The key facts

  • Canada and the Philippines have concluded negotiations on a free trade agreement a year after they were launched
  • Carney expects signing in about six months and the agreement to enter into force in 2027
  • Negotiations on a broader deal with ASEAN are, according to Carney, 'mostly complete'

Negotiations concluded in a year

Canada has concluded negotiations with the Philippines on a free trade agreement, Canadian Prime Minister Mark Carney announced on Saturday. According to him, the negotiations were launched a year ago, and over that time the parties managed to finish the work. The announcement was made in Manila, where Carney is taking part in the summit of the Association of Southeast Asian Nations (ASEAN).

Timeline for signing and the sectors that benefit

Speaking to journalists on the sidelines of the summit, Carney said the government will work to finalize the deal quickly: in his assessment, signing the agreement will take about six months, and it should enter into force in 2027. The prime minister called the deal 'good news' for Canadians in agriculture, the aerospace industry and the AI sector, as well as for companies operating in forestry, mining, energy and services.

A course toward trade diversification

The announcement fits into Ottawa's broader strategy of reducing dependence on the United States amid escalating trade disputes with the administration of Donald Trump. Canada aims to double its exports to non-US markets by 2035 and is drawing closer to Europe. Carney also said that negotiations on a broader trade agreement with the 11-nation ASEAN bloc are 'mostly complete.' According to him, Saturday's announcements are 'part of a strategy to build a dense network of reliable partners' for greater business opportunities, more choice for Canadians, better jobs and reduced relative dependence on the United States.

Summit context

Trump is expected to arrive in Manila early next week and then travel to Shenzhen for the APEC summit. After Manila, Carney plans to visit Cambodia and then also travel to China.