PRESIDENT Ferdinand Marcos Jr. and Canadian Prime Minister Mark Carney signed a joint statement committing to sign a free trade agreement (FTA) in 2027 during their meeting in Manila on Saturday.
The agreement aims to establish a clear framework for deeper economic integration, market access, and mutual investment.
The milestone was formalized through a joint statement signed by Trade and Industry Secretary Cristina Roque and Canadian Minister of International Trade Maninder Sidhu during a ceremony ahead of the Association of Southeast Asian Nations (Asean) Summit.
During a press briefing, Palace Press Officer Claire Castro said the FTA covers digital trade, services, investment and trade in products.
“Filipinos working online could benefit from this, as they might gain more clients from Canada without needing to move abroad,” Castro said in Filipino.
She added that the FTA can also provide an opportunity for micro, small and medium enterprises (MSMEs) to explore the Canadian market, increase orders, and gain the capacity to scale up their operations and hire additional employees.
Castro noted, however, that the details of the FTA have yet to be provided.
“Specific policies, benefits and qualifications for online service providers and MSMEs have yet to be laid out. The two countries aim to sign the agreement by 2027,” she said.
The agreement follows the earlier meeting with the two nations, when Marcos went to Canada for an official visit in July.
Asean agreement
Carney, meanwhile, said negotiations for the Asean-Canada FTA have substantially concluded.
The FTA is expected to reduce tariff and non-tariff barriers and expand trade between the Asean countries and Canada.
Carney is in Manila to represent Canada as Guest of the Chair at the 49th Asean Summit and a meeting with Marcos.
In a statement, Carney's office described the Asean-Canada FTA as "transformative," citing Southeast Asia as among the world's fastest-growing economic regions.
He added that they will complete the remaining steps as soon as possible, with the hopes of a signing by 2027.
"With Asean, we are opening a market of nearly 700 million people through a landmark free trade agreement," said Carney.
"Two agreements in one year: that is the speed and ambition this moment demands," he added, alluding to the conclusion of the Philippines-Canada FTA negotiations on the same day they announced the substantial conclusion of the Asean-Canada FTA negotiations.
Carney also announced $5 million in total assistance to Asean countries to ensure that each one would have the ability to support the speedy ratification of the agreement and allow the countries to equally benefit from the agreement once in force.
The FTA is said to be part of Canada's efforts to make its economy less reliant on a single trading partner and more resilient to global shocks.
Executive Secretary Ralph Recto said the Asean-Canada FTA would pave the way to wider market access for Philippine products and services.
He said the value of the agreements will be reflected in the enterprises, the knowledge they bring, the investments they attract, and the jobs they create.
He encouraged Asean businesses to explore new markets, build new partnerships, and help smaller businesses enter the supply chains. He also asked for help in taking away remaining obstacles.
"An agreement delivers little if businesses still lose time and money at the border or struggle with procedures they cannot navigate," he added.
Asean and Canada initiated the FTA negotiations during the 10th Asean Economic Ministers-Canada Consultation in November 2021.
