BAGUIO CITY – United States Ambassador to the Philippines Mary Kay Carlson said that the Hague arbitral ruling that upheld the claim of the Philippines over portions of the West Philippine Sea stands as a milestone for all who seek a prosperous, inclusive, and secure Indo-Pacific and who undertake to uphold the rule of law around the world.
Speaking before the Stratbase Forum on ‘The 8th Year of the Arbitral Victory: A Collective Pursuit of Maritime Security in the West Philippine Sea,” Carlson said that the significance of the July 12, 2016 arbitral ruling extends well beyond the Philippines.
“Would like to highlight its contributions to global prosperity, another crucial contribution of the ruling,” Ambassador Carlson stressed.
The US ambassador claimed that the Arbitral award was a milestone in setting out the legal rights and lawful maritime entitlements of the Philippines and the PRC in the South China Sea, clarifying extensive maritime areas where the Philippines enjoys sovereign rights and jurisdiction over natural resources in its exclusive economic zone and on its continental shelf. At the same time, it memorialized vast maritime areas where all nations enjoy freedom of navigation and overflight under international law, providing the legal foundation for trade, investment, and economic activity to thrive in the Indo-Pacific region.
According to her, the South China Sea is one of the busiest shipping lanes in the world, facilitating over three trillion U.S. dollars in annual trade. It is also home to abundant biodiversity and accounts for 12 percent of the global fish catch, supporting the livelihoods of millions. So the stakes and the impact are high.
Further, The Indo-Pacific region accounts for 60 percent of global GDP and two-thirds of global economic growth. U.S. companies continue to be the top source of foreign direct investment in the Indo-Pacific with nearly one trillion dollars in U.S. investments; and trade between the United States and the region exceeded two trillion dollars. A trusted international legal framework is essential for this robust economic activity to continue.
Carlson assured that the United States is committed to expanding trade and investment between our two countries to strengthen both our economies. The United States is already the Philippines’ largest export market. American companies are among the Philippines’ largest and oldest investors, private employers, and taxpayers. Our commercial ties have created hundreds of thousands of Filipino jobs.
“In the first half of this year, we have reached new heights in reaffirming the United States’ steadfast commitment to the U.S.-Philippine economic relationship. Following their historic Trilateral Leaders’ Summit, President Biden, President Marcos, and Prime Minister Kishida jointly announced the Luzon Economic Corridor, part of the PGI IPEF Investment Accelerator, that will promote port, rail, and digital infrastructure projects in the Philippines.
Earlier, U.S. Secretary of Commerce Gina Raimondo led a first-of-its-kind Presidential Trade and Investment Mission to Manila, highlighting more than one billion dollars in combined investments that promote the Philippines’ innovation economy, clean energy transition, and supply chain resilience. In May, we and the Philippines co-hosted the sixth Indo-Pacific Business Forum in Manila. President Marcos became the first head of state to address the Forum, and over 700 senior executives, officials, and journalists from across the region attended, launching 20 million dollars in new U.S. economic programs, and celebrating over five billion dollars in new U.S. investment in the region.
Secretary Blinken highlighted partnerships in the semiconductor sector during his visit in March, and Millennium Challenge Corporation (MCC) CEO Alice Albright’s visit this year jumpstarted development of a new Philippine MCC Threshold Program.
Ambassador Carlson stipulated that all the engagements and plans above depend on stable legal structures and international norms, including with regard to the Law of the Sea. The Philippines has the right to fully leverage its resources on land and at sea in pursuit of economic growth. With the 2016 Arbitral ruling, the Philippines secured a final and legally binding decision that validates the country’s sovereign rights and jurisdiction over its exclusive economic zone and continental shelf, including around Second Thomas Shoal.
She added that as we have often heard President Marcos say, economic security is national security. For the past eight years, the Arbitral award has been a lynchpin in the Philippines’ national security vision for a peaceful and prosperous archipelagic nation – one that the United States steadfastly supports.
“The United States is proud to stand with the Philippines as we work together to bolster our 73-year-old alliance. Described as “ironclad” and “on hyperdrive,” our alliance grows stronger by the day through 500 joint exercises and other engagements every year. We have deliberately and decisively built up the connective tissue of the Alliance over decades, exercising it frequently, keeping it fit and stronger than ever. As Assistant Secretary of Defense for the Indo-Pacific Ely Ratner said just yesterday during public remarks in Washington, and I quote, “We have elevated the U.S.-Philippines alliance to stand among our most vital defense partnerships in the world.”
“I could offer many examples over the past year alone to demonstrate ways in which the United States and the Philippines have routinely operationalized our commitments – supporting capacity-building programs to enhance maritime domain awareness and improving the ability of civilian and military vessels to routinely fly, sail, and operate anywhere that international law allows.” She said.
One cornerstone of our ironclad alliance is the Enhanced Defense Cooperation Agreement, or EDCA, that enables Filipino and American forces to train together more closely, to modernize, and to respond to shared threats, including natural disasters. To date through EDCA, we have invested about 120 million dollars, or seven billion pesos, to repair runways, build disaster response warehouses, and improve critical infrastructure. These investments also spur economic growth and opportunity in local communities.
“We have expanded networks of support for the Philippines and a free and open Indo-Pacific. The United States, the Philippines, Japan, Australia, Canada, and France have engaged in a series of multilateral maritime cooperative activities in an unprecedented show of solidarity. Sailing together sends a clear message: that we are all committed to upholding freedom of navigation and overflight in accordance with international law. We are also encouraged by the opportunities enabled by the reciprocal access agreement announced this week between Japan and the Philippines. To quote ASD Ratner again, “The future we’re striving for is one with greater interoperability and cooperation among likeminded Indo-Pacific partners, and this means enhanced reciprocal access, more participation in larger and more complex regional exercises, greater investment together in advanced capabilities – and the Philippines stands at an intersection of all of that,” she claimed.
With the backing of an increasingly interconnected latticework of alliances and partnerships, she stipulated the United States continues to urge the PRC to cease escalatory and dangerous harassment of Philippine vessels lawfully operating in the Philippines’ exclusive economic zone; to stop infringing on the Philippines’ rights to explore, conserve, and manage natural resources; and to cease interfering with freedom of navigation and overflight of all states lawfully operating in the region. Secretary of State Blinken reasserted our call on the PRC to abide by the 2016 ruling in a statement just this morning.
“We applaud President Marcos and the Government of the Philippines for defending the well-being of its servicemembers on the BRP Sierra Madre. It was my honor at WESCOM on Wednesday this week to meet with Admiral Torres and his team and to address the crew of LS57 via video conference to thank them for the important role they play in defending Philippine rights – and by extension, the rights of all of us – under international law. We are proud to be among the chorus of nations that have consistently lent their voices to calling out incidents of aggression. The volume of condemnation from the international community is loud and getting louder, and it speaks to our common resolve in support of the international rules and norms that benefit us all,” Carlson underscored. By Dexter A. See
