Asean, Canada hit breakthrough on free trade talks
Negotiations for a free trade pact between the Association of Southeast Asian Nations (Asean) and Canada have reached a “substantial conclusion,” both sides announced Saturday, bringing the 11-member bloc closer to its first such agreement with a North American country.
The breakthrough was announced on the sidelines of Canadian Prime Minister Mark Carney’s visit to the Philippines for the Asean Summit, marking a major step toward concluding negotiations that began in 2021.
According to Canada, several steps remain before negotiations formally conclude, but both sides are working to complete these as soon as possible, ahead of a potential signing in 2027. Canada is the 11th-largest economy in the world by nominal GDP.
Ottawa expects the agreement to strengthen supply chains and trade predictability between Canada and the bloc, while contributing nearly $2 billion to the Canadian economy and creating almost 14,000 jobs.
Asean has yet to disclose its projected economic gains from the deal.
Bilateral trade pact
Also on Saturday, Ottawa and Manila announced the conclusion of negotiations for a separate bilateral trade pact, likewise targeted for signing by 2027.
“Two agreements in one year: that is the speed and ambition this moment demands. That is how we build more choice, more customers, and greater sovereignty for Canadians,” Carney said in a statement.
In a press release, the Presidential Communications Office (PCO) said Philippines’ landmark deal with Canada will cover goods, services, investment, digital trade, and small and medium-sized enterprises, among other areas.
The agreement could also help local businesses reach more buyers, expand their customer base, and create more opportunities for Filipino workers, the PCO said.
In 2025, Canada ranked as the Philippines’ 18th largest export market, receiving $1.31 billion worth of goods, equivalent to 1.5 percent of the country’s total exports.
The FTA is expected to help triple the trade between the Philippines and Canada to more than $10 billion yearly by 2035.
Once signed next year, the agreement will become the Philippines’ first bilateral FTA with a North American country.
Investments
For the Asean pact, Canada pledged $5 million in assistance “to help ensure that every economy across Asean has the ability to support the agreement’s swift ratification and to equally benefit from it once in force.”
This comes on top of an earlier $25-million commitment from Canada to help Southeast Asian countries implement the trade agreement.
In 2024, Asean ranked as Ottawa’s fifth-largest trading partner, with bilateral trade surging by 22.7 percent to $52.5 billion.
During his Manila visit, Carney is also set to announce $10.9 million in additional investments in Asean, covering public safety, ocean protection, nuclear security and clean energy.
Canada is separately investing $26 million in the Philippines to support projects in nuclear security and safety, climate-resilient agriculture, community resilience, food security and infrastructure, including initiatives under the Luzon Economic Corridor.
Several agreements between Canadian and Philippine businesses are also expected to be signed.
