MANILA (UPDATED) — The Philippines and Australia shored up their security and economic alliance with the signing of a strategic partnership on Friday.

The agreement was finalized following a meeting between President Ferdinand Marcos and Australian Prime Minister Anthony Albanese at Malacañang.

Under the strategic partnership, the countries will seek to expand cooperation in several areas from defense and security to climate change and education.

"This signing of a joint declaration of strategic partnership signals our mutual commitment to deepening collaboration across a spectrum of areas that are vital to both our country's growth and prosperity," Marcos said in his speech.

"Both the Prime Minister and I acknowledged that our shared values, the democratic principles and mutual respect for international law had been instrumental in fostering a strong partnership," he added.

A strategic partnership is the highest level of bilateral ties that Australia has had with the Philippines.

"This elevation is an important symbol of the strength of our relationship and our shared commitment to do more together," Albanese said.

The deal was signed in the face of China's growing assertiveness on Taiwan and the militarization of artificial islands in the disputed South China Sea.

• South China Sea confrontation hits China-Philippines ties

WEST PHILIPPINE SEA

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At the start of Friday's talks, Albanese said the Philippines and Australia both believed in the "need to uphold international law" in the South China Sea.

The Australian leader also reiterated his support for the 2016 Arbitral Award that invalidated Beijing's expansive claims in waterway, which he said was "final and binding."

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Without mentioning China, Marcos thanked Albanese, saying the latter "made very clear that the claims that are being made upon by a Philippine maritime territory are not valid, [have] not been recognized and [are] not in conjunction or consistent with international law."

"To have friends like you and partners like you especially on that subject is very gratifying and encourages us to continue down that path," Marcos told Albanese.

Beijing claims almost the entire South China Sea, ignoring an international ruling that its stance has no legal basis.

The Philippines, Vietnam, Malaysia and Brunei have overlapping claims to parts of it.

Former president Rodrigo Duterte pivoted away from his country's traditional security partners towards China, but the Marcos administration sought to reverse that stance.

Australian and Filipino troops last month held a major joint exercise near the contested waters.

• Philippine, Australian troops hold South China Sea drills
• Australian envoy: Reject China's claims that go against UNCLOS

The event was watched by Marcos, Defense Secretary Gilberto Teodoro and Australian Defense Minister Richard Marles.

At the time, Marcos hailed the drills as "an important aspect of how we prepare for any eventuality".

Those exercises came after a Philippine resupply mission to Ayungin Shoal in the Spratly Islands was blocked by China Coast Guard vessels using water cannon on August 5, triggering a diplomatic spat and international outrage.

OTHER DEALS

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Meanwhile, Albanese said Australia would double scholarships for Filipino students to strengthen educational and institutional links with the Philippines.

"We are also supporting the reestablishment of the Philippine Institute at the Australian National University which would boost partnerships between Australian and Filipino academic institutions," the Prime Minister said.

Australia, he added, would provide $4.4 million in funding for the collaborative research to develop Philippines' soil health strategy.

• PH losing 457M tons of quality soil annually due to erosion, degradation: Marcos

Marcos and Albanese on Friday also signed a memorandum of understanding (MOU) on a work and holiday visa arrangement.

The leaders also agreed on a 5-year program to help reduce violence and conflict in Mindanao and provide livelihood for women in vulnerable situations.

Albanese said Australia's economic future is tied with Southeast Asia and that his country is determined to boost trade and investment in the region.

He said his government saw potential in the Philippines in terms of agriculture, education, resources, and transition to green energy. Australia is "ambitious" with what it can achieve in the region, he added.

"Australia is working with our partners including of course, the Philippines, to shape a region where sovereignty is upheld and economic cooperation is underpinned by international rules-based trade, a region that is open, stable and prosperous with ASEAN at its center," the Australian leader said.

Albanese's visit, which marks the first bilateral talks with an Australian prime minister in Manila in 20 years, follows a series of trips by senior members of his government to the archipelago nation since Marcos took office in 2022.

• Australian PM slated for an official visit to PH in September 2023

— with a report from Pam Castro, Agence France-Presse

Video from RTVM