Background:

Belgium became independent from the Netherlands in 1830; it was occupied by Germany during World Wars I and II. The country prospered in the past half century as a modern, technologically advanced European state and member of NATO and the EU. Tensions between the Dutch-speaking Flemings of the north and the French-speaking Walloons of the south have led in recent years to constitutional amendments granting these regions formal recognition and autonomy.

Kingdom of Belgium

Brussels

Western Europe bordering the North Sea between France and Netherlands.

AREA

Total : 30,528 sq. km.
Land: 30,278 sq. km.
Water: 250 sq. km.

Temperate; mild winters, cool summers; rainy, humid, cloudy

NATURAL RESOURCES

Construction materials, silica, carbonates

10,379,067 (July 2006 est.)

Roman Catholic 75%. Protestant or other 25%

LANGUAGES

Dutch (official) 60%, French (official) 40%, German (official) less than 1% legally bilingual (Dutch and French)

21 July (1831) ascension to the Throne of King Leopold I

Federal parliamentary democracy under a constitutional monarchy

Executive Branch Chief of State: King ALBERT II (since 9 August 1993); Heir Apparent Prince PHILIPPE, son of the monarch

Head of Government: Prime Minister Guy VERHOFSTADT (since 13 July 1999)

Cabinet: Council of Ministers formally appointed by the monarch

Election: none; the monarchy is hereditary and constitutional; following legislative elections, the leader of the majority party or the leader of the majority coalition is usually appointed prime minister by the monarch and then approved by parliament

Note: government coalition – VLD, MR, PS, SP.A-Spirit

Legislative Branch Bicameral Parliament consists of a Senate or Senaat in Dutch, Senat in French (71 seats; 40 members are directly elected by popular vote, 31 are indirectly elected; members serve four-year terms) and a Chamber of Deputies or Kamer van Volksvertegenwooordigers in Dutch, Chambre des Representants in French (150 seats; members are directly elected by popular vote on the basis of proportional representation to serve four-year terms)

Elections: Senate and Chamber of Deputies – last held 18 May 2003 (next to be held no later than May 2007)

Election results: Senate – percent of vote by party – SP.A-Spirit 15.5%, VLD 15.4%, CD & V 12.7%, ,PS 12.8%, MR 12.1%, VB 9.4%, CDH 5.6%; seats by party – SP.A-Spirit 7, VLD 7, CD & V6, PS 6, MR 5, VB 5, CDH 2, other 2 (note-there are also 31 indirectly elected senators); Chamber of Deputies – percent of vote by party – VLD 15.4%, SP.A-Spirit 14.9%, CD & V 13.3%, PS 13.0%, VB 11.6%, MR 11.4%, CDH 5.5% Ecolo 3.1%; seats by party – VLD 25, SP.A Spirit 23, CD & V 21, PS 25, VB 18, MR 24, CDH 8, Ecobo 4, other 2

Note: as a result of the 1993 constitutional revision that furthered devolution into a federal state, there are now three levels of government (federal, regional, and linguistic community) with a complex division of responsibilities; this reality leaves six governments each with its own legislative assembly.

Judicial Branch Supreme Court of Justice or Hof van Cassatie (in Dutch) or Cour de Cassation (in French) (judges are appointed for life by the government; candidacies have to be submitted by the High Justice Council)

International Organization Participation ACCT, AfDB, AsDB, Australia Group, Benelux, BIS, CE, CERN, EAPC, EBRD, EIB, EMU, ESA, EU, FAO, G-9, G-10, IADB, IAEA, IBRD, ICAO, ICC, ICCt, ICFTU, ICRM, IDA, IEA, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO, ITU, MIGA, MONUC, NATO, NEA, NSG, OAS (observer), OECD, OIF, ONUB, OPCW, OSCE, Paris Club, PCA, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UNITAR, UNMOGIP, UNRWA, UNTSO, UPU, WADB, (nonregional), WCL, WCO, WEU, WHO WIPO, WMO, WTO, ZC

This modern, private-enterprise economy has capitalized on its central geographic location, highly developed transport network, and diversified industrial and commercial base. Industry is concentrated mainly in the populous Flemish area in the north. With few natural resources, Belgium must import substantial quantities of raw materials and export a large volume of manufacturers, making its economy unusually dependent on the state of world markets. Roughly three quarters of its trade is with other EU countries. Public debt is nearly 100% of GDP. On the positive side, the government has succeeded in balancing its budget, and income distribution is relatively equal. Belgium began circulating the euro currency in January 2002. Economic growth in 2001-03 dropped sharply because of the global economic slowdown, with moderate recovery in 2004-05.

GDP (purchasing power parity) $325 billion (2005 est.)

GDP (official exchange rate) $350.3 billion (2005 est.)

GDP – real growth rate $1.5% (2005 est.)

GDP – per capita (PPP) $31,400 (2005 est.)

Inflation rate (consumer prices) 2.8% (2005 est.)

Belgium's Federal Parliament is made up of both the Senate and the House of Representatives. The parliament reflects the wide range of views held by the Belgian people. The Federal Parliament makes legislations that regulate the social relationships in our country. It also monitors the activities of the Federal Government.

The Senate

The revised Constitution of 1993 drastically changed the composition of the Senate. Since the elections of 21 May 1995 there are not only fewer senators, but the Senate itself is composed differently. The number of senators, excluding the senators appointed by right, was decreased from 184 to 71.

Of the 71 senators, 40 are directly elected, 21 assigned by the Community Councils and 10 are co-opted.

40 directly elected senators

For the election of the 40 directly elected senators, the electorate is divided into two electoral colleges, just like for the elections to the European Parliament. The Flemish electoral college elects 25 senators and the French electoral college 15.These senators are elected on the same day as the members of the Chamber of representatives for a period of four years.

21 senators assigned by the Community Councils

The Flemish Council and the French Community Council each designate 10 of their members as Senators. The German Community Council designates 1 of its members as Senator. These 21 senators hold a double mandate.

10 co-opted senators

The Dutch speaking senators of the two previous groups assign 6 members. The French speaking senators of the two previous groups assign 4 members.

Senators appointed by right

These are the children of the King who are over 18 years of age, or in the absence of children, the Belgian descendants of the branch of the royal family called on to reign.

Senators appointed by right are entitled to vote when aged 21; they are not taken into account for the determination of the quorum of attendance.

At this time His Royal Highness Prince Philip and Her Royal Highness Princess Astrid have taken the oath as Senator.

The House of representatives consists of 150 deputies who are directly elected in the vote from 11 electoral constituencies for a period of 4 years unless the House id dissolved before the end of this period.

The law also sets the electoral constituencies. They coincide with the provinces, except in Brussels-Halle-Velvoorde and Leuven.

POLITICAL COOPERATION

Diplomatic relations between the Philippines and Belgium were established on 04 July 1946. The Philippine Ambassador to Belgium is Hon. Cristina Ortega while the Ambassador of Belgium to the Philippines is H.E. Gregoire Vardakis.

RP-Belgium political relations have remained friendly and cordial, aided by our shared commitment to democratic principles, respect for the dignity of man and for human rights.

Belgian presence in the Philippines has been mainly in the missionary field (the old St. Theresa’s College; St. Louis University in Baguio and Las Piņas Parish Church, etc.). Most Belgians in the Philippines are Flemish.

The Belgian monarch, Albert II, visited the Philippines in 1967 and again in 1979 to promote Belgian interests. He received an honorary doctorate from St. Louis University during his visit to Baguio City. Former President Fidel V. Ramos visited Belgium in September 1994 to forge closer RP-Belgium bilateral relations. Crown Prince Philippe led a Belgian Economic Mission to the Philippines in March 1996. Belgian trade missions visited the Philippines in December 2002 and 2004. An RP-Belgium Convention on Social Security Bilateral Consultations was held on 17 October 2005 at the Department of Foreign Affairs.

ECONOMIC COOPERATION

Belgium is the Philippines’ fifth largest trading partner in Europe after The Netherlands, Germany, Great Britain & Northern Ireland, and France. Total trade between the Philippines and Belgium for the period January to December 2004 amounts to US$428,149,984 with the Philippine exports to Belgium amounting to US$264,684,469 and Philippine imports from Belgium at US$163,465,515. The balance of trade between the Philippines and Belgium for this period stands at US$95,332,084 in favor of the Philippines. Philippine top exports included special transactions, electronics, processed foods, chemicals, machineries, other consumer manufactures, builders woodworks, garments, carrageenan and other industrial manufactures.

It is important to note that not all Philippine exports to Belgium end up in said market. Rather, Philippine export figures to Belgium reflect export merchandise that enter through Belgian ports such as Antwerp, on their way to other final destination markets.

SUMMARY OF RP-BELGIUM TRADE
($US Millions)

TOP 10 PHILIPPINE MERCHANDISE
IMPORTS FROM BELGIUM
FOB Value in US Dollars
2005

Belgian trade mission explores business opportunities in the Philippines

From December 6 to 8, 2004, a trade mission from Belgium visited the Philippines to explore new business opportunities. The trade mission with 35 participating companies was organised by the Walloon-Brussels Trade Office of the Belgian Embassy. The business representatives came either from Belgium directly or from their regional offices in Asia.

  The companies represented a variety of sectors, showcasing the rich diversity of high-quality products and services Belgium has to offer, including agribusiness, food, pharmaceuticals and chemicals, waste management, medical equipment and health services, energy, transportation, iron and steel machinery and technologies, mining, lighting and printing technology, civil engineering and consultancy, logistics, financial services, and telecom equipment.

DEVELOPMENT COOPERATION

Belgian development cooperation assistance to the Philippines takes the form of grants and bilateral financial facilities.

Prior to 1988, Belgian assistance to the Philippines came mainly through non-official channels in the form of technical assistance such as study and training grants, donations/gift in kind, and deployment of Belgian missionaries and educators. These, however, were mostly not accounted and not monitored by recipient government agencies. Hence, the only recorded Belgian ODA committed to the Philippines during the same period amounted to US$42 million (US$41 million in loan commitments and US$1 million in grants). The main assistance has been the provision of soft loans and commercial credits for the construction of the Light Rail Transit Line I.

Bilateral development cooperation programs between the Philippines and Belgium officially started with the signing of the Agreement on Economic, Industrial, Scientific, Technical and Development Cooperation between the Belgo-Luxembourg Economic Union and the GOP on 15 January 1987.

A milestone in the history of RP-Belgium cooperation was the decision by then Belgian State Secretary Reginald Moreels to confer on the Philippines the status of "program country" for Belgian development assistance, during his visit to the Philippines in September 1995. An MOU on Development Cooperation for 1994-1997 was signed by the Philippines and Belgium.

In 1996, during the visit of Crown Prince Philippe, the RP-Belgium Development Cooperation Agreement was initialed. However, the initialed Agreement is now considered moribund in view of the removal of the Philippines from the "program country" list in April 2000. Nevertheless, RP continues to receive Belgian ODA on a project-to-project basis.

While still a program country, GOP was able to obtain 900 Million Belgian Francs for the implementation of the "Belgian Integrated Agrarian Reform Support Program (BIARSP 1997).

Belgian ODA to the Philippines is guided by the overall objective of promoting the social welfare of the people. Towards this end, the areas of cooperation are agrarian reform, health and education, small and medium enterprises and assistance to vulnerable groups, in particular women and rural workers. The Belgian Government also extends direct assistance to NGOs, universities, multilateral organizations and scholarship training programs.

Aside from grants, the Belgian Government makes available to GOP the following bilateral financing facilities as part of its development cooperation package:

1. Belgian State-to-State Loan:Terms: 0% interest, 20 and 10 years repayment and grace period, respectively. Early in 1999, the loan was tied to the project, "Smokey Mountain Reclamation and Development Project", the developer for the project, however was a private company who was barred by its joint-venture agreement with the National Housing Authority to tap government resources for the implementation of the project.

2. Belgian Supersubsidy Facility:The Supersubsidy Facility carries an interest rate of 0%, 27 semesters to pay, tied to Belgian goods and services. To be funded under this facility was the DPWH project, "Dredging and Sanitation Works for Pasig River".

BELGIAN INTEGRATED AGRARIAN REFORM SUPPORT PROGRAMME (BIARSP)

The biggest Belgian ODA to the Philippines in financial terms is the Belgian Integrated Agrarian Reform Support Programme (BIARSP). A development assistance grant (i.e. Belgian Francs 900 million) was given by the Belgian Government to the Philippines for agrarian reform under the Belgian Integrated Agrarian Reform Support Programme (BIARSP). The Grant was first negotiated in 1995 and finally approved in 1997.

The Belgian Integrated Agrarian Reform Support Programme (BIARSP) is a bilateral program between the Governments of Belgium and the Philippines to help the agrarian reform agenda.

BIARSP operates in 74 agrarian reform communities in Central Visayas (Region VII) and Western Mindanao (Region IX). A total of 60,000 agrarian reform beneficiaries (ARBs) and 20,000 non ARBs are expected to benefit from the programme.

On 30 April 2003, the Philippines and Belgium had signed the extension of the Belgian Integrated Agrarian Reform Support Program (BIARSP) until 2007.

The total Belgian contribution for BIARSP will reach 25 million Euros (1.7 billion Pesos). In a span of four years (2004-2007), 7.2 million Euros (490 million Pesos) will be disbursed.

Belgium receives Philippine awards for its support to agrarian reform

Belgium was given two awards for valued foreign assistance to agrarian reform in the Philippines by the Philippine Department of Agrarian Reform.

The awards were handed over on 18 June and 8 August 2003 by President Gloria Macapagal-Arroyo, in the presence of Secretary of Agrarian Reform Roberto Pagdanganan, during ceremonies at Malacaņang Palace in Manila on the occasion of the 15th anniversary of the Comprehensive Agrarian Reform Program (CARP) and the 40^th anniversary of the Land Reform Code, respectively. In an unrehearsed statement, the President praised Belgium for its many years of commitment to the development of the Philippines.

LIGHT RAIL TRANSIT SYSTEM

One of the most visible and high-profile projects involving RP-Belgian cooperation is Manila ’s LRT I. Initial assistance for building the LRT project came from the Belgian Government which granted a Euro 7.5 million "soft" and interest-free loan with a repayment time of 30 years. The project was expected to pay for itself within a period of 20 years out of revenue alone. A Belgian consortium consisting of ACEC (Ateliers de Constructions Electriques de Charleroi, BN), (Constructions Ferroviaires et Metalliques, formerly Brugeoise et Nivelles), TEI (Tractionnel Engineering International) and TC (Transurb Consult) provided an additional loan of P700 million. The consortium provided the cars, signaling, power control, telecommunications, training and technical assistance. The entire system was expected to be financially "in the red" well into 1993. Against an expected gross revenue of P365 million for the first operating year, government losses were thought likely to reach P216 million. The system was designed as a public utility rather than as a profit center.

• Air Services Agreement

signed, 30 January 1970
entered into force 16 June 1970 by Exchange of Notes
registered with ICAO, 05 October 1994

• Agreement on the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains

signed, 02 October 1976
ratified, 06 December 1979
exchange of Instruments in Brussels, 09 June 1980

• Agreement for the Reciprocal Abolition of Waiver of Non-Immigrant Passport Visa Fees

signed, 19 February 1960
effectivity, 16 March 1960
registered with the UN, 25 April 1960

• Memorandum on Development Cooperation Formalizing the Re-inclusion of RP as a "Concentration Country" for Belgian ODA

signed 10 September 1994

• Convention on Social Security

initialled, March 1996
signed 07 December 2001
ratified 15 January 2003

• Agreement on the Promotion and Protection of Investments

signed, January 1998
entered into force, 09 December 2003

• Addendum to the Specific Agreement on the On-going Projects, BARSP and BIARSP, in the Field of Rural Development

signed, 03 December 1999

• Addendum 2 to the Specific Agreement on the On-going Projects, BARSP and BIARSP, in the Field of Rural Development

Exchange of Visits

As of June 2006, the estimated number of overseas Filipinos in Belgium has been placed at around 5,807. Of this number, only 3,067 are officially registered with the Belgian National Institute of Statistics. These figures are only conservative estimates in view of the fact that Filipinos in Belgium had expressed strong reservations vis-ā-vis registration.

Their professions vary but most are in the service sector. A small number are employed as professionals. The Office National de l’Emploi under the Ministries of Labor of Belgium and Luxembourg, respectively, do not issue work permits to foreigners mainly because of the high unemployment rate as well as the restrictive labor policies of the EU. Illegal migrant workers face the risk of being caught and summarily deported. Belgian and other foreign employers do not declare their alien domestic employees with the Ministry of Labor because of the extreme difficulty in securing work permits, not to mention the fact that the prescribed minimum wage rates are very high.

Among the problems encountered by OFWs are limited employment opportunities, illegal residency status, and fraudulent documentation.

Working Conditions

Although there is a considerable demand for domestic service staff, the Office of National de l’Emploi (ONEM) under the Ministry of Labor of Belgium do not issue work permits to foreigners mainly because of the high unemployment rate as well as the restrictive labor policies of the EU.

Except for a few hotel workers and a handful of office workers, migrant workers in Belgium engaged in activities mentioned above are generally considered "travaille noir", i.e., undeclared, unprotected and illegal. Belgian and other foreign employers do not declare their alien domestic employees with the Ministry of Labor because of the extreme difficulty in securing work permits, not to mention the fact that the prescribed employers are required to contribute to the Social Security System (ONSS) as well as the "pecule de vacance" or vacation allowance. While it is true that the fines imposed on employers who hire illegal workers run up to thousands of Euros, nonetheless, they take the risk of hiring them rather complying with the stringent labor law of Belgium.