Canada and the Philippines have finalized a free trade agreement (FTA) aimed at boosting market access, trade, and investments between the two nations. The deal, concluded during Canadian Prime Minister Mark Carney’s visit to Manila, will grant Canadian businesses greater entry into the Philippines’ $680-billion economy, with a consumer base of over 110 million people. Both governments plan to sign the agreement in 2027, with projections suggesting Canadian exports to the Philippines could triple by 2035, particularly in agriculture and forest products.
The agreement aligns with Canada’s strategy to diversify its trade partnerships and strengthen its presence in Southeast Asia, a rapidly growing economic region. Carney also announced the near-completion of negotiations for a broader FTA between Canada and the Association of Southeast Asian Nations (Asean), covering a market of nearly 700 million people and an economy valued at close to $6 trillion. The Asean-Canada FTA is expected to add nearly $2 billion to Canada’s GDP and create almost 14,000 jobs, primarily in agriculture and manufacturing, once implemented.
Beyond trade, the two countries have established commercial partnerships in ocean technology, drone systems, and renewable energy. A memorandum of understanding between Ocean Supercluster, the Makati Business Club, and the University of the Philippines Visayas will enhance cooperation in ocean technology. Canadian firm Draganfly Inc. has partnered with the Razon Group to introduce drone technology for maritime operations, infrastructure protection, and disaster response. Additionally, JCM Power has agreed with the Aurora Pacific Economic Zone Authority to explore renewable energy investments for manufacturers and data centers.
Carney announced $26 million in investments to support nuclear safety, climate-resilient agriculture, food security, and infrastructure, including the G7-backed Luzon Economic Corridor. The two countries also agreed to deepen defense and security cooperation, including cybersecurity and efforts to combat illegal fishing. Canada will extend its Dark Vessel Detection program until 2033 to track vessels that disable their location devices. Carney emphasized that the agreements will create more opportunities for Canadian businesses while diversifying the country’s international economic partnerships.