India and Philippines initiate talks for bilateral trade agreement
- In Reports
- 11:45 AM, Jun 30, 2023
- Myind Staff
According to reports, India and the Philippines have agreed to initiate negotiations on a bilateral preferential trade pact, as well as strengthen their defense cooperation, particularly in the realm of maritime security. These developments come amidst growing concerns over China's assertiveness in the South China Sea.
During extensive talks between the Philippines' Secretary for Foreign Affairs, Enrique A. Manalo, and India's External Affairs Minister, S. Jaishankar, both sides emphasized the importance of implementing the 2016 verdict by a UN arbitration court on the South China Sea issue.
However, Defense and security ties between India and the Philippines have been growing. In January last year, the Philippines secured a USD 375 million deal with India for three batteries of the BrahMos cruise missile. Both countries prioritize a free and open Indo-Pacific, promoting peaceful dispute resolution and adherence to international law, including UNCLOS and the South China Sea arbitral award.
China's expansive territorial claims in the South China Sea, rich in hydrocarbon resources, have caused global concerns. Vietnam, the Philippines, and Brunei have counterclaims. Despite the Permanent Court of Arbitration ruling in favor of the Philippines, China rejected the verdict.
Taking to Twitter, Minister Jaishankar described the discussions during the fifth India-Philippines Joint Commission on Bilateral Cooperation as "productive and comprehensive." He outlined the focus of the dialogue on enhancing cooperation in defense, counter-terrorism, health, and trade.
The joint statement revealed a keen interest from both sides to further collaborate in the defense sector, including the opening of a defense attaché office in Manila. The statement also mentioned India's offer for a concessional Line of Credit to fulfill the Philippines' defense requirements, the acquisition of naval assets, and the expansion of training and joint exercises related to maritime security.
Additionally, it stated that negotiations for a bilateral preferential trade agreement will commence, given the satisfaction with the growing pace of bilateral trade, which exceeded USD 3 billion in 2022-23 for the first time.
Furthermore, the two sides expressed their commitment to working together at the United Nations to achieve concrete outcomes on UN Security Council reforms as soon as possible. They also expressed their support for early negotiations on a bilateral mutual legal assistance treaty regarding criminal matters and a treaty on the transfer of sentenced persons.
During a lecture at a think-tank, Secretary Manalo highlighted the Philippines' intention to establish a "very robust" defense partnership with India and expressed interest in procuring military hardware from India. Secretary Manalo's visit to India commenced on June 27 and spanned four days.
Image source: PTI
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