AfricaAsia NorthAsia South and SoutheastBangladeshBruneiCambodiaIndiaIndonesiaLaosMalaysiaMaldivesMyanmarNepalPakistanPhilippinesSingaporeSri LankaThailandTimor LesteViet NamAustraliaEuropeLatin AmericaMiddle EastNorth AmericaPacific
Start writing the country or territory name in the box. Typing more letters narrows the search. Click "go" or hit "Enter" to go to the information paper on the country or territory.
(We don't have information papers on all countries and territories.)
New Zealand and the Philippines enjoyed a positive working relationship as ASEAN Dialogue Partners for the last three years. This relationship is key as the Philippines assumes the position of Chair of ASEAN and becomes host of the East Asia Summit (EAS) in December 2006.
New Zealand also has a close working relationship with the Philippines in regional and multilateral fora such as APEC, the Forum for East Asia and Latin American Co-operation (FEALAC), the WTO and the Cairns Group, the ARF and the ASEAN/Australia/New Zealand FTA process.
Development assistance has been an important part of the bilateral relationship. NZAID provides NZ$3.3 million annually in ODA to the Philippines. The programme focuses on activities in the medium to long term to help address structural reform and poverty alleviation needs, primarily in poor rural areas.
New Zealand and the Philippines have had two rounds of air services negotiations but are yet to conclude an air services agreement. The Philippines is now the only APEC economy with which New Zealand does not have an air services agreement. Air New Zealand has explored possible code share arrangements with Philippine Airlines (PAL), which has services to Australia. The Philippines has not yet acceded to the Multilateral Agreement on the Liberalisation of International Air Transportation.
Bilateral Business Councils have been established in both countries and there have been several business missions in both directions. The Minister of Trade Negotiations visited Manila in March 2003 and a small Philippines business delegation visited New Zealand in October 2003.
Dairy products are by far the largest export item to the Philippines and Fonterra has engaged in some joint ventures within the Philippines. New Zealand companies in the Philippines are also involved in energy (eg. Fletchers, Designpower), infrastructure development (eg. Sinclair Knight Merz) and housing construction (eg. Pacific Development). The ANZ bank has one of ten foreign bank licenses. There is however little Philippines investment in New Zealand.
There is a relatively small Filipino full-fee paying student presence in New Zealand. In 2004 there were 115 Filipino students studying in schools, public tertiary, and private tertiary providers.
The net migration of Filipinos to New Zealand last decade was approximately 4,000. The 2001 census lists the Filipino population in New Zealand as 11,091
Although there is growing interest in New Zealand as a tourist destination, the Philippines market is an under-developed one. The lack of direct air links is a disincentive. Approximately 5,300 Filipinos visited in 2004.
top of pageLand Area - 300,000 sq km (US Department of State 2005) Population - 86.7 million (Foreign and Commonwealth Office 2005 estimate) - Capital City - Manila - Language - Filipino and English are the official languages
Political system - Pluralist Democracy modelled on the United States with an executive presidency, a bicameral Congress and a Supreme Court that can rule on the constitutionality of government actions. - National government - Gloria Macapagal-Arroyo, who became President on January 20th 2001, won re-election in her own right on May 10th 2004 for a six year term. - National legislature - Bicameral Congress - Senate and House of Representatives. - National elections - The May 10 th 2004 election was for the Presidency, the House of Representatives and one half of the Senate. The next elections are due in May 2007 for the House of Representatives and one half of the Senate - Next election due - May 2007 - Head of State - President Gloria Macapagal-Arroyo
GDP - US$98.4 billion (2005) - Real GDP growth - 5.0% (Dec 2005) - Exports - US$40.231 million (Dec 2005) - Imports - US$-47.777 million (Dec 2005) - Main exports - Electronic products, Semiconductors, Garments, Petroleum products, Coconut oil - Main Destinations of Exports - US, Japan, China, Netherlands, Hong Kong, Singapore - Main Imports -Semi processed raw materials, Telecommunication equipment and electrical machinery, Manufactured goods, Chemicals, Crude petroleum - Main origins of imports 2005 - US, Japan, Singapore, Taiwan, China, South Korea - Current account balance - US$2,354 million (Dec 2005) - Inflation - 7.6% (Dec 2005)
New Zealand Trade (to year ended Dec 2005) - NZ Exports (FOB) - NZ$464,301,083 (for year ending Jun 2006) - Main Exports - Milk and Cream products, Buttermilk, Yogurt, Kephir, Cheese, Veneer sheets and sheets for plywood, Uncoated kraft paper and paperboard, Malt extract, Timber, Plastics, Butter and Dairy spreads - NZ Imports (CIF) - NZ$119,719,084 (for year ending Jun 2006) - Main Imports - Bananas, Transmission apparatus, Dates, Figs, Pineapples, Avacados, Guavas, Mangoes, Mangosteens, Petroleum gases and other gaseous hydrocarbons, Electronic integrated circuits and microassemblies, Salts, Electrical apparatus, Electric accumulators, Electronics, Machinery - Total two way Trade - NZ$584,020,167 (Jun 2006)
From the time of independence, the Philippines economy has had a mixed history of growth and development. Now, with a population in excess of 85 million people, the Philippines is a large and growing market.
The Philippines government faces significant challenges in terms of ensuring domestic security, encouraging economic growth and balancing the budget deficit. Gloria Macapagal-Arroyo has come under pressure to cut short her presidency, which is due to finish in 2010. She has been accused of exaggerating threats to national security in order to allow the security forces increased freedom to deal with her political opposition.
Relations between New Zealand and the Philippines are friendly. The relationship has become more substantial in recent times with increasing trade. Two-way trade now exceeds NZ$580 million per annum. A long-standing development assistance partnership adds strength to the bilateral relationship.
The history of the Philippines can be divided into four phases: the pre-Spanish period (before 1521); the Spanish period (1521-1898); the American period (1898-1946) and the years since independence (1946-present).
The first people in the Philippines, the Negriots, are believed to have come to the islands 30,000 years ago from Borneo and Sumatra. Malay people followed in successive waves. Chinese merchants and traders arrived and settled in the ninth century AD. In the 14 th century, Arabs arrived, introducing Islam in the south and extending some influence into Luzon. The Malays remained the dominant group until the Spanish arrived in the 16 th century.
Ferdinand Magellan reached the Philippines and claimed it for Spain in 1521. The country was named “Las Islas Filipinas” after King Philip II of Spain. The long period of Spanish rule (three centuries) was marked by numerous uprisings. The US gained possession of the Philippines after the Spanish-American war in 1898 and ruled the country for five decades.
On 4 July 1946 the country achieved full independence. The early years of independence were dominated by US assisted post-war reconstruction.
President Marcos imposed martial law in 1972. He cited growing lawlessness and open rebellion by the communist rebels as his justification. Corruption and favouritism under Marcos was deemed to contribute to a serious decline in economic growth and development under his reign.
The assassination of opposition leader Benigo (Ninoy) Aquino upon his return to the Philippines in 1983 (following exile), together with popular discontent with Marcos, set in motion a set of events that culminated in a snap presidential election in February 1986. The election was marred by extensive electoral fraud. Although Marcos officially ‘won’ this election the opposition rejected the result. The Church and elements of the armed forces also expressed their condemnation. Marcos fled the country and Opposition leader Corazon Aquino became President in February 1986.
With the end of the Marcos reign, a new Constitution was adopted in 1987. The return of democracy and governmental reforms in the post-Marcos era, however, was hampered by a massive national debt, governmental corruption, coup attempts, a communist insurgency and Muslim separatist movements.
Fidel Ramos succeeded Corazon Aquino in 1992. Early in his administration Ramos declared “national reconciliation” his highest priority. In June 1994, President Ramos legalised a general conditional amnesty covering all rebel groups, as well as Philippines military and police personnel accused of crimes committed while fighting the insurgents. In October 1995, the government signed an agreement bringing the military insurgency to a conclusion.
Joseph Estrada was elected President in 1998. He promised poverty alleviation and an anti-crime crackdown. By December 2000, however, his political credibility was damaged and he faced corruption allegations and an impeachment trial. Rallies calling for Estrada’s resignation increased in size and on 19 January 2001 the Chief of the Armed Forces, General Reyes, announced that the military had withdrawn its support for the Estrada administration.
On 20 January 2001 the Supreme Court found the position of the Presidency vacant and invoked the principle salus populi suprema lex (the welfare of the people is the supreme law) to swear in Vice President Gloria Macapagal-Arroyo as the President of the Republic of Philippines.
President Arroyo began her administration vowing to target corruption and work towards poverty alleviation. She also promised to stabilise the economy, (focussing on fiscal discipline) as the budget deficit had more than doubled in the period of political uncertainty.
As she came in over halfway through Estrada’s term, President Arroyo was in the unique position (under the Philippine constitution) of being able to stand for a second term in 2004. National elections for the President, Congress and half of the Senate, were held on 10 May 2004. After initially declaring that she would not be running, President Arroyo changed her mind and the campaign became be a contest between her and movie star Fernando Poe Jnr.
On 20 June 2004, more than six weeks after the Presidential election, a committee representing the Congress, announced that Gloria Macapagal-Arroyo had won. This tally was then referred to the Congress as a whole. Congress’ count put Arroyo with just over one million votes over Poe. The Presidential inauguration was held on 30 June 2004. In her 2004 State of the Nation Address, Arroyo focussed on the need to address problems of criminality and terrorism, and renewed her pledge to build a “strong republic”.
Impeachment charges were bought against President Arroyo in July 2005. The President was accused of tampering with the results of the May 2004 elections following a public airing of a taped conversation between the President and an electoral officer during the elections. She rejected calls for her resignation and the Congress rejected the charges in September 2005.
In her 2005 State of the Nation Address, following the attempted impeachment, the President indicated support for a ‘special constituent assembly’ to change the Philippine Constitution to establish a Parliamentary system of government rather than the current Presidential system.
On 24 February 2006 the President declared a state of emergency; due to alleged conspiracy to bring down the government after a section of the military took part in a mass anti-government demonstration. A newspaper office was raided and some high profile arrests of opposition figures were made. The state of emergency was lifted after seven days.
Constitutional changes remain on the agenda, driven by both the administration and its supporters in Congress. The President continues, however, to lack a popular support base, faces a hostile Senate, and has been forced to rely increasingly on the military to maintain political stability.
The most pressing short-term threat to the President comes from an impeachment complaint filed by some 300 members of the House of Representatives on June 26 th. This was the earliest opportunity permitted after the 12 month gap required since the preceding impeachment complaint was presented to the lower house in June 2005.
As opposition to the President increases she has engaged in defensive measures, perhaps to increase her popularity. Her decision in June to sign a law to abolish the death penalty is one example. This pronouncement drew strong support from the Catholic Church which has a considerable influence on public opinion.
Peace talks between the government and the Moro Islamic Liberation Front (MILF) continue. Questions related to “ancestral domain” remain unsettled. The Government is hopeful of a final peace settlement by the end of the year.
The Philippines is a developing country with an agricultural base, light industry and service-sector economy. Important sectors of the economy include agriculture and industry, particularly food processing, textiles and garments, and electronics and automobile parts. Mining is also of great potential and mining investment is expected to rise considerably in 2006.
Government initiatives are designed to match the pace of development in the newly industrialised countries (NIC) of East Asia. Economic strategies are implemented to manage a public debt comprising 95% of the GDP.
Strategies for reforming the economy include constant improvements of infrastructure, efficient tax systems to bolster government revenues, furthering deregulation and privatisation of the economy, and increasing trade integration within the region. The US and Japan were the Philippines two biggest export destinations, and main origins of imports last year.
In 2005 sluggish exports, high oil prices, and a weak agricultural sector saw GDP decrease to 5%, from 6.2% in 2004. Personal consumption expenditure slowed slightly, in part attributed to reduced performance in agriculture and fisheries, which between them employ about 20% of the population. Remittances from the country’s Overseas Foreign Workers, estimated at nine million people, however, showed a 23% increase. Net foreign direct investments also surged in 2005, up 60% to US$900 million.
In November 2005 a newly expanded Value Added Tax (VAT) law was instituted in an attempt to restrain the growing foreign debt and to improve government services such as healthcare, education, social security, and transport. This boosted confidence in the government’s fiscal capacity and helped to strengthen the peso. The peso was one of Asia’s strongest-performing currencies in 2005.
The Philippines economy grew by 5.5% year on year in the first quarter of 2006, compared with 5.1% growth in the last quarter of 2005. The budget deficit was 40% below target in the first half of 2006 and Congress’ failure to approve the 2006 appropriations bill by the middle of the 2006 means budget spending for 2006 will be close to 2005 levels.
The Philippines will have to tackle several chronic problems in the future. Income inequality remains an issue, regional development is uneven, and China and India have emerged as major economic competitors. Fiscal constraints continue to limit Manila’s ability to finance infrastructure and social spending.
Unrest in the south of the Philippines has been a constant feature of the post-independence Philippines.
In 2001 President Arroyo moved to reopen peace talks with the Moro Islamic Liberation Front (MILF), a Muslim separatist group in the south, and with the National Democratic Front (NDF), the front organisation of the communist insurgents who have been fighting the government for 35 years.
Mindanao is a spotlight for the Arroyo administration. With the assistance of the Malaysian government, advancement on MILF issues has been made and a ceasefire was agreed in mid-2003 (although clashes with breakaway factions have continued to occur sporadically). Formal peace negotiations are moving slowly and the Philippines Government hopes to conclude a peace agreement by the end of 2006.
The MILF’s principal demand is that the government address the matter of ancestral domain. The government wants the MILF to cooperate in operations against the international terrorist group Jemaah Islamiyah (JI). Reports by the Economist Intelligence Unit suggest that although both sides want a peace settlement, there are forces on the ground in Mindanao that are hostile to a peace settlement on the terms currently on the table, and are therefore seeking to sabotage the process. Abu Sayyaf will not settle for anything less than an independent Muslim entity. Meanwhile sections of the military and some Christian community groups are opposed to any compromise.
Major donors, led by the US and the World Bank, are standing by and preparing to provide development assistance once an agreement is arrived at.
Peace negotiations between the NDF and the Philippines government were suspended in June 2001, following the assassination of a congressman. The negotiations resumed in February 2004 when Norway hosted a new round of peace negotiations. The NDF pulled out of the talks in August 2004 to protest the government’s failures to have the Communist Party of the Philippines and the New People’s Army removed from the US and EU’s terror listings.
The Abu Sayyaf Group (ASG) is widely believed to have been responsible for a series of bombings over recent years. In January 2002, 660 US troops were sent to the Philippines to assist the Armed Forces of the Philippines (AFP) campaign against the ASG, but it remains active.
Both the ASG and MILF have had contacts and links with international terrorist organisations in the past and Jemaah Islamiyah (JI) operatives have been captured in the Philippines.
In combination, the above sources of instability are a major drain on the Philippines’ economic resources. top of page
The Philippines was a founding nation of ASEAN (the Association of South East Asian Nations) and is active in the ASEAN Regional Forum (ARF). It is also a member the United Nations (UN), some of its specialised agencies, the Asia Pacific Economic Cooperation forum (APEC), the Non-Aligned Movement (NAM), the Asian Development Bank (ADB), the International Atomic Energy Agency (IAEA), the World Trade Organisation (WTO), and the World Bank.
The Philippines has traditionally had very close links with the United States, but the closure of the United States military bases in 1991 led to an increased emphasis on its Asian neighbourhood. The link with the United States was renewed in 2004 through a Visiting Forces Agreement, and regular “Balikatan” (shoulder to shoulder) exercises, which provide training to Philippine forces.
President Arroyo has been a strong supporter of US-led anti-terrorism activities and has pledged the Philippines support, including transit access for US forces. The Philippines also contributed to reconstruction in Iraq.
Tensions exist in the area of the South China Sea in regard to territory contested by the Philippines, China and other ASEAN countries, most recently in April 2004 when Viet Nam organised a “sightseeing” visit to the islands. The Philippines and China have agreed to not let the territorial dispute affect the bilateral relationship. top of page
The Safetravel website provides a travel advisory for travellers to Philippines [external link].
