Canada expects to conclude free trade agreements with the Philippines and the wider Southeast Asian bloc this year, as Ottawa seeks to boost business ties with the region and grow its non-U.S. trade. The announcement came from Canadian International Trade Minister Maninder Sidhu during a visit to Manila.
Negotiations Progressing Well
“Negotiations are really going well,” Sidhu said in an interview on Tuesday, after meeting with Philippine Trade Secretary Cristina Roque and Finance Secretary Frederick Go. He emphasized Canada’s commitment to diversifying its trading partners, a key goal under Prime Minister Mark Carney’s economic strategy.
Joining the Luzon Economic Corridor
Sidhu revealed that Canada is also joining the Luzon Economic Corridor, a project backed by the United States and Japan. Ottawa is contributing $2 million to the initiative. “It sends a signal to the Canadian businesses out there that want to look at investing in the Luzon Economic Corridor that Canada’s skin is in the game,” he said. Potential investments include data centers, logistics, and energy projects.
Focus on the Philippines’ Middle Class
In pursuing a free trade deal with the Philippines, Canada is eyeing the country’s expanding middle class, which bodes well for Canadian agriculture exports, according to the minister. The Philippines has a rapidly growing consumer market, making it an attractive partner for Canadian goods.
Canada-ASEAN FTA Talks
Canada and the Association of Southeast Asian Nations (ASEAN) agreed to start free trade talks in late 2021, when “the world was in a different place,” Sidhu noted. He stated that Prime Minister Mark Carney is committed to diversifying the nation’s trading partners and there is political will to conclude the Canada-ASEAN FTA. Carney last year laid out a strategy to double Canada’s exports to markets outside the U.S. within a decade, aiming to net an extra $300 billion in trade.
Defense Cooperation
Sidhu, who is also scheduled to meet with Manila’s Defense Secretary Gilberto Teodoro Jr., said Canada wants to be a defense supplier to the Philippines, which is aiming to modernize its military capabilities. Canada and the Philippines signed a visiting forces agreement last year, and Canadian troops participated in the annual flagship U.S.-Philippines military drills that ended last week.
The push for free trade agreements comes as Canada seeks to reduce its economic reliance on the United States and tap into fast-growing Asian markets. The Philippines and ASEAN offer significant opportunities for Canadian businesses in sectors such as agriculture, technology, and defense.
