Canada and the Philippines have agreed to finalize negotiations on a bilateral free trade agreement (FTA) by the end of 2026, alongside the announcement of a broad partnership covering trade, defense, energy, labor mobility, and tourism. The agreement underscores Ottawa’s effort to reduce reliance on the U.S. market and strengthen its engagement in the Indo-Pacific region.
Canadian Prime Minister Mark Carney declared the partnership following talks with Philippine President Ferdinand Marcos in Vancouver, during the latter’s first official visit to Canada in more than a decade.
The agreement comes as Canada seeks to diversify its trade relationship beyond the United States by strengthening economic ties with rapidly growing Asian economies. Meanwhile, the Philippines is expanding its security cooperation with a broad range of partners amid growing tensions with China in the South China Sea.
Carney said negotiations for the Canada–Philippines free trade agreement remain on schedule for completion before the end of the year. According to the Canadian government, the pact could triple bilateral trade by 2035 and create substantial export opportunities for Canadian agricultural and forestry sectors.
The Philippines is Canada’s sixth-largest merchandise export market within ASEAN, with bilateral trade reaching C$3.4 billion ($2.4 billion) in 2025. The negotiations are also taking place alongside discussions on a broader Canada–ASEAN free trade agreement, which Ottawa aims to conclude this year under the Philippines’ ASEAN chairmanship.
Beyond trade, the two countries have deepened defense ties. Canada confirmed that the Status of Visiting Forces Agreement with the Philippines will soon take effect, enabling joint military exercises and closer operational cooperation. This builds on recent defense accords, including a Mutual Logistics Support Arrangement and a Statement of Intent signed during Philippine Defense Secretary Gilberto Teodoro’s visit.
For Canada, enhanced defense cooperation supports its Indo-Pacific strategy to strengthen military presence and partnerships.
The two governments also signed a joint declaration on Energy and Natural Resources Cooperation, along with a new Technical Assistance Partnership. The agreements are intended to deepen collaboration in energy, mining, and critical minerals supply chains, supporting more resilient and sustainable resource networks across the Indo-Pacific.
In addition, both sides signed a joint declaration on Labour and Migration. The framework seeks to strengthen protections for migrant workers, ensure ethical recruitment, and promote safe and transparent labor mobility.
The partnership also includes two memoranda of understanding on tourism aimed at facilitating easier travel between the two countries. Canadian Foreign Minister Anita Anand described the Philippines as one of Canada’s closest Indo-Pacific partners, noting that the agreement reflects steadily deepening bilateral ties.
International Trade Minister Maninder Sidhu said it would open new commercial opportunities for Canadian businesses while enhancing engagement with Southeast Asia.
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