The proposed Visiting Forces Agreements (VFA) with Canada and New Zealand could help strengthen the Philippines’ supply chain security and economic resilience by supporting freedom of navigation and regional stability, Defense Secretary Gilbert Teodoro Jr. told senators on Monday.

During a Senate Committee on Foreign Relations hearing chaired by Erwin Tulfo, Teodoro stated that the proposed Status of Visiting Forces Agreements (SOVFA) with Canada and New Zealand would not only strengthen military cooperation but also help protect key trade routes.

“An important part of their supply line is the South China Sea and the West Philippine Sea,” Teodoro said, referring to New Zealand’s interest in deeper cooperation with the Philippines.

He said stable maritime routes are essential to keeping business costs manageable and ensuring the uninterrupted movement of goods.

“You need to secure your supply chains, and you need freedom of navigation in the high seas. Without such, your costs of doing business… will be exponentially higher because you take a risk,” he added.

The agreements, currently under Senate review for concurrence, lay down the legal framework governing joint defense and humanitarian activities between the Philippines and the two countries.

Deputy Assistant Secretary Anthony Mandap of the Department of Foreign Affairs said the New Zealand agreement aims to improve the country’s rapid response capability for disaster preparedness while enhancing military capabilities through joint training, infrastructure development and equipment sharing.

The Canada agreement, meanwhile, covers cooperative defense and humanitarian activities and includes provisions on environmental protection, human health, and indigenous peoples’ rights.

Teodoro said the Canada and New Zealand agreements closely follow the framework of the Philippines’ existing VFA with Australia, with additional emphasis on environmental protection and indigenous peoples’ rights in the Canadian pact.

He also noted that Canada has already been assisting the Philippines in cyber protection efforts and may become a partner in developing mineral resources responsibly.

Senator Loren Legarda, who attended the hearing, said the added safeguards on environmental and indigenous peoples’ rights were favorable to the Philippines.

Teodoro also said stronger security partnerships could improve investor confidence in the Philippines by reducing perceived risks tied to regional instability.

“The more we are able to prove that we can enforce our law, the more an overall macro benefit will redound to the economy as a whole,” he said. (PNA)