Canada and the Philippines have reached a significant milestone by concluding negotiations for a bilateral free trade agreement, with plans to officially sign the accord in 2027. The agreement is set to bolster economic relations, enhance market access, and boost trade between the two countries.
The announcement was made by Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. during a meeting held on the sidelines of the ASEAN summit in Manila. The leaders signed a document that formally concluded the negotiations, which had resumed about a year ago.
This agreement forms a crucial part of Canada’s strategy to strengthen its economic partnerships within the Indo-Pacific region and decrease reliance on the United States as a primary trading partner. Prime Minister Carney has set an ambitious goal to double Canada’s exports to non-US markets by 2035.
In 2025, bilateral merchandise trade between Canada and the Philippines was valued at approximately $3.4 billion. Canada exports mineral ores, meat, cereals, fertilizers, and aircraft to the Philippines, while importing cooking oils, leather, and rubber products from them. The two nations also aim to enhance cooperation in areas like labor mobility and climate resilience, although there are concerns regarding environmental protection, labor standards, and human rights in the Philippines.
Simultaneously, Canada is pursuing a broader trade agreement with the ASEAN bloc, which consists of nearly 700 million people. Trade between Canada and ASEAN countries reached $52.3 billion last year, underscoring Southeast Asia’s growing importance to Canada’s economic strategy.
The new bilateral agreement with the Philippines is expected to create additional opportunities for businesses, strengthen supply chains, and deepen economic cooperation, further solidifying the ties between the two countries.