Canada and the Philippines are concluding negotiations on a comprehensive free trade agreement, Canadian Prime Minister Mark Carney announced on Saturday, November 14, 2026. This development comes as Ottawa seeks to reduce its trade dependence on the United States. The US-Canada trade relationship has been strained since US President Donald Trump imposed tariffs, affecting various Canadian sectors.
According to official data, Canada's trade surplus slightly increased in September, driven by higher oil exports. However, Trump's tariffs have had a negative impact on several industries. Carney mentioned that the agreement with the Philippines is expected to be signed within approximately six months. He also stated that a broader agreement with the 11-member Association of Southeast Asian Nations (ASEAN) is being prepared, with negotiations "virtually concluded".
The free trade agreement with the Philippines aims to eliminate over 90% of tariff items and cover diverse sectors such as agriculture, aerospace, and artificial intelligence. Carney expects trade exchanges between the two countries, which reached $2.4 billion in 2025, to triple over the next decade. This agreement is part of Canada's strategy to build a network of reliable partners and reduce its relative dependence on the US.
The Canadian Prime Minister is currently on a tour that includes Cambodia, where he will attend the bi-annual summit of the International Organization of La Francophonie, and China, where he will participate in the annual APEC meeting. During his trip, Carney plans to meet with Chinese President Xi Jinping to discuss trade relations between Canada and China.
Carney has previously emphasized that Canada's trade relationship with the US will not return to its pre-Trump era. He stressed the need for Canada to diversify its trade partnerships. The Philippines also expects to finalize the trade agreement within the next year. The ASEAN agreement will further expand Canada's trade presence in the region.
The new trade agreements are part of Canada's efforts to strengthen economic ties with countries in the Asia-Pacific region. By diversifying its trade relationships, Canada aims to reduce its vulnerability to fluctuations in the US market. Carney's trip to Southeast Asia and China reflects Canada's commitment to engaging with new trade partners.
As Canada continues to navigate the complexities of international trade, the country is focused on building strong relationships with reliable partners. The agreements with the Philippines and ASEAN are expected to create new opportunities for Canadian businesses and contribute to the country's economic growth.
Key points
- Canada and Philippines near free trade deal to reduce reliance on US
- Agreement expected to eliminate over 90% of tariff items
- Canada also preparing broader agreement with ASEAN countries
Reporting sources
- كندا والفلبين تضعان اللمسات الأخيرة على اتفاقية للتجارة الحرة · Akhbar el-Yom
