Philippines in its efforts to protect its sovereignty and interests in its maritime domain. Policy tools include U.S. official statements of support for the 2016 UNCLOS tribunal decision declaring China's territorial claims to have no legal basis; cultivating multilateral support, including from ASEAN, for countering PRC assertiveness in the South China Sea; and providing greater security assistance to the Philippines. Congress may also consider the possible consequences for U.S. interests of ratifying UNCLOS.¹⁵⁸
• As the problems of extrajudicial killings and a culture of impunity have continued in the Philippines, Congress may consider how the United States might assist the Philippine government in strengthening its oversight of its police and military forces and enhancing the efficacy of its judicial system. Previous U.S. assistance efforts, for example, have included strengthening the rule of law and improving judicial processes.¹⁵⁹ Given past, present, and proposed congressional restrictions on U.S. security assistance to the Philippines due to human rights concerns, Congress may consider their impact, if any, on human rights conditions in the Philippines and on U.S.-Philippine relations, and adjust accordingly.¹⁶⁰
• Given China's economic engagement and influence in the region and Philippine interest in strengthening economic ties with the United States, Congress may consider how best to promote closer U.S.-Philippines economic ties and provide alternatives to Chinese infrastructure financing, whether through bilateral trade arrangements, the U.S. International Development Finance Corporation or other financial entities, a second Millennium Challenge Corporation compact, or the Indo-Pacific Strategy's proposed Indo-Pacific economic framework.

Selected Legislation in the 117^th Congress

• The National Defense Authorization Act for Fiscal Year 2023 (H.R. 7900, passed in the House July 14, 2022) would require a report on human rights in the Philippines (Section 5818) and prohibit Department of State funding to the Philippine National Police until certain human rights conditions by the government of the Philippines are met (Section 5863).
• The Consolidated Appropriations Act, FY2022 (P.L. 117-103, Section 7043(g)) states, "None of the funds appropriated by this Act may be made available for counternarcotics assistance for the Philippines, except for drug demand reduction, maritime law enforcement, or transnational interdiction." The law also requires an update to the report required by the Consolidated Appropriations Act, FY2020 (P.L. 116-94) on steps taken by the Philippine government to hold Philippine armed forces personnel accountable for human rights violations, and on how the report's findings are reflected in U.S. assistance to the armed forces of the Philippines.¹⁶¹
• The Asia Reassurance Initiative Act of 2018 (ARIA, P.L. 115-409) restricts counternarcotics assistance to the PNP, with the exception of drug demand reduction, maritime, and interdiction programs, unless the Philippines has adopted and is implementing a counternarcotics strategy that is consistent with international human rights standards.
• The South China Sea and East China Sea Sanctions Act of 2021 (S. 1657, introduced 5/17/21) would impose sanctions on Chinese persons and entities that participate in certain activities related to China's territorial disputes in the South China Sea and the East China Sea and addresses other related issues.