The Philippines could gain access to more affordable farm inputs by eliminating tariffs on imports from Canada as part of its negotiations for a free trade agreement (FTA), according to agriculture industry groups.

During a public consultation by the Tariff Commission (TC) on Tuesday, July 14, Confederation of Sugar Producers Association (Confed) representative Rosemarie Gumera said the industry group is hoping to leverage the FTA with Canada as an additional source of critical planting inputs.

“Our interest as sugarcane producers is on the farm inputs, specifically chemical fertilizers like urea, diammonium phosphate, potash, and pesticides and herbicides as well,” she said.

Gumera said the sugar industry currently sources most of its urea fertilizer from China and India. However, since urea is a petroleum-based product, its primary source is the Middle East.

Since geopolitical tensions escalated in the Middle East four months ago, the local sector has been grappling with higher costs, which are expected to affect domestic output.

“We are very much affected with respect to the prices of fertilizer, pesticides, and all chemicals that we use on the farm,” said Gumera.

Lowering or eliminating tariffs on imported agricultural inputs is also expected to benefit the livestock sector, according to Pork Producers Federation of the Philippines Inc. (ProPork).

Nonon Tambago of ProPork said the government may consider offering tariff-free access to Canadian pulses and their by-products as a possible concession during FTA negotiations.

He said these products are not produced locally and would help improve the cost efficiency of animal feeds.

Meanwhile, Century Pacific Food Inc. (CNPF) said the government may also consider including Great Northern beans and green peas among the products that could be granted tariff-free access under the FTA.

CNPF, one of the country’s largest food and beverage manufacturers, primarily imports these products from the United States (US) since they are not produced domestically.

Department of Trade and Industry (DTI) Undersecretary Allan Gepty, the country’s chief negotiator for FTAs, said he would take note of these recommendations as part of the ongoing negotiations for the landmark trade pact.

Launched in October last year, negotiations for the Philippines-Canada FTA have completed two rounds so far, held in February and April this year, both in Manila.

The third round of talks, which will cover market access for goods, is scheduled to begin later this month in Ottawa.

Based on DTI data, bilateral merchandise trade between the two countries reached $2.15 billion in 2025, with Canada ranking as the Philippines’ 16th-largest trading partner among 229 economies.

Philippine exports to Canada reached $1.31 billion last year, while imports from Canada stood at $840 million.

“We are in surplus as far as Canadian trade is concerned. So this is a good sign, noting that, of course, Philippines has been experiencing trade deficit in goods for decades,” said Gepty.

“Finding partners wherein we experience surplus, I think that only shows that there's a lot of opportunities for our exporters. So in other words, if we have a preferential market access, so expectedly, our exports will increase because in the process, we create opportunities,” he added.

In addition, Gepty said the FTA with Canada could provide more opportunities for the local services sector and help attract new investments into the country.

“We see Canada as a reliable partner for purposes of creating opportunities and encouraging investments,” he said.

Canadian investment in the Philippines reached $1.7 billion, while Philippine investment in Canada stood at $51 million, according to a report by the Makati Business Club.