Canada and the Philippines will kick-start talks early next year for a bilateral free-trade agreement (FTA) aimed at intensifying economic ties as well as fostering open trade and investments despite rising protectionism.
This was announced on Thursday, Dec. 5, by visiting Canadian Minister of Export Promotion, International Trade and Economic Development Mary Ng, who's in Manila leading the biggest-ever Team Canada Trade Mission to the Philippines.
Over 300 Canadian business leaders, on top of about 400 Filipino firms, participated in this trade mission.
During a panel discussion with Philippine trade and economic officials, Ng disclosed that she together with Trade and Industry Secretary Ma. Cristina Aldeguer-Roque will begin exploratory discussions for the planned FTA.
The two countries are already engaged in free-trade negotiations, but for a regional FTA between Canada and the Association of Southeast Asian Nations (ASEAN), in which the Philippines is an integral part.
As the Philippines and Canada celebrated 75 years of bilateral relations, coupled with rosier two-way trade and investment prospects, officials believe this is a good time to also explore what Ng hopes shall be a "high-quality and comprehensive" bilateral FTA between the two countries.
In a subsequent press briefing, Ng noted that since Canadian businesses are seeking predictability and certainty in trade and investment destinations like the Philippines, putting an FTA in place will provide clear rules of engagement for business transactions.
When asked to provide a timetable for negotiations, Ng replied that engagement between the two sides would likely start in the beginning of 2025.
She cited that Canada's discussions with Indonesia for a similar bilateral trade deal took about three years to conclude.
"We'll put energy behind negotiations. I hope that they do it very quickly," Ng said.
For her part, Aldeguer-Roque told the panel discussion that she's looking forward to signing the Philippine-Canada FTA in the near future to facilitate "more aggressive and friendlier" two-way trade.
In a separate joint statement on the potential Canada-Philippines FTA, the two countries disclosed that "both sides are aiming to meet for a first round of exploratory discussions in the first half of 2025."
Ng said Canada is interested to pursue more liberalized goods and services trade with the Philippines in sectors where Canadian businesses are already doing business here, such as agriculture and food, critical minerals, digitalization and artificial intelligence (AI), electronics, energy solutions, green mining, infrastructure, minerals processing as well as tourism.
As such, an FTA between Canada and the Philippines will further strengthen the reach of existing economic relations, she said.
According to Ng, work on a bilateral FTA will also complement the economic reforms put in place by the administration of President Ferdinand E. Marcos Jr., who she met together with Aldeguer-Roque as well as Special Assistant to the President for Investment and Economic Affairs Frederick D. Go last Wednesday, Dec. 4.
For his part, Go told the visiting trade delegation that he's confident that from the 20th-largest bilateral trade partner of the Philippines at present, Canada could climb to 10th place by the end of the Marcos Jr. administration in 2028.
Also, Ng did not discount the possibility of tackling labor provisions in the FTA talks, to allow the entry of more Filipino workers to Canada.
At present, about one million Canadians have Filipino heritage, she noted.
The joint Canada-Philippines statement pointed out that the two countries "enjoy a deep and long-standing relationship, based on our extensive commercial, cultural, and people-to-people ties."
"We share common values to maintain and improve the rules-based international trading system, including the importance of ensuring that the benefits of trade and investment are shared with all segments of society, especially underrepresented groups," they said.
In this regard, the statement said that Ng and Aldeguer-Roque "reaffirmed the continued commitment of Canada and the Philippines to supporting a strong, rules-based international trading system and upholding their values of ensuring open, fair, and inclusive trade, promoting and protecting labor rights, and supporting environmental protection."
The two officials also "underscored the importance of enhancing economic opportunities and benefits for businesses, consumers, and workers of both countries by improving market access conditions and creating a more predictable and transparent trading environment" as well as "reaffirmed their commitment to the substantial conclusion of an ASEAN-Canada Free Trade Agreement (ACAFTA) by the end of 2025," the statement said.