Canada and the Philippines conclude talks on free trade deal, Mark Carney says
Prime Minister Mark Carney says deal expected to take effect in 2027 as Ottawa seeks to reduce reliance on the United States
Quick Look
- Canada has concluded free trade negotiations with the Philippines, Prime Minister Mark Carney announced in Manila, with the deal expected to take effect in 2027.
- The announcement is part of Ottawa's strategy to diversify trade partnerships and reduce reliance on the United States amid tensions with President Donald Trump.
AI-generated summary
Why It Matters
Canada launched free trade talks with the Philippines one year ago and has concluded negotiations. Ottawa is seeking to double non-US exports by 2035 and has been aligning more closely with Europe amid repeated clashes with US President Donald Trump over trade. Canada is also hoping to secure a broader trade deal with the 11-member ASEAN group, with negotiations substantially completed.
Canada has concluded talks with the Philippines on a free trade deal, Canadian Prime Minister Mark Carney announced on Saturday, as Ottawa continues to look to reduce its reliance on the US following a breakdown in relations with Washington.
"One year ago, Canada and the Philippines launched talks on a new free trade agreement," Carney wrote in a post on social media. "Today, we've already concluded the negotiations."
"We're diversifying our trade partnerships to build a stronger, more resilient Canadian economy," Carney, who is in Manila to attend the Association of Southeast Asian Nations (ASEAN) summit, added.
Speaking to the media on the sidelines of the summit, Carney said his government would work quickly to finalise the deal and that it would come into force in 2027. It is expected to take around six months for the agreement to be signed, he added.
"This is good news for Canadians in the agriculture sector, in the aerospace sector, even in AI, and our businesses working across forest products, mining, energy, services and beyond," he told reporters.
Ottawa is also hoping to secure a broader trade deal with the 11-member ASEAN group as a whole. Negotiations on such an arrangement have been "substantially completed," per Carney.
The prime minister said Saturday's announcements were "part of a strategy of developing a dense web of reliable partners to create more opportunities for our businesses, more choice for Canadians, better jobs for our workers and reducing our relative reliance on the United States."
Canada has been seeking to double non-US exports by 2035 and has been aligning itself more closely with Europe as part of its push to reduce its reliance on the US, prompted by repeated clashes with US President Donald Trump over trade.
Trump is due to arrive in Manila early next week, before heading on to China for the Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen. Carney is scheduled to next head to Cambodia before also arriving in China.
What to Watch
AI outlook — possibilities, not facts
The Canada-Philippines free trade agreement will be signed within approximately six months.
Likely · Within months
The Canada-Philippines free trade agreement will come into force in 2027.
Likely · Within months
Canada will work quickly to finalize the deal with the Philippines.
Likely · Within weeks
Open Questions
- What specific terms are included in the Canada-Philippines free trade agreement?
- When exactly will the agreement be signed, given the estimated six-month timeline?
- What is the status and timeline of the broader Canada-ASEAN trade deal?
- How will the Philippines' domestic ratification process proceed?
