The Philippines expects to conclude negotiations for a free trade agreement (FTA) with Canada months before the completion of a regional pact between the North American country and the Association of Southeast Asian Nations (ASEAN).

During a Philippines-Canada business forum on Friday, March 13, Trade Undersecretary Ceferino Rodolfo said the FTA between the two countries would be finished “a few months” before the ASEAN-Canada Free Trade Agreement (ACAFTA).

It was widely expected that ACAFTA would be completed first since it is one of the priority economic deliverables of the Philippines as chair of ASEAN this year.

The regional trade agreement was seen to pave the way for expedited negotiations for the FTA between Canada and the Philippines, but Rodolfo said the government is pushing to complete the bilateral pact first.

He said the only barrier to its potential delay is “attention deficit,” as the country’s trade negotiators are also discussing trade deals with other countries.

“It could be a challenge, but let's assure that [the FTA] is a priority for the Philippine government,” said Rodolfo.

Following the first round of negotiations last month, Trade Undersecretary Allan Gepty said the next round of talks between Manila and Ottawa is scheduled for next month.

The second round is anticipated to set the stage for discussions on modalities for the trade pact’s market access mechanism.

Rodolfo said an FTA with Canada, which would be the country’s first in North America, is particularly crucial as the government pushes to prioritize the promotion of four key sectors.

These sectors include mining and mineral processing, digital infrastructure, tourism, and high-value manufacturing.

“Canada has critical advantages that would benefit the Philippines on all of these sectors,” said Rodolfo, noting that the sectors of mining and digital infrastructure would particularly gain the most benefit.

In terms of mining, the official said the FTA would help open the domestic mining industry to Canadian investments, especially as the country moves to beef up its processing capacity.

As for digital infrastructure, he said more investments could be generated to build the necessary facilities to keep the country ahead in digital progress, such as subsea cables, data centers, and telco towers.

In addition, Rodolfo said the trade deal would help provide the Philippines wider access to the Canada–United States–Mexico Agreement (CUSMA). Canada, meanwhile, is expected to leverage the Philippines to access ASEAN and neighboring countries like China and South Korea.

Mary Ng, Canada’s former minister of International Trade, Export Promotion, Small Business, and Economic Development, said the FTA would also foster greater stability necessary to encourage investments.

“To have that framework with the Philippines is really important because it says to the private sector, who count on governments to create stable investment environments, that that agreement is going to give us that bilaterally,” she said.