Canada has reached a major milestone in its trade diversification efforts with the conclusion of negotiations for two new free trade agreements. Prime Minister Mark Carney announced the substantial conclusion of negotiations for the ASEAN-Canada Free Trade Agreement (ACAFTA) during the 49th ASEAN Summit in Manila. This agreement will grant Canadian businesses access to a market of nearly 700 million people and an economy worth close to $6 trillion. Once in force, the ACAFTA is expected to boost Canada’s GDP by nearly $2 billion and create approximately 14,000 jobs, particularly in agriculture and manufacturing.
In addition to the ASEAN agreement, Prime Minister Carney and Philippine President Ferdinand Marcos Jr. concluded negotiations for a Canada-Philippines Free Trade Agreement. This deal, finalized just one year after its initiation, aims to triple Canadian exports to the Philippines by 2035. The Philippines, with an economy of $680 billion and a population of over 110 million, represents a significant opportunity for Canadian businesses, especially in agriculture and forest products.
During his visit, Prime Minister Carney also announced several initiatives to strengthen Canada’s defence and security cooperation with the Philippines. These include closer collaboration between armed forces, a new cybersecurity dialogue, and extensions of programs like the Dark Vessel Detection (DVD) platform, which combats illegal fishing activities. Canada will invest $26 million in various sectors, including nuclear security, climate-resilient agriculture, and infrastructure development.
Multiple commercial agreements were also signed, including partnerships in ocean technologies, drone technology, and renewable energy projects. Prime Minister Carney emphasized the importance of these agreements in building a more resilient and diversified economy for Canada.