The Philippines and Japan elevated their bilateral relationship to a comprehensive strategic partnership and signed a landmark Double Taxation Convention (DTC) along with new cooperation agreements across agriculture, health, human resource development, and strategic emerging sectors.
The agreements were signed during President Ferdinand R. Marcos Jr.’s state visit to Japan and were witnessed by President Marcos and Japanese Prime Minister Sanae Takaichi at the Akasaka State Guest House.
- Double Taxation Convention (DTC)
- Establishes clear tax rules to prevent the same income from being taxed in both countries.
- Strengthens the business environment and is expected to promote greater cross-border investment and trade.
- Expanded cooperation in social and economic sectors
- Agriculture and fisheries: New arrangements to bolster collaboration, technology transfer and sustainable productivity.
- Health: Initiatives to expand equitable access to quality healthcare services and to strengthen medical supply-chain resilience.
- Human Resource Development: Continued joint programs to develop skills and workforce capacity.
- Strategic and emerging-sector collaboration
- Agreed to deepen cooperation in artificial intelligence, space development and applications, energy security, and supply chain resilience.
- Support under POWERR Asia and joint initiatives to bolster regional supply chains and energy preparedness were reaffirmed.
- Security and maritime cooperation
- Launch of negotiations for a General Security of Military Information Agreement (GSOMIA).
- Initiation of discussions on maritime boundary delimitation to bolster a rules-based maritime order and mutual trust.
President Ferdinand R. Marcos Jr. said: “We witnessed the signing of an important agreement on the avoidance of double taxation, which will enhance the business environment and promote greater cross-border investment.” He also emphasized the new agreements’ roles in strengthening agriculture, healthcare access, and human resource ties, and described the security and maritime negotiations as important steps to deepen defense cooperation.
Prime Minister Sanae Takaichi said Japan reaffirmed its commitment to supporting economic resilience in the Philippines and the ASEAN region, promoting investments and economic exchanges to help the Philippines achieve its development goals. Prime Minister Takaichi also announced Japan’s continued support for the Philippines’ bid for a non-permanent seat on the United Nations Security Council.
- The visit included an Imperial Audience with Their Majesties Emperor Naruhito and Empress Masako, underscoring the longstanding friendship between the peoples of the Philippines and Japan.
- President Marcos addressed the National Diet of Japan, presenting a shared vision of “Weaving the Future Together” centered on peace, prosperity and opportunity.
- Ratification and implementation processes for the DTC and cooperation agreements will proceed according to each country’s domestic procedures.
- Formal GSOMIA negotiations and maritime boundary discussions will commence as announced by both leaders.
- Continued technical work and program planning will follow to operationalize agriculture, health, human resource, and strategic-sector initiatives.
