The Philippines’ relationship with the

United States has been robust, dynamic and

strategic. This relationship is nurtured by a
shared history and adherence to
common values, especially a
commitment to freedom, democracy
and a market economy. From combating
war against terrorism to war against poverty,
the partnership between the Philippines and
the US is broad-based, opening fresh
avenues for greater cooperation.
 In 1898 America’s Manifest
Destiny and the Filipinos’ aspirations for
freedom—we had by then proclaimed our
independence from Spain— clashed and
collided in a bloody guerrilla war ending
with the capture of our President
Aguinaldo and the demise of Asia’s first
Republic.
Over time, the bitterness of defeat—
and the triumphalism of empire—gave way
to grudging collaboration, then evolving
into mutual trust and respect.
 Filipinos won America’s admiration for
their patriotism, love of country, and their
steadfast and unwavering resolve to be
free. And the United States committed
itself to ever-greater measures of self-
government for its Pacific empire.
Eventually in 1935, we achieved home
rule through a Commonwealth — and
the pledge within a decade of full
independence.
 The outbreak of the Second World War
strengthened even more the ties that
joined the Philippines and the United
States. The Filipinos stood as
one, shoulder to shoulder with America
and its allies in the war against
aggression.
For both our peoples, Filipinos and
Americans, freedom and democracy are
not just abstract ideas or principles. They
are real, day-to-day values we are willing
to defend—values for which we are willing
to pay the ultimate price.
 And that price we paid – then, in the
1940’s from the foxholes of Bataan and
the tunnels of Corregidor to the barbarous
death march to Capas and Camp
O’Donnell; and now, against
extremism, poverty and terrorism.
At war’s end, in 1946, the Philippines
attained its hard— earned independence.
And, with the signing of the 1951
Mutual Defense Treaty, the
Philippines became the United States’ first
treaty ally in Asia.
A. Defense and Security
Engagement
The Philippines and the United States
entered into a Mutual Defense
Treaty in 1951. The Philippines is one
of only two US treaty allies in Southeast
Asia (the other one being Thailand).
For FY2012, the US has allocated a total of US $ 158.8
million in defense and development assistance for
the Philippines. The package includes:
• US $ 30 million in Foreign Military
Financing (FMF)
• US $ 81.05 million in Development
Assistance (DA)
• US $ 33.8 million in Global Health Programs
• US $ 1.8 million in International Military
Education and Training (IMET)
• US $2.45 million in International Narcotics
Control and Law Enforcement (INCLE)
• US$9.52 million in
NonProliferation, AntiTerrorism, Demining
and Related Programs (NADR)
 Defense and security cooperation is
coordinated through the framework of the
Mutual Defense Board and the Security
Engagement Board. The Mutual Defense
Board provides continuing inter-governmental
machinery for direct liaison and consultation
on military matters of mutual concern to
develop and to improve both countries’
common defense. The Security Engagement
Board on the other hand, provides the
framework and mechanism for continuing
liaison and consultation on non-traditional
threats to security such as
terrorism, transnational crimes, maritime
security, and natural and man-made
disasters.
B. Legislative Affairs
Ambassador Jose L. Cuisia, Jr. has
further intensified the Embassy’s engagement with the
United States Congress since assuming his post as
Ambassador on April 4, 2011. Ambassador Cuisia has
met with Congressional leaders, Senators, and
Representatives to highlight the importance of
Philippines-United States Alliance in pursuing mutual
goals of economic growth, democratic governance, and
regional security.
The relationship between the Philippines and the
United States Congress are steeped in history. From
1907, during the American occupation, the Philippines
had been represented in the United States Congress by
Philippine resident commissioners until the
U.S. granted Philippine independence in 1946. The
commissioners were chosen by the Philippine
Legislature and the National Assembly, and they
represented the Philippines as one congressional
 Today, Philippine relations with the United
States Congress continue to be actively promoted
in view of the sustained and enduring close
linkages between the two countries as well as the
presence of some 3.5 million Americans of Filipino
descent in the United States. Filipino Americans
represent the second biggest Asian minority, and a
good number of them have an active presence in
practically all states and congressional districts.
Bills in the US Congress of interest to the
Philippines are generally related to
trade, economic and security relations, US
assistance to the Philippines, and those that
promote the interest of the Filipino population and
the Filipino American community.
 Filipino Veterans of
World War II
The most important piece of legislation
in the US Congress that had been the
focus of Philippine advocacy for many
years was the Filipino Veterans
Equity Act. In February
2009, President Barack Obama
signed into law a provision recognizing the
military service of Filipino veterans in
World War II and providing them with lump
sum benefits.
 US Assistance to the
Philippines and Defense
Cooperation
The US Congress had allocated US$2
billion for the Philippines from 1999 to 2011.
US assistance contributes to: building peace
in Mindanao, strengthening democratic
institutions in the country, enhancing
economic growth, and reinforcing greater
stability in the region. The supplementary
foreign military financing approved yearly by
the U.S. Congress remains a very important
component of the Philippine government’s
effort to develop the country’s external
defense capabilities.
 Save Our Industries Act
To expand textiles and apparel trade between
the Philippines and the U.S., the SAVE Act is an
innovative win-win trade legislation that will sustain
jobs and increase exports in both the United
States and the Philippines. H.R. 2387, was
introduced by Representatives Jim
McDermott (D-WA), along with Brian Bilbray
(R-CA) and Bob Filner (D-CA) co-chairs of
the Philippine Friendship Caucus. The Senate
companion, S. 1244, was introduced by
Senators Daniel Inouye (D-HI) and Roy
Blunt (R-MO) on June 22, 2011.
Friends in the US Congress
During the term of Secretary Albert del
Rosario as Philippine Ambassador to the U.S., the
Philippines-US Friendship Caucus was officially
launched in Washington, D.C. in 2003 with 52
bipartisan Members of the US House of
Representatives. The eight founding pillars
of the Caucus are Representatives Darrell
Issa (R-CA), Bob Filner (D-CA), Duke
Cunningham (R-CA), Bobby Scott (D-
VA), Todd Tiahrt (R-CA), Neil Abercrombie
(D-HI), Dana Rohrabacher (R-CA) and
Lane Evans (D-IL).
C. Economic Affairs
Bilateral Trade and
Investment
Bilateral trade and investment cooperation continues to
serve as a dynamic dimension of the Philippines-US
partnership.
Both countries meet regularly under the auspices of a
Trade and Investment Framework Agreement
(TIFA) that was signed in November 1989. Under the TIFA,
a Memorandum of Understanding (MOU) to
Cooperate on Stopping Illegal Transhipments of
Textiles and Apparel was signed by the Philippines and
the United States in Memorandum of
2006. A
Understanding (MOU) Regarding the
Implementation of Minimum Access
Commitments by the Philippines was signed in
1998.
 Currently, the U.S. is the Philippines’ number one
source of Foreign Direct Investments (FDIs).
In January 2012 alone, FDIs from the U.S. rose
significantly to $497.61 million (compared to $19.45
million in January last year).
In fact, January 2012’s performance is higher than
the total for the past two years of $454.11 million
($229.19 million in 2010 and $224.92 million in 2011).
As of December 2011, net FDIs from the US
amounted to $224.92 million.
In 2011, the Philippines was the 33 largest
U.S. trading partner; and the US was the
Philippines’ second largest trading partner
(after Japan), with total two-way trade valued at
$13.6 billion or 16.2% of the Philippines’ total trade
with the world.
The US also maintained its top 2 position in
January 2012 with total trade at $1.1 billion. Since
2006, the trade balance has been in favor of the
 Philippine exports to the US valued at $7.1
billion in 2011 mainly comprise of
components/semiconductor
devices, garments, coconut oil, electronic
equipment and parts, electronic data
processing, other
manufactures, sugar, processed food and
beverages, and machinery and
transport, among others.
In terms of imports, the Philippines sources
from the US materials and accessories for the
manufacture of electronic
equipment, telecommunication equipment and
electrical machinery, wheat, power generating
and specialized machines, feedstuff for animals
and other food and live animals, among others.
 DTI Philippine
According to the
Trade and Investment Center
(PTIC)-Washington, D.C. (as of May
2011), 75-80% of the Philippines’ total
exports to the U.S. is either Most Favored
Nation (MFN) zero or GSP-
eligible, i.e., also zero tariff.
Conversely, roughly 20-25% remain
dutiable.
Of this, 20-25% of PH exports to the
US are still subject to duty and apparel
accounts for 75-82% (which could be
secured once the SAVE Act is passed in
the 112th U.S. Congress).
Partnership for Growth (PFG)
The Philippines’ overarching goal of achieving
broad-based economic growth is supported by a new
strategic development initiative of the US Government
called the Partnership for Growth (PFG). The
PFG’s three (3) focus areas are: improving
regulatory quality; strengthening the rule of
law and anti-corruption measures; and
improving fiscal performance.
The PFG Statement of Principles was signed in
Manila last November 2011 between U.S. State
Secretary Clinton and Philippine Foreign
Affairs Secretary del Rosario.
 On 05 May 2012, USAID and DOF signed
a USAID-GPH bilateral agreement
amendment which made available $29.4 million
to start the major PFG programs. The amendment
also provides information to the GPH regarding
USAID’s planned funding for the duration of the
agreement, subject to availability of funds, in the
amount of $140 million. USAID and counterpart
agencies are fleshing out the major programs
identified under the Joint Country Action Plan
(JCAP).
 Tourism
For 2011, total arrivals from the US is
estimated at 630,170 American
tourists, representing a 5% increase from
the 2010 level; with receipts amounting to
US$591.1 million, which represent the
same percentage increase from 2010. The
Department of Tourism (DOT) projects a
3.5% increase in tourist arrivals (652,230)
for 2012; representing US$611.79 million
in revenues, or a 3.5% increase over 2011
level.
D. Socio-Cultural Affairs
Education
Cooperation in education is also a
cornerstone of Philippine-U.S. relations.
The public education system in the
Philippines is one of the legacies of
American occupation in the Philippines.
Professional and student exchanges
between the Philippines and the United
States have expanded over time. The
Fulbright Program in the
Philippines, established in 1948, is the
world’s oldest continuous Fulbright
program.
Filipino Americans in elected
office
Filipino Americans also occupy elected
office such as Representative Steve
Austria in the US Congress, Delegate
Ron Villanueva of the Virginia General
Assembly, Delegate Kris Valderrama
in the Maryland House of Delegates
and Filipino Americans in other states who
serve in local governments and in the
judiciary.
 Filipino Associations
There are at least 3,000 Filipino and
Filipino-American organizations in the United
States according to the National
Federation of Filipino American
Associations (NaFFAA). The various
organizations may be classified as socio-
civic, cultural, alumni, professional, regional/p
rovincial, religious, among others. Most of
these organizations undertake projects that
aim to extend assistance to various causes in
the Philippines.
 U.S. Assistance to Philippines
The U.S. Government’s goal in the Philippines is to
help the country become a stable and prosperous nation.
The 2011 Partnership for Growth Statement of
Principles reinforced a shared interest in promoting
inclusive and sustainable economic growth in the
Philippines. U.S. assistance to the Philippines fosters
broad-based economic growth; improves the health and
education of Filipinos; promotes peace and security;
advances democratic values, good governance, and
human rights; and strengthens regional and global
partnerships. Department of State, Department of
Defense, and the U.S. Agency for International
Development (USAID) programs in conflict-affected
areas of Mindanao aim to strengthen the foundation for
peace and stability in the area. U.S. assistance, including
from the Millennium Challenge Corporation, seeks to
intensify cooperation through a whole-of-government
approach, using a wide range of assistance and other
foreign policy tools. The United States has had a Peace
 Bilateral Economic
Relations
The United States is among the Philippines’
top trading partners, and it traditionally has been
the Philippines' largest foreign investor. The
Philippines has been among the largest
beneficiaries of the Generalized System of
Preferences program for developing
countries, which provides preferential duty-free
access to the U.S. market. Key exports to the
United States are semiconductor devices and
computer peripherals, automobile parts, electric
machinery, textiles and garments, wheat and
animal feeds, coconut oil and information
technology/business process outsourcing
 In addition to other goods, the
Philippines imports raw and semi-
processed materials for the manufacture
of semiconductors, electronics and
electrical machinery, transport
equipment, and cereals and cereal
preparations. The two countries have a
bilateral trade and investment framework
agreement and a tax treaty.
Philippines's Membership in
International Organizations
Philippines and the United States
belong to a number of the same
international organizations, including the
United Nations, ASEAN Regional
Forum, Asia-Pacific Economic
Cooperation forum, International
Monetary Fund, World Bank, and
World Trade Organization. Philippines
also is an observer to the Organization of
American States.