Philippines, Canada to finalize text for FTA in July

By Beatriz Marie D. Cruz, Senior Reporter

THE DEPARTMENT of Trade and Industry (DTI) is looking to finalize the text for the Philippines’ free trade agreement (FTA) with Canada by its third round of negotiations in July.

Trade Undersecretary Allan B. Gepty told BusinessWorld via Viber that the recently concluded second round of FTA talks was “very productive,” and “[has] achieved substantial progress in almost all the text-based negotiations.”

He said the Philippines and Canada are on track to finish FTA talks within the year.

“We have two more rounds, and we hope to stabilize the text by the third round in July. In the meantime, we will continue with intersessional work as well as consultations,” Mr. Gepty said.

The July round of FTA talks will be held in Ottawa, he noted.

An FTA with Canada, which is set to be the Philippines’ first trade deal in North America, is anchored on the two countries’ aim to diversify their respective export markets.   

“For Canada, it broadened its trade partnerships, particularly in the Indo-Pacific region, especially that we are also negotiating the ASEAN (Association of Southeast Asian Nations)-Canada FTA,” Mr. Gepty said.

The DTI earlier said that the Philippines is expected to finish FTA negotiations with Canada ahead of the ASEAN-Canada Free Trade Agreement (ACAFTA) this year.

The ACAFTA is one of the priority economic deliverables of the Philippines as chairman of the ASEAN this year.

A trade deal between the Philippines and Canada comes amid global trade uncertainties that have prompted countries to expand market access and reduce trade barriers.

For the Philippines, the trade pact presents opportunities to access high-value markets like Canada, Mr. Gepty said.

He noted that the country’s young workforce, strong macroeconomic fundamentals, and strategic location align with Canada’s push to diversify its trade partners.

“The Philippines stands not only as a trading partner, but as a strategic gateway, an economy with strong growth fundamentals, a dynamic workforce, and an advantage position within ASEAN,” Mr. Gepty said.

“This presents also a clear opportunity to embed the country within Canada’s diversification framework, and to secure a more stable and expanded access to a high-value market,” he added.

Trade Undersecretary Ceferino S. Rodolfo earlier said the FTA would help the Philippines secure wider access to the Canada-United States-Mexico Agreement. Likewise, Canada would benefit from the Philippines’ proximity to the ASEAN and regional neighbors like South Korea and China.

The trade deal would also help Philippines promote key sectors like mining and mineral processing, digital infrastructure, tourism, and high-value manufacturing with Canadian investors, the DTI noted.

“The Philippines views its relationship with Canada not merely as a bilateral engagement but as a forward-looking alliance anchored in resilience, diversification strategy, and shared values especially commitment to a rules-based system,” Mr. Gepty said.

As of end-February, Philippine exports to Canada inched up by 0.7% to $100.39 million, while imports grew by 0.5% to $112.59 million, data from the Philippine Statistics Authority showed.

Commonly traded products between the Philippines and Canada include agri-food and seafood products like wheat, pork meat, and pork products, as well as electronic goods like integrated circuits and electrical transformers.

Data from the Global Affairs Canada (GAC) showed that Canada-Philippines bilateral merchandise trade reached C$3.2 billion in 2024.

Canada’s stock in direct investments in the Philippines stood at C$844 million in 2024, GAC data showed.