Canada and the Philippines have successfully concluded negotiations for a bilateral free trade agreement, a significant step towards enhancing economic relations between the two countries. The deal, which is slated for formal signing in 2027, is expected to boost market access and increase trade flows, marking a milestone in Canada’s strategic efforts to diversify its trade partnerships beyond the United States.
The announcement was made by Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. during their meeting in Manila, held in conjunction with the ASEAN summit. The two leaders signed a document officially concluding the negotiations that had resumed approximately a year ago.
Canada’s initiative to strengthen ties with the Philippines is part of a broader move to engage more deeply with the Indo-Pacific region. The strategy aims to double Canada’s exports to markets outside the US by 2035, reducing its reliance on its southern neighbor. In 2025, the bilateral merchandise trade between Canada and the Philippines was valued at approximately $3.4 billion, with Canada exporting goods such as mineral ores, meat, cereals, fertilizers, and aircraft, while importing cooking oils, leather, and rubber products from the Philippines.
Beyond trade, the agreement seeks to foster cooperation in areas such as labor mobility and climate resilience. However, there are ongoing concerns regarding environmental protection, labor standards, and human rights within the Philippines, highlighting areas that may require continued dialogue.
In addition to the bilateral agreement, Canada is pursuing a wider trade agreement with the ASEAN bloc, which encompasses a market of nearly 700 million people. Trade between Canada and ASEAN countries reached $52.3 billion last year, underscoring Southeast Asia’s growing significance in Canada’s economic plans.
The anticipated free trade agreement with the Philippines is expected to create new opportunities for businesses, strengthen supply chains, and deepen economic ties, further cementing Canada’s commitment to expanding its presence in the dynamic Indo-Pacific region.