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Canada seeks stronger agri trade ties with Philippines amid US tariff uncertainties
Business
The Economy
Canada seeks stronger agri trade ties with Philippines amid US tariff uncertainties
Canada seeks stronger agri trade ties with Philippines amid US tariff uncertainties
Published Aug 6, 2025 12:41 pm
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Updated Aug 6, 2025 01:11 pm
The local agriculture industry may soon see stronger trade ties with Canada, as its agriculture and agri-food minister expressed confidence in deepening the North American country’s trade relationship with the Philippines.
Despite tariff uncertainties in the United States (US), Heath MacDonald, Canada’s Minister of Agriculture and Agri-Food, said the situation presents an opportunity to strengthen and diversify agricultural trade, particularly with the Philippines.
“I look at the US tariffs, obviously, it’s a concern. There’s a lot of uncertainty out there. It’s certainly challenging for every country that’s affected by it. But I also see this as an opportunity,” he told reporters in a media briefing on Tuesday night, Aug. 5.
MacDonald shared that Canada is in talks with the Department of Agriculture (DA) to explore the potential expansion of agricultural trade, noting that the Philippines is his first official stop since being elected minister.
“The Secretary of Agriculture discussed this pointedly… We need to diversify. We can’t depend on partners that we can’t trust. Period,” he said, referring to DA chief Francisco Tiu Laurel.
He further explained that Canada is eager to explore more partnerships, as he said, “We need to develop a relationship with other countries, and this is what we’re doing. Canada can be a trusted partner in trade, export, and import.”
Recently, US President Donald Trump imposed tariffs on Canada, increasing the rate from 25 percent to 35 percent.
While the Philippines negotiated a reduction of this US tariff, it was only able to drive down one percentage point (ppt) of the threatened rate from 20 percent to 19 percent.
David Hartman, ambassador of Canada to the Philippines, further explained that there is a “very high level of ambition” between the Philippines and Canada.
“As you may know, Canada and ASEAN [the Association of Southeast Asian Nations] have had multiple rounds of negotiations towards the free-trade agreement (FTA) as well,” he said.
“We are looking to conclude that at the most expedient pace possible, and then immediately work successively with our bilateral relationship with the Philippines.”
The Philippines and Canada plan to begin exploratory talks for a bilateral FTA this year, aimed at deepening economic ties as well as encouraging open and inclusive trade.
The announcement was made during the biggest-ever Team Canada trade mission to the Philippines in December last year.
While both countries are already part of ongoing ASEAN-Canada FTA talks, they are seeking a more targeted deal covering key sectors like agriculture, critical minerals, digitalization, and energy.