Prime Minister Mark Carney and Philippine President Ferdinand Marcos Jr. have concluded negotiations for a free-trade agreement between Canada and the Philippines, with the formal signing of the deal expected next year. The two leaders met in Manila on the sidelines of the Association of Southeast Asian Nations summit, where both signed a document formally ending the talks, which had begun just over a year ago. Ottawa aims to have the actual agreement signed in 2027.

In his remarks to Marcos, Carney said that a ship that stays in the harbour is safe, but that is not what a ship is for, and that it takes a leader to steer into choppy waters to reach a destination. The ASEAN summit involves 20 heads of government, including guests from outside the region such as U.S. President Donald Trump and Brazilian President Luiz Inacio Lula da Silva. The bloc includes nearly 700 million people and is one of the world's fastest growing economic regions.S1S2

The agreement fits into a wider Canadian push in Southeast Asia. Canada is also pursuing a broader trade deal with the ASEAN bloc, which includes the Philippines and 10 other countries such as Thailand. Ottawa says trade between Canada and ASEAN countries amounted to $52.3 billion last year, a fifth larger than the year before. The region is central to Carney's goal of doubling exports to countries other than the United States by 2035. Carney also signed a trade deal with Indonesia last autumn.S1

Bilateral trade between Canada and the Philippines totalled $3.4 billion in 2025. Canada exports mineral ores, meat, cereals, fertilizers and aircraft, while importing cooking oils, leather and rubber products from the Philippines. This summer the two countries signed a strategic partnership agreement calling for more labour mobility and climate resilience projects. Talks on a bilateral trade deal had first begun in 2015 and were restarted by Carney and Marcos a year ago.S1

During consultations, corporations were broadly supportive of the deal, but civil society groups raised concerns about the Philippines' record on the environment, labour and human rights. Analysts note the summit gives Carney a chance to stress Asia's importance to Canadians, with Vina Nadjibulla of the Centre for Strategic Statecraft arguing that Canada is a Pacific nation and that the region is critical to its prosperity.S1