Canadian Prime Minister Mark Carney said a proposed Canada-Philippines pact would eliminate duties on more than 90% of tariff lines, the Associated Press and Channel NewsAsia reported, showing the proposed deal's potential reach.
Canadian and Philippine officials exchanged a signed joint statement in Manila on Nov. 14 to mark the close of negotiations. The agreement itself remains unsigned, with both governments aiming to sign it in 2027.
The Associated Press and Channel NewsAsia attributed the tariff figure to Carney's remarks to reporters. Canada's written announcement on Nov. 14 did not provide a tariff schedule or list products that would receive lower duties. Channel NewsAsia reported Carney cited agriculture, aerospace and artificial intelligence, without specifying the goods covered.
Global Affairs Canada puts bilateral merchandise trade at C$3.4 billion in 2025, up 7.4% from 2024. Canadian exports accounted for C$1.1 billion and imports for C$2.3 billion. Ottawa projects the agreement could increase exports to the Philippines by up to three times by 2035, particularly in agriculture and forest products.
Canada identifies farmers, ranchers, foresters and miners as potential beneficiaries. The Philippine government says the proposed accord covers market access for goods and services, investment and micro, small and medium-sized enterprises, which could gain access to Canadian buyers. It said the joint statement did not specify assistance or eligibility for those enterprises.
The discussions date to exploratory contacts in 2015, according to Global Affairs Canada. The bilateral process is separate from Canada's broader trade negotiations with the Association of Southeast Asian Nations (ASEAN).
Ottawa links the deal to its effort to rely less on a single trading partner. “Trade diversification is our Plan A,” Canada's International Trade Minister Maninder Sidhu said in the Nov. 14 announcement. The governments have set 2027 as the target for signing.
