By Justine Irish D. Tabile, Reporter
CANADA and the Philippines are set to commence preliminary discussions regarding a bilateral free trade agreement (FTA) in the first half of 2025, according to officials.
Mary Ng, Canada’s minister responsible for export promotion, international trade, and economic development, stated that an FTA is significant not only for Canadian enterprises but also for those in the Philippines.
“The rationale behind its importance is that businesses constantly seek predictability. FTAs provide us with the guidelines for interaction, and I am eagerly anticipating these negotiations, which we are initiating immediately,” she remarked during the Team Canada Trade Mission Plenary Session.
“I am confident that the teams will convene at the very start of the new year. Given that we’re already in December, the new year is merely a month away,” she continued.
In a joint declaration on Thursday, Canada and the Philippines indicated that they aim to hold a first round of exploratory conversations in the first six months of 2025 for a comprehensive Canada-Philippines FTA.
When asked about the usual duration of negotiations for bilateral FTAs, Ms. Ng noted that Canada had recently finished the negotiations for a comprehensive economic partnership with Indonesia, which took just over three years.
She also mentioned that Canada and the Association of Southeast Asian Nations (ASEAN) are actively engaged in negotiating an FTA.
“The Philippines is included in this effort, so I genuinely believe that there’s considerable progress that has already been achieved through the Canada-ASEAN discussions that we can further develop, hopefully quite swiftly and effortlessly,” Ms. Ng expressed.
Ms. Ng further addressed the proposed ASEAN-Canada FTA (ACAFTA) in a meeting with Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Department of Trade and Industry Secretary Ma. Cristina A. Roque on Wednesday.
Initiated in November 2021, the ACAFTA covers market access for goods, services, and investments, as well as e-commerce, intellectual property rights, and support for micro-, small-, and medium-sized enterprises.
Canadian Embassy Senior Trade Commissioner Guy Boileau previously mentioned that the ACAFTA negotiations aim to conclude next year.
“At present, Canada ranks as a vital trade partner for the Philippines. Canada stands 20th among several countries, and we need to elevate this position,” Mr. Go remarked.
“I firmly believe that with your visit to the Philippines, this number will only rise. I hope that perhaps before this administration concludes, we can reconvene and you will be our 10th trade partner,” he added.
According to Ms. Ng, the bilateral trade between the Philippines and Canada is currently valued at approximately $5.6 billion, comprising $3 billion in merchandise trade and $2.6 billion in services.
TRADE MISSION
Ms. Ng is in the Philippines to head the Team Canada Trade Mission, which consists of 300 individual representatives from 200 Canadian companies and business organizations.
“We have a robust delegation of more than 300 Canadian participants, joined by 400 Filipino business leaders, and collectively they aim to establish new collaborations and partnerships,” she noted.
Among the agreements reached during the trade mission is the investment by Kickstart Ventures in a Canadian artificial intelligence (AI) firm named Lydia AI, which aims to broaden insurance accessibility throughout Southeast Asia.
The Philippine Department of Budget and Management also formalized a significant agreement with Canadian FreeBalance to enhance the department’s financial management systems.
Export Development Canada has also inaugurated an office in the Philippines, marking it as the first foreign export credit agency from a Group of Seven country to establish a presence there.
An administrative accord under Canada’s Nuclear Cooperation Agreement with the Philippines is also scheduled for signing late on Thursday.
“This will enhance our initiatives in the region via the Trade Gateway for Nuclear Development for the Indo-Pacific that Prime Minister Justin Trudeau recently announced,” Ms. Ng stated. “As a Tier 1 nuclear nation, Canada is well-positioned to assist the Philippines in achieving its energy security objectives through our expertise across the nuclear supply chain.”
She also mentioned that other companies have expressed intentions to establish a center or an office in the Philippines, such as OpenText, Ostrom Climate, and Maple Leaf Foods.
