Canada Wraps Up Philippines Trade Talks as It Courts Asia Beyond the U.S.

Canada and the Philippines have finished negotiating a free trade agreement, Prime Minister Mark Carney announced Saturday in Manila. Euronews and Global News reported that he and Philippine President Ferdinand Marcos Jr. signed a document formally ending the talks on the sidelines of the Association of Southeast Asian Nations summit.

The deal itself has not yet been signed. Carney said it should take around six months to sign and would come into force in 2027, according to Euronews.

The numbers behind the deal

$3.4 billion: Bilateral merchandise trade between the two countries in 2025. Global News reported that Canada sold mineral ores, meat, cereals, fertilizers and aircraft, and bought cooking oils, leather and rubber products.
$52.3 billion: Trade between Canada and ASEAN countries last year, according to Ottawa, a fifth larger than the year before.
Nearly 700 million: The number of people in the ASEAN bloc, which Global News described as one of the world's fastest growing economic regions.
More than 110 million: The population of the Philippines.
2035: The year by which Canada aims to double its exports to countries other than the United States.
2015: The year Canada and the Philippines began talks on a bilateral trade deal. Carney and Marcos restarted the effort a year ago.

What is behind the push

Euronews linked the agreement to Canada's effort to reduce its reliance on the United States after repeated clashes with President Donald Trump over trade. Carney called the announcement part of a strategy to build a “dense web of reliable partners” that would give Canadian businesses more opportunities, Canadians more choice and workers better jobs.

Canada is also seeking a wider agreement with ASEAN, which has 11 members including the Philippines and Thailand. Carney said negotiations on that deal have been substantially completed, according to Euronews. Last autumn he signed a trade deal with Indonesia, and this summer he signed a strategic partnership with the Philippines that called for more labor mobility and climate resilience projects.

Vina Nadjibulla, co-founder of the Centre for Strategic Statecraft, told Global News that much of Carney's recent diplomacy has focused on Europe, but Canada is also a Pacific nation. She said Canada wants to be an alternative partner for ASEAN countries, similar to Japan and Australia, so they are not caught between the United States and China.

Why it matters

Carney said the agreement is good news for Canadians in agriculture, aerospace and artificial intelligence, as well as businesses in forest products, mining, energy and services. The final terms have not been published in the sources, so the specific changes for exporters and consumers are not yet clear.

Global News reported that corporations were broadly supportive of the deal during consultations, while civil society groups raised concerns about the Philippines' record on the environment, labor and human rights.

What happens next

Carney said his government will move quickly to finalize the agreement. He is scheduled to travel next to Cambodia and then to China. Trump is due in Manila early next week before going on to the Asia-Pacific Economic Cooperation summit in Shenzhen, according to Euronews.

Around Prague, based on reporting by Global News, Euronews

Cover photo: Lea-Kim ( talk · contribs ) / Wikimedia Commons, CC BY-SA 4.0, cropped

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