Changing Economic Alignments? New Indo-Pacific Arrangements from a Philippine Perspective

Abstract

The Philippine record in extracting gains from various multilateral and/or bilateral regional arrangements has not been exemplary compared to its regional peers like Indonesia and Vietnam. If the Philippines has gained a measure of notoriety in materialising gains in ratified Free Trade Agreements or bilateral agreements such as the Belt and Road Initiative, how can it manage expectations regarding the new Indo-Pacific mechanisms where the economic dimension is somewhat muted? This chapter interrogates the economic dimensions in the AOIP and IPOI and how the Philippines, Indonesia and Vietnam engage with these. Led from the Philippines perspective, this then looks at trade and investment of these three ASEAN members with comparative insights to highlight their evolving engagement with the Indo-Pacific. Finally, it gives salience to strategic narratives and how these reflect their bounded potential. It also attempts to contribute a perspective of how regional convergence potential, domestic capacity issues, and security interests intersect.

Appendix: Indo-Pacific Points in DFA Statements that mention the AOIP or IPOI

#	Title	Date	Indo-Pacific element	Direct PH interest in socio-economic development and security/strategy
1	Philippines-United States Bilateral Strategic Review Joint Statement	15–16 July 2019	AOIP, (US) Indo-Pacific Strategy	Economic: Trade and Investment Framework Agreement Security: strong security alliance, Mutual Defense Treaty, Law of the Sea, Code of Conduct (COC) in the South China Sea (SCS), human and drug trafficking
2	Secretary Locsin Leads PH Delegation to 52nd AMM, Related Meetings	July 27–August 2, 2019	AOIP	Economic: RCEP, 4th Industrial Revolution, issues on trade protectionism, strengthening rules-based multilateral trading system Technology: technological advancements Community Building/Regionalism: ASEAN community building, ASEAN centrality in regional architecture; ASEAN Plus Three framework Security: strategic and political-security issues in the SCS
3	P.H. Participates in Special ASEAN-Russian Foreign Ministers’ Meeting on Coronavirus Disease 2019 (COVID-19)	June 17, 2020	AOIP	Pandemic Response; Economic: COVID-19, recovery, long-term socio-economic challenges posed by the disease
4	Philippine Statement Delivered by Foreign Affairs Secretary Teodoro L. Locsin, Jr. During the 23rd ASEAN Political-Security Community Council Meeting	August 2, 2021	AOIP	Pandemic Response and Recovery Security: COC and the SCS, transnational crime, human trafficking, terrorism, cybersecurity
5	Philippine Intervention delivered by Foreign Affairs Secretary Teodoro L. Locsin, Jr. during the ASEAN Post-ministerial Conference Session with Australia	August 4, 2021	AOIP	Economic: RCEP, supply chains, trade and markets, economic recovery Security: SCS, United Nations Convention on the Law of the Sea (UNCLOS), 2016 Arbitral Award, cybersecurity
6	Philippines Welcomes Support for the 2016 Arbitral Award at East Asia Summit Foreign Ministers’ Meeting	August 4, 2021	AOIP, multidimensional cooperation in the Indo-Pacific, East Asia Summit (EAS) including India	Pandemic Response: COVID-19 ASEAN Response Fund, pandemic assistance from Australia, Japan, Russia Security: 2016 Arbitral Award, 1982 UNCLOS, SCS
7	Philippine Intervention delivered by Foreign Affairs Secretary Teodoro L. Locsin, Jr. during the ASEAN Post-Ministerial Conference Session with India	August 4, 2021	ASEAN-India Dialogue Relations, Indo-Pacific dynamics, AOIP, IPOI, ASEAN-India Joint Statement on the AOIP and IPOI	Social Development: mass inoculation, disaster management, cheaper medicines, climate crisis Economic: recovery from the pandemic Technology and Connectivity: digital economy, connectivity, cross-border data flows, biotechnology Community Building/Regionalism: ASEAN-India relations, EAS, ARF, SOMTC Plus India Traditional Security: rules-based maritime domain
8	Philippine Omnibus Intervention delivered by Foreign Affairs Secretary Teodoro L. Locsin, Jr. during the 11th East Asia Summit Foreign Ministers’ Meeting	August 4, 2021	AOIP, “The dynamics and wide geographic reach of the Indo-Pacific require multilateral groupings that are flexible and adaptable, in membership and strategic aims”	Social Development: ASEAN Comprehensive Recovery Framework, COVID-19 ASEAN Response Fund, climate crisis, ASEAN Centre for Biodiversity Traditional Security: SCS to stay peaceful, secure, stable, and prosperous; COC, 1982 UNCLOS, 2016 arbitral award
9	Philippine Intervention delivered by Foreign Affairs Secretary Teodoro L Locsin, Jr. during the ASEAN Post-ministerial Conference Session with the United States	August 4, 2021	AOIP	Social Development: vaccination assistance, COVID-19 ASEAN Recovery Fund, climate action Economic: US cooperation in stable supply chains, growing trade and investment Community Building/Geopolitical Issues: ASEAN-US strategic partnership, multilateralism, US-China rivalry Technology and Connectivity: sharpening focus on digital technology, ASEAN-US Smart Cities network Security: rules-based international system, respect for sovereignty and rule of law, MDT, VFA, SCS, China's Coast Guard Law, 2016 arbitral award
10	Secretary Locsin and New Japanese Foreign Minister Reaffirm Commitment to Enhance PH-Japan Strategic Ties	December 8, 2021	FOIP, AOIP	Social Development; Economic: COVID-19 pandemic, vaccine donation, emergency grant assistance, crisis response support program, loan packages for PH recovery efforts Community Building and Partnership: ASEAN-Japan Friendship and Cooperation, Philippines-Japan strategic partnership Security: East China Sea, SCS, Arbitral Award and international law-based order in the SCS, 1982 UNCLOS, maritime security and safety, “Foreign and Defense Ministerial Meeting (2 + 2) for deeper security engagement,” Mindanao peace process
11	Secretary Locsin Discusses Regional, Bilateral Issues in First Meeting with French Foreign Minister Jean-Yves Le Drian	December 11, 2021	AOIP, ASEAN Centrality in the Indo-Pacific, “Indo-Pacific region will be a priority for France when it assumes the presidency of the European Union in 2022”	Social Development: pandemic response, vaccination support, ASEAN-EU in climate change Security: maritime security, defense
12	PH Ambassador leads Asian Ambassadors Group's meeting with Special Envoy of the Czech Republic to the Indo-Pacific	November 10, 2021	AOIP, EU Strategy on the Indo-Pacific, assigning a “special envoy to the Indo-Pacific region means that it is giving greater attention to the political and economic developments in the region”	Economic: fair trade, increased trade relations in the Indo-Pacific Connectivity Community Building: effective multilateralism Security: security including cybersecurity, rule of law
13	Statement of the Honorable Teodoro L. Locsin, Jr., Secretary of Foreign Affairs, On the ASEAN-G7 Foreign and Development Ministers Meeting (Session 1: G7 ASEAN)	December 12, 2021	Importance of the Indo-Pacific Region, FOIP, AOIP	Social Development: vaccine support, protection of human rights and fundamental freedoms Community Building: ASEAN-G7 partnership to build back better for the world; ASEAN values Security: peaceful resolution of disputes, SCS, statement of G7 objection seizure of PH maritime features, UNCLOS, 2016 arbitral award, territorial integrity
14	Statement of the Honorable Teodoro L. Locsin, Jr., Secretary of Foreign Affairs, On the ASEAN-G7 Foreign and Development Ministers Meeting (Session 2: Indo-Pacific: Infrastructure, Technology and Shared Security)	December 12, 2021	G-7 members’ Indo-Pacific strategies, AOIP	Security: 1982 UNCLOS, 2016 Arbitral Award, SCS, COC in the SEA Community Building: ASEAN-China Dialogue Relations
15	PH Calls for Strengthened Global Collaboration and Engagement at the G7-ASEAN Foreign and Development Ministers’ Meeting	December 13, 2021	Indo-Pacific Region and global cooperation and engagement	Social Development: vaccines and global health security, COVID-19 response, climate change; and gender equality Economic: recovery, infrastructure, economic growth, and technology Community Building: ASEAN-G7 partnership, synergizing the G7 members’ Indo-Pacific strategies and the AOIP Security: international rules-based order in the SCS, 1982 UNCLOS, 2016 Award on the SCS arbitration
16	Statement of the Honorable Teodoro L. Locsin, Jr., Secretary of Foreign Affairs, On the Australia-United Kingdom-United States (AUKUS) Enhanced Trilateral Security Partnership	September 19, 2021	AOIP	Security: enhanced trilateral security partnership between Australia, the US, and the UK, preventive diplomacy and the rule of law not enough for peace and security, SCS
17	PH Omnibus Intervention for Agenda Item 1 Follow-up to the 37th ASEAN Summit and Related Summits and Agenda Item 2 External Relations Delivered by Foreign Affairs Secretary Teodoro L. Locsin, Jr. [ASEAN Foreign Ministers Retreat]	January 21, 2021	AOIP	Pandemic Response: ASEAN Covid-19 Response Fund, support of the ff. in ASEAN recovery: South Korea, Japan, China, the UK, Australia, NZ, EU Community Building: AOIP principles (e.g., consensus-building and respect for international law) in approach to regional cooperation and external relations; ASEAN-China Dialogue Relations, elevating the latter to Comprehensive Partnership from Strategic Partnership Security: COC
18	The Philippines-Australia Ministerial Meeting Joint Ministerial Statement	August 23, 2021	AOIP; peace and security in the Indo-Pacific; open, inclusive, and prosperous Indo-Pacific	Social Development: Covid-19-related aid, health security, COP26, DRRM, peacebuilding in Mindanao and humanitarian crises, human rights Community Building and Foreign Relations: ASEAN-Australia Leaders’ Summits, ASEAN-Australia Strategic Partnership, PH-Australia Ministerial Meeting as a strategic dialogue in bilateral relations, Philippines-Australia Plan of Action, Ph-Australia Maritime Dialogue Economic: economic recovery, WTO, ASEAN-Australia-New Zealand Free Trade Area, RCEP, CPTPP, APEC Security: bilateral security and defense cooperation; MOU on Cooperative Defence Activities and the Status of Visiting Forces Agreement; broad security cooperation including counter-terrorism, intelligence-sharing, regional strategic issues including maritime security, SCS, 1982 UNCLOS, COC, ARF, EAS, ADMM Plus
19	SFA Locsin Highlights PH focus on Maritime Security Cooperation in ASEAN at FM Retreat	February 17, 2022	AOIP	Community Building: AMF, Expanded AMF, maritime cooperation with ASEAN Member States and Dialogue Partners under AOIP Security: maritime security cooperation for the Philippines as an archipelagic state, SCS, COC, and advancement of negotiations beyond the Preamble, 1982 UNCLOS, 2016 Arbitral Award
20	Statement of Foreign Affairs Secretary Teodoro L. Locsin, Jr. on the EU Ministerial Forum for Cooperation in the Indo-Pacific	February 22, 2022	Future determined by the Indo-Pacific; EU's Strategy for Cooperation in the Indo-Pacific; AOIP; peaceful and thriving Indo-Pacific; France's Indo-Pacific Strategy	Socio-economic: climate action, SDGs, economic cooperation, connectivity Community Building: multilateralism, AOIP principles including inclusiveness and respect for international law, EAS Security: EU cooperation in security and defense; rules-based regional security architecture; UNCLOS as basis for the latter; 2016 Arbitral Award; SCS relevance to EU, ASEAN, and world, COC, CRIMARIO II, maritime cooperation
21	Joint Statement of the Inaugural Japan-Philippines Foreign and Defense Ministerial Meeting (“2 + 2”)	April 9, 2022	FOIP and AOIP common principles; Joint Statement of the 23rd ASEAN-Japan Summit on Cooperation on ASEAN Outlook on the Indo-Pacific of 2020	Strengthen second decade of the bilateral Strategic Partnership; 2 + 2 as a key instrument for advancing bilateral security and defense cooperation; common interests and the shared values of freedom, democracy, the rule of law, respect for human rights, and a free and women economy Cooperation in defense capacity and capability building, reciprocal port calls/ship visits, transfer of defense equipment and technology, continuous cooperation on previous transfers; exercises between Japan Self-Defense Forces and the Armed Forces of the Philippines; logistical cooperation; treaty alliance with the US and regional partnership Maritime Domain Awareness, UNCLOS; enhancement of maritime law enforcement capabilities, including procurement of its largest patrol vessels from Japan; peace in East and SCSs; freedom of navigation and overflight in the East and the SCS, and a rules-based approach to resolving maritime claims; Japan support for 2016 arbitral award and COC; objections to unlawful maritime claims, militarization, coercive activities, and threat or use of force in the SCS Sulu-Celebes Seas and surrounding areas, maritime connectivity and safety, infrastructure and human resources development; peace and stability in the Bangsamoro, Mindanao; Japan's role in support of the Mindanao peace process Economic security; international law-based economic order; dealing with economic coercion; cybersecurity
22	Joint Press Statement, Second PH-EU Joint Committee Meeting	April 26, 2022	EU Strategy for Cooperation in the Indo-Pacific and the ASEAN Outlook on the Indo-Pacific; mutually beneficial cooperation with all partners in the Indo-Pacific region	PH-EU Partnership Cooperation Agreement; building on three subcommittee meetings on trade, investment, and econ cooperation; good governance, rule of law and human rights, development cooperation; AOIP's priority areas: maritime cooperation; connectivity; economic and related areas; and the UN SDGs; EU strategy: sustainable and inclusive prosperity; green transition; connectivity; security and defense; and human security Peace, security and stability and the international rules-based order; 1982 UNCLOS, 2016 arbitral award; maritime cooperation: expanding cooperation on maritime jurisdictions, security, ocean governance, shipping, seafaring Climate change, disaster management and preparedness, IUU fishing, connectivity, S&T 27 core international conventions on good governance, labor, human rights, and the environment peace and development in Mindanao, local capacity building; EU grants for renewable energy, good governance, justice reform, peace and development, and improvement of the country's trade performance and competitiveness; noted the signing of the Financing Agreements for the Bangsamoro Agri-Enterprise Programme and the National Copernicus Capacity Support Action Programme for the Philippines
23	PH Pushed for Regional Cooperation on Maritime Security, Climate, Post-Pandemic Economic Recovery at ASEAN-US Special Summit	May 12–13, 2022	US Indo-Pacific Strategy; AOIP	Social Development: the climate crisis, pandemics, clean energy transformation Economic: post-pandemic economic recovery, sustainable infrastructure Connectivity: Master Plan on ASEAN Connectivity 2025 Community Building and Partnership: ASEAN-U.S. relations to a Comprehensive Strategic Partnership; ASEAN-US Energy Ministerial Meeting Security: regional cooperation on maritime security
24	Omnibus Intervention of Secretary Teodoro L. Locsin, Jr. at the Plenary Session with U.S. President Joseph Biden, Jr. on Regional and Global Issues (ASEAN-U.S. Special Summit)	May 13, 2022	ASEAN centrality amidst US Indo-Pacific Strategy; AOIP; IPEF political launch	Community Building and Partnership: Elevation of ASEAN-US relations to a Comprehensive Strategic Partnership; “most entitled to that distinction as the only world power that keeps growing its power to stop other powers from abusing theirs. An empire of liberty, the only one in history”; “It bears stressing that ASEAN member states should have the prerogative to conserve, sustainably develop and effectively manage the marine resources over which they enjoy sovereignty, sovereign rights, and jurisdiction under international law. They should have the right to partner in these endeavors with other states and non-state entities, free from bullying. One day it will come to a fight”
25	Intervention of President Rodrigo Roa Duterte at the 39th ASEAN Summit (Plenary)	October 26, 2021	AOIP	Community Building: ASEAN centrality in evolving regional architecture; 6 months since the 5-point consensus in ASEAN, the only progress is in nascent humanitarian assistance; hard to advance AOIP when it is unevenly pursued within ASEAN Security: SCS as strategic concern for ASEAN; UNCLOS, 2016 arbitral award

1. Source Content in 1–24 was taken from www.dfa.gov.ph. Content in 25 is from www.ops.gov.ph