Canada and the Philippines have concluded negotiations for a bilateral free trade agreement, aiming to sign the deal in 2027. This agreement is anticipated to enhance economic ties, broaden market access, and boost trade between the two countries. Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. announced the conclusion of talks during their meeting at the ASEAN summit in Manila.
The agreement is part of Canada’s strategy to diversify its trade partnerships in the Indo-Pacific region, reducing reliance on the United States. Prime Minister Carney has set a goal to double Canada’s exports to non-U.S. markets by 2035. The bilateral merchandise trade between Canada and the Philippines reached about $3.4 billion in 2025, with Canada exporting mineral ores, meat, cereals, fertilizers, and aircraft, while importing cooking oils, leather, and rubber products from the Philippines.
Beyond trade, the two nations are looking to enhance cooperation in labor mobility, climate resilience, and other economic sectors. Despite the positive outlook, concerns remain about environmental protection, labor standards, and human rights issues in the Philippines.
Meanwhile, Canada is also pursuing a broader trade agreement with the ASEAN bloc, tapping into a market of nearly 700 million people. Trade between Canada and ASEAN countries reached $52.3 billion last year, underscoring Southeast Asia’s growing importance in Canada’s economic strategy.
The new agreement with the Philippines is expected to create more business opportunities, strengthen supply chains, and deepen economic collaboration, marking a significant step in Canada’s broader Indo-Pacific economic strategy.