Canada and the Philippines are accelerating efforts toward a bilateral free trade agreement (FTA), with both sides expressing hope that formal negotiations could begin as early as the first quarter of 2026. The move follows a series of steps taken over the past year to deepen economic ties and advance long-standing interest in establishing a trade pact.

On 5 November 2025, the Government of Canada tabled a Notice of Intent to enter into free trade negotiations with the Philippines, marking a significant milestone in the process. This followed a joint ministerial statement issued on 5 December 2024, in which both countries announced the start of exploratory discussions. Those discussions build on an initial exchange held in 2015, when the two governments first revealed plans to explore the possibility of an FTA.

According to the Philippines’ Department of Trade and Industry (DTI), both sides aim to complete a reference paper before the end of 2025. This document will outline the scope of negotiations and allow talks to be launched in early 2026. Trade Undersecretary Allan Gepty said the directive is not only to begin negotiations next year but also to seek their conclusion within the same period.

Officials in both countries view the prospective FTA as a significant strategic opportunity. For Canada, a bilateral agreement would complement ongoing efforts to finalize the ASEAN-Canada FTA, which remains a priority and is also targeted for completion next year. The Philippines, meanwhile, sees the potential deal as a stepping stone to diversifying its trade relationships. If successfully concluded, it would become the Philippines’ first free trade agreement with a North American partner.

Gepty noted that pursuing new markets has become increasingly important amid global uncertainties and the rise of protectionist trade measures, particularly in the United States. He also pointed to the Philippines’ growing ambitions in the broader Asia-Pacific trade architecture. Manila’s formal application to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to be reviewed by member countries next year, following a recent ministerial statement acknowledging the Philippines, Indonesia, Uruguay and the United Arab Emirates as active aspirants.

As exploratory talks with Canada continue, both sides emphasize that any future bilateral FTA would build on outcomes of the wider ASEAN-Canada negotiations. Officials say the goal is to reduce trade barriers, expand market access and strengthen the overall economic partnership between the two countries.