PHL, Canada eyes free trade deal by year’s end as ties escalate to strategic partnership

The Philippines and Canada have agreed to seek the conclusion of negotiations for a bilateral free trade agreement (FTA) before the end of 2026 after expanding their relationship to a strategic partnership, as the two countries move forward to deepen cooperation in trade, defense, energy, labor, security and people-to-people relations.

The announcement followed bilateral meetings between President Ferdinand R. Marcos, Jr. and Canadian Prime Minister Mark Carney in Vancouver, where the two leaders promised to strengthen relations.

“Prime Minister Carney and I have reaffirmed our commitment to finalizing negotiations for a free trade agreement between the two countries this year,” said Mr. Marcos when he made a joint statement with Mr. Carney live on Friday (Manila time) from Vancouver.

Mr. Carney noted that these bilateral efforts work in line with the Canada-Association of Southeast Asian Nations (ASEAN) FTA negotiations, which aim to provide businesses with access to the $5 trillion regional market of more than 700 million people.

“We have renewed our commitment to expand our bilateral trade, resist economic pressures, and build a strong supply chain,” added Mr. Marcos.

Mr. Carney said negotiations on the Canada-Philippines FTA have made significant progress since he and Mr. Marcos agreed to pursue an agreement during their first bilateral meeting last year.

He added that the agreement will serve as “the foundation of our new Canada-Philippines partnership,” citing the goal of tripling trade by 2035.

The two leaders officially announced the elevation of the relationship between the two countries to a strategic partnership, and their foreign ministers were tasked with preparing an action plan to implement increased cooperation.

“Today, I am pleased to announce the elevation of our bilateral relations to a strategic partnership,” said Mr. Marcos.

“We have tasked our foreign ministers to develop an action plan to advance our joint commitment to adapt to changing global conditions, address shared challenges, and build future-proof partnership capabilities,” he said.

As part of the expanded relationship, the two governments signed a Joint Declaration on Energy and Natural Resources Goals, which aims to strengthen cooperation in key minerals, processing and supply chains.

Mr. Carney said Canada and the Philippines are interested in expanding not only mineral production but also value-added processing of commodities such as nickel, cobalt, and copper.

“We are one of the largest exporters of nickel or the largest producers of minerals such as cobalt and copper, and we share your goals of not only increasing production but also the processing of these important materials,” he said.

Strategic partnerships also include close defense cooperation.

Mr. Carney said Canada expects to quickly adopt the Status of Visiting Forces Agreement, which will allow the armed forces of both countries to train and work closely together through joint military exercises.

“We will soon ratify the Status of Visiting Forces Agreement, which allows our armed forces to train and work together through joint military exercises in our two countries, strengthening our joint security,” he said.

Mr. Marcos also cited recent developments in the defense relationship between the two countries, including the signing of the Agreement on the Status of Military Visits in Manila in November 2025, the Mutual Logistics Support Program, and the statement of intent to strengthen defense cooperation that was signed in Ottawa two weeks ago.

The Philippine leader also thanked Canada for supporting the rules-based order in the South China Sea.

“As the Philippines celebrates the 10th anniversary of the 2016 Arbitral Tribunal Award in the South China Sea, I thank Canada for its vocal and consistent support for a rules-based order in the South China Sea under the United Nations Convention on the Law of the Sea … and for supporting the arbitral award as final and legally binding,” said Mr. Marcos.

Beyond trade and security, both governments announced new agreements on labor and migration, tourism, and culture.

Mr. Carney said the two countries signed a joint declaration of intent to work and migrate to strengthen the protection of migrant workers and promote ethical employment.

“Filipino workers make incredible contributions to communities around the world and in Canada,” he said. “If they’re here, we’re going to make sure they’re treated fairly, they can work safely, and their rights are protected.”

Mr. Marcos welcomed the deals, saying they would build on long-standing people-to-people ties while creating a “mutually beneficial talent pipeline for the future.” He also expressed hope that the Canadian and provincial governments will continue to address obstacles to the recognition of professionals trained in the Philippines.

Asked during a press conference about the reclassification of the Philippines by the World Bank as an upper middle income economy, Mr. Marcos said that the improved economic situation reflects the changes that have been made in the past four years so that the country can attract investors.

“I think that comes from the fact that the Philippines in the last four years has worked very hard to make the Philippines an investment-friendly place for local people and our friends around the world,” he said, noting that his administration recognized the private sector as “full partners in the development of the country.”

Mr. Carney described it as a “good sign” for the Philippines, saying it reflects the broad economic progress made in recent years rather than a single quarter of economic activity.

“It is a broad and progressive thing that has been built over the last years,” he said, adding that the rule of law, transparency and respect for human rights are becoming increasingly important as the economy develops and attracts long-term investments.

Mr. Marcos, as the current chairman of ASEAN, also invited Mr. Carney in Manila for the 49th ASEAN Summit and related meetings in November.

The Philippine president is also scheduled to meet with Canadian business leaders from mining, information technology business process management, and energy during his visit to Canada. – Erika Mae P. Sinaking