Canada and the Philippines have successfully concluded negotiations on a new bilateral free trade agreement, with an official signing expected in 2027. This development, announced by Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. during a meeting at the ASEAN summit in Manila, marks a significant step towards enhancing economic cooperation between the two nations.
The agreement aims to bolster economic ties by expanding market access and increasing trade, which reached approximately $3.4 billion in merchandise exchange in 2025. Canada’s primary exports to the Philippines include mineral ores, meat, cereals, fertilizers, and aircraft, while the Philippines exports cooking oils, leather, and rubber products to Canada. This deal is part of Canada’s broader Indo-Pacific strategy to diversify its trade relationships and reduce reliance on the United States by doubling exports to non-US markets by 2035.
Beyond trade, the agreement seeks to foster collaboration in labor mobility, climate resilience, and other economic sectors. However, it also faces scrutiny over environmental protection, labor standards, and human rights issues within the Philippines.
In parallel with the bilateral agreement, Canada is negotiating a more expansive trade deal with the ASEAN bloc, which includes a market of nearly 700 million people. Trade with ASEAN countries totaled $52.3 billion last year, underscoring Southeast Asia’s growing importance in Canada’s trade strategy.
The new Canada-Philippines trade agreement is anticipated to create additional opportunities for businesses, reinforce supply chains, and deepen economic cooperation between the two countries, further solidifying Canada’s economic footprint in the Indo-Pacific region.