Canada, New Zealand Defense Pacts to Enhance Philippines’ Supply Chain Security

Manila: The proposed Visiting Forces Agreements (VFA) with Canada and New Zealand could help strengthen the Philippines' supply chain security and economic resilience by supporting freedom of navigation and regional stability, Defense Secretary Gilbert Teodoro Jr. told senators on Monday.

According to Philippines News Agency, during a Senate Committee on Foreign Relations hearing chaired by Erwin Tulfo, Teodoro stated that the proposed Status of Visiting Forces Agreements (SOVFA) with Canada and New Zealand would not only strengthen military cooperation but also help protect key trade routes. Teodoro highlighted New Zealand's interest in deeper cooperation with the Philippines due to the importance of stable maritime routes in the South China Sea and the West Philippine Sea, essential for keeping business costs manageable and ensuring the uninterrupted movement of goods.

Teodoro emphasized the necessity of securing supply chains and maintaining freedom of navigation in the high seas to prevent increased business costs due to risks. The agreements, currently under Senate review for concurrence, lay down the legal framework governing joint defense and humanitarian activities between the Philippines and the two countries.

Deputy Assistant Secretary Anthony Mandap of the Department of Foreign Affairs noted that the New Zealand agreement aims to improve the country's rapid response capability for disaster preparedness while enhancing military capabilities through joint training, infrastructure development, and equipment sharing. In contrast, the Canada agreement covers cooperative defense and humanitarian activities, including provisions on environmental protection, human health, and indigenous peoples' rights.

Teodoro remarked that the Canada and New Zealand agreements closely follow the framework of the Philippines' existing VFA with Australia, with additional emphasis on environmental protection and indigenous peoples' rights in the Canadian pact. He also noted Canada's existing assistance to the Philippines in cyber protection efforts and potential partnership in responsible mineral resource development.

Senator Loren Legarda, who attended the hearing, expressed favorable views on the added safeguards on environmental and indigenous peoples' rights provided by the agreements. Teodoro further stated that stronger security partnerships could improve investor confidence in the Philippines by reducing perceived risks tied to regional instability, leading to economic benefits.

"The more we are able to prove that we can enforce our law, the more an overall macro benefit will redound to the economy as a whole," Teodoro concluded.