28 December 2004 – Foreign Affairs Secretary Alberto Romulo foresees stronger ties between the Philippines and the United States in 2005 as both countries have agreed to enhance security and defense cooperation as an area of shared priority.

In the DFA’s year-end report, the Secretary informed President Arroyo that the Armed Forces of the Philippines will receive 30 flyable aircraft plus unutilised spares next year unde the US Excess Defense Articles (EDA) program.

The foreign affairs department also mentioned  in its report that through the efforts of the Philippine Embassy in Washington D.C., the US Senate enacted an appropriations mark-up of US$35 million in 2005 for assistance to the counter-terrorism programs of the Philippine military and law enforcement agencies.

“This is over and above the regular assistance programs,” the DFA year-end report said.

The Philippines was also among the 12 countries, which were identified as eligible to apply for Threshold Program funding for fiscal year 2005 unde the Millennium Challenge Account of the United States government. Threshold countries are those that do not qualify MCA assistance but have demonstrated a commitment to meeting requirements in the future.

The assistance, which will be provided by the USAID in connection with the Threshold Program, will not supplant the development assistance directly provided by USAID.

The MCC and other US government agencies are committed to work with the Philippine government in implementing the Threshold Program for the country for the coming fiscal year.

The MCC will send a delegation to Manila next month (January 2005) to meet with key government agencies involved in the MCA process and discuss the Threshold Program. MCC stands for Millennium challenge Corporation, a US government corporation that upholds the principle that aid is most effective when it reinforces sound political , economic, and social policies that promote poverty reduction through economic growth. Secretary Romulo also reported that for 2004, the running balance for US military assistance is US$91.38 million.

“Our country is the largest recipient for US military assistance in Asia, and this is reinforced by the designation of the Philippines as a major Non-NATO ally by President George W. Bush and the American Congress,” Secretary Romulo added.

He said the United States is keenly interested in helping conflict-affected communities in Mindanao to recover from the decades of stunted growth due to armed conflict.

“Two-thirds of US development assistance as coursed through USAID goes to Mindanao with the education sector receiving the bulk of this assistance,” the DFA Chief pointed out.

USAID is also assisting the Philippines in promoting market reforms and good governance, programs on population, health and nutrition, energy and environmental resource management as well as on the anti-human trafficking campaign.

“We were also able to obtain an increase in US development assistance by as much as 43%,” Secretary Romulo stressed.

In the area of trade and investment, the US remains as the biggest trade partner and the top destination of RP exports.   It is also the top investor in the country.

The United States is supporting a project to reduce the transaction costs of remittances to the Philippines through the provision of direct payment links and automated clearing house (ACH) services to the Philippines.

This project is being implemented in cooperation with the US Treasury Department, USAID, Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the World Council of Credit Unions. END