Philippines' International Relations | Philippines International Relations

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Disputes - international: The Philippines claims sovereignty over certain of the Spratly Islands, known locally as the Kalayaan (Freedom) Islands, also claimed by China, Malaysia, Taiwan, and Vietnam; the 2002 "Declaration on the Conduct of Parties in the South China Sea," has eased tensions in the Spratly Islands but falls short of a legally binding "code of conduct" desired by several of the disputants; in March 2005, the national oil companies of China, the Philippines, and Vietnam signed a joint accord to conduct marine seismic activities in the Spratly Islands; Philippines retains a dormant claim to Malaysia's Sabah State in northern Borneo based on the Sultanate of Sulu's granting the Philippines Government power of attorney to pursue a sovereignty claim on his behalf

Illicit drugs: Exports locally-produced marijuana and hashish to East Asia, the US, and other Western markets; serves as a transit point for heroin and crystal methamphetamine; domestic methamphetamine production is a growing problem; remains on Financial Action Task Force Non-Cooperative Countries and Territories List for continued failure to address deficiencies in money-laundering control regime


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