PHILIPPINES

Compiled from the September 2005 Background Note and supplemented with additional information from the State Department and the editors of this volume. See the introduction to this set for explanatory notes.

Official Name:
Republic of the Philippines

PROFILE

Geography

Area:

300,000 sq. km. (117,187 sq. mi.).

Major cities (2000 census):

Capital—Manila (pop. 9.9 million in metropolitan area); other cities—Davao City (1.2 million); Cebu City (0.7 million).

Terrain:

Islands, 65% mountainous, with narrow coastal lowlands.

Climate:

Tropical, astride typhoon belt.

People

Nationality:

Noun—Filipino(s). Adjective—Philippine.

Population (2000 census):

76.5 million; estimate for 2004: 83.9 million.

Annual growth rate:

2.36%.

Ethnic groups:

Malay, Chinese.

Religion:

Catholic 85%, Protestant 9%, Muslim 5%, Buddhist and other 1%.

Language:

Pilipino (based on Tagalog), national language; English, language of government and instruction in education.

Education:

Years compulsory—6 (note: 6 years of primary education free and compulsory; 4 years of secondary education free but not compulsory). Attendance—94% in elementary grades, 64% in secondary grades. Literacy—93.4%.

Health:

Infant mortality rate (2003)—29 per 1,000. Life expectancy (2003)—67.8 yrs. for males; 73.1 yrs. for females.

Work force (2004):

35.8 million. Services (including commerce and government, 2004)—47%; agriculture—20%; industry—33%.

Government

Type:

Republic.

Independence:

1946.

Constitution:

February 11, 1987.

Branches:

Executive—president and vice president. Legislative—bicameral legislature. Judicial—independent.

Administrative subdivisions:

15 regions and Metro Manila (National Capital Region), 79 provinces, 115 cities.

Political parties:

Lakas-Christian Muslim Democrats, Nationalist People's Coalition, Laban ng Demokratikong Pilipino, Liberal Party, Aksiyon Demokratiko, Partido Demokratikong Pilipino-Lakas ng Bayan, and other small parties.

Suffrage:

Universal, but not compulsory, at age 18.

Economy

GDP (2004):

$84.2 billion.

Annual GDP growth rate (2004):

6.1%.

GDP per capita (2004):

$976.

Natural resources:

Copper, nickel, iron, cobalt, silver, gold.

Agriculture:

Products—rice, coconut products, sugar, corn, pork, bananas, pineapple products, aquaculture, mangoes, eggs.

Industry:

Types—textiles and garments, pharmaceuticals, chemicals, wood products, food processing, electronics assembly, petroleum refining, fishing.

Trade (2004):

Exports—$39.6 billion. Imports—$40.3 billion.

PEOPLE

The majority of Philippine people are of Malay stock, descendants of Indonesians and Malays who migrated to the islands long before the Christian era. The most significant ethnic minority group is the Chinese, who have played an important role in commerce since the ninth century, when they first came to the islands to trade. As a result of intermarriage, many Filipinos have some Chinese and Spanish ancestry. Americans and Spaniards constitute the next largest alien minorities in the country.

More than 90% of the people are Christian; most were converted and became Westernized to varying degrees during nearly 400 years of Spanish and American rule. The major non-Hispanicized groups are the Muslim population, concentrated in the Sulu Archipelago and in central and western Mindanao, and the mountain groups of northern Luzon. Small forest tribes still live in the more remote areas of Mindanao.

About 87 native languages and dialects are spoken, all belonging to the Malay-Polynesian linguistic family. Of these, eight are the first languages of more than 85% of the population. The three principal indigenous languages are Cebuano, spoken in the Visayas; Tagalog, predominant in the area around Manila; and Ilocano, spoken in northern Luzon. Since 1939, in an effort to develop national unity, the government has promoted the use of the national language, Pilipino, which is based on Tagalog. Pilipino is taught in all schools and is gaining acceptance, particularly as a second language. Many use English, the most important nonnative language, as a second language, including nearly all professionals, academics, and government workers. In January 2003, President Gloria Macapagal-Arroyo ordered the Department of Education to restore English as the medium of instruction in all schools and universities. Only a few Filipino families use Spanish as a first language.

The Philippines has one of the highest literacy rates in the East Asian and Pacific area. About 92% of the population 10 years of age and older are literate.

HISTORY

The history of the Philippines can be divided into four distinct phases: the pre-Spanish period (before 1521); the Spanish period (1521-1898); the American period (1898-1946); and the years since independence (1946-present).

Pre-Spanish Period

The first people in the Philippines, the Negritos, are believed to have come to the islands 30,000 years ago from Borneo and Sumatra, making their way across then-existing land bridges. Subsequently, people of Malay stock came from the south in successive waves, the earliest by land bridges and later in boats called barangays. The Malays settled in scattered communities, which became known as barangays, and which were ruled by chieftains known as datus. Chinese merchants and traders arrived and settled in the ninth century A.D. In the 14th century, Arabs arrived, introducing Islam in the south and extending some influence even into Luzon. The Malays, however, remained the dominant group until the Spanish arrived in the 16th century.

Spanish Period

Ferdinand Magellan reached the Philippines and claimed it for Spain in 1521, and for the next 377 years, the islands were under Spanish rule. This period was the era of conversion to Roman Catholicism. A Spanish colonial social system was developed with a government centered on Manila and with considerable clerical influence. Spanish influence was strongest in Luzon and the Central Philippines. It was less strong in Mindanao, save for certain coastal cities. The long period of Spanish rule was marked by numerous uprisings. Towards the latter half of the 19th century, western-educated Filipinos or "ilustrados" such as national hero Jose Rizal began to criticize the excesses of Spanish rule and instilled a new sense of national identity. This movement gave inspiration to the final revolt against Spain which began in 1896 under the leadership of Emilio Aguinaldo and continued until the Americans defeated the Spanish fleet in Manila Bay on May 1, 1898, during the Spanish-American War. Aguinaldo declared independence from Spain on June 12, 1898.

American Period

Following Admiral Dewey's defeat of the Spanish fleet in Manila Bay, the United States occupied the Philippines. Spain ceded the islands to the United States under the terms of the Treaty of Paris (December 10, 1898) that ended the war.

A war of resistance against U.S. rule, led by Revolutionary President Aguinaldo, broke out in 1899. This conflict claimed the lives of tens of thousands of Filipinos and thousands of Americans. Although Americans have historically used the term "the Philippine Insurrection," Filipinos and an increasing number of American historians refer to these hostilities as the Philippine-American War (1899-1902), and in 1999 the U.S. Library of Congress reclassified its references to use this term. In 1901, Aguinaldo was captured and swore allegiance to the United States, and resistance gradually died out. The conflict ended with a Peace Proclamation on July 4, 1902. However, armed resistance continued sporadically, with heavy casualties on both sides, until 1913, especially in Mindanao and Sulu.

U.S. administration of the Philippines was always declared to be temporary and aimed to develop institutions that would permit and encourage the eventual establishment of a free and democratic government. Therefore, U.S. officials concentrated on the creation of such practical supports for democratic government as public education and a sound legal system.

The first legislative assembly was elected in 1907. A bicameral legislature, largely under Philippine control, was established. A civil service was formed and was gradually taken over by the Filipinos, who had effectively gained control by the end of World War I. The Catholic Church was disestablished, and a considerable amount of church land was purchased and redistributed.

In 1935, under the terms of the Tydings-McDuffie Act, the Philippines became a self-governing commonwealth. Manuel Quezon was elected president of the new government, which was designed to prepare the country for independence after a 10-year transition period. World War II intervened, however, and in May 1942, Corregidor, the last American/Filipino stronghold, fell. U.S. forces in the Philippines surrendered to the Japanese, placing the islands under Japanese control. During the occupation, thousands of Filipinos fought a running guerilla campaign against Japanese forces.

The full-scale war to regain the Philippines began when Gen. Douglas MacArthur landed on Leyte on October 20, 1944. Filipinos and Americans fought together until the Japanese surrender in September 1945. Much of Manila was destroyed during the final months of the fighting. In total, an estimated one million Filipinos lost their lives in the war.

As a result of the Japanese occupation, the guerrilla warfare that followed, and the battles leading to liberation, the country suffered great damage and a complete organizational breakdown. Despite the shaken state of the country, the United States and the Philippines decided to move forward with plans for independence. On July 4, 1946, the Philippine Islands became the independent Republic of the Philippines, in accordance with the terms of the Tydings-McDuffie Act. In 1962, the official Independence Day was changed from July 4 to June 12, commemorating the date independence from Spain was declared by General Aguinaldo in 1898.

Post-Independence Period

The early years of independence were dominated by U.S.-assisted postwar reconstruction. The communist-inspired Huk Rebellion (1945-53) complicated recovery efforts before its successful suppression under the leadership of President Ramon Magsaysay. The succeeding administrations of Presidents Carlos P. Garcia (1957-61) and Diosdado Macapagal (1961-65) sought to expand Philippine ties to its Asian neighbors, implement domestic reform programs, and develop and diversify the economy.

In 1972, President Ferdinand E. Marcos (1965-86) declared martial law, citing growing lawlessness and open rebellion by the communist rebels as his justification. Marcos governed from 1973 until mid-1981 in accordance

with the transitory provisions of a new constitution that replaced the commonwealth constitution of 1935. He suppressed democratic institutions and restricted civil liberties during the martial law period, ruling largely by decree and popular referenda. The government began a process of political normalization during 1978-81, culminating in the reelection of President Marcos to a 6-year term that would have ended in 1987. The Marcos government's respect for human rights remained low despite the end of martial law on January 17, 1981. His government retained its wide arrest and detention powers. Corruption and favoritism contributed to a serious decline in economic growth and development under Marcos.

The assassination of opposition leader Benigno (Ninoy) Aquino upon his return to the Philippines in 1983, after a long period of exile, coalesced popular dissatisfaction with Marcos and set in motion a succession of events that culminated in a snap presidential election in February 1986. The opposition united under Aquino's widow, Corazon Aquino, and Salvador Laurel, head of the United Nationalist Democratic Organization (UNIDO).

The election was marred by widespread electoral fraud on the part of Marcos and his supporters. International observers, including a U.S. delegation led by Sen. Richard Lugar (R-Indiana), denounced the official results. Marcos was forced to flee the Philippines in the face of a peaceful civilian-military uprising that ousted him and installed Corazon Aquino as president on February 25, 1986.

Under Aquino's presidency progress was made in revitalizing democratic institutions and respect for civil liberties. However, the administration was also viewed by many as weak and fractious, and a return to full political stability and economic development was hampered by several attempted coups staged by disaffected members of the Philippine military.

Fidel Ramos was elected president in 1992. Early in his administration, Ramos declared "national reconciliation" his highest priority. He legalized the Communist Party and created the National Unification Commission (NUC) to lay the groundwork for talks with communist insurgents, Muslim separatists, and military rebels. In June 1994, President Ramos signed into law a general conditional amnesty covering all rebel groups, as well as Philippine military and police personnel accused of crimes committed while fighting the insurgents. In October 1995, the government signed an agreement bringing the military insurgency to an end.

A peace agreement with one major Muslim insurgent group, the Moro National Liberation Front (MNLF), was signed in 1996, using the existing Autonomous Region in Muslim Mindanao (ARMM) as a vehicle for self-government.

Popular movie actor Joseph Ejercito Estrada's election as President in May 1998, marked the Philippines' third democratic succession since the ouster of Marcos. Estrada was elected with overwhelming mass support on a platform promising poverty alleviation and an anti-crime crackdown.

Gloria Macapagal-Arroyo, elected Vice President in 1998, assumed the Presidency in January 2001 after widespread demonstrations that followed the breakdown of Estrada's impeachment trial on corruption charges. The Philippine Supreme Court subsequently endorsed unanimously the constitutionality of the transfer of power.

National and local elections took place in May 2004. Under the constitution, Macapagal-Arroyo was eligible for another six-year term as president, and she won a hard-fought campaign against her primary challenger, movie actor Fernando Poe, Jr. in elections held May 10, 2004. Noli De Castro was elected Vice President. Impeachment charges were brought against Macapagal-Arroyo in June of 2005 for allegedly tampering with the results of the elections after purported tapes of her speaking with an electoral official during the vote count surfaced. The Congress rejected the charges in September 2005.

GOVERNMENT AND POLITICAL CONDITIONS

The Philippines has a representative democracy modeled on the U.S. system. The 1987 constitution, adopted during the Aquino administration, reestablished a presidential system of government with a bicameral legislature and an independent judiciary. The president is limited to one 6-year term. Provision also was made in the constitution for autonomous regions in Muslim areas of Mindanao and in the Cordillera region of northern Luzon where many indigenous tribes still live.

The 24-member Philippine Senate is elected at large. There are currently 23 senators, however. The May 2004 national election produced 12 new senators, although, because current Senator Noli De Castro was elected Vice President, he will leave his seat empty until the next Senate elections in 2007. Of a maximum 250 members of the House of Representatives, 212 are elected from single-member districts. The remainder of the House seats are designated for sectoral party representatives elected at large, called party list representatives; currently there are 24 such representatives in the House.

When Macapagal-Arroyo assumed the Presidency, her "People Power Coalition," led by the Lakas-CMD party, became the dominant group in Congress. The 75-member Lakas party leads the "Sunshine Coalition," which also includes the 61-member Nationalist People's Coalition, the 22-member Liberal Party, and several other major and minor parties. The LDP party leads the 20-member opposition bloc. In the Senate, the pro-administration coalition controls 12 of the 22 seats. Members of the Philippine Congress tend to have weak party loyalties and change party affiliation easily.

The government continues to face threats from both Muslim separatist groups and communist insurgents, and rising crime and concerns about the security situation have had a negative impact on tourism and foreign investment. The terrorist Abu Sayyaf Group (ASG), which recently gained international notoriety with its kidnappings of foreign tourists in the southern islands, is a major problem for the government. In May 2001, the ASG kidnapped several Americans, beheading one of them in June 2001. In a June 2002 rescue attempt, another American hostage was killed. Efforts to track down and destroy the ASG have met with some success, especially on Basilan, where U.S. troops advised, assisted and trained Philippine soldiers in counterterrorism. ASG elements remain active on Jolo Island and elsewhere in the southwestern Philippines. Philippine security forces captured an Indonesian terrorist with links to Jemaah Islamiyah in 2002; he escaped from custody in July 2003, but police pursued and killed him in October.

In August 2001, the government reached a cease-fire agreement with the separatist Moro Islamic Liberation Front (MILF); negotiations on a final peace agreement continued at a very slow pace amid sporadic fighting. At President Arroyo's May 2003 State Visit to Washington, President Bush pledged diplomatic and financial support for the peace process, a move that both sides embraced. In June 2003, the MILF issued a formal renunciation of terrorism. An ensuing cessation of hostilities has held into mid-2005, and talks between the two sides continue, with the Government of Malaysia acting as principal mediator. The United States Institute of Peace has also made proposals for assisting the peace process, in cooperation with the Philippine Government and the MILF. The Department of State in August 2002 added the Communist Party of the Philippines/New People's Army (CPP/NPA) to the U.S. Foreign Terrorist Organization list. Negotiations between the government and the CPP's political arm, the National Democratic Front, were suspended in 2001 after the NPA assassinated two members of Congress, although "back-channel" and exploratory talks have continued since then.

Principal Government Officials

Last Updated: 9/20/2005

President: Gloria MACAPAGAL-ARROYO
Vice President: Manuel Noli DE CASTRO, Jr.
Executive Secretary: Eduardo ERMITA
Sec. of Agrarian Reform:
Sec. of Agriculture: Domingo PANGANIBAN
Sec. of the Budget & Management: Romulo NERI
Sec. of Education, Culture, & Sports (Acting): Fe HIDALGO
Sec. of Energy: Raphael LOTILLA
Sec. of Environment & Natural Resources: Michael DEFENSOR
Sec. of Finance: Margarito Gary TEVES
Sec. of Foreign Affairs: Alberto ROMULO
Sec. of Health: Francisco DUQUE III
Sec. of Interior & Local Govt.: Angelo REYES
Sec. of Justice: Raul GONZALEZ
Sec. of Labor & Employment: Patricia SANTO THOMAS
Sec. of National Defense: Avelino CRUZ, Jr.
Sec. of Public Works & Highways: Hermogenes EBDANE, Jr.
Sec. of Science & Technology: Estrella ALABASTRO
Sec. of Social Welfare & Development:
Sec. of Socio-Economic Planning: Augusto Tito SANTOS
Sec. of Tourism: Joseph DURANO
Sec. of Trade & Industry: Peter FAVILA
Sec. of Transportation & Communications: Leandro MENDOZA
National Security Adviser: Norberto GONZALES
Governor, Central Bank: Amando TETANGCO, Jr.
Ambassador to the US: Albert DEL ROSARIO
Permanent Representative to the UN, New York: Lauro BAJA, Jr.

The Republic of the Philippines maintains an embassy in the United States at 1600 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-467-9300). Consulates general are in New York, Chicago, San Francisco, Los Angeles, Honolulu, and Agana (Guam).

ECONOMY

Since the end of the Second World War, the Philippine economy has had a mixed history of growth and development. Over the years, the Philippines has gone from being one of the richest countries in Asia (following Japan) to being one of the poorest. Growth immediately after the war was rapid, but slowed over time. A severe recession in 1984-85 saw the economy shrink by more than 10%, and perceptions of political instability during the Aquino administration further dampened economic activity. During his administration, President Ramos introduced a broad range of economic reforms and initiatives designed to spur business growth and foreign investment. As a result, the Philippines saw a period of higher growth, but the Asian financial crisis triggered in 1997 slowed economic development in the Philippines once again. President Estrada managed to continue some of the reforms begun by the Ramos administration. Important laws to strengthen regulation and supervision of the banking system (General Banking Act) and securities markets (Securities Regulation Code), to liberalize foreign participation in the retail trade sector, and to promote and regulate electronic commerce were enacted during his abbreviated term. Despite occasional challenges to her presidency and resistance to pro-liberalization reforms by vested interests, President Gloria Macapagal-Arroyo has made considerable progress in restoring macroeconomic stability with the help of a well-regarded economic team. However, despite recent progress, fiscal problems remain one of the economy's weakest points and its biggest vulnerability.

Important sectors of the Philippine economy include agriculture and industry, particularly food processing, textiles and garments, and electronics and automobile parts. Most industries are concentrated in the urban areas around metropolitan Manila. Mining also has great potential in the Philippines, which possesses significant reserves of chromite, nickel, and copper. Significant natural-gas finds off the islands of Palawan have added to the country's substantial geothermal, hydro, and coal energy reserves.

Today's Economy

The Philippines was less severely affected by the Asian financial crisis than its neighbors, aided in part by annual remittances from overseas Filipino workers that are expected to hit the $10 billion mark in 2005. Except for 1998—when drought and weather-related disturbances pulled down agricultural harvests, combining with the contraction in industrial sector production—real Gross Domestic Product (GDP) has recorded positive growth year-on-year. From a 0.6% decline in 1998, GDP expansion picked up in 1999 (3.4%) and 2000 (4.4%) but slowed to under 2% in 2001 in the context of a global economic slowdown, export slump, and domestic as well as global political and security concerns. Year-on-year GDP growth accelerated to 4.5% in 2002, reflecting the continued resilience of the service sector, gains in industrial sector output, and recovering exports. The economy exhibited resilience during 2003 with 4.5% GDP growth, notwithstanding serious external and domestic shocks. (including the Iraq War, SARS, uncertainties over global economic prospects, sovereign credit-rating downgrades, and resurgent law-and-order worries). GDP increased by 6% in 2004, a fifteen-year high, but is expected to expand by under 5% in 2005 on weaker export growth, drought-affected agricultural harvests, and high oil prices. Historically, the Philippines has had difficulty sustaining growth at over 5%. It will take a higher, sustained economic-growth path to make more appreciable progress in poverty alleviation given the Philippines' high annual population growth rate of 2.36%—one of the highest in Asia.

Agriculture generally suffers from low productivity, low economies-of-scale, and inadequate infrastructure support. Agricultural output fell in 1997 and 1998 due to an El Niñorelated drought but increased by 6.0% in 1999 (over 1998's low base). Growth reverted to more normal rates in 2000 (4.0%) and 2001 (3.7%). Agricultural output (affected by another, albeit milder, dry spell) expanded by 3.9% year-on-year in 2002 and 3.2% in 2003. Agricultural output increased by 4.9% in real terms during 2004 but stagnated during the first semester of 2005 due to drought and intermittent weather disturbances.

The Philippines relies heavily on electronics shipments for about two-thirds of export revenues. Although there has been some improvement, over the years, local value added of electronics exports remains relatively low at about 30%. Overall export receipts expanded by 9.6% in 2004, led by an 11.2% increase in foreign exchange receipts from electronics shipments. Year-on-year export growth slowed to 3.6% during the first half of 2005, with receipts from electronics shipments up by a lethargic 1.2%.

Although less severely affected than its neighbors, the Philippines' banking sector was not spared from high interest rates and non-performing asset (NPA) levels during the Asian financial crisis and its aftermath. Increases in minimum capitalization requirements, increasing loan-loss provisions, and generally healthy capital-adequacy ratios have helped temper systemic risk. The Special Purpose Vehicle (SPV) Act of January 2003, which provides time-bound fiscal and regulatory incentives to encourage the sale to private asset management companies, has helped to reduce banks' portfolios of non-performing assets (NPAs). As of July 2005, the ratio of the commercial banking system's NPAs to total assets had declined to under 9.5% (from 12.3% as of July 2004). Banks had until April 2005 to conclude notarized agreements to sell their NPAs to qualify for incentives under the law. A bill supported by the Philippine Central Bank and the banking sector seeks to extend the deadline towards further reducing the NPA ratio to pre-crisis levels of under 5%. Circumstances surrounding bank closures continue to highlight remaining impediments to more effective bank supervision and timely intervention—including stringent bank secrecy laws, obstacles preventing bank regulators from examining banks at will, and inadequate legal protection for Central Bank officials and examiners. The government faces another important challenge in addressing threats to the long-term viability of state-run pension funds. The monetary authority's adoption since January 2002 of an inflation-targeting framework has enhanced transparency in the conduct of monetary policy. The government—which has targeted lower fiscal deficits since 2003 toward balancing the budget before the end of President Macapagal-Arroyo's term—contained the full-year 2004 budget deficit to 3.9% of GDP (down from 2002's 5.3% record high) and is on track thus far to containing the 2005 deficit to 3.4% of GDP in 2005, reflecting spending restrain and more vigorous efforts by tax collection agencies to improve administration, enforcement, and governance. However, the current 13% tax-to-GDP ratio remains well below the 17% peak ratio achieved in 1997.

The Aquino and Ramos administrations opened up the relatively closed Philippine economy and provided a firmer base for sustainable economic growth. After a slow start, President Estrada and his cabinet continued with, and expanded, liberalization and market-based policies and reforms. Efforts to reform the constitution to encourage foreign investment, particularly foreign ownership of land, were abandoned amidst nationalist opposition. Initial optimism about prospects for economic reform also had dimmed amid concerns of governmental corruption. Scandals involving the Philippine Stock Exchange, and the President's close ties to certain businessmen, shook confidence of investors and the business community and ultimately led to successful efforts to impeach and remove President Estrada.

The Macapagal-Arroyo Administration enacted an anti-money laundering law in September 2001 and followed through with amendments in March 2003 to address remaining legal concerns posed by the OECD Financial Action Task Force (FATF). The Financial Action Task Force (FATF) removed the Philippines from its list of Non-Cooperating Countries and Territories in February 2005, noting the significant progress made to remedy concerns and deficiencies identified by the FATF to improve implementation. The Egmont Group, the international network of financial intelligence units, admitted the Philippines to its membership in June 2005. The Macapagal-Arroyo government is pushing for congressional approval of an anti-terrorism law to strengthen its campaign against terrorism and terrorist financing.

Although encountering implementation hitches, the Macapagal-Arroyo administration also enacted legislation in 2001 to rationalize the electric power sector and privatize the government's debt-saddled National Power Corporation (NPC). The government has achieved some success in establishing an independent regulatory system for electricity pricing which will benefit NPC finances. In addition to the Special Purpose Vehicle law, President Macapagal-Arroyo also signed into law in 2003 a priority initiative to reform the government procurement system (the Government Procurement Reform Act). During the first quarter of 2004, she signed into law legislation to rationalize and plug leakages in the Philippines' convoluted documentary stamp tax system and encourage secondary trading of financial instruments, as well as legislation (the Securitization Act) towards establishing the necessary infrastructure and market environment for a wide range of asset-backed securities. She also signed legislation to institutionalize Alternative Dispute Resolution for civil cases to help address the problem of overburdened court dockets.

Notwithstanding a number of favorable policy developments, the Philippine economy continues to juggle extremely limited financial resources while attempting to meet the needs of a rapidly expanding population and address intensifying demands for the current administration to deliver on its anti-poverty promises. Over 80% of the government budget is gobbled up by non-discretionary expenses (i.e., debt service, government salaries and benefits, and legally-mandated revenue transfers to local government units). The current high level of government debt, the substantial share of foreign obligations, the emerging risks posed by contingent liabilities (particularly those of the government's debt-saddled NPC), and the worrisome deterioration in the tax collection performance from the 1997 peak (still low by regional standards) have increased the country's vulnerability to severe external and domestic shocks. More recent reforms include laws increasing excise taxes on tobacco and liquor products and establishing a system of rewards and penalties in revenue collection agencies. An amended Value Added Tax law (which would reduce VAT exemptions and increase the VAT rate from 10% to 12% in 2006 represents the most significant measure thus far in the Macapagal-Arroyo Administration's efforts to raise revenues from legislative measures to balance the budget two years ahead of schedule (2008 vs. 2010) while expanding investments in infrastructure and improving the delivery of essential social services. As of end-September 2005, the amended VAT law—originally scheduled for implementation in July 2005 but challenged by opposition lawmakers and other groups before the Supreme Court—was on hold pending a final ruling by the Court.

Reflecting weaknesses in intellectual property rights protection, the country remains on the U.S. Trade Representative's Special 301 Priority Watchlist. Potential foreign investors, as well as tourists, continue to be concerned about law and order, inadequate infrastructure, and governance issues. While trade liberalization presents significant opportunities, intensifying global competition and the emergence of low-wage export economies also pose challenges. Competition from other Southeast Asian countries and from China for investment underlines the need for sustained progress on structural reforms to remove bottlenecks to growth, lower costs of doing business, and promote good public and private sector governance. The government has been working to reinvigorate its anti-corruption drive and the Office of the Ombudsman has reported improved conviction rates. Nevertheless, the Philippines will need to do more to improve international perception of its anti-corruption campaign—an effort that will require strong political will and significantly greater financial and human resources.

Agriculture and Forestry

Arable farmland comprises more than 40% of the total land area. Although the Philippines is rich in agricultural potential, inadequate infrastructure, lack of financing, and government policies have limited productivity gains. Philippine farms produce food crops for domestic consumption and cash crops for export. The agricultural sector employs nearly 40% of the work force but provides less than one-fifth of GDP.

Decades of uncontrolled logging and slash-and-burn agriculture in marginal upland areas have stripped forests, with critical implications for the ecological balance. The government has instituted conservation programs, but deforestation remains a severe problem.

With its 7,107 islands, the Philippines has a very diverse range of fishing areas. Notwithstanding good prospects for the agriculture subsector, the marine fishing industry continues to face a bleak future due to destructive fishing methods, a lack of funds, and inadequate government support.

Industry

Industrial production is centered on processing and assembly operations of the following: food, beverages, tobacco, rubber products, textiles, clothing and footwear, pharmaceuticals, paints, plywood and veneer, paper and paper products, small appliances, and electronics. Heavier industries are dominated by the production of cement, glass, industrial chemicals, fertilizers, iron and steel, and refined petroleum products.

The industrial sector is concentrated in the urban areas, especially in the metropolitan Manila region and has only weak linkages to the rural economy. Inadequate infrastructure, transportation and communication have so far inhibited faster industrial growth, although significant strides have been made in addressing the last of these elements.

Mining

The Philippines is one of the world's most highly mineralized countries, with untapped mineral wealth estimated at more than $840 billion. Philippine copper, gold and chromite deposits are among the largest in the world. Other important minerals include nickel, silver, coal, gypsum, and sulfur. The Philippines also has significant deposits of clay, limestone, marble, silica, and phosphate. The discovery of natural gas reserves off Palawan Island has been brought online to generate electricity.

Despite its rich mineral deposits, the Philippine mining industry is just a fraction of what it was in the 1970s and 1980s when the country ranked among the ten leading gold and copper producers worldwide. Low metal prices, high production costs, and lack of investment in infrastructure have contributed to the industry's overall decline. A December 2004 Supreme Court decision upheld the constitutionality of the 1995 Mining Act, thereby allowing up to 100% foreign-owned companies to invest in large-scale exploration, development, and utilization of minerals, oil and gas.

FOREIGN RELATIONS

In its foreign policy, the Philippines cultivates constructive relations with its Asian neighbors, with whom it is linked through membership in ASEAN, the ASEAN Regional Forum (ARF), and the Asia-Pacific Economic Cooperation (APEC) forum. The Philippines is a member of the UN and some of its specialized agencies, and began a 2-year term as a member of the UN Security Council in January 2004, serving as UNSC President in September 2005. Since 1992, the Philippines has been a member of the Non-Aligned Movement. The government is seeking observer status in the Organization of Islamic Conference (OIC). The Philippines has played a key role in ASEAN in recent years and also values its relations with the countries of the Middle East, in no small part because hundreds of thousands of Filipinos are employed in that region. The fundamental Philippine attachment to democracy and human rights is reflected in its foreign policy. Philippine soldiers and police have participated in a number of multilateral civilian police and peacekeeping operations, and a Philippine Army general served as the first commander of the UN Peace-keeping Operation in East Timor. The Philippines also participated in Operation Iraqi Freedom, deploying some 50 troops to Iraq in 2003. (These troops were subsequently withdrawn in 2004 after a Filipino overseas worker was kidnapped.) The Philippine Government also has been active in efforts to reduce tensions among rival claimants to the territories and waters of the resource-rich South China Sea. The welfare of the some seven million overseas Filipino workers is considered to be a pillar of Philippine foreign policy. Through foreign exchange remittances, these workers account for approximately 10% of the gross domestic product.

U.S.-PHILIPPINE RELATIONS

U.S.-Philippine relations are based on shared history and commitment to democratic principles, as well as on economic ties. The historical and cultural links between the Philippines and the U.S. remain strong. The Philippines modeled its governmental institutions on those of the U.S., and continues to share a commitment to democracy and human rights. At the most fundamental level of bilateral relations, human links continue to form a strong bridge between the two countries. There are an estimated 2 million Americans of Philippine ancestry in the United States and more than 130,000 American citizens in the Philippines.

Until November 1992, pursuant to the 1947 Military Bases Agreement, the United States maintained and operated major facilities at Clark Air Base, Subic Bay Naval Complex, and several small subsidiary installations in the Philippines. In August 1991, negotiators from the two countries reached agreement on a draft treaty providing for use of Subic Bay Naval Base by U.S. forces for 10 years. The draft treaty did not include use of Clark Air Base, which had been so heavily damaged by the 1991 eruption of Mt. Pinatubo that the U.S. decided to abandon it.

In September 1991, the Philippine Senate rejected the bases treaty, and despite further efforts to salvage the situation, the two sides could not reach agreement. As a result, the Philippine Government informed the U.S. on December 6, 1991, that it would have one year to complete withdrawal. That withdrawal went smoothly and was completed ahead of schedule, with the last U.S. forces departing on November 24, 1992. On departure, the U.S. Government turned over assets worth more than $1.3 billion to the Philippines, including an airport and ship-repair facility. Agencies formed by the Philippine Government have converted the former military bases for civilian commercial use, with Subic Bay serving as a flagship for that effort.

The post-U.S. bases era has seen U.S.-Philippine relations improved and broadened, with a prominent focus on economic and commercial ties while maintaining the importance of the security dimension. U.S. investment continues to play an important role in the Philippine economy, while a strong security relationship rests on the 1952 U.S.-Philippines Mutual Defense Treaty (MDT). In February 1998, U.S. and Philippine negotiators concluded the Visiting Forces Agreement (VFA), paving the way for increased military cooperation under the MDT. The agreement was approved by the Philippine Senate in May 1999 and entered into force on June 1, 1999. Under the VFA, the U.S. has conducted ship visits to Philippine ports and has resumed large combined military exercises with Philippine forces. Key events in the bilateral relationship include the July 4, 1996 declaration by President Ramos of Philippine-American Friendship Day in commemoration of the 50th anniversary of Philippine independence. Ramos visited the United States in April 1998, and then-President Estrada visited in July 2000. President Macapagal-Arroyo (PGMA) met with President Bush in an official working visit in November 2001 and made a state visit in Washington on May 19, 2003. Numerous U.S. Cabinet-level visits to the Philippines punctuated this period, culminating in a visit by Secretary of State Colin Powell in August 2002. President Bush made a State Visit to the Philippines on October 18, 2003, during which he addressed a joint session of the Philippine Congress—the first American President to do so since Dwight D. Eisenhower.

President Macapagal-Arroyo has repeatedly stressed the close friendship between the Philippines and the United States and her desire to strengthen bilateral ties further. Our governments seek to revitalize and strengthen our partnership by working toward greater security, prosperity, and service to Filipinos and Americans alike. Inaugurated into office on the same day as President Bush, President Macapagal-Arroyo lent strong support to the global war on terrorism and the coalition against Saddam Hussein.

Balikatan (Shoulder-to-Shoulder) 02-1 in 2002 contributed directly to the Philippines armed forces efforts to root out Abu Sayyaf terrorists and bring development to one formerly terrorist-plagued island. The U.S. and the Philippines have intensified their annual cycle of combined military training around the country as well as the military's civil affairs and humanitarian projects, funded by $70 million in U.S. Foreign Military Financing projected between 2004-06. Moreover, the International Military Education and Training (IMET) program, $2.7 million in FY 2004, is the largest in Asia and the second largest in the world. At $148 million the Philippines is the number one recipient in Asia of Excess Defense Articles. The Mutual Logistics Support Agreement (MLSA) was signed in November 2002 after a year-long negotiation process. Similarly, law enforcement cooperation has reached new levels. U.S. and Philippines agencies have cooperated to bring charges against 15 Abu Sayyaf terrorists, implement our extradition treaty, and train some 700 Filipino law enforcement officers in 2002. In October 2003, the United States designated the Philippines as a Major Non-NATO Ally. The same month, the Philippines joined the select group of countries to have ratified all 12 UN Counterterrorism Conventions.

The United States is also working closely with the Philippines to reduce poverty and increase prosperity. The U.S. fully supports President Macapagal-Arroyo's "Strong Republic" reform agenda for rooting out corruption, opening economic opportunity, and investing in health and education. USAID programs, worth $16 million in FY 2005, support the Arroyo Administration's war on poverty as well as the GRP reform agenda in critical areas, including anti-money laundering, rule of law, tax collection, and trade and investment. Other USAID programs worth $23.2 million bolstered the government's efforts to heal divisions in Philippine society through a focus on conflict resolution, livelihood enhancement for former combatants, and economic development in Mindanao and the Autonomous Region in Muslim Mindanao, among the poorest areas in the country. Meanwhile, important programs continue in modern family planning, infectious disease control, environmental protection, rural electrification, and provision of basic services—as well as PL 480 food aid programs, which together totaled $70 million in FY 2005. In November 2004, the Philippines became eligible for the Millennium Challenge Account (MCA) Threshold Program. In August 2005, the country's concept proposal for the threshold program, addressing corruption in revenue administration, was approved for the development of a Threshold Country Plan for $20 million. Nearly 400,000 Americans visit the Philippines each year. Filipinos living in the United States remitted about $4.1 billion to the Philippines in 2003. Providing government services to U.S. and other party's citizens, therefore, constitutes an important aspect of the bilateral relationship. Those services include veterans affairs, social security, and consular operations. Benefits to Filipinos from the U.S Veterans Affairs and Social Security administrations totaled, $143.9 million and $246.7 million, respectively. Many people-to-people programs exist between the U.S. and the Philippines, including Fulbright, International Visitors, and Aquino Fellowship exchange programs, as well as the U.S. Peace Corps.

Trade and Investment

Two-way U.S. merchandise trade with the Philippines amounted to $16.2 billion in 2004 (U.S. Department of Commerce data). According to Philippine Government data, some 16% of the Philippines' imports in 2004 came from the U.S., and about 18% of its exports were bound for America. The Philippines ranks as our 21st largest export market and our 28th largest supplier. Key exports to the U.S. are semiconductor devices and computer peripherals, automobile parts, electric machinery, textiles and garments, wheat and animal feeds, and coconut oil. In addition to other goods, the Philippines imports raw and semi-processed materials for the manufacture of semiconductors, electronics and electrical machinery, transport equipment, and cereals and cereal preparations.

The United States traditionally has been the Philippines' largest foreign investor, with about $6.3 billion in estimated investment as of end-2004 according to official U.S. statistics (U.S. Department of Commerce data). Since the late 1980s, the Philippines has committed itself to reforms that encourage foreign investment as a basis for economic development, subject to certain guidelines and restrictions in specified areas. Under President Ramos, the Philippines expanded reforms, opening the power generation and telecommunications sectors to foreign investment, as well as securing ratification of the Uruguay Round agreement and membership in the World Trade Organization. As noted earlier, President Macapagal-Arroyo administration has generally continued such reforms despite opposition from vested interests and "nationalist" blocs. A major obstacle has been and will continue to be constitutional restrictions on, among others, foreign ownership of land and public utilities, which limits maximum ownership to 40%.

Over the last two decades, the relatively closed Philippine economy has been opened significantly by foreign exchange deregulation, foreign investment and banking liberalization, tariff and market barrier reduction, and foreign entry into the retail trade sector. The Electric Power Industry Reform Act of 2001 opened opportunities for U.S. firms to participate in the power industry in the Philippines. Information and communications technologies, backroom operations such as call centers, and regional facilities or shared-service centers are likewise leading investment opportunities.

Principal U.S. Embassy Officials

MANILA (E) Address: 1201 Roxas Road, P.O. Box 151, Manila; APO/FPO: PSC 500, APO, AP 96515-1000; Phone: 632-5286300; Fax: 63-2-522-4361; Workweek: Mon-Fri, 7:30am-4:30pm; Website: http://philippines.usembassy.gov.

TRAVEL

Consular Information Sheet

July 26, 2005

Country Description:

The Philippines is a developing nation with a democratic system of government, located in Southeast Asia. The archipelago consists of more than 7,000 islands, of which 880 are inhabited. The major island groupings are Luzon in the north, the Visayas in the center, and Mindanao in the south. Tourist facilities are available within population centers and the main tourist areas. English is widely spoken in the Philippines, and most signs are in English.

Entry/Exit Requirements:

U.S. citizens may enter the Philippines without a visa upon presentation of their U.S. passport valid for at least six months after the date of entry into the Philippines, and a return ticket to the United States or an onward ticket to another country. Upon your arrival, immigration authorities will annotate your passport with an entry visa valid for 21 days. If you plan to stay longer than 21 days, you must apply for an extension at the Philippine Bureau of Immigration and Deportation's main office at Magallanes Drive; Intramuros, Manila, Philippines, or at any of their provincial offices located nationwide (http://www.immigration.gov.ph).

Persons who overstay their visas are subject to fines and detention by Philippine immigration authorities. American citizens are urged to remain aware of their visa status while in the Philippines and to follow immigration laws and regulations strictly. Travelers departing the country from international airports must pay a Passenger Service Charge in Philippine Pesos. For further information on entry/exit requirements, please contact the Embassy of the Philippines at: 1600 Massachusetts Avenue, N.W., Washington, D.C. 20036 (telephone: (202) 467-9300), or one of the Philippine consulates in the United States (Chicago, Honolulu, Los Angeles, New York, and San Francisco) or via the Internet at http://www.philippineembassyusa.org.

Special requirements exist for the entry of unaccompanied minors. In an effort to prevent international child abduction, the Philippine government requires that a waiver of exclusion must be obtained from a Philippine Embassy or Consulate or from the Bureau of Immigration and Detention in Manila for a child under 15 years of age who plans to enter the Philippines unaccompanied by either a parent or legal guardian prior to the child's entry into the Philippines.

Safety/Security:

The terrorist threat to American citizens in the Philippines remains high and the Department warns against all but essential travel to the Philippines. The U.S. Embassy continues to receive reports of ongoing activities and of multiple planned attacks throughout the Philippines by known terrorist groups. Americans should carefully consider the risks of travel to the Philippines. Numerous security-related incidents highlight the risk of travel in certain areas due to kidnappings, bombings, and other violence and criminal activity. The Department urges American who choose to travel or reside in the Philippines to observe vigilant personal security precautions, to remain aware of the continued potential for terrorist attacks against Americans, U.S. or other Western interests in the Philippines, to register with the U.S. Embassy through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within the Philippines.

The Philippine government has been engaged on and off in negotiations with Communist and Muslim rebel groups. Nonetheless, rebel activity and armed banditry in certain areas of the Philippines still pose security concerns. The Communist Party of the Philippines and its terrorist military arm, the New People's Army, operate throughout the country and have issued public threats against U.S. citizens and interests in the Philippines. Americans are urged to exercise caution when traveling throughout the country and are specifically warned to avoid hiking or camping in the vicinity of Mt. Pinatubo in Pampanga Province.

In Mindanao and the Sulu archipelago, kidnappings, bombings, violence, and insurgent activity make travel hazardous in many areas. The Abu Sayyaf Group (ASG), which the U.S. Government has designated a Foreign Terrorist Organization, has kidnapped several Americans and other foreign tourists since April 2000. Some were freed after substantial ransoms were paid, some escaped or were rescued by military action, and some were killed. Other kidnapping gangs operate in the same general area and have abducted a number of foreigners for ransom.

Americans are urged to defer non-emergency travel to central, southern, and western Mindanao, and the islands of Basilan, Tawi-Tawi, and Jolo, located in the Sulu archipelago in the southwest of the Philippines, due to military operations against kidnappings and other criminal activity.

Operatives of the Jemaah Islamiyah (JI), which the U.S. Government has also designated a Foreign Terrorist Organization, are also present in the Philippines. JI is an extremist group linked to al-Qaeda and other regional terrorist groups and has cells operating throughout Southeast Asia. Extremist groups in the region have demonstrated a capability to carry out transnational attacks in locations where Westerners congregate. Terrorist groups do not distinguish between official and civilian targets.

U.S. citizens and interests may be at increased risk of terrorist actions from foreign or domestic extremist groups in the Philippines. There are periodic reports of plans for possible terrorist acts aimed at U.S. Government facilities or personnel, public and private institutions, and transportation carriers. The U.S. Embassy takes all such threats seriously. The State Department reminds all Americans traveling or living abroad of the need to remain vigilant with regard to personal security issues and to always follow basic and important security countermeasures: do not establish a pattern or routine in movement and travel; vary the times and routes taken to the extent possible; maintain a low profile; and immediately report any unusual activity, to include possible surveillance, to the Philippine Police and the Regional Security Office at the U.S. Embassy.

For the latest security information, Americans traveling abroad should regularly monitor the Department's Internet web site at http://travel.state.gov, where the current Worldwide Caution Public Announcement, Travel Warnings and Public Announcements can be found.

Travelers are also encouraged to contact the U.S. Embassy in Manila at tel. (63) (2) 528-6300 for an update of the current security situation, especially if planning to travel outside the Metro Manila area. Up-to-date information on security can also be obtained by calling 1-888-407-4747 toll free in the U.S., or, for callers outside the United States and Canada, a regular toll line at 1-202-501-4444. These numbers are available from 8:00 a.m. to 8:00 p.m. Eastern Standard Time, Monday through Friday (except U.S. federal holidays).

Crime Information:

As in many of the major metropolitan areas in the United States, crime is a serious concern in Metro Manila. As a rule of thumb, Americans are advised to exercise good judgment and remain aware of their surroundings. Reports of confidence games, pick-pocketing and credit card fraud are common. Be wary of unknown individuals who attempt to befriend you, especially just after you have arrived in country. A number of recent robberies and assaults involving the "date rape drug" (known locally as Ativan) have occurred; the drug is generally administered to unwitting male and female visitors via food or drink. It is best not to accept food, drink or rides in private vehicles from strangers, even if they appear legitimate. There have been several kidnappings and violent assaults of foreigners in the Metro Manila area, although Americans have not been specifically targeted in such crimes. There have also been reports of gunmen robbing foreign passengers in vehicles traveling to and from the international airport.

Taxis are the recommended form of public transportation. However, the following safeguards are important: do not enter a taxi if it has already accepted another passenger; and, request that the meter be used. If the driver is unwilling to comply with your requests, it is best to wait for another cab. It is also a good idea to make a mental note of the license plate number should there be a problem. When driving in the city, make certain that the doors are locked and the windows rolled up. All other forms of public transportation, such as the light rail system, buses, and "jeepneys" should be avoided for both safety and security reasons.

Visitors should also be vigilant when using credit cards. One common form of credit card fraud involves the illicit use of an electronic device to retrieve and record information, including the PIN, from the card's magnetic strip. The information is then used to make unauthorized purchases. To limit your vulnerability to this scam, never let your card out of your sight.

A continuing problem is the commercial scam or sting that attempts to sell or to seek negotiation of, fraudulent U.S. securities. Visitors and residents should be wary when presented with supposed Federal Reserve Notes or U.S. securities for sale or negotiation. For further information, consult the Federal Reserve System's Web site at: http://www.federalreserve.gov/boarddocs/SRLETTERS/2003/sr0314.htm.

Information for Victims of Crime:

The loss or theft of a U.S. passport in the Philippines should be reported immediately to the local police and to the U.S. Embassy in Manila. If you are the victim of a crime while in the Philippines, in addition to reporting to local police, please contact the U.S. Embassy's American Citizen Services Unit. The Embassy staff can, for example, assist you to find appropriate medical care, contact family members or friends, and explain how funds could be transferred. Although the investigation and prosecution of the crime is solely the responsibility of local authorities, consular officers can help you to understand the local criminal justice process and to find an attorney if needed.

The Philippines has a victim compensation program to provide financial compensation to victims of violent or personal crime and of unjust imprisonment. Information may be obtained from the Philippine Department of Justice at 011-632-521-6264 or via the Internet at http://www.doj.gov.ph/.

Medical Facilities and Health Information:

Adequate medical care is available in major cities in the Philippines, but even the best hospitals may not meet the standards of medical care, sanitation, and facilities provided by hospitals in the United States. Medical care is limited in rural and more remote areas. Most hospitals will require a down payment of estimated fees in cash at the time of admission.

Serious medical problems requiring hospitalization and/or medical evacuation to the United States can cost several or even tens of thousands of dollars. A list of doctors and medical facilities in the Philippines is available on the web page of the U.S. Embassy in Manila at http://philippines.usembassy.gov.

Information on vaccinations and other health precautions, such as safe food and water precautions and insect bite protection, may be obtained from the Centers for Disease Control and Prevention's hotline for international travelers at 1-877-FYI-TRIP (1-877-394-8747); or via the CDC's Internet site at http://www.cdc.gov/travel. For information about outbreaks of infectious diseases abroad, please consult the World Heath Organization's website at http://www.who.int/en. Further health information for travelers is available at http://www.who.int/ith.

Medical Insurance:

The Department of State strongly urges Americans to consult with their medical insurance company prior to traveling abroad to confirm whether their policy applies overseas and if it will cover emergency expenses such as a medical evacuation.

Traffic Safety and Road Conditions:

While in a foreign country, U.S. citizens may encounter road conditions that differ significantly from those in the United States. The information below concerning the Philippines is provided for general reference only, and may not be totally accurate in a particular location or circumstance.

Travel within the Philippine archipelago is possible by boat, plane, bus, or car. Few tourists rent a car to drive, as the road system is crowded and drivers are undisciplined. Driving off the national highways and paved roads is particularly dangerous, especially at night, and should be avoided. To avoid overcrowded or unsafe transport, exercise caution in planning travel by older, inter-island ferryboats, or other public conveyances.

For specific information concerning Philippine driver's permits, vehicle inspection, road tax and mandatory insurance, please contact the Philippine Embassy in Washington, D.C. at tel. (202) 467-9300 or one of the Philippine consulates in the United State (Chicago, Honolulu, Los Angeles, New York, and San Francisco) or via the Internet at http://www.philippineembassy-usa.org. Please see also related information from the Philippine Department of Tourism at http://www.tourism.gov.ph and http://www.dotpcvc.gov.ph.

Aviation Safety Oversight:

The U.S. Federal Aviation Administration (FAA) has assessed the Philippine Government as being in compliance with ICAO international aviation safety standards for oversight of the Philippines' air carrier operations.

Marriage in the Philippines:

The Philippine Government requires foreigners who wish to marry in the Philippines to obtain from the U.S. Embassy a "Certificate of Legal Capacity to Contract Marriage" before filing an application for a marriage license. Because there is no national register of marriages in the United States, the U.S. Embassy cannot provide such a certification. As a result, the Philippine Government will accept an "Affidavit in Lieu of a Certificate of Legal Capacity to Contract Marriage" in its place. Americans may execute this affidavit at the U.S. Embassy in Manila Monday-Friday, between 8:00 a.m. and 10:00 a.m., except for Philippine or American holidays. The American must present his/her U.S. passport. There is a fee of $30.00 or its peso equivalent for the affidavit. Philippine authorities will not accept any substitute document issued in the United States. Before traveling to the Philippines to be married, U.S. military personnel should contact their personnel office regarding Department of Defense joint service regulations.

Execution of the affidavit by a U.S. consular officer is a notarial act and the consular officer is authorized by U.S. law to refuse to perform the service if the document will be used for a purpose patently unlawful, improper, or inimical to the best interests of the United States (see 22 C.F.R. section 92.9b). Entering into a marriage contract for the principal purpose of facilitating immigration to the United States for an alien is an unlawful act, and the U.S. Code provides penalties for individuals who commit perjury in an affidavit taken by a consular officer. Relationship fraud is a persistent problem in the Philippines, and it is not uncommon for Filipinos to enter into marriages with Americans solely for immigration purposes. Relationships developed via correspondence, particularly those begun on the Internet, are particularly susceptible to manipulation.

The Marriage Application Process:

Once an American citizen has obtained from the U.S. Embassy an "Affidavit in Lieu of a Certificate of Legal Capacity to Contract Marriage," he/she may file an application for a marriage license at the office of the Philippine Civil Registrar in the town or city where one of the parties is a resident. The U.S. citizen applicant must present: (a) the affidavit; (b) divorce decree(s) or death certificate(s), if applicable (required to verify civil status and legal capacity to contract marriage); (c) his/her U.S. passport; and (d) documentation regarding parental consent or advice, if applicable. (Persons aged 18 to 21 must have written parental consent to marry in the Philippines; those aged 22 to 24 must have received parental advice. Philippine law prohibits marriage for persons under the age of 18.) A judge, a minister or other person authorized by the Philippine Government can perform the marriage.

Marriage to a U.S. citizen confers neither citizenship nor an automatic eligibility for entry to the United States. A foreign spouse requires an immigrant visa to live in the United States. Questions about filing a petition to bring a foreign spouse to the United States may be directed to the nearest U.S. Citizenship and Immigration Service office, to the U.S. Department of State's Visa Office (telephone: (202) 663-1225) or, while in the Philippines, to the U.S. Embassy's Immigrant Visa Unit at http://philippines.usembassy.gov.

Disaster Preparedness:

The Philippines is a volcano-, typhoon- and earthquake-prone country. From May to December, typhoons and flash floods often occur. Flooding can cause road delays and cut off bridges. Typhoons in the vicinity of the Philippines can interrupt air and sea links within the country. Volcanic activity is frequent, and periodically the Philippine Government announces alerts for specific volcanoes. Earthquakes can also occur throughout the country. General information about natural disaster preparedness is available via the Internet from the U.S. Federal Emergency Management Agency (FEMA) at http://www.fema.gov.

Customs:

Philippine customs authorities enforce strict regulations concerning temporary importation into or export from the Philippines of items such as firearms and currency. It is advisable to contact the Embassy of the Philippines in Washington, D.C. or one of the Philippine consulates in the United States (Chicago, Honolulu, Los Angeles, New York, and San Francisco) for specific information regarding customs requirements. Counterfeit and pirated goods are widely available in the Philippines; transactions involving such products are illegal and bringing them back to the United States may result in forfeitures and/or fines.

Criminal Penalties:

While in a foreign country, a U.S. citizen is subject to that country's laws and regulations, which sometimes differ significantly from those in the United States and may not afford the protections available to the individual under U.S. law. Penalties for breaking the law can be more severe than in the United States for similar offenses.

Persons violating Philippines laws, even unknowingly, may be expelled, arrested or imprisoned. Penalties for possession, use, or trafficking in illegal drugs in the Philippines are severe, and convicted offenders can expect long jail sentences and heavy fines. Capital punishment is possible for certain drug-related crimes. Engaging in illicit sexual conduct with children or using or disseminating child pornography in a foreign country is a crime, prosecutable in the United States.

Under the Protect Act of April 2003, it is a crime, prosecutable in the United States, for a U.S. citizen or permanent resident alien, to travel to a foreign country to engage in criminal sexual activity or to engage in illicit sexual conduct in a foreign country. It is important to note that under the new legislation, the act of illicit sexual conduct is sufficient to violate the law - the intent to travel for the purpose of engaging in the criminal sexual activity does not need to be proven. For purposes of the PROTECT Act, illicit sexual conduct means: (1) a sexual act with a person under 18 years of age that would be illegal in the United States or (2) any commercial sex act in a foreign country with a person under the age of 18.

The Bureau of Immigration arrests several Americans each year on immigration charges of "undesirability," sometimes based solely on complaints arising from personal or business disputes in the Philippines. Frequently, these detainees cannot be deported and/or released from custody until substantial fines are paid and any underlying criminal charges are resolved – a process that sometimes takes months or even years.

Fraud, swindling, and "bad debts" are also serious criminal offenses in the Philippines, as is the illegal recruitment of Philippine citizens for employment overseas. Several Americans are currently serving lengthy prison sentences for illegal recruitment activities. The Philippine Government also has strict laws against the possession of firearms, and several foreigners have been sentenced to life imprisonment for bringing firearms into the country. Americans who are arrested overseas should immediately ask to contact a U.S. Embassy representative.

Children's Issues:

Under Philippine law, the mother and father of a child are held to exercise parental control jointly, and child custody cases are considered civil disputes. Parental abduction is not a crime. The Philippines is not a party to the Hague Convention on the Civil Aspects of International Child Abduction. For specific information on child custody cases in the Philippines, please consult the web page of the U.S. Embassy in Manila at http://philippines.usembassy.gov. For information on international adoption of children and international parental abduction, see the Office of Children's Issues website at http://travel.state.gov/family/family_1732.html.

Registration/Embassy and CONSULAR AgeNCY Location:

Americans living in or visiting the Philippines are encouraged to register with the U.S. Embassy through the State Department's travel registration website, https://travelregistration.state.gov, and to obtain updated information on travel and security within Philippines. Americans without Internet access may register directly with the U.S. Embassy. By registering, American citizens make it easier for the Embassy to contact them in case of emergency. The U.S. Embassy is located at: 1201 Roxas Boulevard, Manila, Philippines, tel. (63)(2) 528-6300. The Consular American Citizen Services (ACS) section's fax number is (63) (2) 522-3242 and the ACS web page is at http://philippines.usembassy.gov.

The U.S. Consular Agency in Cebu provides limited services for U.S. citizens. The Consular Agency address is: Waterfront Hotel, Lahug, Cebu City, tel. (63) (32) 231-1261.

The Virtual Consulate Davao (http://www.usvirtualconsulatedavao.org.ph) provides targeted information and services of interest to Americans residing in or traveling to Davao. The Virtual Consulate supports email correspondence for queries from American citizens. Regularly scheduled "chat" sessions also allow Americans to interact in real time with the American Citizens Services personnel at the U.S. Embassy.

International Adoption

January 2006

The information below has been edited from a report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Adoption section of this book and review current reports online at www.travel.state.gov/family.

Disclaimer:

The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General:

The following is a guide for U.S. citizens who are interested in adopting a child in Philippines and applying for an immigrant visa for the child to come to the United States. This process involves complex Philippine and U.S. legal requirements. U.S. consular officers give each petition careful consideration on a case-by-case basis to ensure that the legal requirements of Interested U.S. citizens are strongly encouraged to contact U.S. consular officials in Manila before formalizing an adoption agreement to ensure that appropriate procedures have been followed which will make it possible for the Embassy (Consulate) to issue a U.S. immigrant visa for the child.

Availability of Children for Adoption:

Recent U.S. immigrant visa statistics reflect the following pattern for visa issuance to orphans:

FY-1996: IR-3 immigrant visas issued to Filipino orphans adopted abroad - 31; IR-4 immigrant visas issued to Filipino orphans adopted in the U.S. - 198
FY-1997: IR-3 visas - 19;
IR-4 visas - 144
FY-1998: IR-3 visas - 33;
IR-4 visas - 167
FY-1999: IR-3 visas - 28;
IR-4 visas - 167
FY-2000: IR-3 visas - 23;
IR-4 visas - 150

Philippine Adoption Authority:

The government office responsible for domestic adoptions in Philippines are the Regional Trial Courts, which issue the adoption decrees, and the Department of Social Welfare and Development (DSWD), which is also involved in the legal proceedings. For the Inter-country adoptions, the offices responsible for adoption are the Department of Social Welfare and Development and the Inter-Country Adoption Board (ICAB).

Philippine Adoption Procedures:

The adoption procedure differs depending on whether the U.S. citizen adoptive parents are residents in the Philippines or are permanently residing abroad.

In general during Inter-country adoptions, custody of the child is granted to the prospective adoptive parents who then bring the child to their home country. The adoption is filed with a court in the adoptive parents'' home country.

Domestic Adoption

• Pre-Adoption Seminar: The Domestic Adoption Act provides that adoptive parents attend adoption seminars prior to the filing of the adoption application.
• Application for Adoption: After completing the required pre-adoption seminars, the adoptive parents file the adoption application with the DSWD, a social service office of a local government unit, or a licensed and accredited child-placing agency.
• Home study: The adoptive parents then make arrangements for a home study to be conducted by the DSWD or a child-placing agency.
• Matching: Matching of the child to the adoptive parents is conducted by the DSWD.
• Placement: The child is placed with the prospective adoptive parents once the pre-adoption placement authority has been issued. This period of custody is known as supervised trial custody.
• Consent to Adoption: At the conclusion of the trial period, the DSWD issues its written consent to adoption.
• Petition for adoption: Once the adoptive parents have received the consent to adopt, they must file an adoption petition with the Regional Trial Court within thirty days. Upon approval of the adoption, the court issues an adoption decree and enters a judgement.
• Authorization to travel abroad: Once the adoption is final; the DSWD will issue written authorization for the child to travel abroad. The birth certificate of the child is also amended to reflect the names of the adoptive parents.

Inter-Country Adoption:

Any U.S. citizen permanently residing abroad may file an application for inter-country adoption.

• Application: A U.S. citizen residing abroad and who is interested in adopting a child from the Philippines may file an application with ICAB. This application is filed through a U.S. adoption agency accredited by ICAB.
• Child recommended for inter-country adoption: The DSWD recommends for inter-country adoption a child previously committed to the Philippine government. This recommendation certifies that inter-country adoption is in the best interest of the child.
• Matching: The Inter-Country Adoption Placement Committee matches the child with a person or couple interested in adopting and refers its proposal back to ICAB for approval. Please note that the Inter-Country Adoption Act of 1995 specifically prohibits contact between the child and prospective adoptive parent (s) before such matching has been approved by the Board.
• Placement Authority: The Inter-Country Adoption Board notifies the U.S. adoption agency of its matching decision within five days. The adoptive parents have 15 days to respond. If they agree to the proposed match, the Board issues a Placement Authority within five days. This placement authority allows the applicants to take custody of the child.
• Application for immigrant Visa: The child appears at the U.S. Embassy for his/her immigrant visa interview. The Inter-Country Adoption Board serves as a proxy for the adoptive parents. ICAB prepares all the necessary documents and fees, including passport and medical exam.
• Child travels to the United States: The Inter-Country Adoption Act requires the adoptive parent(s) to escort the child from the Philippines to the United States. The adoptive parents must arrive no later than thirty days after the immigrant visa has been issued.
• Supervision of Trial Custody: Upon assuming custody of the child, the applicants enter a six-month trial period where the accredited U.S. adoption agency monitors the child's welfare.
• Petition for Adoption: The U.S. citizen adoptive parent should file an adoption petition with a court in the United States within 6 months of the completion of the trial custody period.
• Final Adoption Decree: The final U.S. adoption decree should be submitted to ICAB within one month of issuance.

Age and Civil Status Requirements:

For domestic adoption- the adoptive parent(s) must be at least sixteen years older than the child to be adopted. This requirement may be waived if the petitioner is the biological parent of the adoptee or the spouse of the adoptee's parent. For the inter-country adoption- the adoptive parent(s) must be at least 27 years old, as well as sixteen years older than the child to be adopted. The latter requirement may be waived if the petitioner is the biological parent of the adoptee or the spouse of the adoptee's parent. Single parents are eligible for both types of adoption. If an adoptive parent is married, however, he/she must file jointly with his/her spouse.

Adoption Agencies and Attorneys:

Please review current reports online at travel.state.gov/family for details.

Doctors:

The U.S. Embassy maintains current lists of doctors and sources for medicines, should either you or your child experience health problems while in Philippines.

Philippine Documentary Requirements:

• Home study conducted by a licensed and accredited social worker of the Department of Social Welfare and Development, social service office of the local government unit or accredited child-placing agency
• Birth certificate of adoptive parent(s)
• Marriage contract or divorce, annulment, declaration of nullity, or legal separation documents for the adoptive parent(s)
• Written consent to the adoption by all children over the age of ten who are living with the petitioner
• Physical and medical evaluation by a duly-licensed physician
• Philippine National Bureau of Investigation police clearance
• Latest income tax return or other documents showing financial capability
• Three character references, namely from the local church/minister, the employer, and a non-relative member of the immediate community who have known the applicant for at least three years
• 3×5-sized pictures taken within the last three years of the petitioner and his/her immediate family
• Certificate of attendance of pre-adoption forums or seminars

Please note that U.S. citizens residing in the Philippines and adopting children while living in the Philippines are subject to additional requirements.

Residence Requirements:

A U.S. citizen interested in adopting a Filipino child while they are living in the Philippines must meet the following requirements:

• Be resident in the Philippines for at least three years prior to the filing of the adoption petition and maintain such residence until the adoption decree is entered by a Philippine court
• Possess a certification of legal capacity to adopt issued by a diplomatic or consular office or any appropriate government agency.
• To fulfill the requirement for a certification of legal capacity to adopt, the Philippine government will generally accept an approved I-130 Petition for Alien Relative, I-600A Application for Advance Processing of an Orphan, or I-600 Petition to Classify an Orphan as an Immediate Relative.

The government may waive these requirements in the following cases:

• A former Filipino citizen who seeks to adopt a relative within the fourth degree of consanguinity, as defined under Philippine law
• A person who seeks to adopt the legitimate son/daughter of his/her Filipino spouse; or
• A person who is married to a Filipino and who seeks to adopt jointly with his/her spouse a relative within the fourth degree of consanguinity, as defined under Philippine law.

U.S. citizens who are not resident in the Philippines and who are not eligible for a waiver of the above requirements may adopt orphan children only through the inter-country adoption process. Questions relating to inter-country adoption should be directed to:
The Philippine Inter-Country
Adoption Board (ICAB)
P.O. Box 1622
#2 Chicago Corner,
Ermin Garcia Streets
Barangay Pinagkaisahan, Cubao, Quezon City
The Philippines
Tel: 632-726-4568
Fax: 632-727-2026
E-mail: [email protected]

U.S. Immigration Requirements:

A Filipino child adopted by an American citizen must obtain an immigrant visa before he or she can enter the U.S. as a lawful permanent resident. Please see the International Adoption section of this book for more details and review current reports online at travel.state.gov/family.

Philippine Embassy (and Consulates) in the United States:

Embassy of the Philippines
1600 Massachusetts Ave., NW
Washington, DC 20086
Tel: 202-467-9300 202-467-9382
Fax: 202-328-7614 202-467-9417
E-mail: [email protected]

Philippines also has Consulates in Los Angeles, California; New York, New York; San Francisco, California; Saipan, MP; Tamuning, Guam; Chicago, Illinois, and Honolulu, Hawaii.

U.S. Embassy (and Consulate) in Manila:

U.S. Embassy Manila
1201 Roxas Blvd.
Ermita, Manila
Philippines
Tel: 632-523-1001
Fax: 632-522-4361
Web site: http://www.usembassy.state.gov/manila

The U.S. also has a consular agent in Cebu.

Additional Information:

Prospective adoptive parents are strongly encouraged to consult BCIS publication M-249, The Immigration of Adopted and Prospective Adoptive Children, as well as the Department of State publication, International Adoptions.

Questions:

Specific questions regarding adoption in Philippines may be addressed to the Consular Section of the U.S. Embassy or Consulate in Manila. You may also contact the Office of Children's Issues, SA-29, 2201 C Street, NW, U.S. Department of State, Washington, DC 20520-2818, Tel: 1-888-407-4747 with specific questions.

International Parental Child Abduction

January 2006

The information below has been edited from the report of the State Department Bureau of Consular Affairs, Office of Overseas Citizens Services. For more information, please read the International Child Abduction section of this book and review current reports online at travel.state.gov.

Disclaimer:

The information in this flyer relating to the legal requirements of specific foreign countries is based on public sources and our current understanding. Questions involving foreign and U.S. immigration laws and legal interpretation should be addressed respectively to qualified foreign or U.S. legal counsel.

General Information:

The Philippines is not a party to the Hague Convention on the Civil Aspects of International Child Abduction, nor are there any international or bilateral treaties in force between the Philippines and the United States dealing with international parental child abduction. Therefore, there is no treaty remedy by which the left behind parent would be able to pursue recovery of the child/ren should they be abducted to or wrongfully retained in the Philippines. Once in the Philippines, the child/ren would be completely subject to Philippine law for all matters including custody. The United States is not a party to any treaty or convention on the enforcement of court orders. A custody decree issued by a court in the U.S. has no binding legal force abroad, although it may have a persuasive force in some countries. Furthermore, a U.S. custody decree may be considered by foreign courts and authorities as evidence and, in some cases, foreign courts may voluntarily recognize and enforce it on the basis of comity (the voluntary recognition by courts of one jurisdiction of the laws and judicial decisions of another).

Custody Disputes:

Parental child abduction is not a crime under Philippine law. Custody disputes are considered civil legal matters that must be resolved between the concerned parties or through the courts in the Philippines. Philippine authorities advise the American Embassy that generally the Philippine courts will give custody of children under the age of seven to the mother, provided there is no evidence that would indicate that the mother is unfit to raise the child. Although there is no treaty in force between the United States and the Philippines on enforcement of judgments, the Philippine courts will also take into consideration child custody decrees issued by foreign courts in deciding disputes regarding children residing in the Philippines.

The American Citizen Services division of the Consular Section at the U.S. Embassy can assist in locating children believed to be in the Philippines and in verifying the child's welfare. If a child is in danger or if there is evidence of abuse, consular officers will request assistance from the local authorities in safeguarding the child's welfare. Consular officers maintain lists of attorneys practicing in the particular areas of the Philippines, as well as general information regarding child custody practices.

For more information, please read the International Parental Child Abduction section of this book and review current reports online at travel.state.gov.

Deportation:

While there is an extradition treaty between the United States and the Philippines, parental child abduction is not an extraditable offense. However, if the taking parent is a U.S. citizen whose U.S. passport has been revoked due to an outstanding federal Unlawful Flight to avoid Prosecution (UFAP) warrant or indictment on charges of International Parental Kidnapping (IPKCA) in violation of 18 USC Section 1204, Philippine authorities may consider deportation based on lack of a valid travel document. Reaching the U.S. Embassy or Consulate that serves the Philippines: The U.S. Embassy in Manila is located at 1201 Roxas Boulevard, Manila City; tel. (63-2) 523-1001. The Consular American Citizen Services fax number is (63-2) 522-3242 and http://usembassy.state.gov/posts/rp1/wwwh3004.html.

Dual Nationality:

A child with a parent who was born outside of the U.S. or who has acquired a second nationality through naturalization in another country may have a claim to citizenship in that country. There is no requirement that a U.S. citizen parent consent to the acquisition by his/her child of another nationality and in many cases a parent is unaware that his/her child may have dual citizenship. The Embassy of the Philippines in Washington D.C. will be able to provide more detailed information on whether your child has a claim.

Criminal Remedies:

The Department of State is not a law enforcement agency. The Department of Justice, Office of International Affairs works with US prosecuting attorneys, the Federal Bureau of Investigation and with Interpol (an international police agency) in a joint cooperative effort to return persons charged with US crimes from foreign countries. Extradition of the abducting adult may not result in the return of the child. Foreign countries may refuse to extradite a person to the US if that person is also a citizen of the foreign country. Foreign countries may not recognize parental abduction as a crime. Please note that the extradition process applies only to the abducting adult/fugitive and not the child. The proper channel for the return of the child is through civil mechanisms or voluntary return arrangements. Additional information is also available on the Internet at the web site of the U.S. Department of Justice, Office of Juvenile Justice and Delinquency Prevention (OJJDP) at http://www.ojjdp.ncjrs.org.

For further information on international parental child abduction, contact the Office of Children's Issues at 202-736-7000, visit the State Department website on the Internet at travel.state.gov.

Travel Warning

March 23, 2005

This Travel Warning is being issued to recommend that Americans consider carefully the risks of travel to the Philippines. Terrorist groups, including Jemaah Islamiyah and the Abu Sayyaf Group, and radical elements of the Moro Islamic Liberation Front are planning multiple attacks throughout the Philippines. This information has been also released by Philippine government officials and is in the Philippine media. This Travel Warning replaces the Public Announcement for the Philippines dated February 18, 2005.

The Department urges Americans who choose to travel to the Philippines to observe vigilant personal security precautions; to remain aware of the continued potential for terrorist attacks against Americans, U.S. or other Western interests in the Philippines, and to register with the U.S. Embassy. The Department warns against all but essential travel throughout the country in light of a heightened threat to Westerners. There has recently been an increase in bombings by the terrorist groups in Manila, the region of Mindanao, and other areas where terrorist groups are active. Bombs have exploded in shopping malls, on public transportation, at airports and port facilities, in places of worship, and in other public areas resulting in numerous casualties, including several deaths. Bombs have also been found at places of worship. Travelers should be aware that since security has increased at official U.S. facilities, terrorists could seek softer targets. Such targets could include but are not limited to places where Americans and other Westerners live, congregate, shop or visit, including hotels, clubs, restaurants, shopping centers, identifiably Western businesses, housing compounds, transportation systems, places of worship, schools, or public recreation events.

Americans who remain in the Philippines are strongly encouraged to register with the Consular Section of the U.S. Embassy in Manila through the State Department's travel registration website, https://travelregistration.state.gov. The U.S. Embassy is located at: 1201 Roxas Boulevard, Manila, Philippines, tel. 632-528-6300. The Consular American Citizen Services (ACS) section's fax number is 632-522-3242 and the ACS web page is at http://usembassy.state.gov/posts/rp1/wwwhmain.html.

Americans can obtain information on travel and security in the Philippines from the Department of State by calling 1-888-407-4747 within the United States; or 202-501-4444 from overseas.

US citizens should also consult the recent Public Announcement for the Philippines, the Department of State's Consular Information Sheet for the Philippines and the Worldwide Caution Public Announcement, located at http://travel.state.gov/ to obtain updated information on travel and security within the Philippines.