PH, Canada to ink free trade deal in 2027 after ASEAN Summit dialogue

Shekinah Jedidiah Alima

President Ferdinand Marcos Jr. and Canadian Prime Minister Mark Carney are set to sign a free trade agreement in 2027 after a bilateral summit on the sidelines of the 49th Association of Southeast Asian Nations (ASEAN) Summit and Related Summits on November 14.

In a joint statement, the Department of Trade and Industry (DTI) Secretary Maria Cristina Roque and Canada’s International Trade Minister Maninder Sidhu affirmed both countries’ shared commitment to execute the agreement.

Carney and his delegation joined the summit in Manila as Guest of the Chair to wrap up their talks on diplomatic and economic partnerships that they had early this year.

Marcos last met with Carney on his official visit to Canada last July where he secured US$2.5B in investments in the energy and mining industry. 

Separately, Carney visited the Philippines as he seeked to complete the ASEAN-Canada free trade agreement (ACAFTA), an act that aims to reduce tariff and tax on exports to expand market access between the 10 member states and Canada. 

The diplomatic talks for ACAFTA began in November 2021 which was initially supposed to be concluded in 2025, yet extended to 2026.

Once finalized, businesses in the region including the Philippines would gain substantial access to the North American Market and would make exports more competitive.

Should the act be passed in the ASEAN Summit, Canada would become the first country to have a free trade agreement (FTA) between South East Asian countries, advancing regional economic integration and growth.

State leaders from ASEAN member states and dialogue partners have started arriving at the Philippines on Friday, November 13.