The Philippines contains vital terrain in maritime Southeast Asia, for the United States (US) and its regional allies. The positional importance of the Philippines coupled with its revived treaty alliance with the US makes it pivotal to deterring aggression against Taiwan and other parts of what US strategists call the First Island Chain. Australia has independent reasons to be invested in the security of the Philippines beyond its importance to US strategy in the Indo-Pacific region.

This report first analyses the forcing factors that have brought about strategic convergence between Australia and the Philippines. Second, it explains why a political window has opened for institutionalising defence cooperation with the Philippines. Third, it assesses a recent joint defence exercise in light of a planned upgrade to the bilateral defence relationship. Finally, in this context, it offers policy recommendations to both governments for furthering defence ties.