Canada, Philippines push trade deal closer as ties expand beyond commerce

ASM, Philippine Canadian Inquirer
September 29, 2026

MANILA, Philippines — Canada and the Philippines are advancing negotiations toward a bilateral free trade agreement as both countries move to deepen cooperation in investment, infrastructure, energy, agriculture, digital industries and defense.

Canadian International Trade Minister Maninder Sidhu said he held discussions with Philippine Trade Secretary Cristina Roque on efforts to conclude both the Canada-Philippines Free Trade Agreement and the broader Canada-ASEAN Free Trade Agreement.

“Canada and the Philippines are building a stronger economic partnership—one that delivers greater opportunities for our businesses and workers,” Sidhu said in a social media post following the meeting.

The talks came as Sidhu participated in the 15th ASEAN Economic Ministers-Canada Consultation in Manila, which Roque and Sidhu co-chaired on Sept. 22. Global Affairs Canada said the minister’s meetings in the Philippines brought the proposed bilateral trade agreement closer to conclusion. 

Canada and the Philippines are targeting completion of negotiations for the bilateral FTA in 2026. The two governments are also working toward concluding the Canada-ASEAN agreement within the year. 

Canada estimates that a bilateral free trade agreement with the Philippines could triple two-way trade by 2035, while opening additional export opportunities for Canadian businesses, particularly in sectors including agriculture and forest products. 

Bilateral merchandise trade between Canada and the Philippines reached C$3.4 billion in 2025, according to Global Affairs Canada. Canadian investment in the Philippines also increased by more than 44% in 2025 compared with the previous year. 

Sidhu said his latest talks with Roque also covered opportunities under the Luzon Economic Corridor, as well as collaboration in data centers, agriculture, energy and defense.

Canada formally joined the Luzon Economic Corridor partnership earlier this year alongside the Philippines, the United States and Japan. Ottawa also committed C$2 million in technical assistance for a project under the corridor, which is intended to support infrastructure and economic development across Luzon. 

The two sides have also been expanding cooperation in other sectors. Canada and the Philippines signed an agreement in June covering energy and natural resources, including energy security, resilient supply chains and responsible resource development. 

Defense ties have likewise grown, with Canada participating in the Philippines’ Balikatan 2026 exercises and the two countries signing additional defense arrangements in June. 

Sidhu said the latest discussions also covered ways to increase two-way investment, as Ottawa seeks to strengthen its commercial presence in the Philippines and diversify its trade relationships across the Indo-Pacific.

The Philippines and Canada elevated their bilateral relationship to a Strategic Partnership in July, with trade, energy, defense and tourism among the priority areas identified by both governments.