What we heard: Consulting Canadians on a possible bilateral free trade agreement with the Philippines

Overview

On December 5, 2024, Canada and the Philippines announced, in a joint ministerial statement, exploratory discussions towards a potential bilateral free trade agreement (FTA). Bilateral FTA negotiations were officially launched on October 27, 2025.

Canada and the Philippines enjoy a deep and longstanding relationship, based on extensive commercial, cultural, and people-to-people ties. We share common goals to maintain and improve the rules-based international trading system, including the importance of ensuring that the benefits of trade and investment are shared with all segments of society, especially underrepresented groups.

Background

The Philippines is one of the fastest growing economies in the Southeast Asia region with notable commercial opportunities for Canada. The objective of the exploratory discussions is to gather information for the purpose of assessing how a potential Canada-Philippines FTA could build on the outcomes of an FTA with the Association of Southeast Asian Nations (ASEAN) and allow for the further elimination of barriers to trade between our countries.

In 2024, Canada-Philippines bilateral merchandise trade totaled $3.1 billion ($3.4 billion in 2023) with merchandise exports to the Philippines valued at $1.4 billion ($1.2B in 2023), while imports from the Philippines amounted to $1.7 billion ($2.2B in 2023). Top exports to the Philippines include mineral ores, meat, cereals, wood, machinery, electronics, fertilizers, and aircraft & parts. Top imports from the Philippines include electronics, machinery, animal and vegetable oils, leather and rubber products, scientific instruments, and preparations of vegetables. Bilateral trade in services was valued at $2.6 billion in 2023. In 2023, Canadian investment in the Philippines was valued at $983 million and Philippines investment in Canada was valued at $58 million. People-to-people links continue to grow between Canada and the Philippines, with about a million Canadians of Filipino descent living across Canada, including in remote areas. The Philippines is a top source of immigrants including international students, as well as healthcare and agricultural workers for Canada.

An FTA would strengthen existing bilateral relations with the Philippines and benefit services suppliers, investors and consumers, by improving bilateral market access and further enhancing the transparency and predictability of our trading and investment environment. Such an agreement would also demonstrate Canada’s commitment to strengthening ties with the Indo-Pacific region as outlined by the Indo-Pacific Strategy and promote an open, inclusive and rules-based international trading system.

Summary of consultations

From December 7, 2024, to March 7, 2025, the Government of Canada conducted consultations seeking the views of Canadian businesses, industry associations, provinces and territories, and the general public on a potential Canada-Philippines FTA. Public consultations consisted of a Canada Gazette notice inviting written submissions and a dedicated webpage.

Global Affairs Canada received a total of 31 submissions from across the country covering a broad range of sectors, including:

• Agricultural Industry
• Civil Society
• Business and Industry
• SMEs
• Individuals
• Manufacturing
• Provinces/Territories

Overall, stakeholders expressed a high level of support for the potential Canada-Philippines FTA, highlighting the benefits of increased trade with the Philippines and the potential opportunities in this market. However, some stakeholders expressed concern regarding the Philippines’ track record on the environment, labour, and human rights.

What we heard from stakeholders

Agriculture and agri-food

A majority of submissions (45 percent) the government received were from agricultural and agri-food organizations. Export-oriented sectors (e.g. sugar, beef, grains, pulses) showed strong support for a possible bilateral FTA with the Philippines, highlighting the potential diversification of their exports in a fast-growing market. They advocated for the removal of tariffs and non-tariff trade barriers to facilitate a stable and predictable trading environment. Furthermore, any potential agreement would need commitments to ensure that regulatory measures and sanitary and phytosanitary measures affecting trade in agricultural products are transparent and applied in a manner that does not create unjustified barriers to trade.

Stakeholders from supply-managed sectors (i.e. dairy, poultry, eggs) indicated that while they are not opposed to negotiations towards an FTA with the Philippines, they insisted that Canada refrain from making market access concessions for supply-managed products.

Business and Industry

Businesses and industry were highly supportive of a bilateral FTA between Canada and the Philippines. Stakeholders advocated for the removal of tariffs and non-tariff barriers including quotas, subsidies and prohibitions. Additionally, they asked for meaningful tax incentives for exporting Canadian companies and financial support for non-profit trade and business organizations to boost trade between the two countries.

Labour and human rights

While stakeholders believe that an FTA would deepen Canada’s people-to-people ties with the Philippines, some stated concerns about human rights, environmental and labour standards in the Philippines. On a domestic level, stakeholders expressed concerns over the treatment of Filipino migrant works in Canada and asked for more efforts in recognizing credentials of migrants in Canada.

Manufacturing

Submissions received from the manufacturing industry strongly supported the FTA. Stakeholders asked for the FTA to include legal protection for Canadian companies against sudden policy shifts including import bans and excessive duties. Furthermore, they emphasized the need for effective trade dispute mechanisms to ensure long-term stability and predictability for Canadian exporters.

SMEs

Submissions from Small and Medium-Sized enterprises strongly supported a possible bilateral FTA between Canada and the Philippines. Stakeholders showed interest in both exports and imports with the Philippines, highlighting the importance of market access and the quality import opportunities for primary or secondary products for distribution in Canada. SMEs further emphasized the need for government resources that support startups with legal, tax, registration and regulatory requirements to effectively export to the Philippines.

Provinces/Territories

The Government of Canada received two submissions from provinces and territories. Both strongly supported the negotiation of a potential FTA and highlighted the increased market access as a benefit for their respective jurisdictions. They emphasized the potential for not only trading goods but also services, energy and resources, and attracting foreign talent and expertise through the FTA. The provinces and territories asked that the Government of Canada continue to engage with them regarding commitments concerning provincial jurisdiction.

Next steps

Despite the conclusion of the dedicated consultation period, the Government of Canada is committed to continuing to hear the views of Canadians regarding a potential FTA with the Philippines. The feedback received from stakeholders will help inform Canada’s interests and priorities in these potential negotiations.

Related links

• Canada’s international trade and investment country fact sheet
• Canada-Philippines exploratory free trade discussions
• Canada’s Indo-Pacific Strategy