Canada and Philippines conclude free-trade negotiations in Manila

Canadian Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. concluded negotiations for a free-trade agreement in Manila on November 14, 2026. The new pact aims to eliminate more than 90% of tariff lines across several key sectors, including agriculture, aerospace, and artificial intelligence. The agreement is expected to be formally signed in 2027.

The negotiation conclusion occurred during the 49th ASEAN Summit in Manila. The summit includes an opening ceremony scheduled for November 15, 2026. While the bilateral talks reached a conclusion, negotiations for a broader trade agreement with the 11-member Association of Southeast Asian Nations (ASEAN) are reportedly substantially concluded.

Strategic trade and sector benefits

The agreement is intended to provide a competitive advantage to specific industries. "The deal benefits Canadian agriculture, aerospace, and AI sectors, providing a competitive advantage," Mark Carney said. He also noted that the agreement serves as an example of what countries with shared visions can achieve.

The trade pact is part of a broader strategy to develop reliable partners and reduce reliance on the United States. This strategic shift follows recent impacts on the US-Canada trade relationship caused by tariffs imposed by US President Donald Trump. The bilateral trade relationship has seen growth, with a 7.4% increase in bilateral trade in 2025 compared to 2024.

Estimates regarding the total bilateral trade value for 2025 vary among media outlets. La Presse reported the value at $3.4 billion, while thestandard.com.hk and la-croix.com reported a value of $2.4 billion. Regardless of the specific annual figure, Ottawa has set a target of $10 billion in annual two-way trade with the Philippines.

Development and climate funding

In addition to the trade negotiations, Canada announced $26 million to strengthen bilateral ties. This funding is designated for nuclear security, climate-resilient agriculture, community resilience, food security, and infrastructure. This $26 million is part of a $6 billion fund promised by Ottawa in Spring 2026 to support international climate change mitigation. This international fund is co-piloted by Brazil and Norway.

During the summit, Mark Carney also met with Brazilian President Luiz Inácio Lula da Silva. The Prime Minister is currently on a multi-nation trip that includes a scheduled visit to Phnom Penh, Cambodia, for a biennial Francophonie summit.

Agricultural trade and import concerns

The Philippines currently serves as the 6th largest buyer of Canadian pork globally. While the trade relationship is expanding, the Philippine government has announced intentions to impose 60-day import restrictions on pork.

The economic scale of the partnership remains significant for both nations. The Philippines has a population of 100 million and an economic activity level of $680 billion. Currently, the Philippines' share of Canada's total exports is 0.1%, while its share of Canada's total imports stands at 0.3%.

Glossary

• bilateral trade — Bilateral trade refers to the exchange of goods and services between two nations. It is a component of the economic relationship between countries.
• ASEAN Summit — The ASEAN Summit is a meeting held by the Association of Southeast Asian Nations. It includes an opening ceremony and serves as a venue for leaders to meet and conduct negotiations.
• Association of Southeast Asian Nations (ASEAN) — The Association of Southeast Asian Nations (ASEAN) is a group of eleven members. It is an organization involved in regional trade agreements and economic cooperation.
• tariff lines — Tariff lines are categories used in trade agreements. They represent specific sectors or goods that countries aim to eliminate tariffs for.
• Francophonie summit — The Francophonie summit is a biennial meeting held by Francophonie countries. It serves as a venue for international leaders to meet.