Canada and the Philippines have successfully concluded negotiations for a bilateral free trade agreement, aiming to formally sign the deal in 2027. This agreement is poised to enhance economic ties, expand market access, and bolster trade between the two nations. The announcement was made by Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. during their meeting at the ASEAN summit in Manila, where they signed a document to mark the completion of negotiations.
The free trade agreement is a strategic move for Canada as part of its broader initiative to strengthen economic partnerships within the Indo-Pacific region, thereby reducing its reliance on the United States as a primary trading partner. Prime Minister Carney has expressed a goal of doubling Canada’s exports to non-U.S. markets by 2035, highlighting the significance of this bilateral agreement in achieving that aim.
Currently, bilateral merchandise trade between Canada and the Philippines stands at approximately $3.4 billion as of 2025. Canada’s significant exports to the Philippines include mineral ores, meat, cereals, fertilizers, and aircraft, while it imports cooking oils, leather, and rubber products from the Philippines. The agreement also seeks to foster cooperation in areas such as labor mobility and climate resilience, despite some concerns about environmental protection, labor standards, and human rights in the Philippines.
In conjunction with this bilateral agreement, Canada is also pursuing a broader trade agreement with the ASEAN bloc, which represents a market of nearly 700 million people. The trade between Canada and ASEAN countries amounted to $52.3 billion last year, underscoring Southeast Asia’s growing importance to Canada’s economic strategy.
With this new agreement, both Canada and the Philippines anticipate creating additional opportunities for businesses, strengthening supply chains, and deepening economic cooperation, ultimately benefiting both nations’ economies.