Amid closer ties between Manila and Washington and their joint military exercises under the watch of President Marcos, the Philippines landed among the top 17 destinations of US civil aerospace and defense exports in the Asia-Pacific region from April 2023 to March 2024.
During the 12-month period, total aircraft and defense exports to the Philippines reached $348.6 million, according to a June 6 report of the US Department of Commerce's Industry and Analysis-Aerospace Office and the US Commercial Service.
US firms sold $282.4 million worth of civil aircraft, engines and parts, plus $66.2 million in defense equipment, to the Philippines during the period.
The other leading markets for US civil aerospace and defense exports in the region from April of last year to March this year included Australia, Brunei, Canada, Chile, Indonesia, Japan, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Singapore, South Korea, Taiwan, Thailand and Vietnam.
These 17 countries cornered $43.8 billion in exports from the US arms industry, almost a third of the $135.3 billion global total.
In January, a report of the US Department of Commerce's International Trade Administration (ITA) highlighted opportunities in the Philippine defense industry given the "current challenges faced by the Philippines such as the territorial dispute with China in the West Philippine Sea."
"The Department of National Defense (DND) reiterated that air power is a very important component in its joint forces especially in territorial defense. Enhancing the Philippine Air Forces' (PAF) air power could be achieved by adapting to current trends and technologies, such as unmanned aerial systems, artificial intelligence, and space capabilities," the ITA said.
"The Philippine DND is a key player in the Indo-Pacific region as it continues to bolster its defense capabilities and maintain regional stability. Under Horizon 3, the desired capabilities are targeted to enhance C4ISTAR, air defense systems, air and surface interdiction systems, anti-tank systems and ground rocket systems, all pending approval of the DND leadership under Secretary Gilbert Teodoro Jr.," it added.
The ITA was referring to the ongoing Armed Forces of the Philippines (AFP) modernization program; in particular, its 15-year third milestone or Horizon 3 being implemented by the AFP from 2023 to 2037.
It helps that the Philippines receives the biggest US grant assistance for defense capabilities in the Pacific region, the ITA said.
With about $40 million in foreign military financing being received by the Philippines yearly to acquire defense equipment and services, US suppliers see opportunities to sell aircraft, communications, intelligence and surveillance systems, personal protective equipment, satellite and space systems, ships, and unmanned vehicles.
While the US remains a major supplier, "China is also gaining momentum in the market" alongside "stiff" competition posed by France, Germany, Israel, Italy, South Korea, Spain, Sweden and Turkey, the ITA said.