Marcos, Rubio discuss economic and security ties in call

PHILIPPINE President Ferdinand R. Marcos, Jr., in a phone call with US Secretary of State Marco Rubio on Monday, discussed economic and security cooperation, underscoring Washington’s commitment to key infrastructure and energy initiatives in the Philippines amid ongoing tensions in the South China Sea.

They tackled a range of bilateral priorities, including efforts to promote peace and stability in the disputed waterway, according to a statement from US State Department Spokesperson Thomas Pigott.

“I had a productive phone call with US Secretary of State Marco Rubio this morning, during which we discussed critical regional and economic priorities, and bilateral trade matters,” Mr. Marcos said in a Facebook post.

“Our exchange underscored our countries’ mutual commitment to strengthening the PH-US alliance and addressing shared regional interests,” he added.

Washington reaffirmed its commitment to developing the Luzon Economic Corridor. The initiative aims to advance economic growth.

Meanwhile, the Palace said the Philippines is not committing to raise defense spending to 3.5% of gross domestic product (GDP) despite a separate call from US Defense Secretary Pete Hegseth for Indo-Pacific allies to boost military expenditures.

Palace Press Officer Clarissa A. Castro said economic and budget officials acknowledged that the country’s defense spending remains well below the level advocated by Washington and that any future increases would depend on fiscal conditions and security requirements.

The proposed 2026 national budget allocates P423.7 billion for defense, equivalent to about 1.37% of GDP, according to Budget Secretary Kim Robert C. de Leon. Future appropriations will be evaluated based on the government’s actual needs and available fiscal space, he said.

Economic Secretary Arsenio M. Balisacan said the Philippines’ defense spending as a share of GDP is “significantly lower” than the 3.5% target being urged by the US for its allies.

However, he noted that the Philippines remains a lower-income economy with competing development priorities, including infrastructure, education and poverty reduction.

“We are in a catch-up mode investing in defense capabilities and modernizing our Armed Forces,” Mr. Balisacan said, as quoted by Ms. Castro.

The Philippines, a treaty ally of the US, has accelerated military modernization and expanded defense cooperation with Washington, including broader access for American forces to Philippine military facilities. — Chloe Mari A. Hufana