Australia is the sixth largest country in the world in land area, covering 7.6 million sq km, and the sixth oldest continuously functioning democracy. It has a stable, culturally diverse and democratic society of more than 21 million people, and has one of the strongest and most competitive economies in the world, with gross domestic product (GDP) of approximately $925 billion. 

Australia maintains a strong and vibrant relationship with the Philippines. Formal diplomatic relations commenced with the opening of Australia’s first Consulate General in Manila on May 22, 1946. Since then, the relationship has grown, encompassing a broad range of areas, including development assistance, defense and law-enforcement cooperation, and trade and investment. 

“Australia is a longstanding friend and neighbor of the Philippines and continues to be a committed partner in the pursuit of lasting peace and sustainable development,” Ambassador Rod Smith said. “Australia and the Philippines have much in common, being geographically proximate and sharing perspectives on many regional, economic and security issues.

“People-to-people links are growing through trade and investment, cultural exchanges, tourism and migration.  More than 200,000 people of Philippine descent have made Australia their home, where they make a welcome contribution to Australia’s vibrant multicultural society,” he added. “The Philippines is currently the fifth largest source country for permanent migration to Australia and the third largest source country for skilled temporary entry. Visitor arrivals in both directions are also increasing.”

Australia has been a long-standing partner of the Philippines in meeting its development challenges. Australian development assistance to the Philippines started in the 1950s, originally as part of the Colombo Plan—an initiative launched by Commonwealth countries to help strengthen the economies of South and Southeast Asia.

Today, Australia is among the top three providers of development assistance to the Philippines, amounting to approximately P4.6 billion (A$123 million) in 2009-10, a 12-percent increase over the previous year.

“Australia’s development assistance to the Philippines has grown significantly in the last five years with more than P16 billion invested in development cooperation programs over this period,” Smith said.

Australia’s aid program in the Philippines is focused on supporting economic growth, strengthening basic education, and contributing to national stability and human security. 

Australia is the largest contributor to basic education in Mindanao through its Basic Education Assistance to Mindanao program, which benefits thousands of school children and educators. Australia is also the largest donor to the Philippines-UN Multidonor Program Action for Conflict Transformation for Peace, contributing about P1.3 billion (A$34.4 million).

“Australia will continue to work with the Philippine government to ensure that more children are educated, that the poor have access to health services, farmers and traders can use serviceable roads, and budgets are used in a transparent and effective way,” Smith said.

Australia and the Philippines also share a strong defense and security partnership aimed at countering global and regional threats.  Australia is the Philippines’ second largest counter-terrorism and defense cooperation partner.

“Australia’s assistance aims to strengthen the capacity of key government agencies to prevent terrorist threats with a particular focus on law enforcement, border control, port security and regional cooperation,” Smith said.

Improving maritime security has been a key area of Australia’s assistance. Australia has significantly contributed to improving security in the Sulu and Celebes Seas through its support to the Philippines’ Coast Watch South initiative since 2005.  Australia has also provided key support in enhancing the capacity of Philippine authorities to protect the transportation sector from possible terrorist threats through the recently concluded Philippines-Australia Port Security Capacity Building Project.

The Australian government also provides defense training to an average 120 Philippine military personnel each year, including post-graduate studies at Australian universities.

During President Arroyo’s visit to Australia in May 2007, the Philippines and Australia signed a Status of Visiting Forces Agreement, which will lay the foundation for greater defense cooperation in the future.

Australia and the Philippines have a strong and growing trading relationship. Two-way merchandise trade was valued at A$2.2 billion in 2008, almost 16 percent higher than in 2007. Major Australian merchandise exports to the Philippines include copper ores and concentrates, crude petroleum, milk and cream, and medicaments.  Products imported by Australia from the Philippines include crude petroleum, electronic machinery and parts, radio broadcast receivers, and telecommunications and parts.

In October 2008, the Philippines-Australia Ministerial Meeting was held in Manila to discuss ways to enhance the relationship, particularly in the areas of trade and investment. 

Both countries agreed to explore scope for further cooperation in the mining sector; enhancing opportunities for increased exchanges in the field of nursing; and exploring and promoting opportunities to strengthen cooperation in education and vocational training.

In February this year, Australia, New Zealand and the 10 countries of the Asean signed a free-trade agreement, or FTA, which is expected to enhance commercial activity in the region.

“The AANZFTA will eliminate tariffs and other barriers to trade in goods, services and investment across a region that is home to more than 600 million people and has an annual GDP of $2.7 trillion,” Smith said.

“The FTA sends an important signal to the world that Australia and the Philippines, as well as the other countries, are committed to keeping markets open in the face of the global economic downturn and will help keep trade in the region flowing, increase growth and give a much-needed boost to confidence.”

Shwon in photo is Australian children’s musical group Hi-5 during their recent Manila tour.