VANCOUVER, Canada — Canada and the Philippines have agreed to deepen economic cooperation through a new strategic partnership that includes plans to conclude negotiations on a Canada-Philippines Free Trade Agreement (FTA) by the end of 2026, creating new export opportunities for Canada’s forest products sector.

The announcement was made on July 2, when Canadian Prime Minister Mark Carney welcomed Philippine President Ferdinand Marcos Jr. to Vancouver during the first visit by a Philippine head of state to Canada in 11 years.

Forest Products Among Key Export Opportunities

The proposed bilateral FTA is expected to increase Canada-Philippines merchandise trade by nearly 200% by 2035, according to the Canadian government.

Canadian officials identified forest products and agriculture as sectors expected to benefit significantly from expanded market access.

The agreement forms part of Canada’s broader strategy to diversify exports and strengthen trade relationships across the Indo-Pacific region.

Trade Partnership Expands Across Multiple Sectors

In addition to trade, the new strategic partnership covers cooperation in:

• Energy
• Defence
• Tourism
• Investment
• Economic development

Prime Minister Mark Carney said expanding international partnerships is becoming increasingly important amid global economic uncertainty.

“We are deepening cooperation to unlock new markets and drive more investment between our growing economies,” Carney said.

Bilateral Trade Continues to Grow

Canada and the Philippines recorded CAD 3.4 billion in bilateral merchandise trade during 2025, making the Philippines Canada’s sixth-largest export market within the Association of Southeast Asian Nations (ASEAN).

Alongside bilateral negotiations, Canada is also pursuing a broader Canada-ASEAN Free Trade Agreement, with both negotiations targeted for completion before the end of 2026.

According to government estimates, the ASEAN agreement could contribute nearly CAD 2 billion to Canada’s gross domestic product while supporting approximately 14,000 jobs.

Indo-Pacific Strategy Supports Export Growth

International Trade Minister Maninder Sidhu said completing both trade agreements would strengthen Canada’s commercial presence across Southeast Asia and build on growing regional economic momentum.

For Canada’s forest products industry, expanded access to one of Southeast Asia’s fastest-growing economies could create new opportunities for exports of wood products, pulp and other value-added forest materials as demand for sustainable construction materials and packaging continues to increase.

The strategic partnership reflects Canada’s ongoing efforts to diversify export markets while strengthening economic cooperation throughout the Indo-Pacific region.

Last Updated on 13/07/2026 by Jota Machinery