President Benigno Aquino 3rd and Canadian Prime Minister Stephen Harper on Saturday witnessed the signing of an agreement that aims to boost the Philippines’ defense capability.

Harper was welcomed at Mala-cañang with a 19-gun salute. He and President Aquino later held a joint press conference.

The two officials witnessed the signing of a memorandum of understanding between the Department of National Defense and Canadian Commercial Cooperation.

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

Under the deal, Filipino purchases of equipment and expertise from Canada’s $12.6 billion ($12.6 billion) defense industry are guaranteed by the Ottawa government.

“This will help us in our efforts to build our defense and security capabilities,” Mr. Aquino said.

“We are optimistic that our engagement with Canada will continue to expand in the coming years and will remain beneficial to both our countries and to the whole Asia Pacific region,” he added.

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

The United States is set to deliver a second refurbished Hamilton-class cutter, previously used by the US Coast Guard, to the Philippine Navy.

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

Increased trade
Harper pledged to expand trade with the Philippines and the entire Asia Pacific region.

“We’re doing so to help create jobs, economic growth and a better quality of life both in Asia and in Canada. That’s why I’m pleased to see that the many ties that bind Canada and the Philippines are strengthening,” he said.

“In 1985, our countries signed a Foreign Investment Promotion Protection Agreement. The Philippines has thus become an important economic partner for Canada. In 2011, bilateral trade reached nearly one and a half billion dollars. Our hope is to build on this strong and expanding commercial relationship,” the prime minister added.

Mr. Aquino said that he and Harper discussed improving trade and investment ties.

“Canada recognizes the economic gains resulting from our commitment to good governance, integrity, and transparency, manifested in the reforms we are implementing in the Philippines. We look forward to increasing trade and investment with Canada,” he added.

Harper said that Canada and the Philippines share growing people-to-people links.

“As you noted, nearly 800,000 Canadians of Filipino background now live and work in our country. Indeed, for two years now, the Philippines has been the largest source country for immigrants to Canada and Tagalog is now the fastest growing language in Canada,” he said.

“These hardworking Filipino men and women are present in, literally, every community and make valuable contributions to every sector of our economy,” the Canadian prime minister added.

According to Harper, Canada and the Philippines share a long-term commitment to economic growth and the prosperity of our citizens.

“And so I’m pleased to announce that the government of Canada will make further investments here over the next three years with the focus on sustainable economic growth. With implementation assistance from the Asia Development Bank, these funds will help create new opportunities across the Philippines,” he said.

WITH A REPORT FROM AFP