The global financial crisis, trade and security were among the main topics discussed when ministers from Australia and the Philippines met for the start of two days of talks on Thursday.

Trade and foreign affairs ministers from both countries agreed to work closer together on counter-terrorism, defence cooperation, expanding trade and investment links and on furthering the peace process with Muslim rebels in the southern Philippines.

A number of business leaders, particularly from the mining sector, accompanied the Australian delegation, led by foreign minister Stephen Smith and trade minister Simon Crean.

Smith told a business forum that trade with China, India and Southeast Asian economies" had "buttressed" Australia in the face of the global financial crisis.

He said the Australian and Asian economies were "sheltered" to some extent because neither was overly exposed to subprime mortgages and because Asian economies had implemented financial and regulatory safeguards in the wake of the 1997 Asian financial crisis.