Canada, Philippines ink US$12.6 Billion Dollars defense procurement deal

Visiting Canadian Prime Minister Stephen Harper, left, gestures following a joint news conference with Philippine President Benigno Aquino III Saturday Nov. 10, 2012 at Malacanang Palace grounds in Manila, Philippines. It was the first visit by a Canadian head of state in 15 years which was aimed at strengthening relations between the two countries.Image Credit: AP

Canada and the Philippines signed a deal Saturday to help Manila buy military equipment to defend its territory, Canadian Prime Minister Stephen Harper and Filipino President Benigno Aquino said.

MANILA: Canada and the Philippines signed a deal Saturday to help Manila buy military equipment to defend its territory, Canadian Prime Minister Stephen Harper and Filipino President Benigno Aquino said.

The Philippine defense department and state-run Canadian Commercial Corp. signed the agreement as Harper met Aquino at Malacanang Palace in Manila, the two leaders announced at a joint news conference.

The deal was inked amid a territorial dispute between the Philippines and China over islands and waters in the South China Sea.

"This memorandum of understanding will enable the Philippines to acquire the equipment and expertise it needs to fulfill the country's defense and security agenda," Harper said.

Under the deal, Filipino purchases of equipment and expertise from Canada's $12.6 billion (US$12.6 billion) defense industry are guaranteed by the Ottawa government, according to a Canadian government statement.

"This will help us in our efforts to build our defense and security capabilities," Aquino said, declining to elaborate.

"I cannot go into specifics lest they be observed by less friendly individuals," he added.

Faced with communist and Islamist insurgencies and an increasingly assertive China, Aquino noted that the military had just two transport aircraft, no fighter jets and just 132 mainly World War II-era ships.

CDN Reg: CF-18 |US/NATO Reg.: F/A-18A | Manufacturer: McDonnell-Douglas Aircraft Corporation | Crew / Passengers: 1 pilot (CF-18A) or 2 pilots (CF-18B) | Power Plant(s): 2 x General Electric F404-GE-400 low-bypass turbofans @ 16,000 lb (7,258 kg) thrust | Performance: Max Speed: Mach 1.8 Service Ceiling: 49,000 ft (15,000 m) Unrefuelled Range: 2,300 mi (3,704 km) *(retractable air-to-air refueling probe fitted) | Weights: Empty: 23,400 lb (10,614 kg) Gross: 37,000 lb (16,783 kg) Maximum Take-off: 49,355 lb (22,387 kg) | Dimensions: Unfolded Span: 40 ft 5 in (12.32 m) (with missiles) Folded Span: 27 ft 6 in (8.38 m) Length: 56 ft 0 in (17.07 m) Height: 15 ft 3 in (4.66 m) Wing Area: 400 sq ft (37.16 sq m) | Armament: Internally mounted M61A1 20mm cannon & provisions for AIM9 Sidewinder and AIM7 Sparrow air-to-air missiles, Maverick air-to-ground missiles, conventional bombs and precision-guided bombs, unguided CRV7 rockets, fuel tanks etc

"The fundamental issue is that we have a lot of outmoded equipment," he said.

The Canadian Commercial Corp. serves as a go-between between Canadian suppliers and foreign governments to transact defense and security contracts.

The Philippines has been in the market for patrol vessels to protect its waters, including areas that overlap with territory claimed by China.

Manila's military treaty ally the United States is set this year to deliver a second refurbished Hamilton-class cutter, previously used by the US Coast Guard, to the Philippine Navy.

Last month the Philippine Coast Guard announced it would buy five patrol boats from France for about 90 million Euros ($116 million), partly to guard disputed areas in the South China Sea.

The Philippines and China began a stand-off in April over the Scarborough Shoal; a group of islets in the Sea which the Philippines says are well within its 200-nautical-mile exclusive economic zone.

China claims the shoal as well as nearly all of the South China Sea, even waters close to the coasts of neighboring countries.

Gulfnews 

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Stephen Harper hopes Manila visit will drum up trade

Prime Minister Stephen Harper and Filipino military General Lauro Catalino Dela Cruz, right, review an honour guard on November 9, 2012 at Manila International Airport. Harper is on a three-day official visit to the Philippines and is to meet with President Benigno Aquino III at the presidential palace to discuss bilateral relations between the two countries. JAY DIRECTO/AFP/GETTY IMAGES

MANILA—Canada is hoping to grab the tail of what could be the next Asian Tiger.

Prime Minister Stephen Harper has landed in the Philippines in a visit aimed at getting Canada's foot in the door of a country forecast to be a "star" economic performer.

An aggressive anti-corruption campaign by President Benigno Aquino III is helping restore confidence in this nation and the results are paying off as the Filipino economy chalked up growth second only to China, said Chris Thornley, Canada's ambassador here.

"It's great timing for Canada to be positioned . . . to be in on the ground floor," Thornley told reporters in a conference call Friday.

The economic turnaround comes after years of challenges for this diverse nation, marked by corruption, notably, and a decades-long rebel insurgency.

Thornley said that corruption has been a "tremendous hindrance" but praised reforms imposed by Aquino, who is seen as the "first honest president for a long time."

"People are being held accountable and consequences are being demonstrated for bad behaviour and this is paying off well for them in terms of economic development," Thornley said.

But he conceded, too, that it will likely take a generation to purge corruption from society and advised Canadians companies to come here with "their eyes wide open and understand that there are challenges.

"But they can come in with a sense of optimism," he said.

And last month the government signed a pact with the Moro Islamic Liberation Front aimed at ending a long-running insurgency that has killed tens of thousands of people.

The deal grants minority Muslims autonomy in return for an end to hostilities.

"I wouldn't say it's an end to the problem but it's a new start," Thornley said.

Canada could be asked to support the evolving peace accord by lending governance expertise for the new autonomous state, he said.

Harper landed here Friday night, flying in from Bangalore after spending six days in India on an extended trade mission. The prime minister's first visit to the Philippines is a strategic one.

International bank HSBC said the Philippines is poised to become the 16th largest economy by 2050 and said the nation was on track to be a "star performer." It predicted the country's economy would grow by an average of 7 per cent over the next 40 years.

Trade between the two nations now stands at a relatively modest $1.5 billion a year.

The Philippines is a founding member of the Association of Southeast Asian Nations and Canada, looking to expand its trade, especially among Asian and Pacific nations.

Canada enjoys "tremendous goodwill" within the Philippines, thanks largely to an extended diaspora.

The Filipino-Canadian community currently numbers about 600,000 across the country and the Philippines has been the largest source country of immigrants to Canada, including many temporary workers, such as nannies. And the latest census results show that the Philippines-based language Tagalog is the fastest-growing language in Canada.

And yet Thornley agreed that the Filipino community remains under the radar within Canada

"I think that's a very positive trait. They integrate well. They don't bring their politics with them. They are hard-working people," he said.

"So they are perhaps not noticed to the same extent as some of the other larger migrant communities we have in Canada," he said.

Canada is seeking a "friendlier regulatory environment" for Canadian mining companies but understands too that the Philippines needs a regulatory framework to "ensure that their interests are protected.

"Perhaps it is taking a little bit longer than we might like. There is a moratorium on new mining permits right now," Thornley said.

The Star.com

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