17 January 2002

INTRODUCTION

The year 2001 was witness to the changing tide of history. We face compelling issues in the national level and those, which transcend national boundaries. Elements of change --- globalization, information technology, the Internet, environmental and humanitarian concerns, terrorism, drugs and global crimes --- have led to disturbances and fuelled domestic and regional conflicts.

The events of September 11 drastically altered the security environment of the post-Cold War era. No longer can we operate under the same assumptions previous to that fateful date.

In 2001, the Department of Foreign Affairs remained constant in its mission to advance the interests of the Philippines and the Filipino people in the world community.  The Philippines pursued three main foreign policy objectives, which are national security, development diplomacy, and the promotion of the welfare of Filipinos overseas, against the backdrop of eight realities underlying the foreign policy of the Arroyo administration.

These eight realities are:

1. China, Japan and the United States, and their relationships, will be the determining influence in the security situation and economic evolution of East Asia.

2.  More and more, Philippine foreign policy decisions have to be made in the context of ASEAN.

3.  The international Islamic community will continue to be important for the  Philippines.

4. The country's economic growth will continue to be heavily dependent on foreign investments.

5. The coming years will see the growing importance of multilateral and inter-regional organizations to promote   common interests.

6. The defense of the nation's sovereignty and the protection of its environment and natural resources lie at the heart of foreign policy.

7. A country like the Philippines can benefit from international tourism.

8. Overseas Filipinos will continue to play a critical role in the country's economic and social stability.
 
To facilitate the attainment of these objectives, the Department adopted cultural diplomacy and public diplomacy as essential tools in achieving our foreign policy goals.

PROTECTING THE NATION'S SECURITY

Security interests demand our priority attention.  The Department works with other agencies to contribute to the enhancement of the nation's security and the protection the country's territorial integrity and national sovereignty.  The Philippines also works closely with other countries to address threats to national security.

Sustaining the peace in the Philippines and in the region will require continuing attention to our relations with neighboring countries as well as countries in other regions.

Building Partnerships

The Philippines is determined by its geography as an archipelagic state in the Southeast Asia region. Our relations with neighboring countries are dictated by our desire to achieve peace, prosperity and stability within our borders and to contribute positively towards a lasting peace in the region.

Asia

Relations with the Philippines' Asian neighbors were deepened through a series of high-level visits, bilateral consultations and the conclusion of agreements.

In May, the Vice President and Secretary of Foreign Affairs made his first round of visits to Singapore, Brunei and Malaysia. President Gloria Macapagal-Arroyo also made state visits to Malaysia, Singapore, Brunei Darussalam, and Indonesia to reinforce bilateral ties with ASEAN partners.

In turn, the Department of Foreign Affairs helped organize the official and state visits to the Philippines of Indonesian President Megawati Soekarnoputri on 21-22 August 2001, Thai Prime Minister Thaksin Shinawatra on 12-13 October 2001, and Vietnamese President Tran Duc Luong on 14-16 November 2001.
On 3-4 April 2001, the Department led the Philippine delegation to the 3rd Philippines-China Experts Group Meeting on Confidence-Building Measures in Manila, when the two sides agreed to take steps to implement measures aimed at preventing the escalation of tension in the region.

President Arroyo's state visit to China from 28 to 31 October 2001 provided the opportunity for pursuing areas of cooperation in combating transnational crimes; the extradition of accused and convicted persons; and encouraging China’s positive role in the region, particularly with regard to the South China Sea issue and the adoption of a Regional Code of Conduct in the South China Sea.
 
President Arroyo visited Japan on 12-16 September 2001. During the visit, the President and Prime Minister Koizumi affirmed the importance of holding the first bilateral Politico-Security Dialogue and of cooperating closely in the fight against terrorism, anti-piracy and other transnational issues.

The President also held a bilateral meeting with President Kim Dae-Jung of the Republic of Korea during the APEC Summit in Shanghai, China in September.  Both Leaders discussed ways of enhancing bilateral relations.

In June, former President Fidel V. Ramos visited New Delhi as the Special and Personal Representative of President Macapagal-Arroyo and reiterated the long-standing Philippine Government’s invitation to the Prime Minister to visit the Philippines.

The First Philippines-Pakistan Foreign Office to Foreign Office Policy Consultations was also held on 26-27 June in Islamabad.

In addition, the Department facilitated the signing of the following agreements. 

• RP-HK SAR Agreement on Mutual Legal Assistance in Criminal Matters, 23 February 2001;
• Memorandum of Understanding between the Government of the Republic of the Philippines and the People’s Republic of China on cooperation against illicit traffic and abuse of narcotic drugs, psychotropic substances and control of precursor chemicals, 30 October 2001.

Americas

The year 2001 saw relations with the Americas expand through high-level visits.

In November, the Department helped to organize the President's working visit to the United States, which resulted in the following:
 

• A package of benefits from the US government, financial institutions and the private sector amounting to US$ 4.6 billion in value;
• A commitment for more defense assistance, totaling US$ 92.3 million;
• Strong executive and legislative commitments to pursue the Veterans Equity Bill;
• Strengthened economic ties between the Philippines and the United States and generated strong support for the country's development priorities, particularly in the areas of agriculture modernization, financial sector reform and the development of SMEs;
• Concrete US support for accelerating the economic transformation of Mindanao as a foundation for durable peace in that region;
• Commitments for technical assistance in the effective implementation of the Anti-Money Laundering Act and for the development of the agriculture sector;
• An agreement to conduct exchanges of disaster management professionals and jointly conduct forums and training in furtherance of the approved Cooperation in Disaster Prevention and Management;
• A package of US$ 49 million from USAID for development projects in 2001, as well as a commitment of US$ 66 million for 2002.

President Arroyo visited Mexico on 21 November 2001, during which she addressed the Plenary Session of the Christian Democrats International.  The President also met with Mexican President Vicente Fox Quesada, Spanish Prime Minister Jose Maria Aznar and Hungarian Prime Minister Viktor Orban.

The expanding relations between Canada and the Philippines was evidenced by the number of high-level visits between officials of the two governments.  Canada's Secretary of State for Asia and the Pacific, Dr. Rey Pagtakhan, became one of the first foreign dignitaries to call on President Arroyo after her assumption of the presidency in January last year.   President Arroyo sent former President Fidel Ramos to Ottawa as her Special Envoy, during which he met with Canadian Prime Minister Jean Chretien.  They discussed issues concerning Philippines-Canada business partnership, and the prospects for economic recovery and stability in the Asia-Pacific.

In 2001, a Memorandum of Understanding between the Departments of Defense of the Philippines and Canada on Combined naval Exercises was also signed to promote joint naval exercises between the two navies.

Europe

The Philippines reinforced its ties with Europe through official visits, bilateral consultations and the conclusion of bilateral agreements.

Secretary Guingona made official visits to the Czech Republic on 11-15 October, and to Switzerland on 05-08 December.  In the Czech Republic, the Secretary met with President Vaclav Havel and other officials, and held lengthy consultations with his counterpart, Foreign Minister Jan Kavan.   The Vice President's visit to Switzerland added significance to the celebration of 150 years of RP-Swiss relations and was highlighted by meetings with President Moritz Leuenberger and Foreign Minister Joseph Deiss.

The Philippines also held the following bilateral consultations and meetings, in which various aspects of bilateral relations were reviewed and matters of mutual concern and interest were discussed: 

• 3rd RP-Finland Bilateral Consultations, Manila, 19 March;
• 1st RP-Switzerland Political Consultations, Berne, 30 April;
• 4th RP-Spain Joint Commission Meeting for Technical Cooperation, Madrid, 03 July;
• 2nd RP-Spain Political Consultations, Madrid, 03 July;
• 3rd RP-France Political Consultations, Paris, 05 July; and
• 5th RP-France Joint Economic Commission, Manila 04 October.

The year 2001 marked 25 years of Philippines-Russia relations.   Exchange of visits between the two countries' military establishments took place.  The Russian First Deputy General Chief of Staff visited the Philippines in early 2001, while the Vice Chief of Staff of the Philippine Air Force, the Commanding General of the Philippine Air Force and the Commanding General of the Air Force, Tactics Operations Commands visited Russia.

Middle East and Africa

The Department intensified friendly relations with individual members of the Organization of Islamic Conference (OIC) and with the organization itself.  We believe that the OIC can make an important contribution to the development of Southern Philippines, particularly with the new leadership of the Autonomous Region of Muslim Mindanao.  The Philippines wishes to encourage supportive moves by the OIC, which would dovetail with the plans and projects of the Philippine government.

On 25-29 June 2001, the Philippines participated in the 28th OIC Islamic Conference of Foreign Ministers in Bamako, Mali. At that meeting, the OIC expressed its full support for the Philippines’ peace policy for Mindanao.  The OIC also supported the signing of the Agreement on the General Framework for the Resumption of Peace Talks between the Philippine Government and the MILF on 24 March 2001 in Kuala Lumpur, Malaysia, and the ceasefire guidelines were signed on 7 April 2001 in Putrajaya, Malaysia.

The Department also facilitated the following undertakings:
 

• 5th RP-Iraq Joint Commission, Makati City, 16-17 August 2001;
• Official Visit of the Prime Minister of Bahrain, Sheik Khalifa Bin Salman Al Khalifa, 6-9 November 2001;
• Kuwait Parliament Friendship Group, 6-11 October 2001;
• 1st RP-Israel Dialogue on Counter-Terrorism, Tel Aviv, Israel, 15-21 October 2001;
• 2nd Meeting of the Consultative Committee on Political, Economic and Cultural Cooperation between the Philippines DFA and Iranian MFA, 18-19 December 2001.

Consistent with the policy to expand diplomatic relations with African nations, formal diplomatic relations were established with the Republic of Malawi on 3 May 2001, and Angola on 14 September 2001.

Promoting Strong Defense and Security Relations

In 2001, the Department promoted strong defense and security relations with the US and ASEAN countries.

As co-chair of the Presidential Commission on the Visiting Forces Agreement (VFACOM), the Department actively monitored joint activities staged by Philippine and U.S. military forces in line with commitments under the 1951 Mutual Defense Treaty.  Balikatan 2001, the largest of such military exercises, was held from 27 April to 10 May 2001.   Other bilateral exercises monitored by the Department include the Cooperation Afloat Readiness and Training (CARAT) conducted on 1-12 June 2001, the combined PALAH 01-2 conducted on 12 to 30 June 2001, and seven other joint exercises.  The Department also monitored the visits of six United States Navy vessels, particularly the onshore activities of US Navy personnel.
The year 2001 also marked the first time that a trilateral maritime surveillance search and rescue exercise (MARSEA) between the Philippines, the United States and Thailand was conducted.   MARSEA 01, held on 19 to 23 March, enabled the navies of the three countries to explore possible modalities for joint maritime search and rescue.

Promoting Regional and Multilateral Cooperation

The Philippines worked closely with other countries and utilized regional and international fora to promote and enhance Philippine interests.

Association of Southeast Asian Nations (ASEAN)

ASEAN remains a cornerstone of Philippine foreign policy.  Consequently, the DFA ensures that the Philippines participates effectively in ASEAN meetings, activities, programmes and projects and maintains close relations with ASEAN member countries and Dialogue Partners.

Vice President and Secretary of Foreign Affairs Teofisto T. Guingona, Jr. participated in the ASEAN Foreign Ministers’ Retreat in Yangon, Myanmar, on 30 April 2001.  The Retreat enabled the Vice President to engage in open and frank discussions on regional issues and to establish good working relationships with his ASEAN colleagues.

As country coordinator for ASEAN-ROK dialogue relations for the period July 2000-July 2001, the Philippines hosted the 3rd ASEAN-ROK Joint Planning and Review Committee (JPRC) Meeting in Cebu on 27-28 February 2001, as well as the 5th ASEAN-ROK Dialogue on 27-29 March 2001 also in Cebu.

At the 34th ASEAN Ministerial Meeting, ASEAN Foreign Ministers endorsed the Philippine proposal to establish Common Professional and Technical Standards in ASEAN. The proposal is intended to encourage ASEAN member states to seek higher benchmarks in education, skills and aptitudes to further enhance the competitiveness of their professionals and workers, as well as contribute to narrowing the development gap in the region.

At the 5th Meeting of ASEAN Directors-General of Immigration Departments and Heads of Consular Affairs Divisions of the Ministries of Foreign Affairs (DGICM) in Singapore on 3-5 September 2001, member countries agreed to the drafting of the proposed ASEAN Declaration against Trafficking of Women and Children and further agreed that the Philippines submit the first draft at the next DGICM Meeting. The Philippines also circulated its comprehensive action plan to operationalize the Action Plan on Immigration Matters and pursued continued exchange of views in addressing irregular migration in the region. Member countries agreed that the Philippines shall submit its proposed definition of irregular migration at the proposed Experts Group Meeting, which will be convened back-to-back with the 6th DGICM in 2002.
 

ASEAN+3 Summit

The Philippines continued to play an active role in strengthening East Asian Cooperation at the 5th ASEAN+3 Summit held in Brunei Darussalam on 5 November 2001. At the Summit, efforts to achieve the vision of a 13-member East Asian Community have gained momentum. In considering the report of the East Asian Vision Group, the leaders discussed the possibility of establishing an ASEAN+3 Secretariat, the East Asian Free Trade Area and the convening of an East Asian Summit and East Asian Forum.

South China Sea

The Philippines continues to pursue the adoption of a Regional Code of Conduct as a first step towards finding a peaceful resolution of the territorial conflicts in the South China Sea.  At meetings with ASEAN and Chinese officials in Hanoi, Vietnam and in Hainan, China, the Philippines proposed compromise wordings on the contentious provisions in the Code.  The Philippines expects that a consensus on the Code will be achieved soon.

Combating Terrorism

Philippine involvement in the global fight against terrorism was based on United Nations Security Council Resolution 1368, which mandates member-countries to join the international coalition to combat terrorism.

Recently, the Philippines, together with Malaysia and Indonesia, completed the draft of a trilateral operational agreement against terrorism to secure and safeguard common borders.

The Philippines worked for the adoption of the ASEAN Declaration on Joint Action to Counter Terrorism at the 7th ASEAN Summit, held in Brunei Darussalam on 5-6 November 2001.  In line with the Summit Declaration, President Arroyo proposed to host simulation exercises on emergency response to terrorist threats, which was one of the proposals the ASEAN Special Ministers on Transnational Crime were tasked to study at their meeting this April.

On a larger scale, the Department monitors actions taken to further the objectives of the APEC Statement on Counter Terrorism, which was issued in Shanghai, China on 21 October 2001.  The Department also monitors actions   particularly with respect to President Arroyo's proposals to address the effects of terrorism on the regional and global economy.  These proposals include the strict enforcement of anti-money laundering laws to prevent the supply of funds to terrorists, in creased security in all sea and airports, combating cyber crime and enhancing customs enforcement.

At the international level, the Philippines signed the International Convention for the Suppression of the Financing of Terrorism during President Arroyo's visit to the United Nations in New York on 16 November 2001.
 

Forum for East Asia-Latin America Cooperation (FEALAC)

Consistent with the objective of promoting greater understanding between East Asian and Latin American countries, the Department participated in the First Foreign Ministerial Meeting  (FMM I) of the Forum for East Asia-Latin America Cooperation (FEALAC) in Santiago de Chile, in March 2001, in which, along with Colombia, the Philippines was designated Co-Coordinator for East Asia and Latin America, respectively.

The Department organized the Philippine participation in two FEALAC activities: the Young Leaders Invitation Program held during the month of November 2001 in Japan, and a Seminar on Oceanic Biocorridors also held in November in Paraguay.

Pacific Islands Forum

The Philippines participated in the 13th Post-Forum Dialogue Partners Meeting of the Pacific Islands Forum (PIF) held in Nauru on 20-21 August 2001. At the meeting, the Philippines delegation conveyed the Government’s interest to strengthen links with the Pacific Island countries through development cooperation, and by offering a number of technical courses conducted by the Technical Cooperation Council of the Philippines.

Campaigning for UN Positions

The Department spearheaded the successful campaigns for UN positions of the following: 

• Labor Secretary Patricia Sto. Tomas for the Presidency of the 89th International Labor Conference;
• Atty. Romeo T. Capulong, who placed third in a field of 56 candidates for 27 seats in the elections held on 12 June for the Ad Litem Judges of the International Criminal Tribunal for the former Yugoslavia (ICTY).  Mr. Capulong garnered a total of 141 votes out of 171;
• Dr. Alberto G. Romualdez for the WHO Executive Board.

The Philippines was re-elected to a third consecutive 3-year term (2001-2003) in the International Maritime Organization Council Category C at elections in London on 23 November 2001.  It was also re-appointed to another 6-year term (2002-2008) beginning 01 July 2002 at the UN Board of Auditors during the 5th Committee meeting (Administrative and Budgetary) of the UN General Assembly.

The Philippines is a candidate for non-permanent membership in the UN Security Council for the term 2004-2005 at elections to be held during the 58th UN General Assembly in 2003.

As of 30 June 2001, the Philippine ranked 17th worldwide among 89 countries (tied with Thailand with 786 personnel, and slightly below the US with 797 personnel) as contributor of military and civilian police personnel to UN operations worldwide.  The Philippines is currently involved in UN operations in East Timor, Iraq and Kosovo.

ADVANCING PHILIPPINE DEVELOPMENT OBJECTIVES

The Department is steadfast in its commitment to actively engage the world community in advancing the country’s pursuit of sustainable development and growth through its development diplomacy programs. It has stepped up its efforts to promote trade, investment and tourism in bilateral, sub-regional and multilateral for a and has placed emphasis on strengthening human resources development, developing agriculture, protecting the environment and enhancing basic development services.

Trade, Investment and Tourism Promotion

In the past year, the Philippines repeatedly conveyed to the international community its message of stability, reliability and viability as a business partner and investment site. While the Philippines is continuously working to renew and strengthen its economic ties with partners in the Asia-Pacific region -- ASEAN, China, Japan and ROK, Australia and New Zealand -- and in the West, European Union, the United States and Canada, the country is expanding its economic links with countries in the Middle East, South Asia, Central Asia, Africa and Latin America.

The Department has facilitated in negotiations of bilateral agreements on trade and investment, establishment of banking institutions, avoidance of double taxation and fiscal evasion with regard to taxes and income, air services and maritime cooperation.

Joint Commission Meetings with Israel in March and Iraq in August were convened to facilitate greater trade and investments with these two countries. For the first time, a private sector-led trade mission visited Baghdad last year and on 29 August 2001, the Philippine Trade and International Fair opened in the Iraqi capital.

President Macapagal-Arroyo’s state visit to China in October witnessed the signing of several RP-China agreements. Consistent with the Framework of Bilateral Cooperation in the Twenty-First Century signed between the Philippines and China, an expansion of the two countries' bilateral cooperation in trade, investments, agriculture, science and technology and cultural exchanges is expected.  This further boosts the Philippine interest of gaining a strong foothold into the Chinese market.

Preparations are under way for the 7th Meeting of the Philippines-India Joint Working Group, a regular bilateral process which reviews the status, as well as assess the progress of the two countries’ relations especially on trade, investments, technical, scientific and technological cooperation.

On tourism, the Philippines has proposed ‘twinning arrangements” with Hong Kong, Thailand and Malaysia. Possibility of Philippine collaboration on eco-tourism with Brazil was raised during the visit to Brazil of the Presidential Special Envoy to Latin America in early 2001.
 
The main focus of Philippine economic relations with Europe is the promotion and support of Philippine tourism, export and investments. In recent years, an increased emphasis has been placed on business information and cooperation, with a major program on trade and investments information, partner-matching and technical assistance to the private sector.

The Statement of the Fourth Philippines-Spain Joint Commission for Technical Cooperation was reviewed and signed in Madrid on 3 July 2001. The areas of cooperation identified are in accordance with the priorities of the Philippines’ Medium-Term Development Plan. Mindanao is among the areas targeted for assistance under the development assistance projects for the period 2001-2003 with Spain allocating some PhP1.8 billion.

A memorandum of agreement was signed with Austria on the establishment of a Joint Working Group on Trade and Economic Cooperation on 10 September 2001.

On 4 October 2001, the 5th RP-France Joint Economic Commission met in Manila and discussed bilateral trade and investments and financial cooperation, market access concerns of both Philippines and France.

ASEAN Free Trade Area
 
The Philippines continues to support initiatives designed to enhance regional integration. With ASEAN’s combined gross domestic product of US$ 800 billion, the country is committed to the process of trade and investment liberalization in the region.

We maintain the country’s commitments in line with the decision to accelerate the ASEAN Free Trade Area timetable, which advances the reduction of all tariffs to zero to five percent by 2002 and the elimination of all tariffs by 2010 for the ASEAN-6 and 2015 for new members.

With a total trade of US$780 billion, the Philippines has benefited from better trading relations with ASEAN. Since 1993, the Philippines’ trade with the rest of ASEAN has increased 400 percent from US$ 2.7 billion in 1993 to US$ 10.9 billion in 2000. Philippine exports to ASEAN expanded seven and a half times from US$ 797 million in 1993 to US$ 6.0 billion in 2000, while imports from ASEAN grew two and a half times from US$1.9 billion to US$ 5.0 billion in the same period. As a result, ASEAN now has a sixteen percent (16%) share in the Philippines’ foreign trade.

Brunei-Indonesia-Malaysia-Philippines-East ASEAN Growth Area (BIMP-EAGA)

In the 7th ASEAN Summit in Brunei Darussalam last November, President Macapagal-Arroyo sought to revitalize and reinvigorate BIMP-EAGA. With the aim of restoring investor confidence in the sub-region, the President pushed for several initiatives which include focused government intervention, strengthened security cooperation, a review of institutional mechanisms, development of small and medium enterprises and project facilitation.

President Macapagal-Arroyo joined the ASEAN Leaders in welcoming the Asian Development Bank (ADB) as a regional development advisor for the sub-region.
 

Asia-Pacific Economic Cooperation (APEC)

President Macapagal-Arroyo participated in the 9th APEC Economic Leaders’ Meeting held in Shanghai, People’s Republic of China in October. She supported the issuance of the Leaders’ Declaration advocating stronger cooperative actions to revive regional and global economy through the adoption of pro-growth policies and structural reforms, and the changes in the APEC's action agenda, which gave more emphasis on the New Economy, good governance and stable financial systems.

In APEC, the Philippines is one of the leading proponents of initiatives relating to gender integration and mainstreaming.  It is a member of the small working group on Institutional Policy and Practice and Monitoring tasked with ensuring the institutionalization of gender integration in APEC and of the working group tasked to plan for the 2nd Ministerial Meeting on Women.  The Philippines is now in the process of developing the APEC Website on Gender Integration.

Asia-Europe Meeting (ASEM)

Consistent with its policy to further strengthen Asia-Europe ties, the Philippines participated in the 3rd ASEM Foreign Ministers’ Meeting was held on 24-25 May 2001 in Beijing, China. The Philippines obtained support for its initiatives on combating trafficking in women and children, the ASEM Review Mechanism and on the protection of welfare of children.

Many of the various ASEM initiatives complemented the current thrusts and programs of the Philippine Government. Particular interest to the Philippines among the ASEM initiatives is in the area of information technology. A Philippine representative also participated in the ASEM Seminar in “Asia-Europe Cooperation on Application of Information Technology to Human Resources Development in the Mekong Sub-region” held in Bangkok, Thailand on 9-10 October 2001.

The Philippines welcomed the main thrusts of the proposed framework for the continuation of the ASEM Trust Fund and has given support to its agreed priorities on finance and corporate sector reforms, poverty reduction and initiatives to build capacities for economic governance and to lay the foundations for more resilient economic regimes in the region.

World Trade Organization (WTO)

As a core member of negotiating or discussions groups in the WTO, especially on issues of special interest to the Philippines and other developing countries, the Department has been actively involved in discussions to ensure that Philippine interests are taken into account in the formulation of international decisions and agreements on international trade issues.

The Department facilitated and coordinated Philippine participation in the World Trade Organization Ministerial Meeting in Doha, Qatar on 9-14 November 2001 in consultation with other agencies.  The Philippine Mission in Geneva articulated Philippine interests and views in all the WTO meetings in Geneva.

United Nations (UN)

The Philippines has continued to work closely with the United Nations as part of the country’s efforts to advance the call for development with a human face. In November, President Macapagal-Arroyo met with UN Secretary General Kofi A. Annan during which the President presented the Philippines’ implementation of United Nations development programs in the country.

In the 5th Ministerial Consultation on Children in East Asia and the Pacific held on 14-16 May in Beijing, China, the Philippines made significant contributions in the crafting of the Beijing Declaration on Commitments for Children in the East Asia and Pacific region for 2001-2010.
The Philippines has also been at the forefront of promoting human rights, particularly women's rights in various regional and international fora.  It has been very active in meetings of the UN Conference on the Elimination of All Forms of Discrimination Against Women (CEDAW).  The Philippines also participated in the World Conference against Racism, Racial Discrimination, Xenophobia and Related Intolerance in Durban, South Africa from 31 August to September 2001.

Agriculture and Fisheries

A modernized agricultural sector founded on social equity is a significant component set by President Macapagal-Arroyo in her vision to win the war against poverty within the decade. Agreements on agriculture were signed with Ecuador, Chile and Uruguay last year. While the European Union continues its agricultural support program in Catanduanes, Caraballo, Central Cordillera, Southern Cordillera as well as the agrarian support program in Central Mindanao.

Equally important for the Philippines is the fisheries sector. The Philippines has signed agreements on fisheries cooperation with Indonesia during President Macapagal-Arroyo’s state visit to Indonesia in November last year.

The Philippines participated in regional fisheries arrangements, particularly the Indian Ocean Tuna Commission (IOTC), the International Commission for the Conservation of Atlantic Tunas (ICCAT), and the Multilateral High Level Conference on the Conservation and Management of Highly Migratory Fish Stocks in the Central and Western Pacific (MHLC).

Human Resources Development

Human capital is touted to be the Philippines’ most valuable resource. In recognition of this, the Philippine Government has actively promoted programs in support of human capacity building, with particular emphasis on providing much-needed skills to cope with the challenges posed by the transition to the New Economy.

President Macapagal-Arroyo has identified Information and Communications Technology (ICT) and Tourism as high growth sectors that inherently draw on strength in human resources. In response, various programs and strategies have been devised that seek to accelerate training especially in information and communications technology.

The Filipino worker’s world-class skills and professionalism have been duly recognized in the countries where they work.

In Norway, Filipino health professionals are now given equal employment opportunities made possible by the agreement signed on 26 June 2001 in Oslo with its Directorate of Labor.

The Philippines signed agreements with the Netherlands, Denmark and Norway on separate occasions in 2001 on the recognition of Certificates under Regulation 1/10 of the 1978 International Convention on Standards of Training, Certification and Watchkeeping for Seafarers (SCTW), as amended. The agreements signed also consider the Maritime Safety Committee’s Circular 950 of the International Maritime Organization in its 73rd session in May 2000.

The RP-Belgium Convention on Social Convention on Social Security and its Administrative Arrangements was signed on 7 December.

Environment

The Philippine Government remains firm in its commitment to conserve, protect and develop the environment as an integral part of the country’s pursuit of sustainable development. In close partnership with the European Union, the Philippines is undertaking the Palawan Tropical Forestry Protection Program and the National Integrated Protected Areas Program.

Consistent with these initiatives, the Philippines took part in the 9th Session of the UN Commission on Sustainable Development held in New York in April where a campaign for the adoption of various initiatives such as the transfer of environmentally sound technologies was made.

In the region, the Philippines has retained the chairmanship of the ASEAN Working Group on Nature Conservation and Biodiversity for another three years, an acknowledgement of the capacity and expertise of the Philippines in the area of nature conservation and biodiversity. The Philippines is home to ASEAN’s Regional Center for Biodiversity Conservation found in Los Banos, Laguna.

Social Development Services

A significant part of the country’s development diplomacy is the pursuit of bilateral, regional and multilateral arrangements geared towards ensuring food security and the delivery of health and nutrition, housing, education and other social development services.

Funding for a technical education and skills development project was signed under an OPEC Fund Loan Agreement in Vienna, Austria on 22 May.

Several projects have been arranged in partnership with the German government, which include rural development projects.
 
A Philippine-Switzerland Agreement on Cooperation in the Event of Natural Disaster or Major Emergencies signed on 06 December in Berne provides the framework through which the Swiss Humanitarian Aid Unit (SHA) could respond rapidly in the event of natural disasters or major emergencies in the Philippines.

Development Cooperation

Japan

For the year 2001, the Philippines and Japan exchanged notes for loans, grant-aid projects, and other assistance amounting to Y104.747 billion, or PhP43 billion.

A large bulk of the development assistance amounting to approximately Yen 98.57 billion or PhP 40 billion has been earmarked for infrastructure projects to build rural roads and expressways and integrated flood control systems as well as the development of airports.

During President Macapagal-Arroyo’s visit to Japan last September, the RP-Japan Partnership Program was launched which aims to jointly assist third countries in ASEAN and East Timor.

Sweden

The Philippines and Sweden have embarked on development cooperation that focuses on the sustainable use of natural resources from a poverty perspective and aiming to strengthen the democratic form of government and civil society.

Officials from the Swedish International Development Cooperation Agency visited Manila last 27-28 November and presented a strategy for development cooperation with the Philippines for the period 2001-2005. Funding amounts to some 25 million Swedish kroner a year (approximately US$2.5 million), apart from credits and support to non-governmental organizations.

Germany

Secretary Guingona signed on 25 April a Financial Cooperation Agreement with Germany. Bilateral negotiations on Development Cooperation between the countries were held on 12 September, which discussed the future directions of the development cooperation program (DCP).

Czech Republic

In July 2001, an initial grant of CZK 18 million (roughly PhP 23.5 million) was received by the Philippines from the Czech Government for the construction of a water treatment plant in Baguio City. The Czech Government has committed itself to pursue the US$160 million sugar refinery project in Sarangani and other investments in Mindanao.

The European Commission

From 1999 to 2000, the Philippines received a total of US$ 272.3 million worth of official development assistance from the Europe Commission. In 2001, a total commitment of 24 million Euro (US$21.36 million) was made to a development cooperation project which aims to support and alleviate the condition of the less privileged communities in Central Mindanao.

PROVIDING SERVICES TO NATIONALS AND FILIPINO WORKERS OVERSEAS

The long-term goal of the Philippines is to bring back our overseas worker to an industrialized Philippines where employment opportunities abound.

On a short-term basis, the Philippines is working towards effective delivery of consular services to the increasing number of Filipino nationals living and working abroad.

Following are some of the accomplishments in 2001:

MRP/V Project

The Machine Readable Passport/Visa project aims to fully automate the processing and issuance of passports and visas by 2002.

Ensuring Orderly Participation in the Hajj

The Department of Foreign Affairs, in coordination with the Office of Muslim Affairs, provided assistance to the estimated seven thousand Muslim Filipinos who participated in last year's Hajj pilgrimage in March.

Combating Human Trafficking

The Philippine government continued to facilitate and coordinate with the United Nations Office in Vienna the implementation of the Philippine Pilot Project on Human Trafficking.  Aside from highlighting the Philippines' commitment to international efforts to fight human trafficking, the project indirectly impacts on the Philippines' drive against money laundering, drug trafficking and the while slave trade, as they are components of the larger phenomenon called human smuggling.

Promoting the Rights of Migrant Workers

The Philippines spearheaded efforts for the adoption of the resolution on the "Rights of Migrant Workers" at the 57th Session of the UN Commission on Human Rights in Geneva.
 
Forging Bilateral Agreements

The Philippine government is working towards concluding profession-specific agreements aimed at protecting the welfare of Filipinos overseas, specifically with Jordan and the United Kingdom.  In 2001, the Philippines has had some success in the protection of the rights and welfare of Filipino workers abroad through the following bilateral agreements with receiving countries:
 

• Agreement with Norway on cooperation on recruitment of health sector professionals;
• Agreements on social security with Netherlands, Switzerland and Belgium; and
• Undertakings on recognition of certificates of seafarers with Denmark and Sweden.

PROMOTING PHILIPPINE CULTURE AND ENHANCING THE COUNTRY'S IMAGE OVERSEAS

The promotion of Philippine culture is an important component of the country's foreign policy.  Shared interests beget cooperation, and the increased understanding between two countries builds confidence and facilitates the growth of political and economic relations.

The Philippines revitalized ties with its neighbors in Asia, as well as its traditional partners in Latin America through the conclusion and implementation of various agreements and through extensive people-to-people contacts.  In 2001, the Department facilitated the inauguration of the Plazoleta Republica de Filipinas in Santiago, Chile, the conclusion of a sister-city agreement between Barra de Navidad, Jalisco in Mexico and Vigan, Ilocos Sur, and the participation of 150 Filipinos in the Philippines-Japan Friendship Program for the 21st Century.   The Philippines has also recently concluded an agreement on Educational and Cultural Cooperation with Cuba, and is in the process of concluding the 12th Protocol of the Cultural Agreement with China and the Executive Program implementing the 1969 Cultural Agreement with India.

In ASEAN, the Philippines spearheaded two major projects: the performing arts tour dubbed "The ASEAN Flagship Voyage" and the production of source and teaching materials on ASEAN Cultures.  It has also been the leading proponent of such projects as the ASEAN Cultural Heritage Documentaries, the Regional Website for Culture and Information Maintenance Project, and the production of the CD-ROM of ASEAN Clip-Arts and Graphics.

CONCLUSION

The year 2001 brought with it many challenges and problems, which demanded quick and creative responses. A government that had barely enough time to catch its breath showed its mettle by rapidly responding to various crises during its first year.