Indian Council of World Affairs

Abstract: Over the years the Philippines has increased its bilateral defence engagements and coordination with Indo-Pacific countries owning to tensions in South China Sea and non-traditional security challenges. The signing of the Philippines-New Zealand Status of Visiting Forces Agreement (SOVFA) is yet another step in this direction. 

Introduction

On 30 April 2025, Philippine Defence Secretary, Gilberto Teodoro, and New Zealand, Defence Minister, Judith Collins signed the Philippines-New Zealand Status of Visiting Forces Agreement (SOVFA) in Manila. The Philippines-New Zealand SOVFA allows the entry and presence of troops for joint defence activities. Both nations have strengthened defence cooperation, as the agreement is a follow-up to the Mutual Logistics Supporting Agreement that was signed in June 2024. This reflects deepening strategic ties between the two nations, given the present geostrategic concerns in the Indo-Pacific. 

Philippines Growing Defence Engagements in the Indo-Pacific

Over the years, the Philippines has shown renewed interest in strengthening its bilateral defence relations with countries in the Indo-Pacific region. The agreement comes in the backdrop of various defence initiatives undertaken by the Philippines with other countries as part of its ‘Horizons’ military modernisation initiative.[i] The first stage of the Horizons initiative began in 2013 by amending the 1995 Armed Forces of the Philippines Modernization Act.[ii] The aim of the act was to modernise the army to counter internal threats and the first stage of Horizons focused on gaps in basic modernisation and operational readiness.[iii] The second Horizon (2018 -2022) entailed a transition from internal security to territorial defence.[iv] Philippines is implementing the third stage of its ‘Horizons’ or Re-Horizon 3 initiative (2023 -2028).

With an estimated budget of $35 billion, which will be allotted over the next 10 years, the Re-Horizon 3 initiative is for defence-related activities concerning territorial defence and threats from external actors, especially in light of South China Sea escalations.[v] Accordingly, in March 2025, the Philippines and Canada held talks for a defence deal and concluded negotiations for a SOVFA, which is yet to be signed.[vi] Also, in April this year, the US State Department has approved the sale of F-16s to the Philippines.[vii] Another important Indo-Pacific country, France’s nuclear-powered aircraft carrier Charles De Gaulle made its first port visit to the Philippines and joined in naval exercises with the Philippine Navy.[viii] Moreover, the Philippines has signed a $700 million contract to acquire twelve FA-50 light combat aircraft from South Korea.[ix] The Philippines also has Visiting Forces Agreements with nations like Japan (in 2024), Australia (in 2012) and the US (in 1999).[x] Therefore, the Visiting Forces Agreement with New Zealand is another step in consolidating defence relations with countries in the Indo-Pacific region. 

Evolution of Philippines-New Zealand Defence Ties

Diplomatic relations between the Philippines and New Zealand were established in 1966.[xi] Before that, both nations had also cooperated on multilateral defence initiatives like the signing of South East Asia Treaty Organisation in 1954 and were part of United Nations police during the Korean War.[xii] In October 2023, New Zealand’s largest navy vessel, HMNZS Aoteara, made a port call to Manila.[xiii] Subsequently, a Mutual Logistics Supporting Arrangement was signed in June 2024, enabling the armed forces of the two countries to utilise each other’s infrastructure. New Zealand considers the Philippines as a long standing defence partner, and over the years their bilateral defence ties have only grown in strength.

In this context, New Zealand Prime Minister Christopher Luxon’s visit to the Philippines as part of his Southeast Asia tour in 2024 is important. It was during this visit that the two sides emphasised defence cooperation as a ‘key focus’ of the partnership.[xiv] The two island nations agreed to elevate their bilateral relations to ‘Comprehensive Partnership’ by 2026 and also to increase their two-way trade by 50 percent by 2030.[xv] New Zealand believes that stronger ties with Indo-Pacific nations such as the Philippines will enable it to safeguard common maritime routes and address the risks to the rules-based international order, as 60 percent of New Zealand’s trade transits through Southeast Asia.[xvi] Some of the non-traditional security challenges, like piracy, IUU Fishing (Illegal, Unreported, and Unregulated Fishing), transnational organised crime, contraband smuggling, among others, are common to both nations.[xvii] Additionally, there are uncertainties, such as Russia’s growing presence, trade conflict between the US and China, and escalating tensions in the South China Sea that can have potential geostrategic implications in the region.[xviii]

Significance of the Philippines-New Zealand SOVFA

The Agreement emphasises on enhancing cooperation and utilising emerging technologies for mutual benefit. To address mutual concerns and shared challenges, the agreement also emphasises on robust defence engagement and continued dialogue. As a legal framework, the Agreement ensures ‘military-to-military’ training and allows for the entry and presence of military personnel in each other’s territory for joint defence activities.[xix] It also facilitates technology sharing and operational collaboration.[xx] The Agreement is expected to strengthen interoperability between the Armed Forces of the Philippines and the New Zealand Defence Force, particularly in areas such as capacity building, disaster response, and regional security.[xxi] The focus on cutting-edge defence systems may lead to collaboration in innovation, training and capacity building.[xxii] Through this agreement both countries aim to strengthen their defence capabilities to tackle tensions in the South China Sea and Taiwan Strait, which demand advanced strategic response measures.

Conclusion

The signing of SOVFA marks a significant milestone in the bilateral defence relationship between the two nations. It also shows that the Philippines is trying to secure another reliable partner in the Indo-Pacific region. At the bilateral level, the agreement will help in improving defence capabilities and co-ordination, and at the regional level, the agreement will help tackle common security challenges in the Indo-Pacific region. It is also evident that primarily owing to the South China Sea tensions, Philippines is steadily fostering closer defence and military ties with countries of the Indo-Pacific, including US and its allies, in various ways ranging from defence acquisitions to logistics and visiting agreements to secure its interests and to contribute to mitigating the security challenges in the Indo-Pacific region.

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*Varshitha Eddula, Research Intern, Indian Council of World Affairs, New Delhi
Disclaimer: Views expressed are personal. 

Endnotes

[i] Walia, Simran. 2025. “The Philippines’ Horizon 3 Military Modernisation Programme - MP-IDSA.” MP-IDSA. March 28, 2025. https://www.idsa.in/publisher/issuebrief/the-philippines-horizon-3-military-modernisation-programme/. (accessed on 13/05/2025)

[ii] Ibid.

[iii] Ibid.

[iv] Cruz De Castro, Renato. 2018. “The next Phase of Philippine Military Modernization: Looking to External Defense.” Asia Maritime Transparency Initiative. July 12, 2018. https://amti.csis.org/the-next-phase-of-philippine-military-modernization-looking-to-external-defense/.

[v] Ibid.

[vi] AP. 2025. “Canada, Philippines to Sign Key Defense Pact to Boost Combat Drills and Military Ties.” The Hindu. March 7, 2025. https://www.thehindu.com/news/international/canada-philippines-to-sign-key-defense-pact-to-boost-combat-drills-and-military-ties/article69304106.ece.

[vii] Bureau of Political-Military Affairs. 2022. “U.S. Security Cooperation with the Philippines.” United States Department of State. October 7, 2022. https://www.state.gov/u-s-security-cooperation-with-the-philippines/.

[viii] AFP. 2025. “French Nuclear-Powered Carrier Makes First Visit to Philippines.” The Economic Times. February 23, 2025. https://economictimes.indiatimes.com/news/defence/french-nuclear-powered-carrier-makes-first-visit-to-philippines/articleshow/118504585.cms?from=mdr.

[ix] Maitem, Jeoffrey. 2025. “Philippines Boosts Air Power with 12 South Korean FA-50 Jets amid South China Sea Tensions.” South China Morning Post. June 5, 2025. https://www.scmp.com/week-asia/economics/article/3313121/philippines-boosts-air-power-12-south-korean-fa-50-jets-amid-south-china-sea-tensions.

[x] Gomez, Jim. 2025. “Philippines Signs Military Pact with New Zealand to Widen Alliances While Facing an Assertive China.” AP News. April 30, 2025. https://apnews.com/article/new-zealand-philippines-status-of-visiting-forces-agreement-b695ff83f5021e1569b2245229dfe4d3.

[xi] New Zealand Ministry of Foreign Affairs and Trade. MFAT. 2023. https://www.mfat.govt.nz/en/countries-and-regions/asia/philippines. (accessed on 07/05/2025)

[xii] ibid.

[xiii] Ibid.

[xiv]  Mcculloch, Craig. 2024. “NZ and Philippines Pledge Defence Cooperation amid Rising Tensions.” RNZ. April 19, 2024.https://www.rnz.co.nz/news/political/514687/nz-and-philippines-pledge-defence-cooperation-amid-rising-tensions.

[xv] Ibid.

[xvi] Teng-Westergaard, Carla . 2024. “New Zealand and Philippines Diplomatic Relations.” Asia Media Centre . April 17, 2024. https://www.asiamediacentre.org.nz/news/strenghtening.

[xvii]  JOINT STATEMENT FOR THE OFFICIAL VISIT OF NEW ZEALAND PRIME MINISTER CHRISTOPHER LUXON

[xviii]  Reuters. 2025. “Philippines, New Zealand Strengthen Defence Ties with Troop Pact.” ThePrint. theprint. April 30, 2025. https://theprint.in/world/philippines-new-zealand-strengthen-defence-ties-with-troop-pact/2609520/.

[xix] Gomez, Jim. 2025. “Philippines Signs Military Pact with New Zealand to Widen Alliances While Facing an Assertive China.” AP News. April 30, 2025. https://apnews.com/article/new-zealand-philippines-status-of-visiting-forces-agreement-b695ff83f5021e1569b2245229dfe4d3.

[xx] Ibid.

[xxi] Chica, Camille. 2025. “PH, New Zealand Sign SOVFA, Elevate Defense Partnership ???????????????????? - Philippine Information Agency.” Philippine Information Agency. April 30, 2025. https://pia.gov.ph/ph-new-zealand-sign-sovfa-elevate-defense-partnership/.

[xxii] Dharamraj, Samaya . 2025. “The Philippines, New Zealand Sign Landmark Agreement – OpenGov Asia.” Opengovasia.com. May 2025. https://opengovasia.com/2025/05/01/the-philippines-new-zealand-sign-landmark-agreement/.