Canada and Philippines pursue trade deal amid Asian expansion

Canadian Prime Minister Carney is currently conducting a diplomatic tour across Asia to advance significant new trade agreements, including a comprehensive pact with the Philippines. The initiative forms a central component of a wider government strategy to develop a dense web of reliable international partners and shift the focus of Canada's economic dependencies away from the United States.

During his visit, Carney described the agreement with Manila as the most comprehensive accord that the Philippines has ever signed. The deal is set to eliminate over 90 per cent of tariff lines and will cover a broad range of sectors, including agriculture, aerospace, and artificial intelligence. Officials in Manila have indicated that they expect the pact to be finalised within the coming year.

Total trade between Canada and the Philippines stood at approximately US$2.4 billion in 2025. Carney expressed confidence that the new framework would facilitate a tripling of this trade volume over the next decade. This move is viewed by the Canadian administration as a critical step in securing more stable economic opportunities in the region.

Beyond the bilateral deal with the Philippines, Canada is also nearing the conclusion of negotiations for a broader agreement with the 11-member Association of Southeast Asian Nations (ASEAN). Carney noted that this would represent the first trade agreement the bloc has signed with a partner outside of Asia. Two-way trade with ASEAN currently exceeds US$50 billion annually, having grown by nearly 25 per cent over the past year.

Carney has maintained that the trade relationship with the United States will not return to a pre-Trump normal, necessitating an urgent diversification of Canada's trading relationships. He emphasised that creating these new partnerships is essential for the country's long-term economic resilience.

The prime minister is scheduled to travel to Phnom Penh, Cambodia, for a biennial Francophonie summit. Following this engagement, he will head north to Shenzhen, China, for the annual Asia-Pacific Economic Cooperation (APEC) meetings.

While in China, Carney plans to meet with Chinese leader Xi Jinping. The discussions are expected to centre on Canada's trade commitments with Beijing as part of the broader effort to stabilise and expand the country's economic reach.