The Canadian government is hopeful that negotiations for a free-trade agreement (FTA) with the Philippines will conclude as early as next year, in line with its push to broaden market access for its domestic industries amid protectionist policies imposed by its southern neighbor, the United States (US).

During the inaugural Momentum Manila on Monday, Nov. 17, Canada’s Ambassador to the Philippines David Hartman said both Canada and the Philippines have officially started FTA negotiations.

This comes after the leaders of both countries—Philippine President Ferdinand “Bongbong” Marcos Jr. and Canadian Prime Minister Mark Carney—agreed to launch negotiations for the trade deal on the sidelines of the 47th Association of Southeast Asian Nations (ASEAN) Summit in Malaysia last month.

Hartman said both Canada and the Philippines are aiming to conclude talks by 2026.

“The scale and scope of economic opportunity and engagement between officials and our respective private sectors have never been greater. In fact, the challenge that we will have is to contend with that,” the envoy said.

“We’ll see over the next couple of months the robustness of this engagement take off and accelerate at an even greater pace,” he added.

Barrett Bingley, regional director for Asia of Vancouver-based think tank Asia-Pacific Foundation of Canada (APF Canada), explained that Canada is looking to fast-track talks with the Philippines due to uncertainties with the tariff policy of US President Donald Trump.

As it stands, Bingley said Canada’s services and the majority of its goods are still receiving tariff-free access to the US under the Canada-United States-Mexico Agreement (CUSMA), also known as USMCA.

With the trade agreement up for review next year, he said many businesses are worried that CUSMA will not be renewed, largely because of Trump. Non-renewal of the deal would mean that their tariff-free products will now be slapped with additional taxes.

To help cushion the impact of this threat, Bingley noted that Canada is pushing to expand market access of its non-US exports, which is estimated to be valued at around $300 billion over the next 10 years.

The main target for these exports is countries within the Asia-Pacific region.

Canada is currently working on an FTA with ASEAN, which is referred to as ASEAN-Canada Free Trade Agreement (ACAFTA), as part of its push to expand its presence in Southeast Asia.

Once the trade deal with the regional bloc is finalized, Bingley said FTA negotiations with the Philippines would be even easier, since there would now be a framework to base on.

He added that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), in which Canada is a member could also guide negotiations between the two countries. The Philippines formally applied to be a member of the trade bloc in August.

“Between the ACAFTA language and the CPTPP language, how much more can there possibly be to negotiate? That’s why I think it can go smoothly,” Bingley said in a chance interview.

“We’re very much hoping that [the FTA] is concluded during the Philippines’ ASEAN year,” he added, referring to the country’s hosting of the ASEAN Summit in 2026.

Canadian Chamber of Commerce of the Philippines (CanCham) president Christopher Ilagan said securing an FTA with Canada would also strengthen the country’s domestic sectors, particularly with the potential influx of new investments.

Ilagan stated that due to issues such as red tape, ease of doing business, and even the ongoing corruption scandal, investments in the Philippines are facing unnecessary hurdles.

He said a trade agreement could make investing easier, attracting fresh capital to help businesses expand and thrive in their respective sectors.

“Those trade terms, if done in a way that is a bit more beneficial to both parties, would attract investments into the Philippines,” he told reporters.

Ilagan, in particular, sees new investments coming into the export sector, such as in the manufacturing of semiconductors and electronic products.

During the Momentum Manila event, it was also mentioned that the FTA would help facilitate greater trade in oil and gas, critical minerals, and agriculture between the two countries.

Data from the Canadian government show that total trade between Canada and the Philippines reached 3.2 billion Canadian dollars last year, with Canadian exports to the Philippines valued at 1.4 billion Canadian dollars and imports from the Philippines amounting to 1.8 billion Canadian dollars.

Canadian investment in the Philippines stood at 844 million Canadian dollars, while Philippine investment in Canada was valued at 48 million Canadian dollars.