After Duterte Scraps VFA, What Next for the US-Philippine Security Alliance?

Philippine Foreign Secretary Teodoro Locsin sent the US formal notice of Duterte’s decision to terminate the VFA on 11 February. (Image Source: US Marine Corps, Chanelcherie K. DeMello)

On 11 February, Philippine President Rodrigo Duterte provided formal notice to the US of his decision to scrap the Visiting Forces Agreement (VFA) – a bilateral treaty inked in 1998 to facilitate the presence of US troops in the country. Duterte’s Foreign Secretary Teodoro Locsin had voiced his concerns over the risks of cancelling the agreement in a Senate hearing the previous week, warning the move could result in the ‘severe curtailment’ of America’s long-standing defence obligations to its former colony.

Many observers have questioned the sense in Duterte terminating an agreement that has for the past 22 years underpinned what is arguably Washington’s most strategically important security alliance in Asia. The immediate trigger appears to be the US decision in January to rescind a visa for Ronald dela Rosa – a senator and close political ally of Duterte, who in his former role as national police chief led Duterte’s violent anti-drug campaign; roundly criticized in the West over alleged extra-judicial killings.

The visa revocation drew an angry response from Duterte, who immediately threatened to cancel the VFA and barred members of his cabinet from travelling to the US. Yet the visa issue may have provided a convenient excuse for Duterte, who has executed a pivot away from the US and toward China, since his shock election win in 2016. Duterte has routinely denounced US influence and criticized US foreign policy, claiming it has treated his nation ‘like a dog on a leash’ since the end of American rule in 1946.

Immediate and practical impacts of VFA termination

The termination of the VFA will take effect after 180 days, meaning the status-quo will be maintained until mid-August when the agreement is scheduled to expire. However, US-Philippine defence ties will not cease to exist when the six-month deadline is reached, as the two countries have two additional defence agreements, which are set to remain in place. A Mutual Defence Treaty (MDT), signed in 1951, commits the US to come to the Philippines’ aid in the event of an attack by a foreign power; while the 2014 Enhanced Defence Co-operation Agreement (EDCA), penned during the Obama administration, introduced new provisions for troop rotations, the use of military bases and the positioning of assets.

While these two agreements are important in their own right, the VFA is vital to their implementation. It provides a legal framework for US troops to enter and exit the country without needing a passport or visa, and provides clear procedures for handling issues and disputes which may arise as a result of American presence. Above all, the VFA is a crucial tool in facilitating regular joint exercises between the two militaries. Around 390 such exercises are planned for 2020, the largest of which – referred to as Balikatan, meaning ‘shoulder-to-shoulder’ in the local Tagalog language – is due to be held in May.

The continuation of these drills after the 180-day period ends would be uncertain in the absence of a replacement for the VFA. After Duterte’s decision, US Assistant Secretary of State for Political-Military Affairs, Clarke Cooper, said joint operations would be ‘put at risk’, emphasizing that ‘all engagements’ require a facilitating legal mechanism to be in place. Foreign Secretary Locsin said as much during the Senate hearing on 6 February, noting that the VFA was the ‘substance’ that made the MDT effective.

Long-term strategic implications of terminating the VFA

Beyond these logistical issues, terminating the VFA has two significant implications for the Philippines’ national security – which may also impact regional security and wider US interests in the Asia-Pacific.

Firstly, a permanent US military presence in the Philippines, enabled by the VFA, serves as a deterrent to Chinese maritime assertiveness in the South China Sea – labelled the West Philippine Sea by Manila. Over the past decade, Beijing has reclaimed land and built military installations on contested islands in the region, where control of various portions of the sea and its features is disputed between China and five other claimant states. The area serves as a vital route for global shipping and seaborne trade.

The VFA – which facilitates the presence of US troops in the Philippines – was signed in 1998. The two nations also have a Mutual Defence Treaty dating back to the 1950s. (Image Source: US DoD)

The US has sought to push-back against Chinese maritime expansionism, for fear Beijing could assert full dominance and displace the US as the foremost naval power in the Asia-Pacific. In this sense, the Philippines is ideally located – on the sea’s eastern perimeter – as a staging post to guard against this perceived threat. The VFA, in allowing the permanent presence of US troops, has ensured a base from which the US can project power and launch freedom of navigation operations in the South China Sea. While the US does have close ties with other claimant states – such as Vietnam, on the sea’s western fringe – the relationship with the Philippines is long-established and it is considered a crucial partner. Terminating the VFA may give China the green light to continue its activities in the sea unchallenged.

Secondly, the VFA has enabled two decades of counter-terrorism co-operation between US forces and the Philippine military on the troubled southern island of Mindanao, where extreme Islamist groups, such as the notorious Abu Sayyaf, operate. The area is also home to a number of other hardline groups linked to the Islamic State, including the Maute Group and the Bangsamoro Islamic Freedom Fighters. In the aftermath of 9/11, the US deployed 600 soldiers to the region to help stem the tide of militancy, and around 100 remain stationed in Mindanao on a rotating basis. Although they don’t participate in active combat, US personnel provide intelligence and reconnaissance support, which played a key role in ending the 2017 siege of Marawi, when Philippine forces battled Islamist militants for five months.

The US has also provided equipment, financial assistance and urban-warfare training, helping to boost the capacity of the Armed Forces of the Philippines (AFP) to tackle rapidly-evolving terrorist threats in Mindanao. Several senior Filipino politicians now fear that by scrapping the VFA, the desire of the US to provide such assistance may decrease, risking worsening instability in the insurgency-prone south. Foreign Secretary Locsin stated last month that the VFA ‘allows for continued support for addressing non-traditional security threats’, adding that US forces had been ‘instrumental’ in not only combating terrorism, but also in helping to confront ‘trafficking in persons, cyber-attacks…and illegal narcotics’. Security issues aside, US humanitarian support and disaster response has also been aided by the VFA.

A shared interest in renegotiating the VFA?

Despite senior figures in his administration voicing their concerns, Duterte appears intent on sticking with his decision. He has pushed back against those ‘trying to save’ the VFA, voicing a desire to ‘rely on ourselves’ in the defence sphere. Meanwhile, US President Donald Trump responded to reporters with apparent indifference when asked about the move, remarking ‘I really don’t mind…we’ll save a lot of money’. Despite these assertions, some Filipino politicians have stated a preference for the VFA to be reviewed rather than scrapped, and the 180-day notice period may afford time for negotiations.

It is in the interests of both parties to maintain the kind of co-operation that the VFA facilitated, even if the agreement must now be revived in a different form and under a different name. A renegotiation of aspects of the VFA as part of a new deal, acceptable to both Duterte and Trump, may be possible if both men opt to put the shared security interests of their respective countries ahead of political gain in the domestic sphere – where their populist bases are largely supportive of an isolationist approach to foreign policy. Longer-term, the future of the US-Philippine security alliance will be passed into the hands of new leaders: Duterte’s single six-year term ends in 2022, while Trump is seeking re-election in November. A US-friendly leader in Manila, or a Democratic president in the US, would likely lead to a return to the more engaged Obama-era relationship between the US and its Southeast Asian allies: centred on strengthening security partnerships, and opposing Chinese actions in the maritime realm.

Yet with Duterte and Trump at the helm, the US-Philippine security alliance appears to be weakening; and with the VFA set to be terminated, the defence establishments of both countries will hope for no lasting damage.

A version of this article is also published on Geopolitical Monitor.

What Underlies the Long-Running Dispute in the South China Sea?

China claims all South China Sea waters within its self-imposed ‘nine-dash line’, demarcated in a 1947 map, including the Paracel archipelago and the Spratly Islands (Image Source: US Navy)

The South China Sea is a site of intense geostrategic importance located at the heart of the Asia-Pacific. It is the site of decades-old contestation between rival regional powers over territory, lucrative energy resources and economically-vital sea lanes. Given the sea’s location at the centre of the world’s most densely-populated and fastest-growing region, and considering the above-mentioned convergence of interests, the disputes represent a pressing and complex issue which is highly resistant to resolution.

The disputes first emerged in the aftermath of World War Two, when the six claimant states bordering the sea – China, Taiwan, Vietnam, Brunei, Malaysia and the Philippines – scrambled to occupy islands following the withdrawal of colonial powers. In their early stages, the disputes centred primarily over the question of territorial sovereignty. China claimed almost the entire body of water according to its ‘nine-dash line’ map, originally released publicly in 1947. The map was based on historical claims of naval expeditions in the area dating back as far as the Han Dynasty. China views its claim to sovereignty as a major national interest comparable with its desire to incorporate Taiwan into the Chinese state.

Taiwan and Vietnam also stake a claim to large portions of the sea encompassing two island groups: the Paracels and the Spratly islands. Similarly, these claims are based on historical records stretching back centuries. Another three Southeast Asian nations – Brunei, Malaysia and the Philippines – claim more limited portions of the sea and look to assert their right to a 200-mile Exclusive Economic Zone (EEZ) stretching from their coastlines. These claims are made in line with the terms of the 1982 United Nations Convention on the Law of the Sea (UNCLOS). UNCLOS, while serving as an important modern-day legal referent and a possible future tool of resolution, has been a primary driver of the disputes in recent decades. This was most evident in 2009, when a UNCLOS deadline for new submissions on the delimitation of continental shelves led to a series of claims from nations bordering the sea, adding to an already-complex picture of overlapping claims and leading to a further raising of regional tensions.

While a full-scale military conflict has so-far been avoided, the South China Sea has witnessed a series of past incidents involving the militaries of the six claimant states. Most of these have taken the form of small-scale encounters or non-violent stand-offs involving coastguard ships and fishing vessels from China, Vietnam and the Philippines. In May 2014, a more high-profile incident occurred when China stationed an oil rig in waters claimed by Vietnam as part of its EEZ, resulting in a stand-off involving more than 30 vessels. The incident damaged bilateral relations and sparked street protests in Hanoi.

Under President Xi Jinping, China has assertively pressed its claims in the disputed region through land reclamation and conducting maritime patrols (Image Source: Russian Govt.)

The two countries had previously clashed in the sea in a notorious incident at Johnson South Reef in 1988, in which two Vietnamese ships were sunk and 64 sailors perished. In more recent years, the US has risked China’s ire by carrying-out ‘Freedom of Navigation’ operations in the contested area, sailing military vessels close to islands occupied by China. This policy was a major aspect of former President Obama’s ‘pivot’ to the Asia-Pacific, which many considered a thinly-veiled attempt to counter China’s rising power and support Southeast Asian states in ensuring China met opposition to its activities in the South China Sea. President Trump has taken a softer stance since his shock election win in 2016.

While competing territorial claims over islets, rocks and other land-features have defined the disputes for decades, undersea energy resources have become an increasingly important driver of the disputes in more recent times. The South China Sea is thought to contain up to 213 billion barrels of sub-sea oil in addition to vast quantities of natural gas in rocks deep beneath the waves, leading states to intensify their claims to the region. This is particularly important given the rising populations of the Asia-Pacific in combination with dwindling domestic energy reserves and a need to decrease over-reliance on the volatile Middle East for oil. China’s population is set to reach 1.4 billion by 2020, whilst the population of Southeast Asia is nudging 650 million. Shipping is another important factor, with the South China Sea being a vital transit route for the import of oil and gas, and the export of consumer goods. Up to 90% of energy imports to East Asia pass through the narrow Malacca Strait chokepoint and through the South China Sea, after being shipped first through the Indian Ocean. This provides another major imperative for states to seek a degree of control over the waters, to ensure the free-flow of shipping which is necessary to sustain high rates of economic growth. Analysts in the US have raised concerns that China could block this vital maritime trading route, while China holds the opposite fear that the US and its regional allies could close the Malacca Strait in a future worst-case scenario. Such an event – instigated by any party – would negatively impact all regional nations and dent the global economy.

All attempts to resolve the dispute so-far have failed. In 2002, China and the Association of Southeast Asian Nations (ASEAN) signed-up to a joint Declaration of Conduct on the Parties in the South China Sea (DOC), agreeing to pursue peaceful co-operation and exercise self-restraint. However, the DOC has long been criticized as being ineffective due to its non-binding nature, while talks between the two sides on a binding code-of-conduct have made little progress over the years. This has been made more difficult due to division within ASEAN over the dispute in recent times. The claimant states – in particular Vietnam and the Philippines – have maintained a tougher stance, while several of the non-claimant states – including Cambodia, Laos, Myanmar and Thailand – have been reluctant to criticize China’s activities too forcefully for fear of losing-out on much-needed Chinese investment. During the current impasse, China has expanded its de-facto control over the South China Sea, asserting its claims through land reclamation, building military installations on islets and conducting regular naval patrols.

The United States conducted regular Freedom of Navigation Operations in the South China Sea under President Obama, sailing warships close to disputed islands (Image Source: US Navy)

At present, the disputes have drifted out of international headlines as more immediate concerns have dominated global politics; namely the escalating US-China ‘trade war’, and the North Korea situation. The plight of the Rohingya in Myanmar and rising Islamist conflict in the southern Philippine region of Mindanao have also held regional attention, forcing the South China Sea issue into the background. The US has largely retreated from Southeast Asia under nationalist President Trump, looking to lessen rather than increase America’s commitments in far-flung parts of the world. Since the final days of the Obama administration, US rhetoric on China’s assertive actions in the South China Sea has softened.

The Philippines’ President Duterte – elected several months before Trump’s unlikely rise in the US – has also adopted a softer stance. ASEAN remains divided on the issue and unable to reach consensus. This has left China to press on with its land reclamation programme and solidify its territorial gains in the South China Sea, with Beijing having previously rejected a 2016 tribunal arbitration ruling which questioned the legitimacy of its claim to sovereignty. Whether China and ASEAN will be able to adapt to the new status-quo and agree upon a binding code-of-conduct in the coming years remains to be seen. Another unknown concerns a potential change of government in the US once Trump’s first term ends in 2021. The election of an Obama-style leader may see the US strive to re-engage on the issue.

For now, at least, China has solidified its position as the dominant player in the South China Sea. Yet despite apocalyptic predictions from some analysts in the West, the disputes look unlikely to result in conflict. China, the US and ASEAN states all have too much to lose. Irrespective of whether the complex territorial claims can be resolved in the coming decades, economic realities and shared interests mean a co-operative environment regarding the sea’s resources and shipping routes may yet develop. This will be the key test as to whether peace can be sustained in the world’s most hotly-contested waters.

A version of this article is also published on Eurasia Review.